China real estate: Home sales by top 100 developers plunged further in July

China real estate: Home sales by top 100 developers plunged further in July


Hong Kong
CNN
 — 

Plunging sales of new homes and the reported cancellation of a share placement by China’s biggest property developer on Tuesday underscored the depth of the country’s real estate crisis.

Reports that Country Garden had abruptly pulled an attempt to raise $300 million by issuing new shares in Hong Kong coincided with the release of data late Monday showing new home sales by China’s 100 biggest developers dropped by 33% in July from a year ago.

“No definitive agreement has been entered into with respect to the proposed transaction and the company is not considering the proposed transaction at this stage,” Country Garden said in a statement. Its shares fell as much as 11% on the Hong Kong stock exchange. They were last down 7%.

The drop in new home sales in China is the steepest monthly decline since July 2022. For the first seven months of

Why Two Developers Are Holding Condo Sales Until Post-Construction

Why Two Developers Are Holding Condo Sales Until Post-Construction

When is a pre-sale condo not a pre-sale condo? When sales don’t launch until after construction has completed. In a rare move, Vancouver-based Shape Properties is doing exactly that with one of their upcoming condo towers, as the developer announced earlier this month that it is holding sales until post-construction.

The project is Tower Three of their 37-acre “City of Lougheed” master-planned community, located at the intersection of Austin Avenue and North Road, on the Burnaby side of the boundary with Coquitlam and adjacent to the City of Lougheed Shopping Centre (formerly known as Lougheed Mall).

The overall site is expected to see over 10,000 homes across 20 residential towers, as well as 1.3 million sq. ft of retail space (615,000 sq. ft of which includes the existing shopping centre) and 1 million sq. ft of office space.

It’s all scheduled to unfold across several phases, with the first phase

Condo developers can pre-sell before building permits in place

Condo developers can pre-sell before building permits in place

BC Superintendent of Real Estate policy change, which also allows strata pre-sales before financing is committed, came into effect on March 8, 2023

The BC Financial Services Authority (“BCFSA”) has issued a notice to its stakeholders, including developers, advising that the Superintendent of Real Estate’s Policy Statements 5 and 6 have been amended, effective March 8, 2023.

Together, Policy Statements 5 and 6 allow developers to engage in the early marketing of development projects before obtaining a building permit (Policy Statement 5) and a satisfactory financing commitment (Policy Statement 6), provided certain requirements are met.

The amendments to Policy Statements 5 and 6 are intended to create clear and consistent guidelines governing early marketing requirements in British Columbia.

Policy Statement 5 provides that a developer may engage in the early marketing of a development project even though it has not yet obtained certain approvals for its project, including a building

China to guard against risks among property developers – Premier Li

China to guard against risks among property developers – Premier Li

BEIJING, March 5 (Reuters) – Warning that risks remain in the property market, China’s government said in a report released at parliament’s annual opening on Sunday that it would promote the sector’s stable development and prevent disorderly expansion by developers.

Premier Li Keqiang made guarding against risks to top property developers one of the government’s priorities this year, amid still cautious buyer sentiment, following through on the work done at a key economic meeting in December.

“There are more potential risks in the real estate market and some small and medium-sized financial institutions are exposed to risks,” Li said in the government’s work report for 2023.

Since mid-2021, the property sector has grappled with a liquidity crisis, with many developers defaulting on, or delaying, debt payments as they struggle to sell apartments and raise funds. Around half of the 30-odd Chinese developers listed in Hong Kong have defaulted on or

After 421-a ‘s end, multifamily developers shift to condos, using public land

After 421-a ‘s end, multifamily developers shift to condos, using public land

Brooklyn-based Two Trees Management, which hasn’t built condos since the 1990s, has considered using its development sites to do just that.

When the company, run by Jed Walentas, dropped $185 million to buy the site of the former Domino Sugar factory from the Community Preservation Corp. in 2012, it intended to build more than 2,000 mixed-income rental apartments and office space.

The project, an 11-acre megadevelopment, was to be delivered in phases across several buildings using the 421-a tax abatement program.

Two of its buildings are already subject to using the tax program. Site D, a separate phase that will include 600 apartments across two towers, is already under construction and, because of this, will also qualify for the tax exemption when it’s complete.

But Site B, the 1 million-square-foot development that has yet to be constructed, is racing against the clock. Although its foundation was put in place before