China property
Home prices have dropped by more than 30% in some Chinese cities.
In June Morgan Stanley planned to sell at least two high-end serviced apartment projects in Shanghai, which are wholly owned by its real estate fund, for several billion yuan, Reuters reported in June. As yet, Morgan Stanley has not secured any buyer for the properties.
Meanwhile, some global investors including Goldman Sachs and Blackstone Group see China as a top pick in Asia’s property market after Japan, partly due to China’s growing urbanization. But investors have grown increasingly cautious.
In August, Reuters reported Blackstone Group considered buying up to four commercial buildings in Shanghai for as much as $1 billion.
More recently, Blackstone’s China property dealmakers decided to walk away from the deal despite price cuts by the seller.
Source: Reuters