MONEY MASTER

China’s housing market crisis, which has wiped out an estimated US$18 trillion (RM75.86 trillion) in household wealth, remains the biggest obstacle to achieving the country's 5% growth target . Most economists in a recent Bloomberg survey agree that ramping up the government's housing rescue package offers the best chance to propel growth and stave off a prolonged economic slowdown. Despite China's efforts to revive the property market with a 300 billion yuan (RM179.29 billion) program to help firms buy unsold homes from developers, progress has been slow. Only 29 out of over 200 cities have engaged in the plan, well below expectations, with unemployment rising and youth joblessness hitting new highs in August. The real estate slump, which has lasted for years, has led to millions of job losses, hurt consumer confidence, and reduced demand for products like steel. Analysts argue that larger-scale intervention is necessary, with estimates suggesting a one trillion to ...

Hilton Worldwide Holdings Inc. is capitalizing on China’s real estate crisis by converting vacant office buildings into hotels, a strategy fueled by the domestic travel boom. Despite the downturn in China’s housing market, Hilton plans to add about 100 hotels in the coming years, with nearly 25% of these new locations being developed using existing office spaces rather than new constructions. This "adaptive reuse" approach has gained traction as China's commercial real estate faces oversupply issues, with vacancies near a two-decade high in some cities. Key Takeaways: Adaptive Reuse Strategy: Hilton is converting empty office buildings into hotels to quickly expand its presence in China, with this model now accounting for 25% of its upcoming properties, up from 5-8% before the pandemic. Real Estate Challenges: China's commercial real estate market is struggling with high vacancy rates and falling rents, making it attractive for hotel operators like Hilton to secure ...