Australia Reports Massive Expansion of Residential Lots, Rising Wave of Capital Chasing Data Centres in APAC
In order to combat rising house prices, drastic efforts have been made to catch up to exorbitant demand.
In an effort to catch up to the insatiable demand and soaring prices for new homes in Australia, the Queensland Government has made a whopping 50,000 residential lots available for sale to spur development and job creation, supporting the race for housing supply's chase to catch up with expansive housing demand.
In APAC market, quality data centres are increasingly challenging to find as more capital competes to grab a piece of the action. The growing demand stems from the surge in cloud services provided by some of the world's biggest tech firms, whose revenue has grown by a range between 32 percent and 50 percent year-on-year in the first quarter of 2021.
What caught our eyes this week?
Queensland Unlocks Land to Meet Demand
The Urban Developer – The Queensland government has unlocked nearly 50,000 lots between the Gold Coast and Sunshine Coast as population growth pushes up demand. Land supply was part of the state’s Covid-19 economic recovery plan to provide jobs as property prices continue to surge across the region.
Read also: Australian Residential Market Correction Nearing an End
International Buyers Dropped Out of U.S. Housing During Pandemic, but China is Rushing Back
CNBC – U.S. homebuyers went on a buying spree during much of the coronavirus pandemic’s first year. International buyers did just the opposite, though. Even with virtual options in place for property tours, sales of U.S. homes to foreign buyers fell by 31% from April 2020 to March 2021. International buyers purchased 107,000 properties, marking the lowest unit volume and lowest dollar volume since 2011.
Read also: Atlanta, a Thriving Metro with a Profusion of Opportunities
What's Next for Data Centres: A Wave of Capital Investment in APAC
Mingtiandi – As surging demand for cloud services from big companies and state agencies drives growth in Asia Pacific data centres, regional capital is building platforms and incubating start-ups eager to grab a piece of the action. So far, a few operators have achieved region-wide scale with their data centre networks, and quality sites are increasingly hard to acquire in APAC.
Keppel Divests Stake in Chengdu Real Estate Firm for SGD 324 Million
The Straits Times – Keppel Land China will divest 100 per cent of its equity interest in Chengdu Shengshi Jingwei Real Estate through its subsidiary Hillwest for approximately RMB 1.6 billion (SGD 324 million). Chengdu Shengshi will no longer be a subsidiary of Keppel following the completion of this divestment. The conglomerate expects to recognise a gain of about RMB 668 million.
Tesla Setting Up Shop at Toa Payoh Lorong 8 Property with Lease Term of Up to 20 Years
The Business Times – Electric car maker Tesla has leased a building in Toa Payoh Lorong 8's industrial area for its showroom, corporate office and service centre. This was announced on Thursday by private equity real estate investment manager Firmus Capital, which acquired the property and has entered an agreement to lease it entirely to Tesla's Singapore subsidiary for a period of up to 20 years.
Read also: Guide to Investments in Singapore
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