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Real Estate Briefing - Archive | May, 2009

U.S. real estate still bleeding

Posted on 29 May 2009 by Laxman  |  Email |Print

From Forbes: Home prices continue to fall, commercial real estate is eroding and banks are feeling the pinch. There’s a long and treacherous road ahead for the U.S. real estate market and financials.

On Wednesday, the National Association of Realtors reported sales of existing homes rose 2.9% in April, to an annual rate of 4.7 million, compared with a downwardly revised pace of 4.6 million in March…….Full Article: Source

New debt fears over commercial property

Posted on 29 May 2009 by Laxman  |  Email |Print

From FT: Fears among credit investors have risen that threatened ratings downgrades of commercial property debt might thwart US government efforts to revive the markets that help fund office blocks, shopping centres and other commercial real estate.

Standard & Poor’s warned this week that it was likely to downgrade tens of billions of dollars in triple A securities backed by recent real estate loans – with 90 per cent of the securities backed by 2007 mortgages likely to face rating cuts…….Full Article (Subscription Required) : Source

Banks to survive commercial property defaults - Fed

Posted on 29 May 2009 by Laxman  |  Email |Print

From Reuters: A Federal Reserve economist said on Thursday the recent stress tests of the largest U.S. banks showed they can weather the impending tidal wave of defaults expected in the commercial real estate market.

“I feel comfortable that the size and portion of commercial real estate exposure was taken into account in the stress test,” Til Schuermann, vide president, risk management for the Federal Reserve Bank of New York, told a Congressional Oversight Panel hearing in Manhattan…….Full Article: Source

Canada Pension Plan eyes real estate in U.S., U.K.

Posted on 29 May 2009 by Laxman  |  Email |Print

From Bloomberg: The Canada Pension Plan Investment Board, the country’s second-biggest public pension manager, said it is looking at “significant” real-estate investments in the U.S., U.K. and Australia as values decline.

Shopping centers coming available in the U.S. are “crown jewels” rarely put on the market, Graeme Eadie, the plan’s senior vice president of real estate, said today on a conference call with reporters…….Full Article: Source

Canadian cities outperform U.S. ‘twins’ in C-21 survey

Posted on 29 May 2009 by Laxman  |  Email |Print

From A Century 21 house price survey that compares major Canadian and American cities with similar economies and geographies shows that three Canadian cities are outperforming their United States “twins”. Three other Canadian cities have similar price trends to their U.S. counterparts.

“When you compare Canadian and American cities with similar economies and geographies – so-called “twin cities” – you see some dramatic differences,” says Don Lawby, president of Century 21 Canada…….Full Article: Source

Brazil property market ‘is lucrative and solid’

Posted on 29 May 2009 by Laxman  |  Email |Print

From The Brazil property market offers “very lucrative and solid” investment opportunities, according to Michael Sutton of Write About Property.

Sutton reflects on the cheap properties still available in Brazil, which he believes, makes buying property now an attractive proposition…….Full Article: Source

European banks rush to build capital via property

Posted on 29 May 2009 by Laxman  |  Email |Print

From FT: Several billion pounds worth of European corporate property is expected to be sold in the next few months as businesses look to free capital from their property assets.

property-thumb.jpgThis week, Credit Suisse placed the first of its Canary Wharf buildings on the market following a lengthy review, and more companies are expected to follow, particularly in the financial services and retail sectors…….Full Article (Subscription Required) : Source

DTZ survey finds UK bucking European trend

Posted on 29 May 2009 by Laxman  |  Email |Print

From There are tentative signs of the UK leading a stabilisation in Europe’s commercial real estate investment market, according to the latest research.

The European Quarterly research report from DTZ found that, with the exception of the UK, all major European markets saw substantial falls in investment activity in the first quarter of the year…….Full Article: Source

CEE real estate sector is evidently in crisis

Posted on 29 May 2009 by Laxman  |  Email |Print

From Anyone who attended Real Vienna in 2008 was in for a bit of a shock this year when arriving to Central and Eastern Europe’s largest real estate fair. The contrast could not be missed - smaller area, fewer exhibitors and much smaller visitor numbers.
The sector is in crisis no two ways about it. But it still has not discouraged most of CEE countries to make presence at the fair, albeit with smaller stands than before. The stand put up for Budapest and Hungary resembled a “makeshift bodega” already last year and there has been no change in this regard this year, either…….Full Article: Source

UK: Commercial property market shows signs of recovery

Posted on 29 May 2009 by Laxman  |  Email |Print

From The commercial property market has started a “tentative recovery”, according to a new survey of developers and contractors.

