Tue, Jul 29, 2014
A A A
Welcome hendrik.absolut
RSS
Real Estate Briefing 16.Oct 2008

Spain: Foundations of housing sector crumble
Beijing's property boom turns to dust as global slowdown hits China
Canada: Home prices are falling, but mortgage rates are rising
Egyptian real estate gains in weak share market
Bahrain real-estate market 'faces record year'
Thai real estate 'insulated from crisis'
Russia govt meets retailers, developers over crisis
Vietnam: Capital-starved property market to remain comatose
UK: House prices to fall by another 15pc, says Knight Frank
German funds more cautious but still in market
Dubai: Liquidity squeeze causing panic and confusion in property market
Indian property market set to take off
French market 'growing again'
Property developers owe Irish banks Euro 39bln
Property International announces expansion plans
UK Property continues to drop, IPD Monthly Index shows
Germany seen as a stable, long term option for property investors
House prices bounce back in 2023
French market for UK buyers 'picking up'
Two Chinese cities move to prop up real estate market
U.S. REIT investors to focus on balance sheet
Plight worsens for commercial property sector
Mortgage rates headed to 7%
UK housing crisis less severe than in US
Construction machinery slump
A-REITs in for another bad year
Reliance Infrastructure to go slow on realty projects
Irish commercial stamp duty cut
Commercial real estate financing goes from bad to worse
Irish government encourages first time buyers but delivers double blow to property investors
Spanish Q3 house prices fall 1.3 percent
China expected to relax property restrictions to boost selling
House prices set to fall for another 18 months
RCA: Troubling times ahead for property markets
Construction jobs to take hit by 2010

Posted on 16 October 2008 by Laxman |  Email |Print

From FT: Amid the gloom of Spain’s moribund residential housing market, there is room for a little gallows humour. These days, visitors to the Madrid offices of Knight Frank, one of the world’s largest real estate agents, might be given a white hard hat, fetchingly adorned with the company logo.

“They come in handy against the fall-out from the housing collapse,” says Frédéric Mangeant, managing partner. “We are in for a rough ride….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Telegraph: The Chinese capital saw a building boom of historic proportions in the seven-years before the Olympic Games - and an explosion in the sums people would pay for a foot on the housing ladder.

As elsewhere across the world, it has become clear that the boom is ending. Since the end of the Olympics and Paralympics last month, the slow-down has turned to bust. Many of the city’s hugely ambitious developers have found themselves burdened with a glut of new apartments. At exhibitions and sales rooms, companies are offering instant discounts of 15 and 20 per cent - and still the number of buyers is falling short….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Financialpost.com: Home prices fell for a fourth straight month in September but any improvement in affordability is expected to be lost because of a sudden rise in mortgage rates caused by the credit-market crisis.

“We are heading into a very difficult six months. I think we’ll see a continued slowing for six months at the minimum. We are in recessionary territory,” said Benjamin Tal, an economist with CIBC World Markets, who says house prices could fall up to 10% nationally over the six months….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Reuters: Egyptian real estate stocks made strong gains on Wednesday, recovering some of their heavy recent losses, but the benchmark CASE 30 stock index ended the day 2.7 percent down in line with international markets.

Medinet Nasr Housing gained 4.6 percent to 26.02 Egyptian pounds, Heliopolis Housing rose 10.3 percent to 26 pounds and Palm Hills Development ended 12.2 percent higher at 11.97 pounds. “That’s because real estate is the sector that has dropped the most,” said Yasser Hassanein of Dynamic Securities. One week ago Medinet Nasr hit a year-low of 18.32 pounds, down from 82.45 pounds in the middle of April….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Ameinfo.com: DTZ the expert real estate advisory firm today released a market report on Bahrain giving a detailed examination of the state of the Kingdom’s real estate sector and a healthy prognosis for 2008.

The report gives an overview of the Bahrain real estate market across residential, commercial and retail sectors. Top line findings are that significant growth is expected through to 2012 across residential and commercial sectors, with the Kingdom remaining a highly competitive market ripe for investment across both. Growth is also predicted for retail real estate, though the report emphasises the danger of over-supply in this sector….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Bangkokpost.com: Thailand’s property market is well insulated from the global financial crisis as it is far less dependent on debt than most property markets, said real estate firm CB Richard Ellis Thailand.

