Business model, project locations, land bank among factors cited.

(HONG KONG) Moody’s Investors Services has affirmed the Baa3 issuer and bond ratings of Shimao Property Holdings Ltd. The ratings outlook remains stable.

‘Shimao Property’s Baa3 rating is based on its competitive business model, attractive project locations, sizeable land bank, growing investment property portfolio, and strong brand name in mainland China,’ says Peter Choy, a Moody’s vice-president and senior credit officer.

‘It is also supported by a financial profile that is moderately leveraged - when compared to most of its peers - and likely to prove more resilient to unforeseen volatility in its business environment,’ says Mr Choy.

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Earnings more than double on higher rental income from office and retail properties.

(HONG KONG) Wharf Holdings Ltd, the Hong Kong landlord and port operator that owns a pay-television company, more than doubled its third-quarter profit as rental income from office and retail properties rose.

On the climb: Wharf is investing in Chinese property as it seeks to diversify from Hong Kong. Rental profit from its Hong Kong commercial properties surged 20% in the first nine months year-on-year

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(HONG KONG) Cheung Kong (Holdings), the property flagship of tycoon Li Ka-shing, has won a tender from Hong Kong subway operator MTR Corp Ltd to develop a residential project with an investment cost of HK$7 billion (S$1.29 billion).

Mr Li: His company has won a tender from MTR Corp to develop a residential project

MTR said in a statement that it would sign a formal agreement with Cheung Kong for the third phase of the Lohas Park project in Hong Kong’s Tseung Kwan O district within the next few weeks.

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Singapore and Chinese cities move up the ranks due to strong currencies, inflation.

(SINGAPORE) The Republic is catching up with Asia’s leading cities in one area it probably does not wish to make strides in - expatriate cost of living.

While some of the region’s most pricey cities became relatively less expensive in the past year, Singapore, along with Beijing and Shanghai, have climbed the rungs in the latest cost of living survey by ECA International.

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(HONG KONG) Shimao Property Holdings Ltd, a developer owned by Chinese billionaire Hui Wing Mau, said it will shun debt markets for up to a year as yields on its dollar bonds rose to a record.

The Hong Kong-listed company doesn’t plan to sell foreign- currency bonds or convertible debt in the next six to 12 months, it said in an e-mail to Bloomberg News.

‘We have strong sales proceeds from pre-sales and we have a big portfolio of investment properties that can help us raise bank loans in China more easily than other pure residential property developers,’ Shimao said in the e-mail.

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But top rents in HK are 1.8 times higher than in comparable buildings here.

Average island-wide Grade A rents are currently just a shade under those of Hong Kong, but the highest rents achieved by Hong Kong Grade ‘AAA’ office buildings are still about 1.8 times higher than the top rents achieved in comparable buildings here.

A report by Savills reveals that in the CBDs of Hong Kong and Singapore, Grade A rents are now the equivalent of $9.80 and $9.70 psf respectively.

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Critics hit out at over-development; town planning system takes flak.

A court ruling paving the way for a skyscraper in one of Hong Kong’s busiest residential districts has fuelled growing discontent in the city over excessive development and the powers of town planners.

The High Court last week gave the green light to a 57-storey block in the Mid-Levels district, one of the city’s most congested and developed residential areas, to much uproar.

The developer is a subsidiary of Swire Properties, one of the city’s largest property firms.

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Liquidity chasing China growth, but volatility putting off investors here.

(SINGAPORE/HONG KONG) While the year for Singapore’s IPO market closes with a whimper, investment bankers in rival Hong Kong cannot rush deals to the market fast enough.

The difference: rising risk aversion has turned investors off from the yield-driven property and asset trusts once so popular in Singapore, while hot money chasing China’s booming economy keeps the market hungry for the growth story sold in Hong Kong.

‘Liquidity is the primary driving force. There are still inflows into China-related funds despite all the wobblies,’ said May Tan, chief executive of Cazenove Asia.

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Investor interest high despite moves to cool market.

(HONG KONG) Three big Chinese property firms plan to hit the Hong Kong market next year to raise a combined US$4 billion, tapping heavy investor demand despite government tightening measures aimed at cooling a scorching property sector.

Hengda Real Estate Group aims to raise US$1 billion to US$2 billion in a Hong Kong initial public offering, while fellow Guangzhou-based developer Star River Group plans to raise between US$800 million and US$1 billion, sources familiar with the deals said on Wednesday. Both plan listings in the first half of 2008.

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Flow of cash into city and cheaper financing options fuelling growth.

Hong Kong’s property market is tipped to see growth of up to 30 per cent over the next 12 months amid a flow of hot money into the city and a favourable interest rate environment.

Looking up: A rise in real estate prices will narrow the gap between the luxury sector, which has been powering ahead over the past few years, and the lagging mass residential sector

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