Foreign investment in Shanghai property market hot scattered selling apartments

Shanghai property market continued to blowout for several months, but the demand for leasing from foreigners remained weak this year, so from the second quarter, many foreign investors began to sell their serviced apartment assets, hoping to occasion the current hot sales market quickly. Morning News reporter learned yesterday, Morgan Stanley (hereinafter referred to as the capital) this April began quietly in the market to sell its holdings of Huashan Summer, Hong Kong Xingye Group will be garden after the decoration of the sale of lilac, has been sold out, the two foreign investment institutions are not very expensive income.　　Industry insiders said, foreign institutions in the whole transfer effect is not good, have sought to sell the way quickly shipments. Xingye international turnover of 1.06 billion reporters yesterday from the bank to learn, Morgan Stanley this April or May will be located in the Changning Happiness Road, a building 2nd building in the market 0 scattered on sale, only 2 months sold out. "Through intermediary agents and Morgan Stanley's own sales team, less than 3 months to sell all 59 sets of listings."　　"Jones Klibaner, director of the research department, said to reporters. Although at that time these bulk selling listings for 65,000 yuan/square meters, but the actual transaction price of 55,000-60,000 yuan/square meters, half of the buyers are mainlanders, the other half for Hong Kong, Macao and other buyers. "Interestingly, mainland buyers are basically buying their own homes and investing less." Klibaner told reporters.　　Compared to 2006 years Morgan Stanley 28,000 yuan/square meters of the purchase price, the sale of bulk selling prices have risen more than 100%, the abundance of investment returns is obvious. Reporters at the same time learned that the Changning Huashan Road in the Clove garden sales speed is staggering, since May 28 officially to bulk sales form into the market less than 1 months, 110 sets of listings have been sold. It is reported that the transaction price of bulk sold for 60,000 yuan/square meters, to this calculation, the holder of Hong Kong Xingye International from the project is now about 1.32 billion yuan. Compared to the 2000 Hong Kong Industrial International from Kerry construction hands of 31 million U.S. dollars the entire purchase of the building's price (in 2000 yuan against the U.S. dollar median price of 8.2783, when 31 million U.S. dollar equivalent to 260 million yuan),　　Societe Generale to sell lilac garden income than at the time of acquisition costs to earn 1.06 billion yuan. High-grade apartment rental profits plummeted whether Huashan Xiadu or lilac garden, before the sale of the owners are serviced apartments rental to obtain long-term investment income. After the acquisition of a building in the summer garden of Huashan, the 1th building to the market, rental rate of about 70%, 2nd building only rent not to sell, but the occupancy rate is not high. and Clove Garden after the acquisition of industrial group since 2002 as a Chelsea serviced apartments to rent to May this year, the rental rate has remained at around 93%. Even for such a rental rate of the ideal possession of property, Societe Generale in May this year decided to sublet for sale, and the way to sell quickly to cash.　　The main reason is the decline in rents and weak demand. "Leasing requirements from expatriates remain weak this seasonPotential, vacancy rate continued to rise, as of 2009 the second quarter of the Shanghai high-end serviced apartments average year-on-year decline of 17.2%. The collapse of rental income, so many foreign investors began to sell their own serviced apartment assets, hoping to occasion in the current hot sales market quickly realize assets. "Jones Klibaner said. And it turns out that the strategy of a fragmented investment agency works.　　Morgan Stanley has been seeking to hold the Shanghai property throughout the sale has not been, and powerful individual buyers quickly digest these expensive high-end listings. Although affected by the financial crisis, the occupancy rate and rental of serviced apartments have continued to decline, but Nuvi, director of the first Pacific Davis Hotel services Department, is still optimistic that the upcoming 2010 Shanghai World Expo will bring a large number of staff and tourists, which will give the Shanghai serviced apartment market an opportunity, The occupancy rate will be significantly improved.