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Bargain apartments as landlords look for cash
By Cao Qian |
January 8, 2009, Thursday
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CASH-STRAPPED landlords from home and abroad are offering big discounts to potential buyers for local properties as a deteriorating market unbalances their balance sheets.
Just six months after selling hundreds of luxury apartments at Maison des Artistes, in the prime Gubei area in Changning District, at lower prices, Hutchison Whampoa, the conglomerate owned by Hong Kong's super businessman Li Kai-shing, recently began to sell retail facilities within the high-end development, shifting from its previous "lease-only" strategy.
"The retail development at the project is definitely for high-quality properties with high yields as Gubei has for a long time been an expat community," said Xue Jianxiong, an analyst with E-House China (Holdings) Ltd. "Moreover, the nearby Gubei GIFC II, a high-end development comprising of both offices and retail facilities which is scheduled to be completed by 2011, might help attract more affluent customers in the future."
About 40 units covering more than 16,400 square meters, with sizes ranging from dozens of square meters to some 2,000 square meters, are now available for sale, with an average asking price of 100,000 yuan (US$14,600) per square meter for ground-level space.
Just half a year ago, retail assets in similar locations were asking for more than 140,000 yuan per square meter, experts said.
Earlier in May, Hutchison Harbour Ring, a subsidiary of Hutchison Whampoa, sold The Center, a 40-story Grade A office tower on Changle Road to Asia Pacific Land Limited for about 4.4 billion yuan. The deal was reported to bring the company a 2.1-billion-yuan profit.
Hutchison Whampoa is definitely not alone in seeking a "retreat" from the cooling real estate market.
City Apartments, a high-end residential development located at the intersection of Yan'an and Shaanxi Road, has also slashed prices by about 25 percent to lure buyers, a local newspaper reported yesterday.
A subsidiary of Australia's Macquarie Group has been asking 300 million yuan for the 16,000 square meter property, compared to the 400 million yuan it paid in September 2005.
The fast depreciation of the Australian dollar against the yuan over the past months could help the landlord trim losses, industry analysts said. A shopping mall near Yuyuan Garden and another retail outlet in the southern Xinzhuang are also looking eagerly for buyers.
Just six months after selling hundreds of luxury apartments at Maison des Artistes, in the prime Gubei area in Changning District, at lower prices, Hutchison Whampoa, the conglomerate owned by Hong Kong's super businessman Li Kai-shing, recently began to sell retail facilities within the high-end development, shifting from its previous "lease-only" strategy.
"The retail development at the project is definitely for high-quality properties with high yields as Gubei has for a long time been an expat community," said Xue Jianxiong, an analyst with E-House China (Holdings) Ltd. "Moreover, the nearby Gubei GIFC II, a high-end development comprising of both offices and retail facilities which is scheduled to be completed by 2011, might help attract more affluent customers in the future."
About 40 units covering more than 16,400 square meters, with sizes ranging from dozens of square meters to some 2,000 square meters, are now available for sale, with an average asking price of 100,000 yuan (US$14,600) per square meter for ground-level space.
Just half a year ago, retail assets in similar locations were asking for more than 140,000 yuan per square meter, experts said.
Earlier in May, Hutchison Harbour Ring, a subsidiary of Hutchison Whampoa, sold The Center, a 40-story Grade A office tower on Changle Road to Asia Pacific Land Limited for about 4.4 billion yuan. The deal was reported to bring the company a 2.1-billion-yuan profit.
Hutchison Whampoa is definitely not alone in seeking a "retreat" from the cooling real estate market.
City Apartments, a high-end residential development located at the intersection of Yan'an and Shaanxi Road, has also slashed prices by about 25 percent to lure buyers, a local newspaper reported yesterday.
A subsidiary of Australia's Macquarie Group has been asking 300 million yuan for the 16,000 square meter property, compared to the 400 million yuan it paid in September 2005.
The fast depreciation of the Australian dollar against the yuan over the past months could help the landlord trim losses, industry analysts said. A shopping mall near Yuyuan Garden and another retail outlet in the southern Xinzhuang are also looking eagerly for buyers.
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