China - Housing 06 (Nov 21 - Dec 26)

[winston]

Developers need 4tn yuan to complete presold projects

Credit support from banks - which totaled 469 billion yuan as of the end of March - "appears well below the amount needed for securing home completions" .

The housing sector has not yet reached the bottom of the L-shaped path we expect.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... d-projects

[winston]

China’s home prices fall for 10th straight month in fresh alarm for stronger policy response, revival plans

Prices of new homes in 70 major medium and large cities fell 0.3 per cent in March from February, extending sequential monthly decline from May 2023

Prices of existing homes dropped 0.7 per cent in tier-1 cities; cities in tier-2 and tier-3 suffered a 0.5 per cent erosion

by Yulu Ao

Source: SCMP

https://www.scmp.com/business/china-bus ... pe=section

[behappyalways]

Beijing’s housing prices plummeted by 20% in one month!
They have returned to the level at the beginning of 2016...
Residents lamented in tears: They regretted buying a house.
Real estate developers also laid off employees to save themselves.

北京房價1個月暴跌2成!退回2016年初水準...居民淚嘆:後悔買房 地產商也大裁員自救｜非凡財經新聞｜20240429

https://m.youtube.com/watch?v=kBEpTXpGjd4

[winston]

Moody's Expects Home Prices in all CN Cities to Keep Falling in Next 6-12 Mths

Moody's noted that sales of Chinese property developers fell 30.7% YoY in 1Q24, higher than the 14.3% decline in 4Q23, signalling weak market sentiment and a higher base in 1Q23.

The rating agency expected property sales to continue to fall throughout the year due to factors such as the slowing recovery of the mainland economy and weak demand.

Moody's also commented that the downtrend in property prices worsened in March, with first- and second-tier property prices falling by 1.5% and 1.9% YoY respectively, a wider decline than in February.

Property prices in cities other than the first- and second-tier cities plummeted by 3.5%, and property prices in all mainland cities are expected to continue to weaken in the next 6 to 12 months.

Mainland property companies issued RMB3.5 billion of onshore bonds in April, down from RMB4 billion in March. In addition, no offshore bonds were issued in April.

Moody's predicted weaker Chinese property enterprises to continue to face refinancing and liquidity risks.

The liquidity stress sub-indicator for high-yield mainland property firms declined to 53% from 60% in February, which was associated with the exit of one of the less liquid property companies from the rating coverage.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

Sales of Chinese real estate companies halved in April!
"Destocking" has become the main theme in cities and major cities have been rescued by the "price-for-volume" policy

中國房企4月銷售腰斬!城市"去庫存"成主旋律 各大城"以價換量"政策狂救｜非凡財經新聞｜20240502

https://m.youtube.com/watch?v=7XlZ5Ej0npQ

[behappyalways]

Tiny flat with bed behind toilet rented for US$40 in China
https://m.youtube.com/watch?v=iOV85ku1oBI

[behappyalways]

‘I feel like I’ve been tricked’: Some property buyers in China’s Tianjin have been waiting 8 years for their homes
https://www.cnbc.com/2024/05/13/house-b ... homes.html


Wenzhou's "sandwich house" has two school districts!
You can only enter and exit by turning sideways.
It can't be lived in but it still sold for tens of millions of yuan.
溫州「夾縫房」擁雙學區! 側身才能進出.無法住人 照樣以千萬元成交｜TVBS新聞
https://m.youtube.com/watch?v=AxtyDnIEw_g

[behappyalways]

Lift purchase restrictions and buy inventory.
As China "rescues housing", another real estate company defaults on its purchase price!

撤限購.買庫存 陸「救房」之際再有房企跳票違約!｜方念華｜FOCUS全球新聞 20240514 @tvbsfocus

https://m.youtube.com/watch?v=pnQIvI7HzyM

[winston]

PBOC to provide US$42 billion for state purchases of unsold homes

Funding will be extended to 21 providers, including policy banks, state-owned commercial lenders and joint-stock banks, at a rate of 1.75%

The loans, designed to have a one-year term, will be allowed to roll over four times.

300 billion yuan (S$55.9 billion) of central bank cash will translate into an estimated 500 billion yuan of credit overall.

The size of the central bank financing fell short of analyst estimates of at least one trillion yuan needed for the purchase. That could disappoint investors on Monday, after a Shanghai gauge of property stocks shot up 6.2 per cent on Friday in anticipation of stronger support.

Source: Bloomberg

https://www.businesstimes.com.sg/intern ... sold-homes

[behappyalways]

If purchase price > rent, who takes the hit here?
https://x.com/ChinaBeigeBook/status/1790802078396186943