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Even China’s 1.4 billion population can’t fill all its vacant homes, former official says

An aerial view shows unfinished residential buildings of the Gaotie Wellness City complex in Tongchuan, Shaanxi province, China September 12, 2023. REUTERS/Xiaoyu Yin/File Photo Acquire Licensing Rights

Even China’s population of 1.4 billion would not be enough to fill all the empty apartments littered across the country, a former official said on Saturday, in a rare public critique of the country’s crisis-hit property market.

China’s property sector, once the pillar of the economy, has slumped since 2021 when real estate giant China Evergrande Group (3333.HK) defaulted on its debt obligations following a clampdown on new borrowing.

Big-name developers such as Country Garden Holdings (2007.HK) continue to teeter close to default even to this day, keeping home-buyer sentiment depressed.

As of the end of August, the combined floor area of unsold homes stood at 648 million square metres (7 billion square feet), the latest data from the National Bureau of Statistics (NBS) show.

That would be equal to 7.2 million homes, according to Reuters calculations, based on the average home size of 90 square metres.

That does not count the numerous residential projects that have already been sold but not yet completed due to cash-flow problems, or the multiple homes purchased by speculators in the last market upturn in 2016 that remain vacant, which together make up the bulk of unused space, experts estimate.

“How many vacant homes are there now? Each expert gives a very different number, with the most extreme believing the current number of vacant homes are enough for 3 billion people,” said He Keng, 81, a former deputy head of the statistics bureau.

Source: https://www.reuters.com/world/china/even-chinas-14-bln-population-cant-fill-all-its-vacant-homes-former-official-2023-09-23/

Bombay Dyeing to sell 22-acre land in Worli to Japanese firm for ₹5,200 crore

Wadia said the Bombay Dyeing board had charted out a strategy in March 2022 to change the company’s trajectory by focusing on realty business for future growth and profitability, accelerating sale of flat in its Island City Centre project in Dadar and monetising its land bank

Mumbai, India – Sept. 8, 2023: Aerial view of Bombay Dyeing Mill Compound at Worli in Mumbai, India, on Friday, September 8, 2023. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

In one of the biggest land deals in Mumbai real estate market in recent times, the Wadia Group on Wednesday announced the sale of the land parcel of 22 acres at Wadia International Centre in Worli to Goisu Realty Private Ltd, a subsidiary of Japanese group Sumitomo Corporation for ₹5,200 crore.

In a meeting on Wednesday, the board of directors of the Bombay Dyeing and Manufacturing Company (BDMC) formally approved the proposal to monetise the land. The land parcel will be sold along with the associated FSI in two phases, subject to approval of shareholders, the company said in a statement.

The BDMC will receive about ₹4,675 crore from Goisu Realty in Phase-I. They will receive around ₹525 crore after BDMC completes certain conditions of the deal and executes definitive agreements in Phase- II.

Bombay Dyeing Chairman Nusli Wadia said the company will be able to post a pre-tax profit in excess of ₹4,300 crore on the completion of the transaction.

“With a view to deleverage and strengthen the balance sheet of the company for funding future real estate projects, the Board decided to monetize BDMC’s land parcel at Worli, Mumbai, after evaluating various other options,” he said.

Wadia said the board has also, in-principle, approved the development of the unutilized land parcels available with the company having a potential to create about 3.5 million square feet of residential / commercial property and generate a revenue of about ₹15,000 crore over the next few years.

Industry experts watching the land deal closely said the 3.5 million sq ft land belonging to the Bombay Dyeing group consisted of two land parcels located between Worli and Naigaon. Bombay Realty, Bombay Dyeing’s realty arm has already used the Spring Mills land and completed Springs, a 40-storey tower, in Dadar, and two luxury towers, 59-storey One ICC and 65-storey Two ICC in Island City Centre project in Naigaon.

Source: https://www.hindustantimes.com/cities/mumbai-news/kalwa-school-teacher-arrested-pocso-slapped-101694634711835.html

China Evergrande first-half net loss narrows to $4.5 billion

China Evergrande Group (3333.HK), the world’s most-indebted property developer, on Sunday reported a narrower net loss for the first half of the year, thanks to a rise in revenue.

