Property

China property transactions rebound in week

Property transactions in a selection of 18 first and second tier cities tracked by China Confidential increased by an average of 53% in the week ended February 12th, compared with a week earlier. Sales in lower tier cities jumped by an average of 40%, compared with the week prior. But in spite of the WoW increase in sales, sentiment toward the property sector remains subdued after Beijing stamped out an attempt by a local government to boost real estate sales.

Beijing confirms bank loan roll over, Wuhu reverses property gambit

China has instructed its banks to roll over loans to local governments, confirming an effective bailout of Local Government Financial Vehicle (LGFV) debt that has been underway since at least November last year (CC Nov 3 2011 Financial China). The confirmation, reported by the Financial Times today, provides some context to Premier Wen Jiabao’s comment yesterday that Beijing will “fine-tune” its economic policy this year. We think the fine-tuning will mainly come in the shape of a further loosening in liquidity policy.

Local government subsidises property purchases

The government of Wuhu, a large city in Anhui province, announced steps to boost the local property market today, pledging to scrap the deed taxes on property purchases and subsidise new home buyers. We think the move may well be followed by other local governments in differing degrees to boost local economies and prevent local cash-strained developers from defaulting on their debts.

Knock-on effects of real estate slowdown apparent in related sectors

Prices for cement, steel, and glass are all set to decline in 1H12 due to weak demand from a softening real estate sector as government credit restrictions persist.

China property sales mixed in week, mortgage rates ease

Property transactions in a selection of 18 first and second tier cities tracked by China Confidential rose 6% in the week ended December 18 compared to a week earlier. Transactions in the third and fourth tier cities fell 8% week on week.

Property transaction volumes continue to slide

Property transactions in first and second tier cities fell further in the week ending December 11 though restrictions in the market are likely to remain.

China real estate sales lacklustre in week

The land market continued its weak performance.

Discounting buoys property sales in some cities

Cash flow is king for property developers weighed down by debt.

Property sales rebound as discounting prompts buying

Led by deep discounts offered by China Vanke, the nation’s largest residential property developer, price falls drive an uptick in sales.

Property sales fall in week, land sales hit

In Beijing, only two parcels of land for residential use were sold during October.

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09 Feb 2012

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China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

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