Chairman David Simister, as a longstanding player in Thai real estate and resort property, said Thai politics had been troubled for over three years so real estate investors have been cautious. Purchases have been made for use or investment rather than short-term speculation, he said. Also, outside Phuket and Koh Samui, the bedrock of commercial success has been sales to Thai nationals….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Guardian: Russian retailers and property developers hope to secure government support within the next two weeks, industry sources said, as officials met top players from the crisis-hit industries.

Russia’s real estate and retail industries have, alongside banks, suffered most so far from an acute liquidity squeeze, as the leveraged sectors struggle to repay foreign debts amassed aggressively in the past years to fuel growth. On Wednesday, First Vice-Prime Minister Igor Shuvalov, seen as one of the main crisis troubleshooters in the government of Vladimir Putin, held separate meetings with industry leaders but few concrete details emerged following the talks….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

Property sales remain sluggish in Ho Chi Minh City, especially in newly-developed projects and apartments, realtors said, blaming it on banks’ credit-tightening which may last until the middle of next year.

Prices of most new apartments remain rooted, while those of project land lots have fallen slightly after a short-lived hike last month, they said. Projects refer to government-approved land that is designated mainly for building row houses and sold by developers…… Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Telegraph: According to upmarket estate agent Knight Frank, the housing market will continue to decline until late 2009 or early 2010 and will not return to the peak of levels it reached last year for at least another five years after that.

The research follows gloomy data from the Halifax and Nationwide, with the latter reporting that in September house prices were 12.4pc lower than a year earlier. Liam Bailey, the head of residential research at Knight Frank, said he expected prices to fall 30pc from their 2007 peak and added that “vulture funds and cash-rich individuals” will look to benefit from the plunging property values….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From FT: German funds may have stepped back from some deals of late but they are not going to stop buying in London, or elsewhere, any time soon, according to experts.

With cash of more than €20bn (£15.5bn) on hand – fruits of the real estate focus of Germany’s legions of retail savers – these open-ended property funds are some of the most equity-rich in a market where leverage has all but disappeared….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Gulfnews.com: Questions over a lack of liquidity are dominating Dubai’s property market, causing panic, confusion and misery to homeowners, prospective buyers and real estate businessmen. Such concerns have seeped into Dubai’s mentality in recent weeks from the financial turmoil spreading across the world.

Tight bank liquidity, speculation-driven price increases and reduced lending to individuals along with the recent wave of corruption investigations have all had a marked impact on a market previously unaffected by global events….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Investmentinternational.com: The Indian property market is set to “take off” according to Graham Wood, project director of Cityscape, who are organising a major property exhibition in Bombay in December.

“In spite of the global economic downturn, India has an enormous demand for residential, commercial, hospitality, industrial, retail and infrastructure development. It offers outstanding return on investment for global real estate investors and developers.” Wood notes that there is a shortage of 22.4 million residential units in the country. “Over the next 10–15 years, 80 to 90 million housing units will have to be constructed with a majority catering to middle to lower income groups.” An estimated $25bn investment will be required over the next five years in urban housing alone….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Hotproperty.co.uk: The buying of French property by Britons is growing again, an expert on the subject has stated.

Founder and managing director of French property specialist firm VEF Trisha Mason said the number of these transactions is lower than 18 months ago due to falling house prices in Britain, as many sell their UK homes to fund their new property in France….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Belfasttelegraph.co.uk: The six main Irish banks and building societies currently have €39.1bn loaned out to property developers, the Republic’s Financial Regulator revealed yesterday. €15bn of the construction loans are secured directly on the underlying properties — the values of which are declining rapidly.

Amid sharp questioning on his role in the ongoing financial crisis, Patrick Neary said the watchdog was recruiting 20 supervisors to send in to monitor the activities of lenders participating in the €500bn Irish Government’s guarantee scheme….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Investmentinternational.com: Property International, a property investment company dedicated to building low-risk property portfolios for individuals in north Cyprus, reveals that serious investors are still committed to emerging markets. The company has announced plans for expansion to meet investor demand.

Due to increased business volumes, Property International intends to expand its offices in Northern Ireland, with plans to treble its office space. From January 2009, Property International will also expand its call centre….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Europe-re.com: IPD has released the results for its UK Monthly Property Index for September 2008. The Index showed all property total returns falling to -2.4%, compared with -1.1% in August, making September the weakest single month since the low points of November and December last year.