Accounts BDO Stoy Hayward said that developers and contractors told it that they had seen an increase in the number of commercial property completions with a value of £40,000 and above in March…….Full Article: Source

Outlook improves for commercial property funds

Posted on 29 May 2009 by Laxman  |  Email |Print

From Serious investors are confident that the market is finally beginning to stabilise, as transactions begin to increase.
In investment terms, commercial property has been a disaster area over the past couple of years. But serious investors — including the property tycoon and “Secret Millionaire” Nick Leslau and Sir Stelios Haji-Ioannou, the founder of easyJet — have recently announced that they are back in…….Full Article: Source

How has the UK housing market performed over the last 30 years?

Posted on 29 May 2009 by Laxman  |  Email |Print

From Amid concerns that the UK housing market is on the verge of a possible downward spiral it is easy to lose track of how house prices have performed over the last 30 years.

If you look back to 1975, figures provided by the Nationwide Building Society, show the average UK house was valued at around £66,000. However, there has been a very rocky ride over the last 30 years with peaks and troughs in 1978 and 1983 where house prices fell after significant rises in previous years…….Full Article: Source

UK house prices: What next? news and predictions

Posted on 29 May 2009 by Laxman  |  Email |Print

From The Royal Institution of Chartered Surveyors has told building societies it expects property prices to drop by a maximum of 30% before a gentle recovery.

Rics’ chief economist Simon Rubhinson told mutuals that it expected prices to hit their lowest level by the end of 2009 before modest gains begin…….Full Article: Source

Spanish property market won’t recover before 2011

Posted on 29 May 2009 by Laxman  |  Email |Print

From The residential property market in Spain may not recover until at least 2011, according to the chairman of construction firm Afirma.

Felix Abanades projects that the lack of existing demand for property in Spain and current market slump, will cause at least half of all companies in the industry to fold…….Full Article: Source

Bulgaria real estate market on the up

Posted on 29 May 2009 by Laxman  |  Email |Print

From Bulgaria’s real estate market has started to recover after the decline in the last few months.

Experts from the National Real Property Association have announced Thursday that the number of deals increased in March and April, after the stillness in the market from December 2008 to February 2009…….Full Article: Source

Prague office market 28% overvalued

Posted on 29 May 2009 by Laxman  |  Email |Print

From Affordability of rents in the Central and Eastern European cities of Warsaw, Prague and Budapest remains a concern, according to the Office Affordability Index published this week by adviser DTZ.

Despite relatively moderate rental levels these locations are amongst Europe’s least affordable cities in terms of office space. Slowing economic growth will lead to deteriorating accessibility of modern office facilities for many local occupiers, thus limiting market growth potential, the report said…….Full Article: Source

Russian retail sector poised for recovery

Posted on 29 May 2009 by Laxman  |  Email |Print

From Shopping centre development in Russia is progressing especially in Moscow but investors in this property sector are still adopting a wait and see attitude despite signs of consumer stabilization, according to the latest analysis.

The Russian consumer remains the key player in terms of the retail property sector moving forward, says a report from international property consultants Jones Lang LaSalle…….Full Article: Source

Public auction fails to provide spark for Dubai’s Real Estate market

Posted on 29 May 2009 by Laxman  |  Email |Print

From A first-ever public auction of residential properties in Dubai, seen as a barometer of the emirate’s property market, exposed a widening gulf between the expectations of the sellers and buyers.

The four properties that went under the hammer this week failed to find any takers. Only one of the properties saw any bidding action. Another property received a single bid, but the auctioneer considered it too low…….Full Article: Source

Qatar to buy bank real estate portfolios

Posted on 29 May 2009 by Laxman  |  Email |Print

From AFP: Qatar’s government announced on Thursday it is to purchase 4.1 billion dollars of bank porfolios in the booming real estate sector in the gas-rich Gulf state by the end of June.

“The Qatari government has decided to buy the real estate portfolios and investments that Qatari banks want to sell,” said the prime minister, Sheikh Hamad bin Jassem al-Thani…….Full Article: Source

Qatar needs real estate watchdog

Posted on 29 May 2009 by Laxman  |  Email |Print

From Qatar needs a real estate regulatory authority if it is to welcome international firms in the industry, according to an official at a global property company.

Fine & Country International Realty managing director Cecilia Reinaldo said a property watchdog, similar to the Real Estate Regulatory Authority in Dubai, was required to keep “things in control”…….Full Article: Source

Dubai property scandal claim emerges amid media blackout

Posted on 29 May 2009 by Laxman  |  Email |Print

From “Fake” pictures are at the heart of a property scandal that could harm the reputation of the once-booming real estate market in Dubai.

