News roundup: ICBC supports stabilisation of China’s property market, and other headlines

For PropertyGuru’s real estate news roundup, the Industrial and Commercial Bank of China pledges its support to stabilize China’s property market. In other headlines, banks invested USD41 billion in Vietnam’s real estate market in 2023, while an entire village in Western Australia that’s up for sale is priced less than a derelict home in Sydney.

China’s ICBC to support stabilisation of property market

The Industrial and Commercial Bank of China (ICBC) said on 28th March it will support moves underway in the world’s second-largest economy to stabilise its property market. The comments were made by Wang Jingwu, a vice president at the world’s largest lender, at a press conference held a day after its annual results were published. Wang did not specify what kind of support ICBC would provide.

ICBC and Bank of Communications Co Ltd, which kicked off earnings reporting of China’s five major state banks, both reported barely any profit growth in 2023 amid slowing economic growth.

Agricultural Bank of China Ltd (AgBank), which reported its earnings on Thursday, posted a slightly sunnier 3.9 percent increase in net profit in 2023.

Volatility in China’s property market, which started with policies aimed at reining in developer debt, has seen defaults and failures at several property firms, hurting the sector’s financiers and leaving investors wondering whether state-owned property firms will get more support from banks versus privately owned ones.

Chinese regulators are pushing banks to speed up approvals of new loans to cash-starved private developers, according to a report in CNA.

Banks pour USD41 billion in Vietnam’s property market in 2023

A total of VND2.75 quadrillion (USD41 billion) went into the property market in 2023, an increase of 6.75 percent in comparison to last year, according to the State Bank of Vietnam (SBV) and reported by VietnamPlus.

The bank said lower interest rates, which have been expected to prevail throughout this year, will likely result in a speedy recovery for the market.

In a recent report by the SBV, credit for the market accounted for about 26 percent of the total outstanding loans last year. As a result, the lending rates for the market in commercial banks including HDBank, Techcombank, VPBank, SHB, MSB, MB, and TPBank increased compared to the end of 2022. Techcombank had the highest proportion of lending for property development activities, with 35.22 percent as of 31st December 2023, compared to 26.44 percent in the same period in 2022. VPBank ranks second with a proportion of property lending at 19 percent, compared to 14.39 percent at the end of 2022.

Entire WA village, with its own tavern and restaurant, hits market

A quaint country village set at the foot of ancient mountains with its own tavern, restaurant, and historic cottages dating back to the early 1900s has hit the market for less than the price of a rundown Sydney home.

It was love at first sight when John Blythe and his wife Chris set eyes on Western Australia’s historic Karribank. The rural property is nestled at the foot of Porongurup National Park, home to towering karri trees, huge granite boulders, and one of the world’s oldest mountain ranges.

Since purchasing the ‘village’ in 1997, the Blythes have poured their hearts into its refurbishment.

Now as the Blythes look to retire, the 12.49-hectare site, located about 48km north of Albany and 22km east of Mount Barker, is being offered for AUD2.5 million, according to realcommercial.com.au.

The hamlet of Karribank includes a tavern, restaurant, lounge areas, commercial kitchen, small board room, and private owners’ dwelling. A separate function room can seat 100 guests, with views out to the ranges, commercial kitchen, and guest amenities.

There are also 10 family chalets, four historic cottages, five ensuite rooms, a renovated three-bedroom managers’ residence, and a block of seven dorm rooms.

The Property Report editors wrote this article. For more information, email: [email protected].