—— New Home Sales Drop During China’s Golden Week; Tesla Model 3 Falls Below Average Car Price; Israel-Hamas War Pushes Oil Higher; Pessimism Dominates Chinese Stock Market; Domino Sugar Signs First Tenant
1. China New Home Sales Decline During Golden Week
Data from China Real Estate Information Corp. (CRIC) covering eight major Chinese cities shows that during the eight-day Golden Week holiday, average daily new home sales fell 17% year-on-year, while secondhand home sales declined by 8% over the same period.
A CRIC analyst in Shanghai noted that the housing market typically isn’t active during holidays. Aside from a few major cities, sales performance in other areas was underwhelming.
Traditionally, September and October are peak homebuying seasons in China, but the latest figures show that government stimulus measures for the housing market have had little visible effect.
Compared to August, new home sales among China’s top 100 developers rose 18% in September, benefiting from early-month promotional campaigns.
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2. Tesla Model 3 Now Below Average Car Price
According to analysis by Bloomberg Green, Tesla’s most popular model, the Model 3, has seen its retail price fall to $38,990 after a series of price cuts — now $8,700 lower than the average price of a new car or truck in the U.S.
Since the beginning of the year, Tesla has repeatedly lowered prices, which could shrink its annual sales revenue by $1.2 billion.
While Tesla’s latest round of price cuts last week didn’t move its stock, investors are growing skeptical. The Future Fund’s managing partner Gary Black suggested Tesla should increase traditional advertising rather than relying solely on discounts.
The Model 3 is now cheaper than the BMW 3 Series, and after federal EV incentives, its cost rivals that of a Toyota Corolla.
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3. Oil Prices Spike as Israel-Hamas War Erupts
Over the weekend, Hamas launched a surprise attack on Israel, triggering full-blown conflict between Israel and Palestine and resulting in over a thousand confirmed deaths.
In response, U.S. crude futures surged 5.4%, reaching as high as $87 per barrel.
While Israel’s oil production is not globally significant, the conflict could draw in the U.S. and Iran, the latter being a key oil producer this year.
Morgan Stanley stated that while price volatility is expected, the war’s impact on oil prices is unlikely to ripple widely across other countries.
Iran has stated today that it is not involved in the war.
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4. Pessimism Continues to Dominate Chinese Stock Market
On the first trading day after the Golden Week holiday, China’s CSI 300 Index closed down 0.1%, weighed down by the sell-off in U.S. Treasuries and the sudden outbreak of war between Israel and Hamas.
Although Golden Week tourism sales rose year-on-year and surpassed pre-pandemic levels, they still fell short of government expectations.
Foreign funds continued to pull out of mainland China stocks, with approximately $1 billion in outflows.
Year-to-date, the CSI 300 Index has dropped 4.8%. A further 5% decline would erase all gains made since China’s post-COVID reopening in October 2022.
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5. Domino Sugar Signs First Tenant
Developer Two Trees Management’s revitalized waterfront landmark building, the Domino Sugar Refinery in Williamsburg, has officially signed its first tenant — Equinox gym, which will lease 42,000 square feet of space and is expected to open in fall next year.
After 10 years of rezoning approvals, plan revisions, and complex development, the 460,000-square-foot refinery is finally reopening as a retail and office complex.
In 2012, Two Trees acquired the property for $185 million. It originally intended to build condo units but later pivoted to developing a Class A office tower.
In Q2, Brooklyn’s office leasing activity plunged by two-thirds, making this a challenging time for the Domino Sugar project’s launch.
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6. Domino Sugar Signs First Tenant
Developer Two Trees Management’s revitalized waterfront landmark building, the Domino Sugar Refinery in Williamsburg, has officially signed its first tenant — Equinox gym, which will lease 42,000 square feet of space and is expected to open in fall next year.
After 10 years of rezoning approvals, plan revisions, and complex development, the 460,000-square-foot refinery is finally reopening as a retail and office complex.
In 2012, Two Trees acquired the property for $185 million. It originally intended to build condo units but later pivoted to developing a Class A office tower.
In Q2, Brooklyn’s office leasing activity plunged by two-thirds, making this a challenging time for the Domino Sugar project’s launch.
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7. Cipriani Plans $500 Million Fundraising
Sources reveal that restaurant and private club operator Cipriani aims to raise $526 million to support its global expansion.
The new Cipriani Hospitality Fund plans to launch Casa Cipriani-branded clubs and residences in iconic buildings in Dubai, Singapore, Madrid, Geneva, and Tokyo.
The Cipriani club, a favorite among celebrities, currently operates in Manhattan and Milan, with annual membership fees as high as $3,900 and €3,000.
The Cipriani family remains the company’s majority shareholder.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.