Pension fund buys property stocks (SCMP, March 23)

The national pension fund has bought heavily into mainland-listed developers in an attempt to boost confidence in the real estate sector as Beijing strives to buoy the economy. The National Social Security Fund bought 11.9 million shares of Shanghai Shimao, and 4.17 million shares of Beijing North Star in the fourth quarter of last year.

Li flagships brace for profit falls (The Standard, March 23)

Hutchison Whampoa is expected to say on Thursday that 2008 net profit fell 48 percent after huge one-off gains were not repeated, while Cheung Kong is forecast to report profit fell 41 percent on a plunge in investment income. Full-year net profit at Hutchison is expected to fall to HK$15.97 billion, from HK$30.60 billion in 2007. Hutchison's recurring earnings for 2008 are expected to surge more than 1.5 times to HK$10.09 billion, from HK$3.97 billion the year before.

Shimao raises property sales target to 17b yuan (SCMP, March 22)

Mainland developer Shimao Property Holdings expects to record sales of 17 billion yuan this year, up 13 per cent from its previous target, saying it believes the domestic real estate market has bottomed out and buyers are returning to the market for discounted prices.

New World suffered loss of HK$1 bln in 2nd half of 2008 (China Knowledge, March 20)

New World Development posted a net loss of HK$992.2 million in the second half of last year, following a net profit of HK$5.65 billion in the first half of 2007. The loss was principally due to a revaluation deficit of HK$2.35 billion on investment properties and an impairment provision of HK$330 million on available-for-sale assets.

Sino Land profit plunges 57.45% in second half of 2008 (China Knowledge, March 20)

Sino Land recorded net profit of HK$2.01 billion in the second half of last year, a sharp year-on-year decline of 57.45%. However, the Hong Kong-listed company hit HK$6.21 billion in turnover in the latter half of last year, an increase of 36% or HK$1.65 billion from the previous year. The real estate firm's property sales reached HK$4.75 billion during the same period, a jump of 41% year on year.

Kerry Properties hits HK$3.05 bln in net profit in 2008 (China Knowledge, March 20)

Kerry Properties has announced a net profit of HK$3.05 billion for 2008, a sharp year-on-year decline of 53.52% or HK$3.512 billion. In mainland China, the Hong Kong-listed company hit HK$1.51 billion in property sales last year and owned floor area of 3.83 million sq.ft, up 22.8% from a year earlier. In 2009, Kerry plans to complete properties with a total floor area of 1.6 million square feet, comprising 1 million square feet in mainland China and 600,000 square feet in Hong Kong.

KWG Property breaks deal with Aetos Capital Asia (China Knowledge, March 19)

KWG Property Holding will terminate its cooperative relationship with Aetos Capital Asia, an independent investment management firm. KWG Property purchased three pieces of undeveloped land in Chengdu, Sichuan Province for RMB 3.6 billion. Three months later, Aetos Capital Asia teamed up with the Hong Kong-listed enterprise and held a 35% share of the three pieces of land. However, KWG Property will repurchase the 35% stake for US$101.3 million.

Wanda Group burns through RMB 56 bln (China Knowledge, March 19)

Dalian Wanda Group has spent more than RMB 56 billion in project development since last October. Since last October, the group has invested RMB 10.5 billion in a project in Nanjing, RMB 8 billion in Chengdu, RMB 8 billion in Tangshan, RMB 7 billion in Shijiazhuang, RMB 6 billion in Hohhot, RMB 3 billion in Xi'an and RMB 2 billion in Yichang.

Guangzhou R&F Property posts 1st profit decline in 6 years (China Knowledge, March 19)

Guangzhou R&F Property earned RMB 3.13 billion in net profit in 2008, a sharp year-on-year decrease of 40.89%, the first negative profit growth since 2003. The real estate firm principally attributed the slump to the bad performance of hotels and construction services, which suffered RMB 183.9 million and RMB 76.5 million in net loss, respectively.

