Hong Kong/China Property Daily:Inside the Great Wall

Shanghai halts sale of three land parcels in Fengxian

    The three residential sites are located in Fengxian District of Shanghai, and theauthority has issued a notice stipulating that the source of funding on the landacquisitions has to be legal and self-funded. Bank loans, trust loans, and fundsraised in the capital market from wealth management products or frominsurance are not allowed to be paid as the deposit or the land premium. Thosewho violate the rules will be prohibited from land bidding for three years in thecity and deposits paid will not be refunded. (Hexun)

    Kaisa announces key findings on the investigation

    Kaisa (1638.HK) announced the key findings by FTI Consulting in itsinvestigation on the company since 2015. Regarding the issues raised by theauditor in late 2015, the investigation found there were improper accountingrecords made and non-compliance actions taken by ex-employees. Regardingthe recorded loss due to disposal of companies in Dongguan and Huizhou, thereport said Kaisa has not been making loss from the disposal and hence willnot take actions on this. Regarding those projects being blocked, only three ofthe 39 projects are not partially restricted. Moreover, FTI Consulting has notidentified any evidence of fraud involved in the restrictions and hence no legalactions will be taken. It is reported that the company might be able to publishits 2014 annual report in January 2017. (Company, Guandian)

    HONG KONG

    Kai Tak site in HK sold to HNA again for HK$5.4bn

    The site area is about 94.8k sf and the planned GFA is 398k sf. The land parcelwas sold to Chinese company HNA Holdings (0521.HK) at a consideration ofHK$5.412bn, representing an A.V. of HK$13,600 psf, which is 20% above themarket expectation. HNA Group, the mother company of HNA Holdings,successfully bid another site in Kai Tak with a planned GFA of 655k sf forHK$8.839bn (A.V. HK$13,500 psf) last month. The two sites account for about26.2% of the total residential GFA sold so far in Kai Tak. (HKEJ)

    Sellers of low lump-sum units are raising asking price after land sales in KaiTak

    Agent from Centaline commented that some of the sellers are taking the waitand-see approach after the new land sales in Kai Tak and have not adjustedtheir asking prices yet. However, some sellers who have listed units with alump-sum between HK$4m and HK$6m in Kowloon Bay, To Kwa Wan andHung Hom are increasing the asking prices by HK$100k-200k or 2%.

    Moreover, sellers in The Latitude