A major property development firm with links to the ruling family of the UAE city-state, and the firm’s marketing agency, are accused by investors, many of whom are UK citizens, of obtaining millions of pounds through the use of false construction photographs…….Full Article: Source

Kuwait interests in Oman property up 28%

Posted on 29 May 2009 by Laxman  |  Email |Print

From According to official figures from Oman’s Ministry of Housing, the number of Kuwaitis owning real property in the Sultanate was up 28.5% between 2007 and 2008, making Kuwaitis first among GCC non-Omani real property owners.……Full Article: Source

No quick fix for SA property market

Posted on 29 May 2009 by Laxman  |  Email |Print

From The South Africa property market will take at least three to five years for the ‘ripple effects’ of the current market conditions and constraints to work through the system.
Property prices soured between 2003 and 2006 by an average of 20%- 30% per annum, that represents an increase of between 80% and 120%…….Full Article: Source

Zimbabwe: Property market picking up

Posted on 29 May 2009 by Laxman  |  Email |Print

From The property market of Zimbabwe is still struggling to find its feet as the country’s economy makes upward growth.
The market has continued to experience a slump in activity with rates in rentals and property prices far beyond the reach of many…….Full Article: Source

Mixed views on opening of real estate to China

Posted on 29 May 2009 by Laxman  |  Email |Print

From Thirty-nine-year-old Huang Chih-chia earned NT$1 million (US$30,000) from a property sale four years ago and has been following the sector’s ups and downs ever since.

For the full-time construction engineer, residential properties are “the best” investment targets. Huang had bought two newly built apartments in Sinjhuang, Taipei County, and a four-bedroom apartment in Linkou, Taipei County, for his own use in the past two years for more than NT$15 million…….Full Article: Source

India: Investors warm up to realty, once again

Posted on 29 May 2009 by Laxman  |  Email |Print

From Economic Times: After a near 16-month hiatus, strategic investors are once again warming up to the real estate sector. A few foreign funds and local asset management companies have hit the road for raising money to be invested in real estate companies.
Interestingly, even high net worth investors are flocking to these funds, say industry watchers…….Full Article: Source

The grand QIP Party of Indian real estate

Posted on 29 May 2009 by Laxman  |  Email |Print

From Three years after it found its way to Indian capital markets, qualified institutional placement (QIP) is becoming the preferred route for Indian corporates to raise capital.
Dozens of Indian real estate companies have announced their QIPs while a few like Unitech and Indiabulls Real Estate have successfully raised a total of $1 billion from foreign investors. Many other corporates like LIC Housing Finance and Hindustan Construction Company are also doing QIPs. What has made QIP’s hot suddenly? ……Full Article: Source

Indian Real estate sector may recover in next 3 months: Assocham

Posted on 29 May 2009 by Laxman  |  Email |Print

From The real estate sector, which is reeling under the global economic slowdown, could recover in the next three months as demand for housing has improved due to price correction, industry body Assocham said in a survey.
The developers are hoping for some policy actions in the upcoming budget to revive the sector, which they feel would be key for the speedy recovery…….Full Article: Source

New Zealand’s property market is forecast to slump further

Posted on 29 May 2009 by Laxman  |  Email |Print

From The Treasury’s economic outlook for the year, released in today’s budget, forecasts a shrinkage in residential investment of 25% for the year to March and a further 23% contraction the following 12 months.

“There have been signs of a slight recovery in house sales over April, but…it is unlikely that the housing market will stage a significant recovery any time soon, with the risks tilted towards further declines in house prices as 2009 progresses.”……Full Article: Source

Bottom for real estate and related ETFs could drag on

Posted on 29 May 2009 by Laxman  |  Email |Print

From The housing market, along with related ETFs, may see a bottom eventually, but this low point could drag on for awhile.

The U.S. housing market slump that caused median home values to depreciate 24% since 2006 could bottom out next month but economists at Fannie Mae and Freddie Mac think a recovery won’t come until another year, writes Kathleen M. Howley for Bloomberg…….Full Article: Source

BNP Paribas takes over ETFs joint venture

Posted on 29 May 2009 by Laxman  |  Email |Print

From IPE: XA Investment Managers has transferred the operational management of the remaining 22 ETFs in the EasyETF range to BNP Paribas Asset Management.

