25 March 2017

Property and Construction

  • Evergrande has some US$57 billion in debt, almost six times its market value. Photo: Bloomberg

    Evergrande plans US$1 billion notes to refinance debt

    Mar 24, 2017 1:12pm
    China Evergrande Group (03333.HK), the country’s top home builder, plans to issue up to US$1 billion in US dollar notes to refinance debt, a move which comes on top of a US$1.5 billion dual tranche issue...
  • Kaisa still has considerable assets in Shenzhen, where property prices continue to flourish. Photo: Reuters

    Kaisa set to release long-overdue results to end trading halt

    Mar 24, 2017 11:44am
    Kaisa Group Holdings Ltd., the first and only Chinese property developer to default on overseas debt, will hold a board meeting on Saturday to approve the publication of its 2014-1016 annual results, Bloomberg reports. Releasing the...
  • The Rockefeller family sold 14 buildings of its Rockefeller Center, bought them back and then sold them again to take advantage of huge swings in market prices. Photo: Fordos

    How the Rockefeller family adapts to the changing times

    - Mar 24, 2017 11:06am
    John D. Rockefeller, the patriarch of the Rockefeller family and America’s first billionaire, founded Standard Oil in 1870. It was the largest oil refinery in the weed of its time. As one of the world’s first...
  • The government usually moves to further tighten property policy about six months later if previous measures fail to cool the home market. Photo: HKEJ

    Where to look for signs of a peak-out in home prices

    - Mar 23, 2017 4:33pm
    Last week, I argued that the narrowing price gap with blue-chip housing estates and the rising down payment suggest the starter home boom may soon be over. However, that does not necessarily mean housing prices in...
  • The real estate and construction sector is a major contributor to China's hazardous smog, and accounts for 8 percent of the world's carbon emissions. Photo: Reuters

    Top Chinese property developers launch green index

    Mar 23, 2017 10:55am
    China’s largest real estate developers launched a green index to manage their cement, steel and iron suppliers as the world’s second-largest economy steps up its fight against climate change. The real estate and construction sector is...
  • Li Ka-shing said home prices will continue to soar because of strong buying demand. Photo: Reuters

    Li Ka-shing says HK property rebound to last two years

    Mar 23, 2017 8:15am
    Hong Kong billionaire Li Ka-shing signaled the property rebound in the city could persist for as long as two years as growing demand outweighs government curbs, Bloomberg reports. “I cannot see how property prices would fall...
  • Lui Che-woo (inset) thinks owning a flat in Hong Kong is not an impossible dream -- at least for financial reporters. Photo: HKEJ

    Can a financial reporter afford a flat from tycoon Lui Che-woo?

    - Mar 22, 2017 12:18pm
    If it was a joke, it was a bad joke. Financial reporters posed a tough question to K Wah chairman Lui Che-woo: “How big a flat should a family of three live in when new homes...
  • A dozen Chinese cities unveiled fresh property curbs over the weekend targeted particularly at buyers with at least one property.  Photo: CNSA

    More home curbs could be on the way in China

    - Mar 21, 2017 11:08am
    Over the past month or so, home prices in a number of major Chinese cities have surged 30 percent. The buying frenzy started right after the Lunar New Year holiday and is quickly spreading from Beijing...
  • Prices of starter homes have been rising much faster than those of blue-chip estates, narrowing the gap between the two. Photo: HKEJ

    Hong Kong’s starter-home boom may soon be over

    - Mar 16, 2017 5:06pm
    Hong Kong’s housing market has been picking up since the 2008 financial crisis. Private housing prices surged 195 percent between late 2008 and the end of January this year, translating into an annual increase of 14.3...
  • HNA Group has outlined ambitious plans for a large residential project in East Kowloon after snapping up four sites near the old Kai Tak airport. Photo: HKEJ

    The rise of HNA Group

    - Mar 16, 2017 4:09pm
    For HNA Group, the new star in Hong Kong’s property landscape, scoring a hat-trick is clearly not enough when it comes to bagging prime sites. How about a fourth win in less than five months?  Well,...
  • The central government has reportedly ordered party chiefs in several "hot" cities to curb housing prices, or face the risk of being replaced. Photo: Bloomberg

