Commercial Property
Chinese banks are getting stricter on real estate loans
2009-11-16
According to the latest report by People’s Bank of China, the first half year has witnessed a 121% growth of new emerging loans in real estate compared to last year’s new emerging loans. Shanghai has occupied 23% of the total bank loans of 3 trillion RMB, among which 60% are personal housing loans. Real estate loans in Guangdong have expanded in the 3rd quarter this year.
The China Banking Regulatory Commission plans to evaluate some real estate developers’ ability of paying back loans, in order to avoid the risk of pay-back delay.
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Guozhong Xie: there is bubble that real estate brings to banks
2009-11-16
Lujiazui has seen some of its property’s prices double while the rental price decreased to half of the price last year. The rental return is now 2-3% compared to around 6% in the past. Additionally, many buildings are currently vacant, and may have a big impact on rental prices once they get onto the market. “Land and real estate are main assets for mortgage in the Chinese banking system, thus money goes to real estate easily, which raises prices of the properties, allowing more money to be loaned using the assets with a higher value. This circle will bring more and more money into the real estate area and finally form a bubble.” Guozhong Xie said.
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RMB 54 billion trust capital goes to real estate in the 3rd quarter
2009-11-16
Real estate developers forming alliances with trust companies is becoming a new trend. Meanwhile, cooperation between banks, trust companies and real estate developers is also increasing rapidly.
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Real estate market: the emergence of local Chinese investors
2009-09-28
According to Jones Lang LaSalle’s newly published report, in the first half of 2009, the percentage of foreign capital in China’s property investment has dropped to 10% from 60% in 2005, while local investors have taken 70% of the market.
JLL points out that insurance companies will become the main investors in real estate among the financial institutions. A new regulation which will allow insurance capital to be used in investment in real estate is expected to be published in October.
Big state-owned enterprises are also going into this market. JLL forecast that it will be hard for the foreign investor to take back a major market share in the future.
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Chinese firms to dominate domestic property buys-JLL
2009-09-21
According to Jones Lang LaSalle, Chinese firms will replace foreign investors as the main buyers of commercial real estate assets in the country over the next few years. China's new insurance law, effective in October, allows its insurers to invest in the real estate market. The regulator has yet to announce details of the new rule.
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China and Albania have the world's best growth in real estate, tourism and investment in 2009
2009-09-20
Property sales were up 53% in the first six months from a year earlier, while nationwide prices averaged across 70 cities climbed year on year in June. Chinese commercial real estate sales have increased in the first half of the year, recording more sales that the US and UK markets combined. The rebound in the Chinese property market is sustainable and could see real estate investment increase by 30% in 2010.
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