Real Estate

Cross-border home renovation deal is full of gaps

24 Mar 2025

On paper, Chicago-based decks and railings maker Azek complements its buyer, Aussie- and NYSE-listed cladding manufacturer James Hardie. But cost cuts don't cover the 41% premium on the $9bln deal and other synergies look dubious, not least as tariffs are set to hit US consumers.

Rocket’s housing deal has foundational cracks

10 Mar 2025

The mortgage lender is buying real estate portal Redfin for $2 bln. The premium is covered by $200 mln of promised cost cuts and revenue bumps. But the seller isn’t profitable, and the housing market is ailing. It’s a fixer-upper merger premised on a lot of hope.

City of London rent surge is boon for Canary Wharf

28 Feb 2025

Office rents in central London are approaching twice those further east, thanks to a post-Covid rush to newer buildings in prime locations. But businesses are also being priced out. With more demand and less supply, Brookfield and Qatar-owned Canary Wharf may see an influx.

China’s marriage aversion is two problems in one

20 Feb 2025

The 20% plunge in marriage registrations last year is a signal of the economic pain from a shortage of jobs and a property crisis. It will also drag down future births and housing demand. Beijing has a strong incentive to put family planning front and centre of its stimulus.

Citi’s pricey refit flags offices’ prime dilemma

22 Jan 2025

The US bank is spending 1 bln pounds to upgrade its tower in London’s Canary Wharf. Stagnating rents and higher vacancies put an onus on value-enhancing refits. The dilemma for owners of large office districts is whether to take on debt and follow suit – or accept a slow decline.

Vanke debacle may hasten wider China property fix

17 Jan 2025

Top investor Shenzhen Metro helped keep the developer from joining its peers in default. But Vanke’s bonds are crashing and authorities have detained its CEO, state media report. It suggests drip-feeding aid isn’t working - a lesson Beijing can apply to the rest of the sector.

Country Garden’s debt fix is a bet against Beijing

10 Jan 2025

The property developer, once China’s largest by sales, is offering a 90% haircut as an option to restructure $16 bln of offshore bonds. Acceptance would imply creditors have given up hope that the government is about to put more substantive policies in place to boost home prices.

Los Angeles fires expose inflated US home prices

9 Jan 2025

Devastation around the country’s second-largest city has already led to one damage estimate beyond $50 bln. New California rules ease the way for insurers to charge more to cover the risks. Once the blazes are contained, housing market realities will start to spread nationwide.

Tokyo’s property boom looks built to last

27 Dec 2024

Office vacancy rates in the city are around 3%, well below London and New York, and hotel occupancy rates are high. Transaction volumes will remain robust through 2025 as private equity and sovereign funds descend on Japan. That should keep the hot market from overheating.

China will wield big mop to clean up property mess

23 Dec 2024

A $13 trln real estate glut is undermining President Xi Jinping’s efforts to stimulate the world’s second-largest economy. Shifting millions of empty homes into a ‘bad bank’ before turning them into affordable housing would help stabilise prices and restore consumer confidence.

China’s wealth pledge will face tough sceptics

10 Dec 2024

In a key meeting, Beijing identified stabilising stock and property prices as a top task in 2025. It recognises that people will spend more if they feel rich. This implies a policy bottom for both markets. Yet observers are forecasting a huge range of outcomes in the coming year.

New World paves Hong Kong developers’ way to China

2 Dec 2024

The $2 bln property firm’s second CEO in as many months is an expert in mainland real estate, suggesting an urgent need to deepen ties there. New World’s $20 bln debt pile may be hastening the move, but broader pressures will push healthier peers like CK Hutchison to follow suit.

One country, two China property crises for tycoons

20 Nov 2024

On the mainland, developers are being forced by Beijing to deliver presold homes. In Hong Kong, developers may chase down buyers who cancel purchases. Mega-rich families of the finance hub can keep their property flagships in decent shape while their onshore peers rot.

China developers’ survival fight gets litmus test

15 Nov 2024

Sunac has given investors four options for restructuring $2 bln of onshore bonds, including an 82% haircut and a debt-for-equity swap. How they vote will reveal their views on both the $3.1 bln firm’s chances of survival and Beijing’s attempts to end the property slump.

Murdoch leaves Rightmove little room for error

1 Oct 2024

The Australian tycoon’s REA Group walked away after four rejected bids for the UK property listings portal, prompting the latter’s shares to slump. Rightmove can get to the offer price if it grows revenue at 11% a year and keeps its 75% margin. But that’s not simple to do.

China plays perilous game of pump the stock market

30 Sep 2024

Shares in consumer and real-estate firms have jumped more than a fifth after the latest round of state support raised hopes of a broad recovery. The risk is that when policymakers in Beijing flesh out their plans, the details will fall short of what investors are expecting.

Hong Kong property tycoons enter brave new world

26 Sep 2024

Embattled developer New World may replace its CEO, the third-generation scion of the founding Cheng clan, amid a deepening real estate slump. Such a move is nearly unheard of in the city dominated by family-run conglomerates. It will put peers like Henderson Land on notice.

Murdoch’s UK property bid may yet get even sweeter

23 Sep 2024

Rightmove is mulling an improved $8.1 bln offer from Australia’s REA Group, owned by the media tycoon. A chunky premium and other UK refuseniks’ share price slumps are reasons for the listing portal’s board to say yes. But the buyer’s latest bid implies an ability to pay more.

India’s mortgage IPO builds on many riches

16 Sep 2024

Shares of Bajaj Housing surged 125% on their debut. That reflects faith in its $56 bln investor darling parent and robust demand for expensive homes. It also hints at deep scepticism among sellers about the sustainability of rich valuations in the country's equities market.

China mortgage cut is start of confidence rebuild

13 Sep 2024

Beijing may significantly lower rates on existing home loans, per Bloomberg. That might convince property owners that there are better alternatives than stepping up mortgage repayments. It is a step toward fixing a $1 trln headache for officials, and improving consumer sentiment.