HONG KONG, April 29 (Reuters) - China Railway Group Ltd , the country's largest railway and highway builder, plans to seek separate listings for its real estate and resources assets at the right time, a senior executive said on Wednesday.
The company estimated its revenue to rise by nearly a quarter to 280 billion yuan this year from 225 billion yuan in 2008, its president, Li Changjin, told reporters.
Thursday, April 30, 2009
Thursday, April 23, 2009
Real estate offers market hope
SHANGHAI'S key stock index reversed its morning losses today and ended higher, led by real estate developers after experts said the property market might pick up in the second half of the year.
The benchmark Shanghai Composite Index rose 0.11 percent, or 2.61 points, to close at 2,463.95 points. Turnover shrank to 113.29 billion yuan (US$16.67 billion) from 177.6 billion yuan on the previous trading day.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 0.74 percent to close at 825.22 points.
The benchmark Shanghai Composite Index rose 0.11 percent, or 2.61 points, to close at 2,463.95 points. Turnover shrank to 113.29 billion yuan (US$16.67 billion) from 177.6 billion yuan on the previous trading day.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 0.74 percent to close at 825.22 points.
Wednesday, April 22, 2009
China’s real estate market is not yet showing signs of recovery
Spring is yet to come to China´s housing market, and the government should take more measures to stimulate real estate development, said Ren Zhiqiang, President of Huayuan Group, at a breakout session of the 2009 Boao Forum for Asia Annual Conference in Hainan Province on Friday.
China´s real estate market has shown no sign of any remarkable recovery so far. After the global financial crisis broke out, the Chinese government worked out a 4 trillion yuan (US$585.33600 billion emergency plan to boost the domestic economy. To date, however, only some 200 billion yuan has gone to the real estate market, and this investment is far from adequate to bring about any radical change, said Ren Zhiqiang.
As the global financial crisis unfolds, China has loosened some restrictions on the market in second-hand homes.
China´s real estate market has shown no sign of any remarkable recovery so far. After the global financial crisis broke out, the Chinese government worked out a 4 trillion yuan (US$585.33600 billion emergency plan to boost the domestic economy. To date, however, only some 200 billion yuan has gone to the real estate market, and this investment is far from adequate to bring about any radical change, said Ren Zhiqiang.
As the global financial crisis unfolds, China has loosened some restrictions on the market in second-hand homes.
Saturday, April 18, 2009
In China, Property Sales Show Signs of Picking Up
The volume of real-estate sales in the first quarter rose 8.2% from a year earlier to 113.09 million square meters, or about 135.71 million square yards, the National Bureau of Statistics said Monday. Residential property sales increased 8.7%, though the commercial market remained weak, with sales of office property down 13.1%. Property sales had declined sharply for most of 2008, but started to turn around at the beginning of this year.
Property prices remain down but are starting to stabilize. The statistics bureau said the average housing price in 70 Chinese cities rose 0.2% in March from February. That is the first gain after seven consecutive monthly declines, though the price index remains 1.3% below its level in March last year.
Property prices remain down but are starting to stabilize. The statistics bureau said the average housing price in 70 Chinese cities rose 0.2% in March from February. That is the first gain after seven consecutive monthly declines, though the price index remains 1.3% below its level in March last year.
Friday, April 17, 2009
Industry expert says China’s real estate bubbles have evened out
The bubbles brewing in China´s housing market have slowly floated away over the past years, and now the market maintains sound growth, said Yang Hongxu, vice director of E-house China R&D Institute, in a recently published research report.
The conclusion was based on Yang´s estimated housing price-to-income ratio, a basic affordability measure for housing in a given area with a range of three-six recognized as reasonable.
Yang said that China saw the ratio in 2008 decline to the level of 2004 and forecast that it would further fall to 6.2 in 2009.
China has experienced rapid growth in the housing price-to-income ratio in recent years with the ratio fluctuating around 5.5-7.5 per cent from 1996 to 2008, higher than that of developed countries in the same period.
The conclusion was based on Yang´s estimated housing price-to-income ratio, a basic affordability measure for housing in a given area with a range of three-six recognized as reasonable.
Yang said that China saw the ratio in 2008 decline to the level of 2004 and forecast that it would further fall to 6.2 in 2009.
China has experienced rapid growth in the housing price-to-income ratio in recent years with the ratio fluctuating around 5.5-7.5 per cent from 1996 to 2008, higher than that of developed countries in the same period.
Wednesday, April 15, 2009
Monday, April 13, 2009
Annual Report on China's Real Estate Industry, 2008
In the Jan.-Dec. Period of 2008, China saw a combined investment of RMB 3,058 billion in real estate development, growing 20.9% year on year, with the growth rate falling 1.8 percentage points in the Jan.-Nov. period. Among the combined investment, the residential real estate investment amounted to RMB 2,208.1 billion, rising 22.6% over a year earlier, with the growth rate
declining 2.6 percentage points, and accounting for 72.2% of the real estate investment.
In the same period, Chinese real estate developers witnessed a total floor space of 2.74 billion square meters under construction, growing 16.0% from a year earlier; a newly commenced floor space of 980 million square meters, increasing 2.3% compared to 2007; and a completed floor space of 590 million square meters, falling 3.5%. The floor space of the residential real estate completed was 480 million square meters, reducing 4.2%. Chinese real estate developers bought 370 million square meters of land, down 8.6% year on year, and completed a land development area of 260 million square meters, down 5.6% year on year.
declining 2.6 percentage points, and accounting for 72.2% of the real estate investment.
