Hong Kong/China Property Daily:Inside the Great Wall
Surge in property prices is unlikely
Media quoted from industry participants that it is unlikely for the propertyprices in China to surge going forward. The reasons included: i) the increase inproperty prices in this cycle was mainly due to end-user and upgrade demand,rather than the investment demand in previous cycles; ii) cities remaineddiversified, price adjustment is needed for areas with high supply; iii) inventoryclearance remains to be the focus and iv) investment return in property marketis normalizing and hence the appetite of the investors might change. (CFI)
Potential government’s capital of RMB120bn will be ready today
Media reported that three funds have started to raise capitals totaling toRMB120bn on 30 July but the application period is only one day and can onlybe applied thought direct sales channels. It is reported that it is unlikely fornormal investor to invest in such funds and hence the funds are likely to beinvested by capitals from the government. However, fund managers have notconfirmed on the information yet. In the earlier plan that CSF to invest in thefunds for stabilizing the market, the fund managers of the mentioned funds areincluded. (Hexun)
PBOC conducted RMB40bn reverse repo on Thursday
On Thursday, PBOC has conducted RMB40 bn 7 days reverse repo withinterest rate of 2.5%. There was RMB35bn reverse repo matured yesterday,resenting a net of RMB5bn has been injected to the market by the centralbank. The net injection in the week is RMB20bn, compared to the RMB30bnnet injection last week. (CFI)
Developer plans to slow the launching in Tier-1 cities
Media reported that a leading developer has adjusted down its full year salestarget in Beijing by 16% to RMB10bn. The reasons behind included theincreasing difficulties in replenishing lands in the city. Hence the developerwould like to reserve some stocks of property units. In addition, as the ASP inthe city has been growing, the developer would like to sell it with a betterprice. (JRJ)
Heya Aqua launched at prices 5% above nearby primary project
Media reported that Housing Society’s Heya Aqua launched at prices 5%higher than nearby primary project, Heya Crystal which was sold last week. Infact, the project has already received 850 registrations with oversubscription of9.6x yesterday. The first batch of 80 units were launched with list prices ofHK$5.70mn to HK$9.89mn, or unit list prices of HK$12,594 to HK$16,909 psf.The units consisted of saleable GFA of 390 sf to 695 sf. The developer offeredthe maximum discount of 10% in total. (Oriental Daily)
Mayfair By The Sea I&II has cashed in HK$12.7bn since its launch
Media reported that since the launch in Jun 2014, Sino Land (0083.HK) has sofar cashed in HK$12.7bn from Mayfair By The Sea by selling 950 units (or 87%of the total unit number). Within less than half month since the existing unitsare open for sales, the Company has sold 18 units for HK$636mn, or averageunit price at over HK$35mn. (Oriental Daily)