Evergrande Group’s struggles have dominated the crisis, but the risk to multi-trillion dollar global property markets stems from some of its rivals that competed to build ever taller and grander skyscrapers
China’s property sector woes could spell trouble for prestige mega-projects in London, New York, Sydney and other top cities as the developers behind them scramble for cash.
The developer says it remains committed to its flagship builds including its long-delayed, 235 meter-high Spire London tower, but it put part of another major London site on the market earlier in the year and other firms are hoisting for sale signs too. As many Chinese firms overpaid for prime overseas sites in the scramble to secure them, the question is who will buy them, Lawal added. “Probably they are unlikely to get cost, so I think it depends on just how desperate they get.”Guangzhou R&F Properties is another major firm in focus after it required an emergency cash injection this month.
R&F, Greenland, Evergrande and Kaisa have all declined to comment further on their finances. Oceanwide said last week it was “actively discussing” the situation with its San Francisco project with the creditors involved.Chinese developers went on a major international spending spree between 2013 and 2018, but the splurge has slowed abruptly since as Beijing has moved to curb firms’ excessive debts.
Stephanie Hyde, UK chief executive of real estate firm Jones Lang LaSalle, which markets for R&F in London and another firm called Xinyuan which has just narrowly avoided default , told Reuters she wasn’t aware of any Chinese firms looking to sell-up due to strains back in China.
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