In the same period, Chinese real estate developers witnessed a total floor space of 2.74 billion square meters under construction, growing 16.0% from a year earlier; a newly commenced floor space of 980 million square meters, increasing 2.3% compared to 2007; and a completed floor space of 590 million square meters, falling 3.5%. The floor space of the residential real estate completed was 480 million square meters, reducing 4.2%. Chinese real estate developers bought 370 million square meters of land, down 8.6% year on year, and completed a land development area of 260 million square meters, down 5.6% year on year.
Saturday, April 11, 2009
US property dealers eye wealthy Chinese
This is the first US property selling delegation to China, following a Chinese buying delegation's trip to the US in March.
"China, which has a fast growing economy and an emerging group of rich people, is now a market we cannot afford to miss," said Rob Emerick, head of the US delegation.
According to the Boston Consulting Group's report, China had the world's fifth-largest population of millionaires in 2008, at 391,000, up 20 percent from the previous year.
"China, which has a fast growing economy and an emerging group of rich people, is now a market we cannot afford to miss," said Rob Emerick, head of the US delegation.
According to the Boston Consulting Group's report, China had the world's fifth-largest population of millionaires in 2008, at 391,000, up 20 percent from the previous year.
Friday, April 10, 2009
China Home Prices Will Be Stagnant
April 8 (Bloomberg) -- China’s housing prices will be stagnant through 2010 as government efforts to spur purchases through economic stimulus measures and lower interest rates fail to cut into a glut of homes, said E-House (China) Holdings Ltd, a Shanghai-based real estate broker and consultant.
“Prices won’t rise until inventory is cleared,” E-House Chief Financial Officer Li-Lan Cheng said in an interview in New York. “I don’t see such a scenario until sometime in 2010.”
China’s economy, the world’s third largest, faces its biggest threat from the real estate sector, Fan Jianping, head of the State Information Center’s economic forecasting department, said March 18. Home prices fell for a third straight month in February, dropping a record 1.2 percent, the National Development and Reform Commission said March 10.
Housing prices in China’s top 20 cities probably declined 5 percent in March, Cheng said. He said oversupply was the worst in Beijing and Shanghai while the southern cities of Guangzhou and Shenzhen were “bottoming out.”
“Prices won’t rise until inventory is cleared,” E-House Chief Financial Officer Li-Lan Cheng said in an interview in New York. “I don’t see such a scenario until sometime in 2010.”
China’s economy, the world’s third largest, faces its biggest threat from the real estate sector, Fan Jianping, head of the State Information Center’s economic forecasting department, said March 18. Home prices fell for a third straight month in February, dropping a record 1.2 percent, the National Development and Reform Commission said March 10.
Housing prices in China’s top 20 cities probably declined 5 percent in March, Cheng said. He said oversupply was the worst in Beijing and Shanghai while the southern cities of Guangzhou and Shenzhen were “bottoming out.”
Friday, April 3, 2009
Banks Face Big Losses From Bets on Chinese Realty
They lent his company $400 million, encouraged him to acquire large tracts of land and in early 2008 promoted a proposed $2.1 billion public stock offering by the company, the Evergrande Real Estate Group, in Hong Kong.
One year later, China’s housing market has collapsed, Evergrande is mired in debt and the Wall Street bankers are facing huge losses because the company never sold stock to the public.
Now, analysts say, Evergrande has become a symbol of China’s go-go era of investing, when international bankers, private equity deal makers and hedge fund managers rushed here hoping to cash in on the world’s biggest building boom.
One year later, China’s housing market has collapsed, Evergrande is mired in debt and the Wall Street bankers are facing huge losses because the company never sold stock to the public.
Now, analysts say, Evergrande has become a symbol of China’s go-go era of investing, when international bankers, private equity deal makers and hedge fund managers rushed here hoping to cash in on the world’s biggest building boom.
Wednesday, April 1, 2009
Funds Wary of Risk in China Real Estate
Overall, real estate in the country remains too risky, illiquid and poorly developed to expect significant overseas investment at a time when bargains are emerging in more transparent markets elsewhere, the executives said.
"International investors are taking their money home," said Richard Price, regional chief executive officer of ING Real Estate Investment Management.
He said well-known complications of doing property deals in China "make people pause" about committing money now.
Falling property prices and a collapse in transactions were a major cause of the slowdown in China's economic growth last year. Foreign investors have been a relatively tiny force in the property market, but they tend to have a disproportionate influence on the market and on policymaking.
China's government has clamped down on speculation in residential apartment prices in recent years partly by pinching foreign investors with new hurdles.
"International investors are taking their money home," said Richard Price, regional chief executive officer of ING Real Estate Investment Management.
He said well-known complications of doing property deals in China "make people pause" about committing money now.
Falling property prices and a collapse in transactions were a major cause of the slowdown in China's economic growth last year. Foreign investors have been a relatively tiny force in the property market, but they tend to have a disproportionate influence on the market and on policymaking.
China's government has clamped down on speculation in residential apartment prices in recent years partly by pinching foreign investors with new hurdles.
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