Mark downs in capital values on a month-on-month basis accelerated to -2.9%, from -1.6% in August, whilst income returns remained broadly static at 0.5%. The key driver of these value movements remains yield softening (a further -2.9% increase), though rental value movements in September were negative across all sectors….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Propertywire.com: Germany, which has always been regarded as having a stable but rather boring property market, is emerging as the number one target for cash-rich institutional investors who want to invest in the long term.

Few individual property investors have been tempted into the German property market. Many have been put off by the stringent rules for landlords and Germany has never been popular with holiday home owners. But those who have bought property in Germany have not done so to make money quickly. Prices have remained roughly stable in the residential sector over the last year….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Estateangels.co.uk: The property market will not recover from the current economic downturn until 2023, one expert has claimed. Andrew Clare, professor of asset management at Cass business school in London, said the housing market was likely to deteriorate further before recovering.

He claims that by 2010 house prices will be 40 per cent lower than the August 2007 peak of £199,600….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Propertyshowrooms.com: The market for French homes among British buyers is starting to grow again as purchasers decide to cut their losses and make the most of the attractive lifestyle of France, it has been stated.

Founder and managing director of French property specialist firm VEF Trisha Mason said the firm’s own research shows that lifestyle factors are the key reason Britons want to buy property across the channel, particularly the health and education system which are both seen as better than those in Britain….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Nasdaq.com: Municipal governments in Shanghai and Hangzhou on China’s east coast have joined a growing number of cities to introduce measures to prop up the sliding real estate market. For individuals buying their first homes in Shanghai, the maximum they can borrow from the government’s housing fund has been doubled to CNY200,000 ($29, 300), the city’s housing fund management agency said.

The new rules took effect immediately, the agency said in a statement. Authorities in Hangzhou, the provincial capital of Zhejiang province, also announced a slew of measures, including subsidies for property transaction taxes, to promote the “healthy and stable development of the real estate market” ….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Reuters: When distribution center owner and developer AMB Property Corp AMB.Non kicks off the reporting season for big real estate investment trusts on Thursday, many investors will breeze over the earnings, go right to the balance sheet and look for 2009 forecasts.

With leases that stretch up to 20 years, economic changes are slow to show up in the income statements for most REITs. Still investors, concerned about the U.S. and world economy and the frozen credit markets have slammed shares of the companies, which own offices, shopping centers, malls, apartments and warehouse and distribution centers….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From FT: Hundreds of millions of pounds have been pulled from commercial property investments and developments in the UK in the past few weeks, exacerbating already accelerating losses in real estate values across the country.

Autumn is traditionally the time when property activity picks up from the summer recess, but the struggling sector has slowed further as the funding market almost entirely closed for new transactions….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From CNN: The rate on a 30-year fixed mortgage has spiked recently, and it may climb higher thanks to the government’s massive rescue efforts. Low mortgage rates have been the one bright spot in an otherwise devastated housing market, but now they’re on the rise.

Historically rates are still very low, but experts say they could continue to creep up. The average interest rate on a 30-year, fixed rate mortgage jumped to 6.6% late Tuesday from 6.06% the Tuesday before, according to Keith Gumbinger of HSH Associates, a publisher of mortgage information….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Investmentinternational.com: A report from UBS indicates that the UK property market is again in the midst of ‘correction’, though the situation is not as severe as in the US. Forecasts vary widely as to how much house prices may decline,but the UBS analysis suggests a drop of 15-20% is possible in both the UK and the US.

Liquidity is drying up fast as a result of the dislocation in financial markets and, in turn, mortgage approvals continue to decline….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From FT: Global demand for construction machines is set to plummet this year, led by steep falls in demand in North America and western Europe, according to forecasts released on Thursday.

Sales of construction equipment year-on-year in North America will slump by 24 per cent in 2008, followed by a further drop of 21 per cent next year, according to forecasts by Off-Highway Research, a UK-based consultancy….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Moneymanagement.com.au: Big research house Standard & Poor’s has said Australia’s property securities managers face another challenging year. In its latest annual review of the sector, S&P said volatile market conditions and weaker economic conditions will “hamper valuations on the nation’s listed property stocks”.

The Australian real estate investment trust (A-REIT) sector saw a severe listed market correction over the past year, with the median-rated property securities fund manager unable to outperform the benchmark. S&P said the ongoing effects of the credit crisis have been driving the property securities markets rather than property fundamentals, “which have – until recently – been sound”….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Indiatimes.com: Tight liquidity conditions have compelled Reliance Infrastructure, an Anil Dhirubhai Ambani Group (ADAG) company, to go slow on its real estate projects that were slated to get an investment of Rs 5,000 crore($1.2 billion) over the next five years. The company, however, has tied up required funds for its roads and metro projects, among others. “These investments amount to Rs 8,000 crore,” CEO & whole-time director Lalit Jalan said.