Beijing North expects price bottom in 2010 (SCMP, March 19)

Beijing North Star chairman He Jiangchun expects the mainland property market to remain depressed until the second half of 2010 as the global financial crisis has yet to bottom out. Property sales in many mainland cities increased significantly in the last two months, but Mr He said the active transactions were not sustainable. He said property prices would continue to drop, with prices in first-tier cities sliding faster than in second-tier cities.

Chinese Estates suffered HK$1.49 bln net loss last year (China Knowledge, March 18)

Chinese Estates Holdings recorded HK$1.49 billion in net loss last year following profits of HK$8.2 billion in 2007. The property enterprise still declared a final dividend of HK$0.01 and a special dividend of HK$0.99 per share despite of the basic loss of HK$0.67 per share in 2008.

Banks lend developers a hand (SCMP, March 18)

Developers with investment in the mainland property market have received a welcome boost to their prospects as banks begin relaxing their lending criteria, although selectively and mainly to big players. The boost comes on top of a largely successful price-discounting strategy that has seen the volume of property transactions rising. With liquidity and refinancing risk now reduced for big players, market observers believe banks will also begin to ease credit conditions for sound property firms.

Risesun Real Estate announces private placement (China Knowledge, March 17)

Risesun Real Estate Development, a company engaged in property development, architectural design and hotel operation, plans to raise RMB1.2 billion by issuing up to 150 million shares through private placement. The proceeds from the private placement will be used to finance three property projects in Shijiangzhuang, Xuzhou and Bangbu.

New World looks forward to expansive future (China Daily, March 17)

Mainland retail chain operator New World Department Store China continues to pursue expansion against the tide of bleak market sentiment. The company will strive to reach its expansion target by opening two to three new department stores in the north. The remark went against the prevailing trend among many mainland retailers. Many have put the brakes on expansion under deteriorating market condition.

Developer Sets Sights On Beijing, Shanghai (WSJ, March 17)

Soho China is considering more than 10 projects in Beijing and Shanghai and expects to acquire some of its targets in the next few months. With more than 10 billion yuan in cash, Soho China plans to strengthen its foothold in Beijing and tap the Shanghai market via acquisitions. The majority of the targets are completed projects that belong to "desperate" foreign funds, including ones from Japan, the U.S. and Australia.

New mortgage type (Shanghai Daily, March 17)

Shenzhen Development Bank has launched mortgage points nationwide, becoming the first Chinese bank to offer the mortgage type on the mainland. Buying mortgage points can help long-term mortgage owners, with a loan of more than 10 years, save interest.

Lujiazui purchases Shanghai POS Plaza for RMB 1.76 bln (China Knowledge, March 23)

Shanghai Lujiazui Finance & Trade Zone and its subsidiary on Mar. 19 signed a contract to buy POS Plaza in Shanghai from South Korea-based POSCO Engineering & Construction Co Ltd for RMB 1.76 billion. POS Plaza, located in Century Avenue in Lujiazui Finance and Trade Zone, Shanghai, consists of a 34-story office building and a 4-story shopping mall, and has total floor area of 98,130 sq.m.

Zhejiang sees property prices decline in Feb (China Knowledge, March 19)

Zhejiang Province saw a slide in property prices of 0.5% in February compared with January, the fifth consecutive monthly decrease. In the first two months of this year, the property prices and vacancy rate of the province slipped 0.45% and 1.6% year on year, respectively. From Jan to Feb, Zhejiang, however, recorded an increase of 10.4% in sales area and an increase of 21.6% in sales revenue from the previous year.

Compact downtown housing built for relocated families (Shanghai Daily, March 19)

The Shanghai government is building compact housing downtown to offer to residents being relocated as part of the city's three-year project to demolish shabby houses. This means residents relocated out of the old housing will in future have a better chance to remain living downtown, instead of taking a replacement apartment in the suburbs.

Vanke denies receiving RMB 712 mln for unfinished projects (China Knowledge, March 18)

China Vanke denied that it received RMB 712 million in advance for two yet-to-be-started property development projects from the Shanghai municipal government. The Shenzhen-listed company clarified that it started both projects last year, and that it has invested about RMB 700 million in them in total.

