Hong Kong raises 14-year base rate

Hong Kong Monetary Authority makes some homebuyers sweat

In today’s roundup of regional headlines, Hong Kong’s de facto central bank is raising its base rate to the highest level since March 2008, prompting the city’s finance chief to issue a statement downplaying the likelihood of a sharp adjustment in the real estate market.

Hong Kong raises base rate to 14-year high as Fed signals more pain

Hong Kong’s cost of borrowing rose for the fifth time in six months, prompting the city’s top finance official to warn of ‘negative growth’ in the local economy as the de facto central bank followed suit the US Federal Reserve by raising its key interest rate.

The Hong Kong Monetary Authority raised its base rate by 75 basis points to a 14-year high of 3.5% with immediate effect, according to a statement on Thursday, hours after U.S. policymakers raised the rate. target federal funds of the same quantum for between 3 and 3.25%. Learn more>>

HK’s finance chief says there is no material risk to property prices

Hong Kong’s finance chief said on Thursday he saw no significant risk to the city’s property market or a need to adjust property controls as the financial hub braces for further interest rate hikes.

Finance Secretary Paul Chan was speaking after the Hong Kong Monetary Authority raised its base rate charged through the overnight discount window by 75 basis points to 3.5% , its highest since October 2008, following the same decision by the US Federal Reserve. Learn more>>

Daiwa House Logistics Trust buys 3 assets in Japan for $33 million

Singapore-listed Daiwa House Logistics Trust launched its first acquisition following its IPO last November, with plans to purchase two freehold logistics facilities and freehold land in Japan from the sponsor Daiwa House Industry for 4.68 billion yen ($33 million).

According to DHLT, the combined implied NPI yield for both properties is 6.5%, which is higher than the combined NPI yield of existing properties in DHLT’s portfolio of 6.1%. Learn more>>

ICP targets Nagoya and Hotel Sapporo in $46 million deal

Singapore-based ICP has offered to acquire a stake in two hotel properties in Sapporo and Nagoya in a 6.5 billion yen ($46 million) deal, the company announced on Wednesday evening.

The group, through its wholly-owned subsidiary, will take a 5% stake in a joint venture that acquires the properties. JV partner Topco, a subsidiary of a US asset management firm specializing in alternative investments, will hold the remaining 95%. Learn more>>

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China Fortune Land’s debt plan encounters resistance

The first Chinese developer to default under government measures aimed at curbing the sector’s debt growth is facing opposition from creditors to a long-awaited offshore restructuring plan, which aims to push back repayment for eight years.

Advisors to an ad hoc group of China Fortune Land Development dollar bondholders scheduled an open call to all such creditors on Thursday at 6 p.m. HK time, during which they were to explain why the published offer last week should not be supported. Learn more>>

Evergrande Mulls transfer of assets to property unit for payment of debt

China Evergrande Group said on Wednesday it was considering transferring some assets to its real estate unit to settle part of the unit’s debt payments.

In July, the company revealed that loans backed by Evergrande Property Services had been diverted to the parent group, leading to the resignation of Evergrande Group’s chief executive and chief financial officer. Learn more>>

Amid frenzied shopping at Singapore condo launches, hints of a spike

On September 16-17, GuocoLand sold 508 units, or 84%, of Lentor Modern’s 605 99-year leasehold homes, at prices ranging from S$1,856 to S$2,538 ($1,309 to $1,790 ) per square foot. The success of Lentor Modern follows strong turnout at recent launches of leasehold condominium developments in the Outer Center area.

Around 75% or 118 of Sky Eden@Bedok’s 158 homes sold at an average price of around S$2,100 per square foot when the project launched on September 7. AMO Residence in Ang Mo Kio sold 366 of its 372 units in July at a median price of S$2,110 per square foot. Learn more>>

China’s small towns bear the brunt of housing glut

The stock of new homes in China’s small towns hit its highest level since 2019 at the end of August, according to a report by an independent consultancy, amid fragile demand in China’s depressed property market. country.

The number of unsold new homes in Tier 3 and Tier 4 cities jumped 5% at the end of August from a year ago, according to China Real Estate Information Corp (CRIC), which monitors 100 Chinese cities. Learn more>>

Check back soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or tag Mingtiandi’s LinkedIn page for headlines as they happen.

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