Latest news with #propertysector
South China Morning Post
02-07-2025
- Business
- South China Morning Post
Emperor's financial struggle mirrors the current state of Hong Kong's property sector
Hong Kong developer Emperor International Holdings' struggles reflect the highs and lows the city's property sector has endured over the past few years. Advertisement Just over five years ago, residential and commercial real estate prices and rents were hitting record highs. Developers reported robust earnings and had access to cheap financing, boosting their confidence – and that of investors – to spend more on new projects or acquire existing income-generating properties. But this golden era ended abruptly. Social unrest in 2019 and the Covid-19 pandemic that followed triggered an economic recession, reducing demand for commercial property at a time when new projects were being launched. The downturn also coincided with a sharp rise in Hong Kong's interest rates, which were raised 11 times between March 2022 and July 2023 to over 5 per cent from 0.5 per cent, before falling slightly last year. Emperor's full-year loss of HK$4.74 billion (US$600 million) for the year ended March 2025, more than double the HK$2.04 billion a year earlier, reveals the severity of the crisis facing the sector. The group, controlled by 82-year-old tycoon Albert Yeung Sau-shing, disclosed that bank borrowings totalling HK$16.6 billion were overdue and some associated loan covenants had been breached. Albert Yeung, the founder and chairman of Emperor Group, pictured in December 2024. Photo: VCG/VCG via Getty Images 'The broad issues faced by Hong Kong developers in the current environment would be weak property valuation and soft earnings from poor sales,' said Xavier Lee, an equity analyst at Morningstar. Lee did not specifically comment on Emperor's predicament, but gave a general overview of the challenges developers face in the current environment.
News.com.au
24-06-2025
- Business
- News.com.au
Housing concession wars: Aus ‘most attractive' handout revealed
In a daring move, an Aussie state is shaking up the housing concession wars, giving the 'most attractive in the nation' chance to house hunters to buy their first home. The move, announced in the Queensland budget by treasurer David Janetzk on Tuesday, has seen wide support from real estate lobby groups in the first LNP state government budget here in a decade. All the tax write offs Aussies can claim The scheme will allow 1,000 buyers to land their first home off just a 2pc deposit as part of a $165m 'close the deposit gap' program, with the government sharing the equity load up to 30pc for new homes and 25pc for existing homes - and access expanded for workers that earn up to $150,000 or couples bringing in up to $225,000. The program - which opens for expressions of interest in a week (July 1) - covers properties up to $1m across Queensland to take into account record price surges since the pandemic - a threshold that's $250k jump on what LNP campaigned for during the election period. Given the government expects to raise over $45b in taxes from the property sector over the next four years, Real Estate Institute of Queensland head Antonia Mercorella came out in support of the initiative as well as future reform. 'With suitable income eligibility thresholds of up to $225,000 for couples and $150,000 for singles and a statewide property value cap of $1m, the scheme reflects modern property prices across Queensland and makes it the most attractive in the nation.' MORE: Cash-strap student turns $40k to 38 homes Govt pays $3.3m for unliveable derelict house Property Council Queensland executive director Jess Caire also welcomed the move to a more housing focused budget. 'Responding to the housing crisis is clearly a focus of this budget with significant spending allocated towards creating new supply, community housing and helping first home buyers get their foot in the door of the housing market,' she said. 'The $165m Boost to Buy scheme was an ask in our 2024 Be a Queenslander election campaign and an initiative that will help many Queenslanders realise the dream of home ownership.' Ms Mercorella said Brisbane local government area median house prices had already passed the million-dollar median mark, while Greater Brisbane was close, with units also surpassing the $700,000 level across the Gold and Sunshine Coasts. 'The generous cap ensures the scheme is relevant in all corners of our state including high-demand areas like Brisbane, the Gold Coast, and Sunshine Coast, where the median house price now sits above $1m. Without this adjustment, the scheme risked being out of touch with the reality faced by many first home buyers today.' She did not expect the program to distort property demand given FHBs made up a small share of overall market activity, but said it 'may assist in rebalancing housing pressure by helping some renters transition into ownership'. 'I don't think we can underestimate the material impact this can have on thousands of lives and for generations to come.' Among the areas still on REIQ's wishlist for the state was stamp duty reform in favour of a land tax-based model, and abolishing stamp duty for downsizers over 55. 'We've seen a promising start with some relief for first home buyers through higher stamp duty concession thresholds, abolishment of stamp duty on new builds, and the removal of restrictions on renting out rooms, and now we'd like to see some relief extended to people at the opposite end of the housing cycle - downsizing Queenslanders.' 'We're hearing calls to remove barriers that delay older Queenslanders from downsizing – a stamp duty exemption would achieve this and also, in turn, allow younger families to upsize.'
