HONG KONG — China’s efforts to clear massive inventory by turning unsold homes into affordable housing are unlikely to help cash-strapped developers due to the programme’s limited size and potentially low prices, analysts and developers say.
A drone view of an under-construction residential development by Country Garden in Shanghai, China Feb 29, 2024.
Some private developers, however, see very few, if any, of their projects being selected as the lending facility is inadequate and the scheme is expected to launch only in bigger cities where affordable housing is available.The cautious attitude of developers could be a challenge for Beijing, as waves of support measures over the past two years fail to revive the sector, which at its peak accounted for a quarter of gross domestic product and remains a major drag on the economy.
Some developers said buying at costs, which means a 20-30 per cent discount to market price, was better than expected. Even if developers are able to profit from selling completed apartments to SOEs, local governments may require proceeds be used to finish existing projects rather than to repay debt. “Only a handful of distressed developers will benefit,” said S&P Global Ratings credit analyst Esther Liu. “ is the problem the distressed developers are facing. They don’t have a lot of completed inventory.”
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hong Kong arrests 3 people for ‘insulting’ China’s national anthem at World Cup qualifierThe trio are between ages 18 and 31.
Read more »
Security tight in China and Hong Kong on Tiananmen anniversaryBEIJING: Security was tight and access restricted to Beijing's Tiananmen Square on Tuesday, the 35th anniversary of the Jun 4 crackdown, while Hong Kong police detained several activists, as cities in Taiwan and elsewhere prepared to mark the date with vigils.
Read more »
Security tight in China and Hong Kong on Tiananmen anniversaryBEIJING: China authorities said they would close Beijing's Tiananmen Square on Tuesday (Jun 4), the 35th anniversary of the Jun 4 incident, while Hong Kong police also tightened security as activists in Taiwan and elsewhere prepared to mark the date with vigils.
Read more »
Security tight in China and Hong Kong on Tiananmen crackdown anniversaryChina authorities said they would close Beijing's Tiananmen Square on 35th anniversary of the June 4 crackdown.
Read more »
Security tight in China and Hong Kong on Tiananmen crackdown anniversaryBEIJING/HONG KONG — The Chinese authorities said they would close Beijing's Tiananmen Square on the 35th anniversary of the June 4 crackdown, while Hong Kong police also tightened security as activists in Taiwan and elsewhere prepared to mark the date with vigils.
Read more »
China tells critics of Hong Kong security law to ‘stop interfering’The EU had said the arrests suggest that the new legislation “is used to stifle freedom of expression”.
Read more »