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S.Korea: Part of extra budget to boost housing market: minister

Posted on 12 April 2013 by Laxman  |  Email |Print

The government plans to set aside 1 trillion won (US$885 million) of its envisioned extra budget to stimulate the sluggish housing market, a top economic policymaker have said.
The government is considering drafting an extra budget aimed at making up for revenue shortfalls caused by the slowing economy and also bolstering the overall economic activities. Creating jobs and boosting the property market will likely be key parts of the plan, which is to be unveiled early next week………………………………………..Full Article: Source

New Zealand house sales jump as finance minister warns on prices

Posted on 12 April 2013 by Laxman  |  Email |Print

New Zealand house sales rose to the highest in almost six years as prices surged, adding to a property market boom that Finance Minister Bill English said might trigger an earlier increase in interest rates.
House sales climbed 11 percent from March last year to 8,128, the most for a month since May 2007, the Real Estate Institute of New Zealand said in an e-mailed statement. House prices advanced 8.6 percent from a year-earlier, led by a 16 percent jump in Auckland, home to a third of the nation’s 4.4 million people………………………………………..Full Article: Source

NZ house sales hit six-year high

Posted on 12 April 2013 by Laxman  |  Email |Print

The number of New Zealand house sales rose to a six-year high last month and prices touched a new record as Auckland continued to drive up the national average.
Some 8,128 houses were sold in March, up 23 percent from February and 11 per cent from the same month a year earlier, according to the Real Estate Institute. The national median price rose an annual 8.1 per cent to $400,000, the first time it’s broken the $400,000 mark………………………………………..Full Article: Source

Land prices in US gain on real estate recovery

Posted on 11 April 2013 by Laxman  |  Email |Print

Land prices have shot up in the U.S. with the real estate market and the economy’s road to recovery. According to a March estimate by Zelman and Associates, a real estate consultancy, land prices rose 13 percent across America in 2012. This is the first and the highest annual gain since 2005.
The tremendous price rise can be attributed to the increased demand for empty parcels. More number of builders is now looking for vacant lands to establish infrastructure. Additionally, the inventory and supply of available finished lots has remained relatively less. This is also another reason for the prices of these lands shooting up………………………………………..Full Article: Source

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Austrian real estate underperforms stocks and bonds

Posted on 11 April 2013 by Laxman  |  Email |Print

Austrian commercial real estate generated far lower returns relative to stocks and bonds in 2012. Property underperformed equities, which delivered 25.1% (MSCI Austria) and bonds with 13.7% (Austrian bond index) in 2012. But IPD noted that real estate ’strongly and consistently’ outperformed stocks over a three-, five- and nine-year period.
The IPD Austria Annual Property Index generated a total return on all property of 6.2% in 2012, only 10 basis points lower than the performance for 2011. Capital growth amounted to 1.2%, 0.3% lower than the 2011 figure, while income return increased by 0.1% to 4.9%………………………………………..Full Article: Source

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Prices soar for low-budget housing in Dubai

Posted on 11 April 2013 by Laxman  |  Email |Print

Rising confidence in Dubai’s residential property market has helped boost prices for low-end villas by 20% over the past six months in the emirate, according to a new report by Cluttons. In its Q1 report, Cluttons said prices are also rising at the higher end of the residential market, just not as fast. Between Q3 2012 and Q1 2013, average prices for high-end villas in Dubai rose by 8.9%, while mid-range villas gained 14.9% over the same period.
This trend has been mirrored in the apartment segment, where lower-budget units registered sale price growth of 14.6% over the same period. By comparison, both high and mid-range apartments recorded average price increases of 10% each. (Press Release)

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Scotiabank CEO sees Canadian housing slowdown, not crash

Posted on 10 April 2013 by Laxman  |  Email |Print

Bank of Nova Scotia Chief Executive Rick Waugh said on Tuesday that mortgage delinquencies have risen at Canada’s third-biggest bank, but that he does not foresee a U.S.-style housing crash. “We still anticipate what I would call in terms of housing, a soft landing, and all the metrics which we watch daily confirm that,” Waugh said.
His comments, part of an answer to a shareholder question about risks for the bank from the domestic housing market, came as data showed Canadian housing starts edged higher in March, offering some reassurance that the housing market is cooling rather than crashing………………………………………..Full Article: Source