The EasyETF range had been run as a joint venture between BNP Paribas and AXA since it was launched in 2005 but itwill now be managed by a single team within Sigma, BNP Paribas’s index-tracking, structured products and risk allocation department…….Full Article: Source

Max Property Group raises GBP220 mln

Posted on 29 May 2009 by Laxman  |  Email |Print

From Max Property Group raised £220 mln (EUR 252 mln) on its first day of trading on London-based AIM, the international market for growing companies.
Max’s investment strategy is to take advantage of the current cyclical weakness of the UK real estate market through acquisitions, active asset management and judicious use of non-recourse borrowings…….Full Article: Source

Invista European Real Estate reveals 25% NAV drop

Posted on 29 May 2009 by Laxman  |  Email |Print

From Invista European Real Estate’s net asset value per share has fallen by a quarter since December, the fund manager said today.

In its half-year results, released today, Invista said the net asset value per share was now 133p, a decrease of 46p since December 2008 and of 53p since September 2008…….Full Article: Source

Credit Suisse looks to sell London properties

Posted on 29 May 2009 by Laxman  |  Email |Print

From Reuters: Investment bank Credit Suisse has begun a plan to sell its London property estate and raise up to 500 million pounds ($800 million), the Financial Times reported on Friday.

The bank has instructed CB Richard Ellis to begin marketing the smaller of its two buildings in the London financial district of Canary Wharf, while a tower in the same area could be put up for sale before the end of the year, the paper said…….Full Article: Source

The state of real estate around the world: No signs of stabilization?

Posted on 28 May 2009 by Laxman  |  Email |Print

From Slowing economic activity and a credit crunch contributed to a decline in housing activity, prices and construction in most major economies. Eastern Europe and the Baltics, as well as the U.S. and UK, have endured some of the sharpest declines.
In many countries, not only in the U.S., the bottom of the property markets still seems far off, with sales, prices and starts forecast to continue declining, albeit at a slower pace, through much of 2009…….Full Article: Source

US commercial property off 10.5 pct in Q1

Posted on 28 May 2009 by Laxman  |  Email |Print

From Reuters: U.S. commercial real estate prices fell 10.5 percent in the first quarter and 12.2 percent in 2008, according to British real estate data and analysis provider IPD’s first analysis of the U.S. market.

Including monthly income, which rose 5.4 percent in 2008, the overall total return for U.S. commercial real estate was down 7.4 percent, according to the report released on Wednesday…….Full Article: Source

In commercial-property market, hope for revival takes hit

Posted on 28 May 2009 by Laxman  |  Email |Print

From WSJ: Lingling WeiMarket enthusiasm for the Federal Reserve’s plan to help the commercial-real-estate market was doused Tuesday after Standard & Poor’s warned that billions of dollars of top-rated bonds backed by commercial mortgages could face downgrades.

The financing drought in commercial real estate is threatening to cause major damage to the economy, so the sector was cheered when the Fed announced in March that it would expand one of its main rescue programs to help resuscitate the $700 billion market for bonds backed by mortgages on office towers, strip malls and other commercial property…….Full Article: Source

Commercial real estate fundamentals slip sliding away

Posted on 28 May 2009 by Laxman  |  Email |Print

From With the U.S. unemployment rate now projected by Moody’s to peak at 10.1% by the end of 2009 and credit still hard for investors to secure, there was little to cheer about during a quarterly media briefing Wednesday on the capital markets conducted by real estate research firm Reis.

In short, vacancies in commercial real estate are likely to increase over the next 18 to 24 months with positive rent growth absent from the scene until 2012, or even later…….Full Article: Source

Multifamily builder confidence up from record lows

Posted on 28 May 2009 by Laxman  |  Email |Print

From Recent hints of optimism in the housing industry appear to have spread to the multifamily sector, according to the first quarter of 2009 results of the Multifamily Rental Market Index (MRMI) and the Multifamily Condo Market Index (MCMI), released by the National Association of Home Builders (NAHB).
“Multifamily builders are beginning to see slight improvement in the current market for new rental and for-sale units, and anticipate even better times in the next six months,” said David Crowe, NAHB’s chief economist…….Full Article: Source

Are US Reits such a swell investment?

Posted on 28 May 2009 by Laxman  |  Email |Print

From The US real-estate investment trust (Reit) sector has jumped on news that the Federal Reserve’s financial rescue plan will be extended to purchasing ‘legacy loans’ issued on commercial property assets, potentially opening a new chapter in property’s recovery story.
From July, investors participating in the US government’s $1tr (£625bn) TALF programme will be able to access funds to purchase triple-A rated commercial mortgage-backed securities (CMBS) loans secured on American office blocks, shopping malls and apartment complexes…….Full Article: Source

US secondary property market sales surprise in rebound

Posted on 28 May 2009 by Laxman  |  Email |Print

From US existing home sales climbed 2.9 percent last month, rebounding from a decline in March, as plummeting prices drew buyers, the National Association of Realtors said.

