Meanwhile, defaults have climbed to a record and the slowdown in housing sales continued in April, adding to liquidity woes. Regulators in December eased limits on borrowing by major developers used to fund acquisitions. So far, it’s unclear how much of the money raised through M&A bonds will be used to buy assets. Some prime assets have sold at deep discounts, reducing incentives for developers without immediate payment pressure to sell. “Selling assets could be considered costing the developer’s liquidity in the future,” Tan says.

Source: The Star May 07, 2022 09:49 UTC