With new anti-bubble rules, housing sales collapse 70pct in Beijing

Posted on 10 April 2013 by Laxman  |  Email |Print

The Chinese government is doing what it can to continually poke holes in the country’s housing bubble. It appears they have been successful this time around in Beijing. When it comes to existing housing sales in the city, the market has been put on ice.
At least for the time being. Pre-owned home transactions in the city declined by as much as 70% in the first week of April following the government’s newest weapon in its anti-bubble artillery, a 20% tax on used home transactions………………………………………..Full Article: Source

Australian home prices set for modest gain, Westpac, NAB say

Posted on 10 April 2013 by Laxman  |  Email |Print

Australian home prices will see a modest improvement as consumers remain conservative about their level of indebtedness, Westpac Banking Corp. (WBC) and National Australia Bank Ltd. (NAB) forecast.
“We’re not looking for another huge surge in prices or activity that we saw in, say 2009, or that we saw in 2001,” Bill Evans, chief economist at Westpac, said at the Bloomberg Australia Economic Summit in Sydney today. “The housing market will improve but it won’t improve to the point that people are becoming over-leveraged or we’d start to see real issues in our loan book.”……………………………………….Full Article: Source

Colony’s Tom Barrack sees bubble in U.S. housing market

Posted on 09 April 2013 by Laxman  |  Email |Print

Colony Capital LLC’s Tom Barrack said U.S. homes are in danger of becoming overvalued as low borrowing rates and an improving labor market fuel demand.
“We have asset bubbles for sure and asset bubbles are necessary when you don’t have growth” in the economy, Barrack, Colony’s founder and chairman, said today in an interview at the Bloomberg Doha Conference. “If you go to new homes, the builders have to buy lots, so the next stage we are going to see is a land boom.”……………………………………….Full Article: Source

U.S. home price rise may cut FHA shortfall in Obama budget

Posted on 09 April 2013 by Laxman  |  Email |Print

Surging U.S. home prices could help shrink the Federal Housing Administration’s projected shortfall in President Barack Obama’s budget due on Wednesday.
Democratic and Republican lawmakers have been pushing for changes at the FHA since a November actuarial report said its reserve fund for bad loans may require a taxpayer subsidy of as much as $16.3 billion in fiscal-year 2013, the first time in its 79-year history that it wouldn’t be self-supporting………………………………………..Full Article: Source

Shortage of ‘unaffordable housing’ in NYC

Posted on 09 April 2013 by Laxman  |  Email |Print

Market reports released last week for the first quarter of 2013 in New York were nothing short of impressive. There is record low inventory and high demand. There are buyers out there looking for that perfect New York home and fewer sellers. This has held true for all market segments, from the trophy properties to the more modest ones.
Not long ago I could not have imagined that it would be a challenge to find qualified buyers their New York dream pad. But in these past couple of months, it certainly has been. We have what my esteemed colleague Kirk Henckels calls “a shortage of unaffordable housing.”……………………………………….Full Article: Source

New Zealand house prices increase at fastest pace since 2008

Posted on 09 April 2013 by Laxman  |  Email |Print

New Zealand house prices rose at the fastest pace since 2008 in March as the central bank warns that a housing boom would trigger interest rate increases.
Prices rose 6.5 from a year earlier, Quotable Value New Zealand, a government-owned property research company, said in an e-mailed statement. There hasn’t been a bigger increase since the 12 months ended February 2008………………………………………..Full Article: Source

U.S: Housing prices are on a tear, thanks to the Fed

Posted on 08 April 2013 by Laxman  |  Email |Print

The U.S. housing market has broken out of a deep slump, and prices are shooting up faster than anyone thought possible a year ago. For many homeowners, that is a cause for celebration. But the speed at which prices are rising is prompting murmurs of concern that the Federal Reserve’s campaign to reduce interest rates could be giving the housing market a sugar high.
Prices of existing homes rose 10% in February nationally from a year ago. They have been rising during the seasonally slow winter months—and they show signs of jumping further as the spring buying season gets under way. What’s going on?……………………………………….Full Article: Source

Luxury homes fuel Miami’s latest real estate boom

Posted on 08 April 2013 by Laxman  |  Email |Print

Miami is entering a new real estate “boom,” fed mainly by the investments of Latin Americans which have transformed the face of the city and, with its luxury homes, become one of its greatest draws.
Miami and its surroundings, according to the latest report on the luxury real estate market by Christie’s, in 2012 burst into the group of the world’s main markets of this type, thanks to the general recovery in demand and low prices………………………………………..Full Article: Source