“We don’t have to do real estate right away….there’s still time for that. We have to only put in our equity now,” said Mr Jalan, while explaining the priorities for the company, which recently obtained favourable financial terms for its metro train project. Reliance Infrastructure had earlier said it planned to raise funds for its first real estate project, which includes a trade tower and a commercial complex, in Hyderabad….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Themovechannel.com: The old saying, ‘the luck of the Irish’ does certainly not apply to Ireland’s property market at the moment. After a decade of phenomenal rises, with national house prices soaring by an average of 15 per cent year on year, the boom is now well and truly over.

Buying the average home in Ireland in 1996 set you back £56,000, whereas the same home cost £241,000 in 2006. It was inevitable that the bubble had to burst, as this rate of growth is just not sustainable for a prolonged period of time. …. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Mlive.com: As hundreds gather today and tomorrow for the University of Michigan/Urban Land Institute Real Estate Forum in Grand Rapids, the shadow of the dire financial markets remains a major issue for many in the construction and real estate industry.

For months, commercial real estate developers have complained the sub-prime market had prompted lenders to significantly tighten their purse strings on financing projects. As the situation in the financial markets went from bad to worse in the past few weeks, so too has commercial real estate development, industry leaders say….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Propertywire.com: The Irish government is to offer tax incentives to try to kick start the country’s stalled property market. But the latest announcement also includes a double blow for investors - a new tax on rental properties and holiday homes and an increase in Capital Gains Tax when they sell.

First time buyers are to be wooed with a rise in mortgage interest relief from 20% to 25% for the first two years of a loan, dropping to 22.5% in the third, fourth and fifth year and a slightly lower relief up to year seven. They are also to be offered mortgage funding from the Housing Finance Agency through local authorities. And, in a simplification of the affordable housing scheme, the Government is offering to take an equity share in properties purchased….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Iii.co.uk: Spanish house prices fell 1.3 percent in the third quarter from a quarter earlier after falling 0.3 percent in the second quarter, housing ministry data showed on Wednesday. It was the second quarter running that house prices fell on a quarterly basis, the ministry said.

House prices rose 0.4 percent in the third quarter from a year earlier after a 2 percent annual rise in the second quarter….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Propertywire.com: The Chinese government is expected to relax its policies on real estate before the end of the year amid concerns over falling prices and slowing economic growth. Analysts are predicting that restrictions for private investors on owning second properties, a reduction of property taxes and an extension on mortgages for individuals are likely.

‘Policy changes will probably stem from initiatives to spur consumer demands, rather than ease credit policies to real estate developers,’ said Qin Xiaomei, head of research of property consultant CB Richard Ellis’ Beijing branch….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Mirror.co.uk: House prices will keep falling for another 18 months despite the banks’ rescue deal and further interest rate cuts. They are expected to have slumped by a third from their peak last August when they begin picking up again in 2010.

That means the average house which cost close to £200,000 last summer will have lost almost £66,000 in value….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Commercialpropertynews.com: September usually sets the pace of the investment market through the end of the year, and if this September is any indication, the property markets are in for some troubling times, according to Real Capital Analytics’ Global Capital Trends September/October 2008 report.

Sales of significant commercial properties worldwide totaled $388 billion through August, representing a 57 percent decrease compared to same period in 2007, the report stated. The pace of transactions continues to slow and preliminary data for the third quarter shows an even steeper decline of 64 percent from the third quarter 2007….. Full Article: Source

Posted on 16 October 2008 by Laxman |  Email |Print

From Crainsnewyork.com: Citywide, nearly 30,000 construction jobs could be lost by 2010 due to the economy, according to a new report. Construction spending will drop 22% to $26.2 billion in the same period.

The credit crunch, a slowing economy and growing budget deficits will strip almost 30,000 construction jobs from the city’s workforce by 2010, bringing industry employment to its lowest level in more than 10 years, according to a report released Tuesday by the New York Building Congress….. Full Article: Source

See more articles in the archive

July 2014
M T W T F S S
« May    
 123456
78910111213
14151617181920
21222324252627
28293031