Chi­nese money lift­ing sen­ti­ment in Asia Pa­cific prop­erty mar­ket

New Straits Times - - Business World -

SIN­GA­PORE: Chi­nese developers ploughed over US$5.1 bil­lion (RM21.76 bil­lion) into the Asi­aPa­cific res­i­den­tial mar­ket in the first three months of this year, a re­port from prop­erty con­sul­tancy Knight Frank showed on Thurs­day.

In Sin­ga­pore, the wealthy Chi­nese builders have set records for res­i­den­tial land prices, both in Govern­ment Land Sales (GLS) ten­ders and in the col­lec­tive sale mar­ket, help­ing to boost sen­ti­ment in the hous­ing sec­tor but squeez­ing the profit mar­gins of lo­cal builders.

Ac­cord­ing to Knight Frank’s Asia-Pa­cific Res­i­den­tial Re­view, the growth in outbound ac­tiv­ity by main­land Chi­nese developers has been one of the key trends over the past decade, with vol­umes go­ing from prac­ti­cally zero in 2009 to more than US$2.5 bil­lion last year.

From 2012 to last year, their favourite des­ti­na­tion was Aus­tralia (36.5 per cent) along with other key mar­kets, in­clud­ing Hong Kong (23.7 per cent), Malaysia (19.7 per cent) and Sin­ga­pore (15.4 per cent).

Ni­cholas Holt, Knight Frank’s Asia-Pa­cific head of re­search, said fol­low­ing the flurry of cool­ing mea­sures in­tro­duced in ma­jor main­land cities and the re­cently-en­forced cap­i­tal con­trols, Chi­nese developers were ex­pected to in­vest more money in Hong Kong and smaller Tier 3 main­land cities this year, be­sides over­seas mar­kets like Sin­ga­pore.

The in­flow of Chi­nese cap­i­tal has made a big impact in Sin­ga­pore: Last week, units of China’s Nan­shan Group and Lo­gan

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