Value of razed properties without title deeds in Makkah put at SAR6bn

Posted on 08 April 2013 by Laxman  |  Email |Print

Yusuf Al-Ahmadi, a member of the Real Estate Appraisal Committees in the Makkah Chamber of Commerce and Industry (MCCI), said the value of demolished properties lacking title deeds has reached SR6 billion at an average rate of SR600,000 per property, Al-Sharq Arabic daily reported.
Al-Ahmadi said the properties, about 1,000 in total, are distributed in districts such as Jabal Al-Sharashef, the parallel road (Al-Tariq Al-Muwazi), Shaab Amer and Dahlat Harb. He demanded that the situation of these properties be finalized so that the owners are compensated. He added that there are over 60 unplanned sites in Makkah that have been demolished………………………………………..Full Article: Source

New Zealand house prices are overvalued - but they will keep rising, according to the BNZ

Posted on 08 April 2013 by Laxman  |  Email |Print

New Zealand house prices are definitely overvalued, but that won’t stop them continuing to rise, according to the BNZ. The BNZ’s head of research Stephen Toplis says in a research paper titled “The Housing Dilemma” that it is “widely accepted” that our house prices are overvalued. He says a “significant correction” in house prices is warranted, but won’t happen till current shortages of housing are addressed.
“Often cited is the inability of prospective new home owners to fund the purchase of a new dwelling; elevated house prices relative to wages and rents; the cost of housing relative to the other countries; and the amount of debt householders have built up relative to the value of their assets,” he says………………………………………..Full Article: Source

US: Can housing power the economic recovery?

Posted on 05 April 2013 by Laxman  |  Email |Print

Economic recoveries usually begin at home. Even though the housing construction has historically only accounted for roughly 5% of America’s economic activity, that number tends to rise following recessions, placing a disproportionate burden on the housing sector to lead the economy to recovery.
Why is this? There are several reasons. First of all, since a new home is usually the biggest purchase any of us will make, we tend not to do it during recessions. Recessions cause housing demand to become pent up and then released once a recovery begins. Secondly, investment in a new home usually necessitates many other big ticket purchases like furnishing and appliances. ……………………………………….Full Article: Source

Rising real estate tide not lifting U.S. cities’ revenues

Posted on 05 April 2013 by Laxman  |  Email |Print

The real estate recovery has yet to lift the property tax revenues of many U.S. cities, a worrying sign for municipalities that rely on the taxes as their chief sources of income, according to a report released on Thursday.
In a survey of local economic conditions, the National League of Cities found that residential property vacancies and values are “still a problem” for more than half of U.S. cities. Officials in 65 percent of the cities consider commercial property vacancies a problem, and those in 57 percent say commercial property values are still a concern………………………………………..Full Article: Source

Paulson says US is on its way to another housing market crash

Posted on 05 April 2013 by Laxman  |  Email |Print

If it does not reform Fannie Mae and Freddie Mac, the state-backed lenders that guarantee mortgages and were implicated by economists in the financial crisis, the US may face another housing crash, former Treasury secretary Hank Paulson said.
“Today, the government is guaranteeing 90 per cent of the mortgages,” Paulson will say. “If the government keeps doing this, and markets aren’t allowed to work, we’ll be right back where we were in 2007 and 2008.” Paulson called for reform, saying that the fact Fannie and Freddie have swung into profit should not blind policymakers to the dangers of a lender not restricted by market rigour………………………………………..Full Article: Source

Housing market favors investors, shortchanges consumers

Posted on 05 April 2013 by Laxman  |  Email |Print

Opportunities, like good ideas, require action to become reality. Without action, opportunities are just pipe dreams. Today’s historic low housing prices and mortgage interest rates signify a rare opportunity that middle-class families seldom get: The chance to build wealth for the long term.
But the current supply and demand imbalance in the housing market of a glut of mortgage-ready buyers and not enough housing to go around makes this era of “opportunity” a long shot for most. Even worse, the dynamic of low supply will soon inflate housing prices and put them beyond the reach of working-class families, closing the window of opportunity for a generation………………………………………..Full Article: Source

Is Wall Street creating another U.S. housing market bubble?

