
Developers to accelerate sales
Research shows credit costs are about to rise, so developers better raise cash soon.
A Bloomberg report quoted Barclays Capital Research as saying, “The cheap corporate credit enjoyed by Hong Kong developers is ending.”
Hong Kong banks are said to be tightening credit to the real estate industry as loan demand from Chinese companies rises and as the city’s banking regulator ordered them to rein in mortgage lending.
This implies Hong Kong developers may need to refinance as much as $6.1 billion of syndicated loans in 2012 and a further $4.9 billion in 2013, according to Barclays.
View the report here.