Evergrande said its January-June loss was 33 billion yuan ($4.53 billion) versus a 66.4 billion yuan loss in the same period a year earlier.

The developer is at the centre of a crisis in China’s property sector that since late 2021 has seen a string of debt defaults, unfinished homes and unpaid suppliers, shattering consumer confidence in the world’s second-largest economy.

This month, missed U.S. dollar coupon payments by China’s largest private developer, Country Garden (2007.HK), fanned concern of contagion in an economy already weakened by tepid domestic and foreign demand, faltering factory activity and rising unemployment.

In a filing on Sunday, Evergrande said first-half revenue rose 44% from a year earlier to 128.2 billion yuan, as it “actively planned for the resumption of sales and successfully seized the short boom of the property market that emerged at the beginning of the year”. Cash fell by 6.3% to 13.4 billion yuan.

Liabilities slightly dropped to 2.39 trillion yuan from 2.44 trillion yuan at the end of 2022, while total assets also shrank to 1.74 trillion yuan from 1.84 trillion yuan.

The developer posted a combined net loss of $81 billion for 2021 and 2022 in a long-overdue earnings report last month, versus an 8.1 billion yuan profit in 2020.

A traffic light is seen near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China, Sept. 26, 2021. REUTERS/Aly Song/File Photo Acquire Licensing Rights

As with Evergrande’s previous two annual financial statements, auditor Prism Hong Kong and Shanghai has not issued a conclusion on this report, citing multiple uncertainties relating to the business as a going concern, including future cashflow.

Evergrande said its ability to continue will depend on a successful implementation of an offshore debt restructuring plan, and successful negotiations with the rest of the lenders on repayment extensions.

Source: https://www.reuters.com/markets/asia/china-evergrande-h1-net-loss-narrows-45-bln-2023-08-27/

Sunny Deol responds to controversy over bungalow auction

Sunny Deol’s Mumbai villa was earlier being auctioned by the Bank of Baroda to recover a loan of around Rs 56 crore. The actor has now reacted to it.

Sunny Deol has reacted to the villa auction row.

Sunny Deol’s Mumbai villa was earlier put on auction by the Bank of Baroda to recover a loan of Rs 56 crore. The bank was also trying to recover the interest levied on the loan. However, a day later, Bank of Baroda withdrew the e-auction notice for Sunny Deol’s Juhu bungalow, citing ‘technical reasons.’ Amid this controversy, Sunny finally reacted to it saying that this is his personal matter.

SUNNY DEOL REACTS TO HIS VILLA AUCTION ROW
Sunny Deol is currently enjoying the success of his film ‘Gadar 2’. However, since two days, he has been in the middle of a controversy surrounding his upscale Mumbai villa located in Juhu. Sunny Deol has now said they are his “personal matters”.

“I do not want to comment. These are personal matters. Main kuch bhi bolunga, log ghhalat matlab nikalenge (Whatever I will say, people will interpret it wrong),” Sunny Deol told the news agency ANI.

A GIST ABOUT THE CASE
Sunny Deol’s villa was put on auction by the Bank of Baroda on August 20 to recover a loan given to the actor. The bank was also trying to recover the interest levied on the loan. However, Bank of Baroda later withdrew the e-auction notice for Sunny Deol’s Juhu bungalow, citing ‘technical reasons.’

Source: https://www.indiatoday.in/movies/celebrities/story/sunny-deol-speaks-up-about-his-villa-auction-row-these-are-personal-matters-2424632-2023-08-22

Auction Notice To Sunny Deol’s Bungalow Withdrawn, Congress Has Questions

Mr Deol’s property was put on the block on Sunday by Bank of Baroda to recover ₹ 56 crore through an e-auction to be held on August 25.