Posted on 05 April 2013 by Laxman  |  Email |Print

Where there’s smoke there’s fire. When it comes to rising home prices, the question is whether the on-fire price increases are a healthy sign of a housing recovery or a smoke screen masking another investor-led real estate bubble. The answer is it’s both.
So, the real question is: are the two compatible and is the trend sustainable. The answer to that compound question is “yes” and “no,” in that order. On the surface, everything is coming up roses. According to closely followed real estate data provider CoreLogic, U.S. home prices jumped in February by the largest amount in seven years. They rose 10.2% compared to a year ago, and were up 0.5% from January to February………………………………………..Full Article: Source

Four top tips on playing the UK commercial property game

Posted on 05 April 2013 by Laxman  |  Email |Print

UK commercial property, with its attractive yield profile, continues to provide investors with solid levels of rental income and steady returns. It has historically performed differently from other asset classes, such as equities and bonds, and brings diversification benefits. Below are four tips for effective property investment.
A strong tenant base is vital. Favour prime tenants on long leases. Established names offer confidence in terms of income security. Prime tenants include B&Q, Centrica, Co-Op and Tesco. Bear in mind economic growth will be strongest in the South East of England………………………………………..Full Article: Source

Fitch: Swiss property merits caution even if no general bubble

Posted on 05 April 2013 by Laxman  |  Email |Print

Uncertainty over the path of Swiss property prices has increased over the last year, however, Fitch Ratings maintains its view that the market as a whole is still not experiencing a bubble. To reflect the increased uncertainty, we have introduced a buffer in our house price decline assumptions (HPD).
House prices have risen faster than general income levels since 2000, and the decoupling of house prices and real income growth to the point where price rises start to outstrip affordability is now comparable with that seen before the previous Swiss property crisis in the early 1990s. In our view some regions, such as Lake Geneva, Zug, Zurich, and some southern cantons, where price rises have been particularly pronounced, have overheated. (Press Release)

Malta: Property market ‘must be sustainable’

Posted on 05 April 2013 by Laxman  |  Email |Print

The Government wants the property market to become sustainable, Economy Minister Chris Cardona said yesterday during a meeting with the Malta Developers Association. He listed a number of Labour electoral proposals aimed at achieving this, such as extending from seven to 12 years the period within which a property owner can pay capital gains tax or 12 per cent sales tax.
He mentioned the reduction of stamp duty for first-time buyers and the removal of the five per cent tax on the transfer of the first residential property acquired by inheritance or donation from the parents………………………………………..Full Article: Source

Average UK home prices set to pass 2007 peak next year

Posted on 04 April 2013 by Laxman  |  Email |Print

The average home in the UK will cost £227,000 in 2014, surpassing the pre-crisis peak for the first time, and reach £267,000 by 2018, according to a new forecast. Also, the Help to Buy scheme announced recently by the UK government could initially raise prices before increasing housing supply, says the forecast from the Centre for Economics and Business Research (CEBR).
CEBR also predicts the average home price will be £222,000 this year, 1.4% higher than in 2012, but just under the peak achieved immediately prior to the financial crisis. In the short term, lacklustre wage growth, domestic banks’ ongoing recapitalisation efforts and Eurozone financial unrest are expected to subdue house price growth this year and next……………………………………….Full Article: Source

VietNam: VND30 trillion credit package can rescue real estate market?

Posted on 04 April 2013 by Laxman  |  Email |Print

Doubts have been raised whether if the VND30 trillion package can save the sinking real estate market. VND30 trillion is believed to be just a “grain of salt in the ocean.”
The State Bank of Vietnam is considering designing a VND30 trillion credit package in an effort to rescue the real estate market. Three months ago, the government released Resolution No. 02, showing its determination to rescue the market. Experts believe that the fall of the real estate market would lead to the collapse of many other markets………………………………………..Full Article: Source

US: Three myths about housing market rebound

Posted on 03 April 2013 by Laxman  |  Email |Print

Home prices have been zooming up over the past year in many of the housing markets that saw the biggest declines. Recently, some pundits have grown wary of the rally, arguing that it’s unsupported by fundamentals and marks the beginning of another housing bubble.
Housing is recovering due to the extremely low supply of homes for sale. Demand, meanwhile, is up amid strong appetite from investors and from extremely favorable affordability conditions thanks to record-low interest rates………………………………………..Full Article: Source

