Singapore property developers expect little impact from Shanghai lockdown
SINGAPORE-LISTED real estate firms do not anticipate major or lasting disruptions to their operations in Shanghai as a result of the Chinese financial hub's latest restrictions, assuming the lockdown is not extended, they told The Business Times (BT).
Shanghai's local government on Sunday (Mar 27) announced a two-stage lockdown over a nine-day period to conduct a mass testing blitz, after Covid-19 cases spiked in the financial hub.
The lockdown will last from Mar 28 to Apr 1 for the eastern district known as Pudong, which includes the financial centre and main international airport. From Apr 1 to Apr 5, the other half of the city, the more populated western Puxi section that is also home to the historic Bund riverfront, will be locked down and tested.
A spokesperson for property developer Yanlord Land Group said: "We believe the lockdown will affect the overall daily lives of the citizens in Shanghai and so as to our operations."
Offices and construction sites are required to be closed during the lockdown, and the company's general management teams and sales teams must work from home, she noted. "Property management teams are working on the frontline to support the PCR (polymerase chain reaction) test arrangements."
When the city reopens, Yanlord plans to increase the number of working shifts to catch up on the development pace at its projects, just as it had done in 2020, the spokesperson said in response to BT's queries.
"Since it normally takes around 2.5 years to 3 years to complete the construction of a development, we are confident that we'll be able to gradually catch up on the development pace under the short-term lockdown," she added.
Yanlord has ongoing developments and operations in multiple Chinese cities. Its Shanghai residential projects include Yanlord Arcadia, which will have 1,171 units across 16 towers, in the Puxi Yangpu district, as well as Poetic Villa, which will have 745 units, in Pudong.
The developer has also implemented an online platform for some project launches and pre-sales in various cities, such as the projects in Hangzhou and Suzhou, to minimise physical contact at indoor venues.
The Yanlord spokesperson said: "Since there have been on-and-off, small-scale Covid-19 outbreaks in various cities in China over the past few months, our local management teams have been monitoring the construction progress closely to adopt the necessary measures to ensure the construction, pre-sales launch and delivery of the properties as scheduled."
As for CapitaLand Investment (CLI), most of its Shanghai properties are located in Puxi, which will enter a lockdown from Apr 1 to 5. A spokesperson from CLI told BT: "During this period, we plan to continue operating our office and logistics properties under the authorities' advisory for Shanghai's workforce to work from home, except for those in the essential sectors."
Its lodging properties will remain operational, while its malls "will endeavour to remain operational, where possible", the spokesperson added.
As the Covid-19 situation in Shanghai is evolving, CLI "will adjust its operational plans in line with the directions of the authorities". "We are closely monitoring the situation, and looking after the health and safety of our tenants, guests and staff remains our top priority," the spokesperson said.
According to the group's website as at Mar 29, its Shanghai office and retail portfolio includes Raffles City The Bund, Hongkou Plaza, and CapitaMall LuOne. The Minhang Data Centre Campus is among the logistics assets, while lodging properties include serviced residences Ascott Huai Hai Road Shanghai and Ascott Sunland Shanghai.
Meanwhile, under CapitaLand China Trust's (CLCT) portfolio, its website lists CapitaMall Qibao and Shanghai Fengxian Logistics Park among its Shanghai properties.
A GuocoLand spokesperson noted that the two-stage lockdown is not expected to cause a significant delay in the construction progress. And when it comes to office employees, they are already able to carry out their work under a hybrid work arrangement, so the impact on companies will also be mitigated.
Therefore, there is unlikely to be any significant impact from this "relatively short duration", the spokesperson added.
GuocoLand in September 2021 commenced partial operations for the office component of Guoco Changfeng City in Shanghai. This January, the developer said the mixed-use development would be fully operational by the second half of 2022, including the basement retail component.
Metro Holdings declined to comment when approached by BT. The mainboard-listed property investment and development group's investment properties in Shanghai include the Metro City shopping mall and lifestyle entertainment centre and, next to it, Metro Tower with 26 floors of office space.
Wing Tai Holdings did not respond to BT's requests for comment.
The mainboard-listed shares of Yanlord finished 0.8 per cent or S$0.01 lower at S$1.24 on Tuesday. CLI's stock price rose 1 per cent or S$0.04 to close at S$4.01, while AU8U CLCT was flat at S$1.20.
GuocoLand shares ended Tuesday unchanged at S$1.50. Wing Tai fell 1.1 per cent or S$0.02 to close at S$1.79.
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