Real Estate Policy
Fuzhou: The General Office of the Fuzhou Municipal People’s Government issued the Notice of the General Office of the Fuzhou Municipal People’s Government on Enhancing the Regulation on the Real Estate Market and Advancing Stable and Healthy Development of the Real Estate Market, introducing new real estate regulation policies again and raising the down payment of secondary housing with provident fund loans to 50% on November 21.
Hefei: According to the Supplement Announcement on the Land Auction in November 30 issued on November 21 in Hefei, the residential land (excluding Lujiang County) auctioned in that day shall adopt the way of “in parallel” auction, and also developers can only get land by participating in the last “lottery” procedure. That was the first time in the history o f Hefei.
Shenzhen: The Urban Planning, Land and Resources Commission of Shenzhen Municipality issued the 13th Five-Year Plan of Shenzhen for Urban Renewal on November 21. In the planed period, Shenzhen will strive to renew various types of land of 30 km2, of which the type of demolition and reconstruction and the type of non- demolition and reconstruction respectively cover an area of 12.5 km2 and 17.5 km2. It is planed to invest about RMB 350 billion Yuan in urban fixed-asset renewal.
Guangzhou: Guangzhou Housing and Urban-Rural Construction Committee, Guangzhou Land Resources and Planning Committee and Bureau of Financial Affairs of Guangzhou Municipality jointly issued the Notice on Checking the Source of Funds for Bidding Commercial Residential Land on November 18. The notice requires that funds used for bidding commercial residential land to undertake the development of the real estate must be in the hands of the localities in Guangzhou.
Suzhou: Suzhou sold six plots by list-for-sale on November 18, covering a total area of about 468,900 m2 with the total starting price of RMB 6.95 billion Yuan. By region, those lots are distributed in four districts, three ones respectively in Wuzhong District, Xiangcheng District and Industrial Park District, while three in the High-tech District. It was reported that it was the first time for land list-for-sale in Suzhou after the housing restriction upgraded.
Real Estate Market
Trustee: China Trustee Association has released the third-quarter business data of trust companies recently. The data indicate that real estate fund trust scale is RMB 1.35 trillion Yuan, accounting for 8.45% of the overall trust scale by the end of the third quarter with a reduction of 0.51% than 8.96% in the same period of 2015.
Hangzhou: there are altogether 53 transferable profit-oriented plotsin Hangzhou main urban area, of which 28ones are to be used for residential landaccounting for 53% of the total and covering an area of about 2105 mu.
Hefei: Hefei requires that real estate enterprises have to provide a sales plan of the whole project with prices marked clearly to apply for filing, and make the sales price undertaking of commercial housing under the requirement.
Standard & Poor's: Standard & Poor's Global Ratings indicated that Chinese government had successively introduced property market cooling measures that might prevent and stop the shocking sales trend made by Chinese real estate developers since the end of September this year in the China Property Watch: Feast of Developers May Have Gone released by it on November 22.
Real Estate Enterprise
Evergrande: On November 23, Vanke released the indicative announcement in relation to its change of shareholder’s equity that Evergrande Real Estate Group Limited had held 1,103,915,326 A-shares of Vanke, accounting for 10.00% of Vanke’s total shares.
China Railway Group Limited: On November 22, China Railway Group Limited released an announcement that it had signedthe Strategic Cooperation Framework Agreement with the Wuhan Municipal People’s Government. According to the development planning of Wuhan City and the project progress, China Railway Group Limited has a plan to invest no less than RMB 100 billion Yuan. It would carry out all-round strategic cooperation with the Wuhan Municipal People’s Government in terms of expressway, municipal infrastructure construction and shantytowns transformation.
Zhuhai Hengqin: On November 22, Macao Trade and Investment Promotion Institute and the Administrative Committee of Hengqin New Area jointly held the “2016 Project Recommendation and Matching Conference of Hengqin Guangdong-Macao Economic and Co-operation Industrial Park”. It was revealed that the Macao SAR Government recommended another 50 projects to enter the park again at the meeting. Those projects recommended apply for about 4.8 km2 land, involving in such major industry fields as travel and leisure, logistics and commerce and trade, science and education development, culture creativity, advanced technology and medicine and health which basically are compliant with Hengqin’s industry orientation.
LongFor /SHOKAI: On November 22, Guangzhou granted 10 plots. After acquiring the new prime plot in Guangzhou, the consortium of LongFor and SHOKAI jointly purchased Plot SDK-A2-1 in the Development District for about RMB 4.304 billion Yuan, with 109,800 m2 of dismantling and settling buildings equipped and the actual floor price of RMB 25,279 Yuan psm.
JOY CITY: On November 22, Joy City Property Limited revealed that West Heaven as the buyer and Eagle Development as the seller entered into a buy-sell agreement. The initial purchase price of the transaction was RMB 1.396 billion Yuan. Main assets of the target company refer to the retail properties of Long Scenic River Plaza in Putuo District, Shanghai. The mall started operation in December 2011 and is still in operation now.