Negative equity figures decreasing in the US housing market

Posted on 03 April 2013 by Laxman  |  Email |Print

The negative equity situation in the residential property market in the United States is improving as a new analysis shows around 200,000 more homes returned to a state of positive equity during the fourth quarter of 2012.
The data from analytics firm Core Logic reveals that the total number of properties that moved from negative to positive equity in 2012 was 1.7 million and the number of mortgaged residential properties was 38.1 million………………………………………..Full Article: Source

Manhattan real-estate market in 2013 is ‘insane’

Posted on 03 April 2013 by Laxman  |  Email |Print

The laws of supply and demand are on full display in first-quarter real-estate market reports released today by the city’s major brokerage and database firms. According to the Douglas Elliman report by appraisal firm Miller Samuel, the median price of an apartment in Manhattan is $820,555, up 5.9 percent from the first three months of 2012. (The average price is now $1.354 million.)
In fact, says Jonathan Miller, who prepared the Miller Samuel survey, “all price indicators increased from year ago levels,” in large part due to a big slump in inventory; there were 4,960 active listings in the first quarter, an astonishing 34.4 percent dip from the same time last year. Miller says inventory, which had been falling for a while, has actually “accelerated in [its decline] the last six months.”……………………………………….Full Article: Source

A housing bubble threatens China

Posted on 03 April 2013 by Laxman  |  Email |Print

With Beijing’s notoriously cold winter behind us, those living in the Chinese capital are looking forward to warm weather and perhaps a wind of change in the second quarter. Now that the country has new leaders, everyone is watching to see if President Xi Jinping and his administration will start pushing through much-needed economic reforms.
Many in the public are hopeful that Xi will make good on his pledges to set the country on a new path and help over 1.3bn achieve what he described as the China dream. Investors are waiting for signs the government will take serious steps to put more money in the pockets of its people and improve access to China’s vast consumer market………………………………………..Full Article: Source

Stamp duty rise splits prime country house market

Posted on 02 April 2013 by Laxman  |  Email |Print

Britain’s country houses have split into a “two-speed” market, estate agents report, as wealthy foreign buyers chase the priciest estates, but City cutbacks and tax changes depress demand for less expensive homes.
Prices in the prime country house market showed a 0.4pc rise in the first quarter of this year compared to the previous three months, according to an index tracking the prices of homes sold by estate agency Knight Frank. That marked its first increase in two years………………………………………..Full Article: Source

Prudential to enter rented housing market

Posted on 02 April 2013 by Laxman  |  Email |Print

Insurer Prudential is set to become the first institutional investor to enter Britain’s rented housing market in recent times, the Financial Times reported on Monday citing people familiar with the matter.
The Prudential Property Investment Management division - part of M&G, the insurer’s asset management arm - is close to a deal to buy more than 500 homes from housebuilder Berkeley, the FT reported………………………………………..Full Article: Source

China’s home prices increase most in 26 months, SouFun says

Posted on 02 April 2013 by Laxman  |  Email |Print

China’s March new home prices posted the biggest gain in more than two years as buyers rushed into the market ahead of property curbs by local governments, driving real estate stocks higher.
Prices climbed for the 10th month, rising 1.1 percent to 9,998 yuan ($1,610) per square meter (10.76 square feet) from February, SouFun Holdings Ltd. (SFUN), the country’s biggest real estate website owner, said in a statement today after a survey of 100 cities. That’s the biggest increase since January 2011………………………………………..Full Article: Source

Singapore home prices gain at slowest pace in three quarters

Posted on 02 April 2013 by Laxman  |  Email |Print

Singapore home prices climbed at the slowest pace in three quarters after the government imposed more curbs such as higher stamp duties for housing transactions, a government report showed.
The island state’s private residential property price index rose 0.5 percent to a record 213.1 points in the three months ended March 31, easing from a 1.8 percent increase in the fourth quarter, according to preliminary estimates released by the Urban Redevelopment Authority . The advance was the smallest since the second quarter last year………………………………………..Full Article: Source

Perth median property price soars

Posted on 02 April 2013 by Laxman  |  Email |Print

Perth property prices have set a record, with the median house price hitting $510,000. It tops the previous record of $505,000 set in 2010. But experts poured cold water on expectations of a new housing boom, saying the pace of recent gains may not be sustainable and voicing concerns about WA’s continuing economic strength.
Real Estate Institute of WA figures for the March 2013 quarter show a 2 per cent increase in the median price since December. REIWA president David Airey said the growth was driven by an increase in turnover and more houses being sold above the median price………………………………………..Full Article: Source