Mumbai: The auction notice for actor and BJP MP Sunny Deol’s bungalow in Mumbai’s Juhu has been withdrawn, the state-owned Bank of Baroda said in a statement today.
Mr Deol’s property was put on the block on Sunday by Bank of Baroda to recover ₹ 56 crore through an e-auction to be held on August 25. The Gurdaspur MP has been in default on a ₹ 55.99 crore loan from Bank of Baroda since December 2022.

“Corrigendum to e-auction notice with regards to sale auction notice in respect of Mr Ajay Singh Deol alias Mr Sunny Deol stands withdrawn due to technical reasons,” the Bank of Baroda said in a statement today.

The bank had said on Sunday that the auction of the Juhu property known as Sunny Villa would commence at ₹ 51.43 crore. The minimum bid amount was set at ₹ 5.14 crore.

Additionally, the 599.44 square metre property, which houses Sunny Villa and Sunny Sounds, was also set to be auctioned off. Sunny Sounds is a company owned by the Deols, and it is the corporate guarantor for the loan. Dharmendra, Sunny Deol’s actor-politician father, is the personal guarantor.

The notice on Sunday stated that the Deols can still settle their outstanding debt with the bank to prevent the auction from being held under the provisions of the SARFAESI Act of 2002.

Reacting to the bank’s notice, Congress today asked who triggered the “technical reasons” for the withdrawal.

Source: https://www.ndtv.com/india-news/bank-of-baroda-withdraws-e-auction-notice-for-actor-sunny-deols-juhu-bungalow-cites-technical-reasons-4314570

Alia Bhatt Buys Apartment In Pali Hill Rs 37.80 Cr, Gifts Shaheen TWO Homes Worth Rs 7.8 Cr: Report

Alia Bhatt buys three new properties in Mumbai.

Bollywood actress Alia Bhatt’s production house Eternal Sunshine Production Pvt Ltd has bought an apartment in Bandra West’s Pali Hill area for Rs 37.80 crore, as per reports. The actress has also said to have bought two houses and gifted them to her sister Shaheen Bhatt.

Moneycontrol reported, as per documents gained by IndexTap.com, the apartment bought is spread across 2,497 sq ft and is situated in the Aerial View Cooperative Housing Society Limited. The residential property was reportedly bought from Gold Street Mercantile Company Pvt Ltd. The agreement was registered on April 10, 2023, and a stamp duty of Rs 2.26 crore was paid.

The report also revealed that Alia gifted two houses to her sister Shaheen Bhatt via Prize Certificate. The apartments, which are worth Rs 7.68 crore (market value) as per Zapkey.com, are located in Gigi Apartments in AB Nair Road Juhu, Mumbai. It is reported that the first house is spread across 1,197 sq ft and the second flat is 889.75 sq ft. “A stamp duty of Rs 30.75 lakh has been paid for the transaction. It comes with one car parking,” the report added.

Source: https://www.news18.com/movies/alia-bhatt-buys-apartment-in-pali-hill-rs-37-80-cr-gifts-shaheen-bhatt-two-homes-worth-rs-7-8-cr-report-7629775.html

All in 50 Days: How Yogi Govt Finished Off Atiq Ahmed’s Rs 1400 Cr Empire, Exposed Shell Firms & Ended His Gang

Before 2017, Atiq Ahmed always managed to get bail and be a free man despite over 100 criminal cases pending against him.

‘Hum Toh Mitti Mein Mil Gaye’ — so said Atiq Ahmed after the death of his son Asad Ahmed in a police encounter. The Yogi Adityanath government has also struck financial blows in the last 50 days to finish off Atiq’s gang.

UP government officials said property and assets worth Rs 1,400 crore of Atiq and his henchmen have been confiscated, and the police had determined these assets were acquired through crime. The Enforcement Directorate has also dealt a severe blow by exposing assets worth over Rs 100 crore and discovering nearly 50 shell companies that Atiq and his gang used to convert their black money earned from extortion into white money.

“Besides a crime empire, the economic empire of Atiq Ahmed has also been demolished in the last 50 days. It is a death-knell for him. He has his brother Ashraf Ahmed will spend their life in jail, his two elder sons are also in jail, his third son Asad is dead and his two minor sons are in a juvenile home while his wife Shaista Parveen is absconding,” an official explained.

