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Thread: Vanke to build condos for China's rich in Singapore

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    Default Vanke to build condos for China's rich in Singapore

    http://www.businesstimes.com.sg/spec...apore-20131107

    Published November 07, 2013

    Vanke to build condos for China's rich in Singapore


    [SINGAPORE] Faced with curbs on luxury residences and fundraising at home, China's biggest mainland-listed property developer is building apartments for wealthy Chinese in Singapore and raising debt in the city's currency.

    China Vanke Co, which also plans developments in San Francisco and Hong Kong, sold S$140 million of four-year notes with a 3.275 per cent coupon on Oct 31, according to Bloomberg data.

    That's a premium on the average 1.8 per cent coupon for Chinese bonds in the currency. The yield on the company's five-year US dollar bonds fell 54 basis points since June, to 4.14 per cent on Nov 5.

    Vanke has teamed up with Keppel Land for the development of 726 flats in east Singapore as foreign Chinese buyers have emerged as the top overseas buyers of residential property in the city-state this year.

    Mainland builders are accelerating projects abroad as people from the world's most-populous country seek access to education, healthcare and citizenship abroad, said London-based broker Savills plc.

    "Chinese developers have been looking offshore for funding for many years now but there's more impetus to do it now after the government turned the credit taps off," said James Macdonald, Shanghai-based head of research at Savills China. "Being able to turn to overseas bond markets is important to Chinese developers as these markets are not tied to government policy and prices are dictated by the market."

    Regulators across China have sought to clamp down on property prices, tightening lending requirements and boosting minimum downpayments for additional home purchases in an effort to reduce the risk of a bubble destabilising the financial system.

    The People's Bank of China in June engineered a cash crunch that saw short-term funding rates soar amid efforts to curb loose lending practices that have undermined bank balance sheets.

    The yield on the government's benchmark 10-year bonds added three basis points to 4.22 per cent and has jumped 64 basis points this year. The yuan, which gained 2 per cent so far in 2013, was little changed at 6.0968 per dollar.

    "Overseas markets are attractive as there is less government interference and stronger rule of law, which makes them more transparent and predictable," said Mr Macdonald, adding that currency diversification is another driving factor behind investment abroad.

    Dalian Wanda Group Corp, founded by China's richest man Wang Jianlin, is constructing a luxury hotel and apartment building in England. Its unit, Dalian Wanda Commercial Properties Co, is considering selling a US dollar bond and met investors in London this week, according to people familiar with the matter.

    Chinese and Hong Kong developers have sold close to US$20 billion of debt in dollars this year, making up about 17 per cent of the market in Asia outside Japan. This compares to 11.2 per cent last year.

    Vanke is targeting foreign markets where Chinese buyers are active, including San Francisco, New York, Boston and Singapore, president Yu Liang said in August.

    The move comes as the authorities in its home town of Shenzhen boosted minimum downpayments for second homes to 70 per cent and reiterated a ban on loans for anyone who owns two or more properties.

    Borrowing costs for companies in Singapore dollars reached a four-month low of 3.087 per cent on Oct 30, according to HSBC Holdings plc indexes. - Bloomberg

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    Now china developer doesn't even need local funding or even local demand anymore. They only need your land. Much like colonization. This is not good.

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    East will be flooded with more China Chinese soon.

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    Quote Originally Posted by DC33_2008 View Post
    East will be flooded with more China Chinese soon.
    Highest bid gets the land ! Bo bian...

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    Quote Originally Posted by DC33_2008 View Post
    East will be flooded with more China Chinese soon.
    Be thankful SG govt does not allow dual citizenship. If it happens, not only the east will get flooded by mainland chinese but the entire island.

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    South East got quite a lot of Indians too.
    Quote Originally Posted by insigina View Post
    Be thankful SG govt does not allow dual citizenship. If it happens, not only the east will get flooded by mainland chinese but the entire island.

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    Quote Originally Posted by insigina View Post
    Be thankful SG govt does not allow dual citizenship. If it happens, not only the east will get flooded by mainland chinese but the entire island.
    this is only the official stance
    There is no good or bad location. There is only good or bad price.

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    why would china chinese want to buy vanke's project, when there are so many others ard. pple are not stupid, at the end of the day, it's still location/price dat matters isn't it?
    Ong lai ah!

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    Quote Originally Posted by onglai View Post
    why would china chinese want to buy vanke's project, when there are so many others ard. pple are not stupid, at the end of the day, it's still location/price dat matters isn't it?
    This product is custom tailored for wealthy chinese. Its not meant to compete with local developers' product.

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    Quote Originally Posted by indomie View Post
    This product is custom tailored for wealthy chinese. Its not meant to compete with local developers' product.
    what custom tailored features are we talking about here?
    besides a spitting room.

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    Quote Originally Posted by insigina View Post
    Be thankful SG govt does not allow dual citizenship. If it happens, not only the east will get flooded by mainland chinese but the entire island.
    it may not be a bad idea afterall ... cos singaporeans can oso hv another citizenship elsewhere

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    Quote Originally Posted by hopeful View Post
    what custom tailored features are we talking about here?
    besides a spitting room.
    Maybe first full condo with chinese characters and bath facilities per China standard?

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    Quote Originally Posted by hopeful View Post
    what custom tailored features are we talking about here?
    besides a spitting room.
    The feature is quite unique.. But imagine if I need to move money to a safe haven. Overseas real estate come pretty handy.