Housing values continue to rebound

Posted on 28 March 2013 by Laxman  |  Email |Print

The nation’s housing market is continuing its resurrection, with data released Tuesday showing that prices are up, the number of distressed properties is down and new home sales remain far above last year’s pace. Home prices rose in January at the fastest annual rate since just before the housing bubble burst in 2006, according to the S&P/Case-Shiller Home Price Indices.
The 20-city home price index, a key gauge of U.S. home prices, climbed 8.1 percent in the 12-month period that ended in January. The healthiest gains were in parts of the country hardest hit by the housing downturn. Prices in Phoenix were up 23.2 percent. San Francisco home prices were up 17.5 percent. Prices increased 15.3 percent in Las Vegas and 10.8 percent in Miami………………………………………..Full Article: Source

Home prices poised to move higher as fear of losses has dissipated

Posted on 28 March 2013 by Laxman  |  Email |Print

Remember that mob psychology dominates all asset purchases. It doesn’t matter if you are buying stocks bonds, precious metals or real estate. Last year Apple could do no wrong. If you didn’t own it, well, you were missing the most amazing stock. How could you not own it? The drumbeat was constant creating a bubble.
Then, abruptly, the music stopped as the hedge funds who were supporting Apple into their fiscal year end on October 31st, began to bail out. Right now the debate is over how low might Apple fall, how well can Tim Cook run the company and will they ever have another good idea. The asset class matters little. It’s all about human nature and not wanting to miss out on easy money………………………………………..Full Article: Source

Chinese await measures to tame housing prices

Posted on 28 March 2013 by Laxman  |  Email |Print

The government of south China’s Guangdong province on Monday announced rules to cool the property market after the central government rolled out a regulatory plan and asked provincial governments to create specific measures. The rules, however, have been criticized for being too vague and unable to function properly.
Guangdong’s provincial government said in a notice that housing prices will be curbed, government-subsidized housing will be built more quickly and housing data will be pooled in order to boost market supervision………………………………………..Full Article: Source

India: National property index up by 3pct in Q3 of FY2013

Posted on 27 March 2013 by Laxman  |  Email |Print

Despite weak buyer sentiment, the National Property Index went up by over 3 per cent in the October-December quarter over the preceding three months last year, a survey has said. National Property Index ( NPI) is a weighted average of supply and prices across 11 cities.
Of the 11 cities in the apartment index, nine saw a marginal rise, while one recorded stable values and the other registered a small drop in the city index, leading property portal MagicBricks.com said in its report titled PropIndex………………………………………..Full Article: Source

UK: Moody’s: Help to buy could trigger house price bubble

Posted on 26 March 2013 by Laxman  |  Email |Print

The recently announced Help to Buy scheme could trigger a house price bubble as high loan to value lending raises the risk of borrower defaults, however the limited term of the stimulus and housing market fundamentals offsets these risks, Moody’s Investors Service has said.
In this week’s Budget, chancellor George Osborne announced the three-year Help to Buy plan which will involve the government partially guaranteeing up to £130bn of high LTV loans for home purchases. The ratings agency said that it anticipates the majority of high-LTV lending will be eligible for the scheme………………………………………..Full Article: Source

Fannie and Freddie no model for UK housing

Posted on 26 March 2013 by Laxman  |  Email |Print

Much is often made of how shrewd the US has been in bringing its financial system through the crisis relatively smoothly, even turning a profit on its bailouts. While UK taxpayers are still sitting on tens of billions of pounds of losses after rescuing the likes of Royal Bank of Scotland, Lloyds and Northern Rock, the US Treasury has sold its investments in nearly everything it bailed out, making money for taxpayers into the bargain.
The key exceptions that often escape mention are the US mortgage finance vehicles Fannie Mae and Freddie Mac, whose bailout cost $190bn – dwarfing the £45bn pumped into RBS in the world’s costliest bank rescue………………………………………..Full Article: Source

Sweden’s property sector faces deflation

Posted on 26 March 2013 by Laxman  |  Email |Print

Danske Bank A/S, which has survived housing bubbles in Denmark and Ireland, is predicting that Sweden’s bloated property market faces a period of deflation as job losses mount to collide with record debt levels.
“To say there is a bubble in Sweden is to exaggerate, but we believe we could see a slow puncture of the housing market,” Ann Krumlinde, chief executive officer at Danske’s Swedish unit, said in an interview here. “If we get an increase in unemployment, there is a risk that will trigger a correction.”……………………………………….Full Article: Source