Reuters
16-06-2025
- Business
- Reuters
Spain's Neinor Homes launches $1.2 billion takeover bid for rival Aedas
MADRID, June 16 (Reuters) - Spanish homebuilder Neinor Homes ( opens new tab has offered to buy all shares of its rival Aedas Homes ( opens new tab for 1.07 billion euros ($1.24 billion), a deal that could shake up Spain's residential property sector. If approved, the takeover would make Neinor the largest residential developer in Spain, with the ability to build over 43,000 homes in coming years, the company said in a regulatory filing on Monday. The takeover would give Neinor control of around 20,200 homes in Aedas' portfolio, mainly located in the Madrid region. Neinor said it expected the deal to boost its profits by 40% between 2025 and 2027, allowing it to raise shareholder payouts by nearly half over the same period. The deal is backed by Aedas' largest shareholder Castlelake, which owns 79% of the company. Castlelake has agreed to sell its stake for 24.49 euros per share, or 21.34 euros per share after a planned Aedas dividend. Neinor said it aimed to complete the acquisition by the end of this year and finance it through a mix of its own funds, a capital raise and loans. ($1 = 0.8639 euros)
South China Morning Post
16-06-2025
- Business
- South China Morning Post
China ‘stepping in' as property concerns mount, but no ‘treading the old path'
Premier Li Qiang's remarks on further shoring up the property sector and escalating policy support are said to be indicative of Beijing's lingering concerns over the sector – once an economic pillar for China – that remains a drag on growth and consumption, as seen in the latest statistics. Analysts say that while there is no quick fix to the woes, Beijing has grown more wary of the impact on overall sentiment and domestic demand, as the economy grapples with external turmoil. A State Council meeting convened by Li on Friday set a more definitive tone on supporting China's property market, which came ahead of Monday's release of key economic data for the January-May period. The meeting underscored the need to 'further optimise existing policies and enhance systematic synergy of implementation' to stabilise expectations, stimulate demand and mitigate risks, the state's Xinhua reported. Specifically, there will be a thorough stocktake of ongoing projects and land supplies, and urban-renewal projects will receive more land supply and financing aid. Once again, the meeting stated that the ultimate goal is to 'halt the decline and stabilise the sector'.
Free Malaysia Today
08-06-2025
- Business
- Free Malaysia Today
Penang to expand 5% housing discount beyond Indian Muslim buyers
Penang chief minister Chow Kon Yeow said the state executive council will make a decision that 'serves the interests of all parties'. PETALING JAYA : Penang chief minister Chow Kon Yeow says the state government is looking to extend its recently announced 5% housing discount for Indian Muslims to all communities. Chow said he had received feedback that the discount should be offered to all home buyers with the aim of revitalising the property sector, particularly in relation to unsold units. 'In response, I have directed state executive councillor for housing and environment S Sundarajoo to work with developers to refine the policy with a view of extending the discount to all buyers,' he said in a statement. 'This would make the initiative more inclusive and beneficial to all segments of society, in line with the principles of social justice.' He said the state executive council will review the matter in detail and make a decision that 'serves the interests of all parties'. The discount was announced on Thursday by Sundarajoo, who said private developers will be encouraged to voluntarily offer a 5% discount to first-time Indian Muslim homebuyers for one year as part of a state housing campaign. The initiative was criticised by human rights lawyer Rajesh Nagarajan, who called the campaign discriminatory and unconstitutional. Sundarajoo defended the discount, saying it did not infringe on the rights of other communities and was purely aimed at increasing homeownership among groups with low participation in the open market. He also said developers would offer the discount as a form of corporate social responsibility and this would not involve the state government's funds.