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    Quote Originally Posted by hopeful View Post
    what custom tailored features are we talking about here?
    besides a spitting room.
    maybe everything is written in chinese.., the address, signboard etc..

    come to tink of it.. maybe the wealthy chinese are more comfortable and can relate to vanke then eg. sc global.
    Ong lai ah!

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    Quote Originally Posted by onglai View Post
    maybe everything is written in chinese.., the address, signboard etc..

    come to tink of it.. maybe the wealthy chinese are more comfortable and can relate to vanke then eg. sc global.
    Art and painting has been known to launder money too. Why not property?

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    Quote Originally Posted by onglai View Post
    maybe everything is written in chinese.., the address, signboard etc..

    come to tink of it.. maybe the wealthy chinese are more comfortable and can relate to vanke then eg. sc global.
    those in penthouses can build rock villas.

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    Quote Originally Posted by hopeful View Post
    those in penthouses can build rock villas.
    U can go see hamilton scotts, upgrading the facade now.
    after the chinese buyer took over. just TOP nia

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    I dunno about you guys.

    But I am much more comfortable with rich PRC Chinese than with rich Ang Mohs or rich Indians. The latter two groups of people treat us like 2nd class dirt, partly I suspect, due to a difference in ethnicity and cultural background.

    At least the rich Chinese treat us with somewhat more respect since we share a little of the same cultural background.

    This is from my experience in dealing with all kinds of high net worth foreigners in my line of work. As well as living in close proximity with them in condos and socialising in country/town clubs.

    Most of the time I just grin and bear it when some Ang Moh or Indian says something disparaging or condescending about my culture and ethnicity/race but I don't think I would want more of them here. If I wanted to be insulted every day by ang mohs, I would have moved to London or NY.

    Dunno about you guys, but I don't really like to be treated like an inferior race in my own country.

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    Foreign buyer limitations on property may come as surprise
    Friday, 08 November 2013
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    It may surprise some miffed suburban homebuyers in Melbourne and Sydney, but foreigners cannot buy established houses for investment or as homes in Australia.

    This is at odds with the growing perception that cashed-up mainland Chinese buyers are forcing locals out of the property race.

    However, foreigners can buy new dwellings, off-the-plan houses or apartments under construction or yet to be built, or vacant land for development.

    The latest Knight Frank Global Development Insight report, which looks at global buying trends for new property around the world, reveals that Chinese investors are the most influential buyers in the this sector, with investors from Singapore and Russia second and third.

    Key findings are:

    37% of respondents believe political and economic risk in a buyer’s home market as a key driver for international demand.
    New York, Paris and London are among the most sought after markets.
    47% of respondents believe ‘the safe haven effect’ is the biggest drawer for their market.
    Education and lifestyle are increasingly important when investing overseas.
    Chinese, Russian and US-based investors are all expected to retain and grow their market share in new-build property over the next 12 months.
    Latin American buyers meanwhile, particularly those from Brazil and Mexico, are expected to feature more prominently in global new-build markets.
    China’s growing importance reflects the rise of Asia as a wealth creation hub. Asia is second only to North America in the number of billionaires, and the number of high-net-worth individuals in China is forecast to rise by 137% over the coming decade, according to data contained in The Wealth Report.
    "There is strong demand from Asian buyers across all hubs in Australia, especially in Sydney and Melbourne,’’ says Sarah Harding, Knight Frank’s international project marketing - network director.

    ‘’We expect continued buyer activity from overseas, with buyers coming from China, Hong Kong, Singapore, Malaysia and Indonesia, driven in part due to tightening measures which continue to be imposed on Asian markets in an attempt to cool house prices.


    ‘’The report reveals that Sydney is rated as No. 1 for buyers in Hong Kong, while Indonesia ranks Sydney as the third top city. This could also be mainly attributed to the proximity, high standards of education and lifestyle options available in Australia."

    Harding said offshore developers have been ‘landbanking’ sites over the past year, with Chinese and Malaysian developers actively marketing apartments in their local markets.

    ‘’Over the next three years we anticipate development activity to ramp up as the number of high-net-worth individuals in China is forecast to rise by 137% over the coming decade."

    As well as being the top purchasers of new-build residential property in Sydney and Hong Kong, Chinese buyers are active in Kuala Lumpur and Bangkok’s prime new-build markets. They are growing in strength in key western markets, particularly New York.

    The Chinese buyers’ global presence is fuelled by a strong Yuan and slowing domestic economy, encouraging Chinese investors to look further afield to diversify their investments, the Knight Frank report said.

    Singaporean and Russian investors are the next most active buyers of new-build residential property around the world, followed by UK and US buyers.

    Concern about the rise of Chinese buyers in Australia is in contrast to many European countries, which are tempting international investors with promises of residency and a reduced tax bill. This is because foreign buyers help stimulate struggling mainstream property markets and boost economic growth.

    In Spain, Portugal and Greece, for example, large amounts of stock remains unsold as a result of property booms that came to an abrupt halt in 2008. In Spain, estimates suggest that at the end of last year there were around 700,000 new homes unsold on the market.

    According to official data, mainstream property prices in Greece, Spain and Portugal are now 31%, 29% and 19% below their respective market peaks.

    Knight Frank’s residential development teams around the world report that Asia - home to five of the top 10 leading buyers - should be viewed as an important market for developers to showcase new projects.

    ‘’In terms of pricing, research indicates that the leading international buyers for prime new-build residential property spend between $1.8 million and $3 million, and typically look for apartments with two or three bedrooms,’’ they say.

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