Morgan Stanley may resell Shanghai property (China Knowledge, March 18)

Morgan Stanley may resell its Shanghai Dong Hai Plaza, a 50-story building on Nanjing West Road in Jing'an District. Dong Hai Plaza, an incomplete building for more than ten years, was finally finished in the third quarter of last year.

Kerry Properties to build Shangri-La hotel in Nanjing (China Knowledge, March 17)

Kerry Properties has signed an agreement with the government of Gulou District of Nanjing City, capital of China's Jiangsu Province, to build a Shangri-La hotel there. Under the terms of the agreement, the property project will have a registered capital of US$45 million. Kerry Properties will invest a total of US$90 million in the project.

Shanghai villa fetches record 205m yuan (SCMP, March 17)

Shimao Property Holdings has sold a villa in Shanghai for 205 million yuan, making it the country's most expensive residential property. The deal was clinched as the upmarket residential market in the mainland financial hub has been softening and property agents predicted the worst was yet to come. Shimao recently had sold two villas at Shanghai Shimao Sheshan Villas in the city's Sheshan area for 205 million yuan and 155 million yuan.

Guangzhou Spends CNY2.4 Billion Renovating Asian Games Hotels (CHN, March 23)

Guangzhou will spend CNY2.4 billion to refurbish 61 hotels that will serve the 16th Asian Games. During the Asia Games, the Garden Hotel Guangzhou, the Asia International Hotel, the International Hotel Guangdong, and the Baiyun Hotel will be responsible for receiving members of Olympic Council of Asia its guests.

House price in Xiamen dropped again in Feb (What’s On Xiamen, March 21)

Last month, Xiamen saw a substantial increase in real state transactions whilst the house price had fallen sharply to 6,232 RMB/ sq m, more than 15% decline from the previous month. 2,478 apartments and 2 villas were sold last month, with a total floor space of 268,600 sq.m.

JW Marriott Opens In Shenzhen (CHN, March 20)

The 411 room JW Marriott Shenzhen is open for business. The hotel is located in the center of Futian District, within walking distance of Che Gong Miao metro station and is a 25-minute drive from Shenzhen Bao An International Airport.

Morgan Stanley denies breaking deal with Agile Property (China Knowledge, March 19)

Morgan Stanley has denied that it is withdrawing from the Clear Water Bay resort project, principally managed by Agile Property Holdings. Agile Property also denies that it has ended its cooperative relationship with Morgan Stanley.

Swire opts for bigger hotel rooms (SCMP, March 19)

Swire Properties has reduced the number of rooms at its 6 billion yuan five-star hotel and serviced apartments project in Guangzhou to tap the growing demand for larger units from business travellers. The 4.7 million sq.ft retail-office-hotel development, Taikoo Hui, is scheduled to be completed in 2010. The number of rooms in the hotel, which will be managed by Mandarin Oriental, will be reduced to 250 from the original 340, while the serviced apartments will be cut by half to 30.

Abbot Labs launches production at Guangzhou plant (China Knowledge, March 18)

Abbott Laboratories, a U.S.-based diversified pharmaceutical and health care company, has opened its new plant in Guangzhou Province. The Guangzhou plant, covering an area of 16,000 sq.m in Guangzhou Development District, was built at a cost of around RMB 200 million.

Shenzhen sees property transactions soar in Jan-Feb (China Business News, March 17)

Shenzhen saw property sales reach 977,600 sq.m in the first two months of this year, a sharp year-on-year increase of 174.74%. The city's sales area for residential properties hit 887,200 sq m, soaring 174.85% from the previous year. In January and February, Shenzhen's average price for apartments was RMB 11,175 per sq m, down 27.26% year on year. The average prices for January and February were RMB 11,459 and RMB 10,770 per sq m, diving 24% and 34% from a year earlier, respectively.

Vantone, China Sports to build RMB 5.2 bln Olympic Village (China Knowledge, March 17)

Beijing Vantone Real Estate will spend RMB5.2 billion on construction of an Olympic Village to be located in Begonia Bay, Sanya City, Hainan Province. The Olympic Village, with estimated total investment of RMB5.2 billion, will cover an area of 2,200 Mu and have a potential floor area of up to 340,000 sq.m. The company plans to spend seven years to complete the project.