Wanda: According to foreign media reports recently, AMC as Wanda’s flagship subsidiary entered into an agreement to acquire Carmike for USD 1.2 billion and thus became the largest theater chain in America. The Board of Directors of the two companies now have approved the deal that still needs to be approved by the supervision department.
Wanda Group concluded a comprehensive strategic cooperation agreement with Shaanxi Province to newly increase RMB 103 billion Yuan on the basis of its previous investment, of which RMB 50 billion Yuan will be used for building Xi’an Wanda City.
On November 22, Wanda Group said in a statement that it never carried out formal agreements and negotiations about and also never reached any mutual agreement on Wanda business restructuring with Soft Rock Investment.
R&F: Guangzhou R&F Properties Co., Ltd. (“R&F”) announced that it convened an extraordinary shareholders meeting on November 21, 2016, at which the special resolution to issue debt financing instruments of not exceeding RMB 40 billion Yuan was passed via voting.
Vanke: According to the news on November 20, Vanke ranked the first with its market share rising from 3.5% to 5.0% and sales scale from 30 billion to 60 billion this year in the market of middle and west regions, revealed Wang Haiwu, vice president of Vanke Group and CEO in middle and west regions, at Vanke mid-west regional media meeting. On November 21, Xiao Jin, general manager of Shenyang Vanke, said that Shenyang Vanke has had more than RMB10 billion Yuan filed for record by now and achieved its goal of breaking 10 billion which was made at the beginning of this year 41 days in advance.
China Overseas Land & Investment Ltd: On November 21, China Overseas Grand Oceans Group Limited released an announcement that it convened an extraordinary general meeting and passed matters on acquiring property projects from China Overseas Land & Investment Ltd with 100% of the vote that day. On October 12 earlier, China Overseas Grand Oceans Group Limited announced acquiring multiple third-tier city projects subordinated by China Overseas Land & Investment Ltd for RMB 3.516 billion Yuan. The building area amounts to 9,517,700 m2.
Beijing Capital Land: On November 21, Beijing Capital Land released an announcement that its A-share prospectus had been published in advance on the CSRC website. According to the prospectus, it plans to put forward to the China Securities Regulatory Commission and its relevant supervision agencies for issuing not exceeding 370 million A-shares to qualified investors.
Midea Property: On November 18, Guangdong Midea Property was approved to list on New OTC (Over the Counter) Market. Established in 2000, it is mainly engaged in property management services, earlier-stage sales cooperation services of estate development and other property value-added services. By now, Midea Property Company has 37 management and earlier-stage intervention service projects totally, covering a management area of about 19,007,600 m2. Its management services involve residence, office buildings, commercial shops and other types of properties in provinces such as Liaoning, Hebei, Jiangsu, Zhejiang, Hunan, Guizhou, Jiangxi and Guangzhou.
About Land
Guangzhou: The demolition work of Maogang urban village renovation project in Huangpu District, Guangzhou started after six years. This project is one of the largest ongoing “three-old” renovation projects in Guangzhou. On November 22, ten plots in seven districts here were offered for sale together. The consortium of LongFor and SHOKAI purchased one of them, Baiyun New Town dwelling land, for RMB 45,469 Yuan psm, becoming the new land king in Guangzhou; Vanke purchased Nansha Huangge plot for RMB 15,723 Yuan psm, becoming the new land king in Nansha. The auction of Plot AT090904, starting area of Guangzhou International Financial City, Tianhe District, however, failed for no bidders.
Beijing: The consortium of Beijing Capital Group, COFCO Group and Tianheng Group purchased Beijing Haidian plot for RMB 5.76 billion Yuan, with 100% housing area and 10% commercial area to be self-held.
Shenyang: CIFI Group purchased a piece of commercial and residential land in Wanghua Region, Dadong District, Shenyang for RMB 437 million Yuan, which covers an area of 89,400 m2 and also is the third plot obtained by CIFI Group in Dadong District this year.
Nanjing: For the first auction of land after the “double-limit” policy implemented in Nanjing, six firms including Vanke, CFLD and Yuzhou Properties successfully purchased six plots, while another three plots were transferred into the “lottery” procedure due to triggering the ceiling price.
Hong Kong: The bidding of Kai Tak commercial land in Hong Kong was closed on the 18th day. This piece of land can be used to construct buildings with a floor area of 1,097,300 feet and is estimated at about HK$ 8.78 billion.
Wuhan: On November 22, 17 plots were auctioned in Wuhan, with 15 auctioned online and 2 by onsite list-for-sale. According to the result, 9 plots were sold by bidding, while 8 were sold at the base price, with a total closing price of about RMB 19.686 billion Yuan. In this auction, the price limit policy was executed for the first time in Wuhan. Among 11 plots which were set with the maximum price, 5 entered in the stage of appraise through comparison by plan since the circuit breaker was triggered when the quote reached the maximum price.
Fuzhou: On November 21, Fuzhou City sold 15 plots in the urban area publicly, among which 9 are residential properties, with a total starting price of RMB 8.025 billion Yuan and a total area of 437 mu of housing plots. It is rare in the land auction history of Fuzhou. The collection amount of the 9 plots reached RMB 11.712 billion Yuan.