Sample this: Besides confiscating Atiq and his gang’s property worth Rs 1,400 crore, 15 teams of the Enforcement Directorate have also expedited their money laundering probe against Atiq and exposed assets worth another Rs 108 crore. The documents recovered during the ED’s raids on Atiq have revealed more than 50 shell companies which are dummy companies owned by someone else in the documents, but they were invested in by Atiq and his gang. All these companies were involved in the black money business network and the ED dragnet has fallen on a lawyer, Atiq’s accountant, a real-estate businessman, a former BSP MLA , a builder and a car showroom owner who have been central to running Atiq’s ‘business’.

ED has summoned all these close aides of Atiq for questioning.

Earlier before 2017, Atiq Ahmed had always managed to get bail and be a free man despite over 100 criminal cases pending against him. The first case in fact was lodged way back in 1979 but no government in UP could get him convicted in any case as either witnesses turned hostile or disappeared.

Source: https://www.news18.com/india/all-in-50-days-how-yogi-govt-finished-off-atiq-ahmeds-rs-1400-cr-empire-exposed-shell-firms-ended-his-gang-7553635.html

5 Initial Steps To Start Building Wealth In Real Estate

For many homeowners — especially Millennials and Gen Zers — the housing market has never been crazier. This can make things challenging for an entrepreneur to invest in certain real estate areas with limited risk.

When the pandemic hit, the real estate situation changed overnight. The housing market heated up even as supply chains suffered. Many fled urban centers while low interest rates and a general shortage of properties restricted buyer options. The result was a unique situation that has frustrated buyers and sellers alike.

Now homeowners are trying to figure out how to navigate the “new normal” of a post-pandemic real estate reality. If you’re among that group, either buying or selling, here are a few tips to help you dominate the modern real estate market.

1. Assess Your Finances

The first and most important rule of real estate isn’t location. It’s understanding and sticking to your financial boundaries. It’s a rule that has always been there and it still remains in place, even after the pandemic.

It doesn’t matter if you’re buying or selling, if you have a poor grasp of your finances, it’s going to put you at risk. In the short term, you may find that you’re struggling to pull together enough money for things like down payments and closing costs. In the long term, you may find that you can’t pay your mortgage consistently.

To avoid these issues, start your real estate prep by combing over your budget. Calculate your personal wants and needs, and figure out how much you can really afford to spend on a home.

2. Look for Outside Financial Support, Too

As you assess your finances, make sure to look for areas where you can tap into financial aid, as well.

For instance, if you’re a military service member, you may be able to utilize BAH (Basic Allowance for Housing) funding. BAH rates were even increased by a significant 5.1% in 2022 to help with ongoing living expenses.

There are also many government programs that have helped with homeownership over time. The most famous in recent history is the 2008 First-Time Homebuyer tax credit. Smart Asset points out that Congress is preparing to vote on a similar bill created in 2021, too.

The finance site also highlights many other government-backed loan and grant options available. Make sure to do your homework to see if any of them can help you in your particular scenario.

3. Perfect Your Bid

If you’re a buyer trying to win a home, there’s a good chance that you’ll end up in a bidding war. The bidding frenzy reached its height during the early days of the pandemic. Even so, Redfin reported that the percentage of offers that faced bidding wars was down to 59% by August of 2021.

In other words, there’s still a very high chance that you’re going to find yourself competing with others to win a bidding war. There are several ways that you can optimize a real estate bid beforehand, including:

Making a cash offer if possible, as it will speed up the homebuying process and reduce the closing costs.
Offering a larger down payment if a full cash offer isn’t an option.
Including an escalation clause that automatically ups your bid to a certain point (just make sure to compose this with legal counsel to make sure the wording is airtight.)
Following your own financial limitations and resisting the temptation to make poor decisions dictated by emotions.

Source: https://www.forbes.com/sites/johnhall/2022/04/24/5-initial-steps-to-start-building-wealth-in-real-estate/?sh=33aee7ad2183