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Wednesday, February 21, 2024

Korean Banks Losing $749M on Overseas Deals and More Asia Real Estate Headlines

Hana Financial Group and four other major financial groups in Korea have lost around $749 million from overseas property investment

South Korea’s five largest financial companies have suffered nearly three-quarters of a billion dollars in losses on overseas real estate investments, with that story leading Mingtiandi’s headline roundup today. Also in the news, the trustee-manager of Dasin Retail Trust has been hit with a winding-up application and China makes its biggest cut ever in benchmark mortgage rates.

Korean Banks Face $749M in Losses on Overseas Property Investments ↗

South Korea’s five largest financial companies are facing about KRW 1 trillion ($749 million) in losses from their KRW 20 trillion in overseas real estate investments, according to an opposition party lawmaker, reflecting growing concern over the sector’s exposure to falling valuations worldwide.

Hana Financial Group has the largest exposure, with over KRW 6.2 trillion invested outside of the country, data from Yang Kyung-sook of the Democratic Party show. Yang’s data, first reported by local media outlets including Yonhap, is based on information provided by the companies in mid-January. Read more>> ↗

Dasin Retail Trust Receives Winding-Up Application ↗

The trustee-manager of Dasin Retail Trust has received a winding-up application filed by Zhang Guiming, the nephew of a non-executive director on Dasin Retail Trust’s board.

While Zhang informed the trustee-manager on Sunday that it was filed the previous day, the letter is deemed to have been served on Tuesday because it was received on Monday past 5pm, the trustee-manager said Tuesday. Read more>>

China Makes Biggest Cut Evern to Key Mortgage Rate ↗

China on Tuesday cut a key reference rate for mortgage loans, as policymakers attempted to stabilise the crisis-hit property market as well as the national economy.

The five-year loan prime rate, which commercial banks use as a benchmark to adjust their mortgage rates, was lowered from 4.2 to 3.95 per cent, said the People’s Bank of China. It marked the largest rollback of the five-year LPR since the system was introduced by China’s central bank in 2019. Read more>> ↗

Singapore Condo Owners Slash Project Price to $1.3B in Fifth En Bloc Try ↗

Singapore’s Pine Grove condominium will be put up for collective sale again, this time with plans underway to lower the reserve price by 8.7 percent to S$1.78 billion ($1.32 billion), marketing agent ERA said Monday.

This comes after the last en bloc attempt closed on 29 November with “muted response from developers”, said ERA CEO Marcus Chu. Read more>> ↗

Hong Kong’s Kingboard Braces for Country Garden Hit ↗

Kingboard Holdings warned that its net profit last year would slump as much as 45 percent, partly due to the provisions related to its exposure to the embattled Country Garden.

The Hong Kong-based chemicals and laminates producer said its net profit is expected to be at least HK$2.02 billion ($258 million) for last year, a decrease of up to 45 percent from a year earlier. Read more>> ↗

Hainan Again Cuts Down Payment Requirements for First-Home Buyers ↗

China’s southern province of Hainan cut the down-payment ratio for first homes for the second time in less than half a year, signalling potential for more easing of mortgage policies to boost slumping home sales across the country.

The minimum down payment for first-time homebuyers was cut from 25 percent to 20 percent — the lowest ratio allowed by financial regulators, according to a Hainan Daily report Monday. Hainan, which has a population of 10 million, last lowered the minimum level from 30 percent to 25 percent in October. Read more>> ↗

Hong Kong’s Henderson Land to Market 820 Homes in First Half ↗

Henderson Land Development will offer 820 new homes in Tai Po and Cheung Sha Wan in the first half of the year, joining the queue for launching new projects.

Thomas Lam, a general manager of sales, said the developer will launch sales for Mei Sun Lane in Tai Po in the second quarter, involving 120 flats. Read more>> ↗

Eight-Storey Hotel in Singapore’s Geylang Up for Sale at $89M Guide Price ↗

An eight-storey hotel at 12 Lorong 12 Geylang has been put on the market via expression of interest for S$120 million ($89 million), exclusive marketing agent CBRE said Tuesday.

The guide price translates to S$2,758 per square foot based on a gross floor area of 43,500 square feet. The hotel sits on a freehold site spanning 12,993 square feet (1,207 square metres) and comes with a lobby, a private parking facility and a total of 184 rooms with about 175 square feet each. Read more>> ↗

Tune in again soon for more real estate news and be sure to follow @Mingtiandi ↗ on X, or bookmark Mingtiandi’s LinkedIn page ↗ for headlines as they happen.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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