Luxury Spanish property could pull the country to its feet

Posted on 26 March 2013 by Laxman  |  Email |Print

The Spanish property market is at risk of becoming proverbial: an emblem of everything that went wrong in Europe during the boom years leading up to the disastrous 2007/8 crash. But that’s only part of the story.
Spain’s housing bubble was inflated by wishful thinking on all sides: purchasers thought they could buy cheap and rent or sell dear, developers thought they could sell one development before it was finished and use the money to build another, and banks chose not to look too hard as long as the money came in………………………………………..Full Article: Source

HongKong: Owners slash prices with property market quiet

Posted on 26 March 2013 by Laxman  |  Email |Print

Flat prices have slipped by up to double digits as owners try to offload units amid a quiet property market. A 580-square-foot flat at Ming Kung Mansion in Tai Koo Shing changed hands for HK$7.95 million - 5 percent lower than market prices. The two-bedroom flat was priced at HK$8.5 million on Wednesday.
“Around three to four similar units were sold at HK$8.5 million-HK$8.6 million before the latest government curbs,” said Alan Cheung Kwong-yiu of Centaline Property Agency. Also, an owner finally sold his 509-sq-ft flat in Tai Koo Shing for HK$11,297 per sellable sq ft, or HK$5.75 million, after cutting prices twice. The current market price is about HK$12,800 per sellable sq ft………………………………………..Full Article: Source

Bubble set to form at low end of Thai market

Posted on 26 March 2013 by Laxman  |  Email |Print

Mortgages are to set a new record of 21 to 22 percent of Thailand’s gross domestic product (GDP) over the next two years, reported Live Trading News. The majority of these mortgages are at the low end of the market and increase the risk of a bubble forming in that segment.
Markets have been unsettled due to a recent warning from the Bank of Thailand about growing household debt. Higher household debt has been largely attributed to the Yingluck Shinawatra administration’s policies, including the tax rebate of up to THB100,000 (US$3,416) for first-time car buyers………………………………………..Full Article: Source

US farmland prices: Is the bubble about to burst?

Posted on 25 March 2013 by Laxman  |  Email |Print

Record-high prices for corn, soybeans, wheat and other commodities have left growers flush with cash to purchase more land. And what the farmers don’t pay for out of their own pockets, historically low interest rates provide them with easy and cheap access to money to close the deal.
The favorable mix of both cash and credit has provided fuel to drive up land values across the Midwest, stoking fears of a bubble ready to burst. In Iowa, where rich soil, favorable weather and ethanol and livestock production help foster demand for limited growing space, farmland values have soared 90 percent since 2009. An acre of farmland that a decade ago sold for an average of $2,275 now goes for $8,700, according to Mike Duffy, an economist at Iowa State University who watches land prices………………………………………..Full Article: Source

China: Unintended consequence of property price curbs: more stock market speculation

Posted on 25 March 2013 by Laxman  |  Email |Print

Unsophisticated investors who once sought a quick profit on property speculation seem now to be turning to stock market speculation instead. The Hong Kong government has been keen to curb fast-rising property prices since late last year, but all its efforts may be creating a new problem: more speculation in the city’s stock market.
Some local stock brokers have noticed a new trend recently. They say more financially unsophisticated individual clients are calling on them for ideas for investments in the stock market. They prefer “small cap” stocks, rather than heavyweights, and aim to make quick short-term profits………………………………………..Full Article: Source

Real estate not a pillar sector: Economic planner

Posted on 25 March 2013 by Laxman  |  Email |Print

China does not regard its property market as a pillar sector for its economy, according to an official with the country’s economic planner. Zhu Zhixin, deputy director of the National Development and Reform Commission, made the remark Sunday in response to the widespread misunderstanding of the importance of the housing market.
He was speaking at the ongoing China Development Forum held in Beijing. Instead, the central government considers the construction industry as a pillar one, he said………………………………………..Full Article: Source

Taiwan: Central bank meeting could focus on property market

Posted on 25 March 2013 by Laxman  |  Email |Print

The central bank is expected to focus on the local property market in an upcoming quarterly policymaking meeting, in addition to its monetary policy, market analysts said Saturday.
The central bank, which has made efforts to rein in high-flying local housing prices, is likely to address the property market issue in the March 28 meeting, while market analysts said the bank will probably leave key interest rates unchanged………………………………………..Full Article: Source

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