industry research Asia-Pacific real estate industry analyst Kong Lingyi said at a press conference yesterday that since the past real estate developers in the past used a lot of credit lines
so that land prices and property prices rose, to prevent high leverage In the case of a real estate bubble and the avoidance of most of the residents’ income to repay the mortgage, in line with the central government’s desire to promote domestic demand to promote economic growth, she expects that the financing channels of mainland real estate developers will continue to tighten.
Therefore, she believes that the pace of land investment by real estate developers in the Mainland will slow down this year, while the price of land investment will have downward pressure
Therefore, it is expected that the overall property prices in the Mainland may be recorded in the highest single-digit increase in the whole year, but the property prices will not rise. Plunge and avoid negative impacts on economic growth. She continued that Evergrande Real Estate (3333.HK)’s record-breaking sales last month did not mean that the mainland property market was picking up. It was because the company’s debt was high, so the sales and cash flow were exchanged for the price reduction promotion.
Internal enterprises or turn to Xingzhou to expand overseas business
Recently, Hong Kong-listed domestic real estate company Baolong Real Estate (1238.HK) and China Resources Land (1109.HK) have allotted shares to raise funds. In this regard, Kong Lingyi pointed out that with the tightening of real estate financing policies in the Mainland, there will be more domestic housing in the future to turn to the stock market for financing, such as the release of the company’s potential value through the rights issue or spin-off business.
On the other hand, Huang Zhiliang, a senior analyst in the real estate industry in the Asia-Pacific region of Bloomberg Industry Research, said yesterday that due to the continuing social turmoil in Hong Kong and the concerns of mainland enterprises about the situation in Hong Kong, they chose to expand their overseas business in Singapore.