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State-owned developers show strengths

New housing starts in 1Q12 posted their first YoY drop in three years, but state developers are using their inherent advantages to weather a trying phase in the real estate market.

19 April 2012

China property sales picked up in week, another developer goes bust

Transaction volumes in first-tier cities exceeded the weekly average of 2011 by 14% and 46 cities report home price declines in March.

19 April 2012

First-time buyers and price cuts drive home sale surge

Further price cuts and measures to help first-time buyers tempted homebuyers back into the market in March, reinforcing recent signs of a transaction rebound.

05 April 2012

Social housing gets real

Despite the slow progress of social housing projects in several cities and some creative accounting, on-the-ground evidence points to a greater buildout this year than in 2011.

05 April 2012

Wen reiterates property tightening intent

Property prices in almost two-thirds of major Chinese cities slid for the fifth consecutive month in February, according to figures released by the National Bureau of Statistics (NBS) on March 18. Meanwhile, in his annual address to the National People’s Congress earlier this month, Premier Wen Jiabao stressed that the government would not relax its home purchase restrictions, as house prices remain too high. Domestic commentators have been attempting to divine where the market is heading.

22 March 2012

Mainland developers join forces to raise cash

Plans by leading Chinese developers to jointly launch a real estate fund is the latest sign of a less traditional approach to raising cash among mainland developers squeezed by a government-enforced deduction of bank loans which looks set to continue through 2012.

22 March 2012

Financing demands raise questions over some developers

Summary: A bond issue in mid-March in Singapore by KWG (1813:HKG), a mainland property developer, has raised concerns over the financial health of weaker companies in the sector. KWG had to offer a coupon of 13.25% to attract buyers to the $400m issue maturing in 2017, a sign that investors took as signalling that some Chinese developers are willing to pay handsomely for funding offshore because little is available at home. KWG was not alone in sparking concern; RenHe was downgraded one not to B+ by S&P earlier this month amid concerns over the developer’s cash flow. Agile (3383:HKG) issued $700m in bonds maturing 2017 at a coupon of 9.875%, another indication of investor wariness.

22 March 2012

Green shoots for property as developer reports strong February

China Overseas Land & Investment (COLI) recorded sales of Rmb10.69bn in February, up 209% YoY.

13 March 2012

Lower growth target provides room for rebalancing

The 7.5% GDP growth target outlined by Chinese premier Wen Jiabao in his annual address to the National People’s Congress is in line with previous official predictions of slower growth in 2012

05 March 2012

Developer discounts drive further house price falls in February

House prices fell for the sixth consecutive month in February, reflecting developers’ increasing willingness to discount prices in order to drive sales in the face of continued government controls

01 March 2012

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