The property industry group said sales increased to a seasonally adjusted annual rate of 4.68 million units from a downwardly revised pace of 4.55 million units in March…….Full Article: Source

DTZ sees signs of property market steadying

Posted on 28 May 2009 by Laxman  |  Email |Print

From There are tentative signs of a stabilisation in Europe’s commercial real estate investment market. According to real estate adviser DTZ’s latest European quarterly research, this has been led by the UK, where transaction volumes remained flat in the first quarter (Q1) of 2009 at £3.5bn compared to the fourth quarter (Q4) of 2008.

This is reinforced by the stabilisation in prime yields in some UK markets such as Central London over the quarter…….Full Article: Source

U.K. house prices may drop 14% in 2009, JLL Forecasts

Posted on 28 May 2009 by Laxman  |  Email |Print

From Bloomberg: U.K. house prices may fall as much as 14 percent this year as more people lose their jobs, Jones Lang LaSalle Inc. said.

Prices may decline by another 3 percent next year before starting to recover in 2011, the world’s second-largest publicly traded property broker said in an e-mailed statement today. Chicago-based Jones Lang had previously forecast a drop of up to 15 percent in 2009…….Full Article: Source

UK: Decline in construction ’slowing’

Posted on 28 May 2009 by Laxman  |  Email |Print

From BBC: The rate of decline of the building industry in Wales has slowed, a survey suggests. The Royal Institution of Chartered Surveyors (RICS) found the fall in construction workloads, now in its fourth quarter, was less steep.

The improvement was most noticeable in Wales’s public non-housing and infrastructure sectors…….Full Article: Source

UK: Student property rental market buoyant despite real estate downturn

Posted on 28 May 2009 by Laxman  |  Email |Print

From Buy to let for the student accommodation sector is one section of the UK property investment market that is holding up well in the global downturn, according to new research.

High demand, low supply growth, rising rents and high occupancy rates make student accommodation one of the less risky buy to let investments at present, says a report from Savills Research…….Full Article: Source

British Mortgage lending rises by 4% In April

Posted on 28 May 2009 by Laxman  |  Email |Print

From Times Online: The number of mortgages approved for new home purchases rose by four per cent between March and April, signalling signs of recovery in the housing market, the British Bankers’ Association (BBA) announced today.

Although the number of mortgages for new homes fell by 15.5 per cent compared with the same month last year, they were up 4 per cent on March rising from 26,671 to 27,685 approvals…….Full Article: Source

London house prices could fall a further 18%

Posted on 28 May 2009 by Laxman  |  Email |Print

From FT Adviser: House prices will fall by further 14 per cent over the rest of the year with an additional fall of up to 3 per cent in 2010 despite the recent talk of green shoots of recovery.
Meanwhile, values in central London could decline even further, by up to 18 per cent by the end of the year, according to Jones Lang LaSalle’s latest UK Residential Market Forecast…….Full Article: Source

ING sees Dutch property slump until Q3 2010

Posted on 28 May 2009 by Laxman  |  Email |Print

From Guardian: Dutch property prices are expected to fall for another twelve months before showing signs of recovery in retail and office property prices, the head of ING Real Estate Finance Netherlands told Reuters on Wednesday.
Prices of residential property, which fell 3.1 percent in the first quarter, are expected to fall further and stabilise in the second half of 2010, said Peter Gobel, country manager for ING Real Estate Finance Netherlands…….Full Article: Source

Aberdeen wins $2 bln Swedish real estate mandate

Posted on 28 May 2009 by Laxman  |  Email |Print

From Guardian: Aberdeen Property Investors, the real estate unit of Aberdeen Asset Management, has won a mandate to manage a 1.4 billion euro ($1.96 billion) property portfolio owned by Gamla SEB Trygg Liv, part of Sweden’s SEB bank.
The portfolio comprises 72 mainly office properties located in Stockholm’s inner city and in the Swedish cities of Gothenburg, Uppsala, Malmo and Helsingborg…….Full Article: Source

Bulgaria, Romania markets

Posted on 28 May 2009 by Laxman  |  Email |Print

From Residential property markets in Bulgaria and Romania are not quite at their lowest point and could see more declines in 2009.
That’s the latest from property consultants Jones Lang LaSalle, which predicts prices in Sofia to fall by 12 percent and in Bucharest by 20 percent in 2009…….Full Article: Source

May 2009
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