China - Housing 06 (Nov 21 - Dec 26)

[winston]

Shrinking Population Is Another Problem For China's Housing Market

Source: Zero Hedge

https://www.zerohedge.com/economics/shr ... le-housing

[behappyalways]

Most Chinese Property Junk Bonds Are Trading Below 35 Cents
https://www.zerohedge.com/markets/most- ... w-35-cents

[behappyalways]

Beijing Cracks: Mortgage Boycott Prompts China To Launch Multi-Billion Property Rescue Fund
https://www.zerohedge.com/markets/beiji ... escue-fund

[winston]

Property - Weakened demand with further divergence among cities; expecting a clearer and feasible rescue plan.

For the first three weeks of Jul 22, average weekly new-home sales volume of Tier 1/Tier 2/Tier 3 cities that have data available is 4% higher /30% lower/37% lower than average weekly sales of Jun 22.

A market expert from CREIS points to weakened overall demand with further divergence among cities.

A clearer and feasible rescue plan is needed to stabilise the market, and we think the possibility is rising.

Maintain MARKET WEIGHT on the property sector…

Source: UOBKH

[winston]

Distressed developers face land seizures

China's leaders are considering a plan to seize undeveloped land from distressed real estate companies and using it to help finance the completion of stalled housing projects that have sparked mortgage boycotts across the country.

The idea, which is still under discussion and could change, would take advantage of mainland laws allowing local governments to wrest back control of land sold to real estate companies if it remains undeveloped after two years and without compensation.

That would give authorities more leeway to direct funds toward uncompleted homes - but potentially to the detriment of creditors, who would lose claims on some of the developers' most valuable assets.

While authorities would have the bandwidth to adjust the process to suit local conditions, sources said, a typical scenario would involve seizing land from a distressed developer and giving it to a healthier rival. That would, in turn, provide funding to complete the distressed developer's stalled projects.

There is also a suggestion authorities could rezone seized land in some cases to increase its value.

The land seizure proposal is one of several measures under consideration as President Xi Jinping's administration tries to prevent further turmoil in the housing market from fueling social unrest and derailing the broader economy.

Meanwhile, China Evergrande (3333), the world's most indebted developer and at the center of the broader debt crisis in China's property sector, appears to have failed by not delivering a "preliminary restructuring plan" by the end of July.

At the same time, Evergrande's electric vehicle unit reported receiving over 37,000 pre-orders for its Hengchi 5 model, to be delivered as soon as October.

Source: The Standard

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

[behappyalways]

Shanghai’s ‘Old West Gate’ neighbourhood emptied for demolition and redevelopment
https://m.youtube.com/watch?v=CJBoqoXa0NY

[behappyalways]

China's Housing Market Slump Becomes A Real Issue
https://www.zerohedge.com/geopolitical/ ... real-issue

[behappyalways]

Growing anger over China’s unfinished ‘rotten tail’ buildings: ‘We really need this home’
https://m.youtube.com/watch?v=BYhT6qRof6I

[winston]

Fifty million empty flats threaten to plunge China’s troubled property market further into crisis, warns think tank

The average vacancy rate in mainland China is 12.1 per cent, according to BRI, meaning millions of empty units could flood the market

Now the property boom is over, the unoccupied homes are beginning to feel like a burden for their anxious owners

by Pearl Liu and Yaling Jiang

Source: SCMP

https://www.scmp.com/business/china-bus ... s-troubled

[winston]

China home prices fall for 11th straight month as suspended construction, mortgage boycott and weak economy hit sales

70-city index of new home prices in July dropped 0.1 per cent from June and 1.7 per cent year over year, according to the National Bureau of Statistics

Lower-tier cities took the brunt of the decline, as first-tier cities saw prices increase for both new and secondary-market homes

by David Ren

Source: SCMP

https://www.scmp.com/business/article/3 ... 8fcfb2b6ea