    China may unveil new measures to cool surging home prices

    - Mar 14, 2017 5:33pm
    Mainland property stocks have surged nearly 50 percent since the start of the year, far outperforming other sectors.  China’s housing market has regained its momentum since the Lunar New Year holiday; housing prices have surged more...
  • China has realized that given the different market situations in various cities, it cannot adopt a 'one rule fits all' approach toward property controls. Photo: Bloomberg

    Why China must stick to differentiated property policies

    - Mar 10, 2017 5:33pm
    In regulating the property market, China has ended the “one rule fits all” approach and moved to differentiated policies and controls in various regions. The new approach has been applauded by property tycoons. “Houses are for...
  • Lui Che-woo, chairman and founder of K. Wah Group, wonders whether mainland developers might get stuck given their aggressive land bidding style. Photo: K. Wah Group

    Businessman’s mindset behind local developers’ caution

    - Mar 9, 2017 9:40am
    In recent months, cash-flush mainland real estate developers have taken Hong Kong by storm, snapping up land in premium locations at shockingly high prices one after another. The fact that mainland developers are scrambling madly for...
  • Joseph Lau has transferred his 74.99 percent stake in Chinese Estates Holdings to his wife Chan Hoi-wan
and son Lau Ming-wai. Photos: HKEJ

    Tycoon Joseph Lau transfers HK$17 bln shares to wife and son

    - Mar 2, 2017 2:04pm
    Billionaire Joseph Lau Luen-hung has transferred his 74.99 percent stake in Chinese Estates Holdings to his wife and son, citing his unstable health condition. After the restructuring, Lau’s wife Chan Hoi-wan will have 50.02 percent of...
  • Hong Kong has good reason to support the development of alternative nodes in its office property market.

    HK office sector: Will we see more alternative nodes?

    - Feb 27, 2017 1:14pm
    Hong Kong’s office market has continued to diversify in recent years, and the recent auction of a Grade A office plot in King Lam Street, Cheung Sha Wan, is the latest example of high-quality space being...
  • Jacinto Tong attributes his group’s success to a key decision to snap up commercial properties during a severe downturn triggered by SARS outbreak early last decade. Photo: HKEJ

    The art of the deal: Lessons from Gale Well Group

    - Feb 22, 2017 5:29pm
    Gale Well Group made a few key decisions that helped the Hong Kong-based property investment firm grow its once-small portfolio to its current size of HK$35-40 billion. In interviews with the media, founder Jacinto Tong Man-leung...
  • A McDonald's outlet on Yee Wo Street in Causeway Bay is leased for HK$844,000 a month. Photos: HKEJ, McDonald's (HK)

    McDonald’s is selling its Big Mac and eating it too

    - Feb 13, 2017 4:04pm
    In my Business Management 101 class, my professor said the most profitable items at McDonald’s are not burgers, but French fries. My dear professor was talking about the margin between cost and price, but he forgot...
  • London’s low vacancy rate and cautious approach to the development pipeline is expected to cushion a potential dip in demand as a result of the referendum vote to leave the EU. Photo: Savills

    Asia money keeps pouring into London

    - Feb 8, 2017 9:41am
    Asian investors have deployed £4.6 billion into Central London’s commercial property market in 2016, apparently undeterred by the uncertainty that has followed Britain’s decision in June to leave the European Union. In 2015, Asian investments totaled...
  • CY Leung launched the "Hong Kong property for Hong Kong people" policy in 2012 (inset). A unit in 
One Kai has just fetched HK$30,000 per square foot. 
Photos: HKEJ

    How China developer destroyed ‘HK property for HK people’

    - Feb 7, 2017 2:22pm
    Forget the so-called “Hong Kong property for Hong Kong people”.  Not only does it not work, it goes in the opposite direction. Consider One Kai Tak, the first and only project restricted to permanent residents. In...
  • Country parks provide the green lung that helps the city breath and have endowed the SAR with a priceless asset. Photos: HKJE, HK Government

    Housing: The big lie

    - Jan 27, 2017 6:30pm
    Every year, for the past several years, Hong Kong has had the dubious distinction of topping the international league table for the least affordable housing. The latest report from Demographia, which looks at housing costs in...

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