Beijing High-end Residence Boosted by Relaxation of Foreign Investment (China Security Post, March 23)

827 high-end residential units with transaction prices above CNY18,000 per sqm were transacted in February for an average sales price of CNY22,168 per sqm. The transaction volume of high-end residence has increased from 91 units to 287 units week by week after the relaxation policy of limitation of foreign investment issued on previous January.

Shenyang among Best Performers in Property Market 2008 (Shenyang Evening Post, March 23)

In 2008, completed property investment in Shenyang ranked 3rd among 660 cities throughout the country, following Beijing and Shanghai with a total investment CNY10.1 billion, up 38.4% y-o-y compared to a nation-wide average 17.5%. In terms of sales area, Shenyang has achieved a total sales area of 1.32 million sqm, ranking 3rd behind Shanghai and Chongqing.

China's Silicon Valley to set up national innovation zone (China Daily, March 23)

The State Council has reached a decision to back the building of a national independent innovation demonstration zone in the Zhongguancun Science Park (Z-Park) in Beijing. A series of policies will be adopted to support construction of the zone, the first national level independent innovation demonstration zone in China. The move aims to boost innovation of the Z-Park to a higher level to make it a scientific and technological innovation centre with worldwide influence.

PetroChina to purchase office buildings from Citychamp Dartong (China Knowledge, March 20)

A Beijing branch of PetroChina plans to purchase an office building and 200 underground parking spaces in Beijing's Chongwen District from Citychamp Dartong. The office building, covering floor area of 25,500 sq.m, will sell for RMB 13,500 per sq.m. The underground parking spaces are expected to sell for RMB 160,000 each.

Qingdao plans to construct 13.08 million sq.m. housing in 2009 (Qilu Evening News, March 18)

A total of 13.08 million sq.m. of housing is planned to be constructed in 2009 in Qingdao, of which 2.235 million sq.m. will be in the four inner districts. Small size housing with the unit GFAs less than 90 sq.m. will account for more than 70 per cent of total supply.

Beijing will invest RMB60 billion to construct Lize Financial Business District (Beijing Business Times, March 18)

Beijing will invest RMB60 billion to construct Lize Financial Business District. RMB30.5 billion will be used on land and other RMB29.5 billion will be used in the construction of hotel, apartment, and related facilities. The total GFA will be 2.86 million sq.m. Lize FBD is located in Fengtai District, between West 2nd Ring Road and West 3rd Ring Road, which is the only large size plot inside Beijing’s 3rd Ring Road and the only high-end financial function district in the south of Beijing.

Zhixin Group to start RMB 19.7 bln property project in Chengdu (China Knowledge, March 19)

Zhixin Group has signed a contract with the Chengdu municipal government to start a property project worth RMB 19.7 billion in Wuhou District. The project will cover 15.33 sq km of the 198 sq km officially set aside for a suburban green area. The project is scheduled to be completed within five to eight years.

Work to start on a new Beichuan (SCMP, March 19)

Work will start within two months to build a brand-new Beichuan, a town destroyed in last May's earthquake. The new design would retain the "flavour" of the old town but give residents better protection against natural disasters. The new centre will rise on flatter ground on either side of the Anchang River, about 23km east of the old town. Major residential and business areas will be built on a 150 hectare parcel along the east bank, while schools and hospitals will be erected on a 65 hectare site on the west.

Signs of rebound amid strong sales (SCMP, March 17)

The embattled property market in Chengdu is showing signs of rebounding from the effects of the earthquake that shook the province last year. The city escaped widespread damage but its property market suffered from the collapse of sentiment and confidence that followed in its wake. The first two months of this year suggest, however, that confidence is on the rebound. About 221,400 sq.m of commodity housing were sold in the primary market in Chengdu every week on average during the first two months - excluding the week in which the Lunar New Year holiday fell. In neighbouring Chongqing municipality, where transactions had been also quiet in the second half of last year, average weekly sales recorded in the first two months of the year - also excluding the week of the Lunar New Year - were up 24.3 per cent compared with the fourth quarter last year, at 343,700 sq.m.