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Real Estate Briefing 30.Mar 2012

Posted on 30 March 2012 by Laxman |  Email |Print

From the late 1990s home prices across the rich world soared relentlessly upward, borne aloft on a gale of cheap capital. In 2006 some overvalued markets began crashing to earth. Until recently, however, the correction seemed remarkably contained. American and Irish home prices plunged, giving up all the gains of the previous decade, but others have fallen far less steeply.
Some markets faltered and then stabilised. The latest update of The Economist’s global house-price indicators hints that this period of post-crisis calm may be coming to an end………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Ed ClarkDespite soaring mortgage lending, Canadian banks are strong enough to absorb any hit that might result from a potential real estate correction, said Ed Clark, chief executive of Toronto-Dominion Bank.
Unlike U.S. banks, lenders on this side of the border did not get involved in the kind of risky practices that helped drive the U.S. housing boom of the previous decade and that ultimately caused so much carnage when the crisis hit in 2008, Mr. Clark told shareholders at TD’s annual meeting………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Housing starts will nearly double by 2014, and home prices will begin to rise in 2013, with prices increasing significantly in 2014. Those rosy predictions come from a new semi-annual survey of 38 of the nation’s leading real estate economists and analysts by the Urban Land Institute’s Center for Capital Markets and Real Estate.
The economists foresee broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014, including: The national average home price is expected to stop declining this year, and then rise by 2 percent in 2013 and by 3.5 percent in 2014………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

In their search for a sustainable yield, investors have bid up real estate stocks. Lured by sustainable cash yields and a slowly improving U.S. economic picture, investors bid up real estate stocks across industries, giving brief pause when eurozone concerns came to a head.
As capital market stability returned toward the end of the quarter, it appears that real estate stocks, in aggregate will likely finish at a slight premium, in aggregate, to our estimate of fair value………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Sales of investment and vacation homes surged last year, the latest evidence that investors and higher-income households are taking advantage of low home prices to scoop up bargains.
In its annual survey of investment- and vacation-home sales, the National Association of Realtors found that the number of homes purchased by investors rose 65% during 2011 to 1.2 million, accounting for 27% of all home sales. In 2010, investment properties accounted for 17% of all sales………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Investment home buying really got down to business last year — half of such purchasers picked up distressed properties, 49% paid cash and 41% bought two or more.
Sales of homes intended as investments soared 65% nationwide to 1.23 million while vacation home sales rose 7% to 502,000, according to a report out Thursday. Together, investment and vacation homes now account for their highest share of the real estate market since 2005………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Goldman Sachs Group Inc, which survived the subprime mortgage crisis by making bets on a housing decline, is raising money for a new fund that will buy home-loan bonds to benefit from an improving real-estate market.
The U.S. Housing Recovery Fund, which is expected to finish its first round of capital raising and open April 1, will focus on senior-ranked securities without government backing, many of which now carry junk credit grades, according to a marketing document obtained by Bloomberg News………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

A wide range of stats on the housing markets - both existing homes and new homes - were released over the last week. Now that all the housing news for the month is out, a review of the different data points gives an overall picture of the health of housing and real estate in the U.S. The results discussed here concern single-family housing results.
In February, single family housing permits were issued at a 471,000 annualized basis, up 5 percent from the revised January number of 450,000………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

The legalization last November of the purchase and sale of private property in Cuba eroded the appeal of the once all-important permuta — the bureaucratic process of swapping supposedly equivalent dwellings, usually equalized by wads of under-the-table cash.
Although the permuta still exists, and has even been cleared of some of its red tape, few would argue for its use instead of clean and easy property sales, and frenzied reports of an emerging real estate boom in Havana evidence the fact………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

The growing value in European property was underlined after the biggest US real estate investment trust (Reit), Simon Property Group, completed its acquisition of a 28.7% stake in Klépierre, a French property company, for an estimated $2 billion (£1.2 billion).
Simon Property paid a 20% premium for the equity from the French bank BNP Paribas, which owned around a quarter of the Paris-based Reit………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Cross-border investors should consider opportunities in other markets in Central and Eastern Europe rather than focus exclusively on Poland and the Czech Republic, according to Andreas Ridder, chairman for CBRE in the CEE region.
Potentially high-yielding opportunities also exist in Hungary, Romania, Bulgaria, Croatia and Serbia, Ridder told PropertyEU’s CEE Investment Briefing in London on Wednesday………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

U.K. house prices fell the most in two years and mortgage approvals dropped to an eight-month low as economic uncertainty hurt demand for property and banks tightened lending conditions.
Home values dropped 1 percent in March, the biggest decline since February 2010, Nationwide Building Society said in an e- mailed statement today. Lenders granted 48,986 property loans to Britons in February, compared with 57,899 in January, the Bank of England said in a separate report in London………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

House prices are falling again annually, Nationwide has reported, as the temporary effect of a minor stamp duty rush finally vanished and property values dipped one per cent in March.
The renewed downturn saw house prices fall 0.9 per cent year-on-year on the building society’s index – the first annual fall in six months. Nationwide’s chief economist Robert Gardner said the slowdown seen in March was to be expected, as the removal of the stamp duty break up to £250,000 for first-time buyers hit, although if the economic outlook improved this dampening effect may fade………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Both sides of the property market have been dealt fresh blows, with buyers finding it increasingly hard to get a mortgage and sellers seeing the value of their homes drop.
Figures from the Bank of England show that mortgage approvals dropped to an eight-month low, while Nationwide Building Society reports that UK house prices taking their biggest monthly plunge in two years………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

The total return before tax and financing for all German properties reached a record level of 5.5% in 2011, according to the latest research from the Investment Property Databank.
The 5.5% return on the DIX German Property Index exceeded industry expectations, which had put the total return at 4.8% for the year. IPD has been measuring the annual performance of German institutional investors’ property portfolios since 1996. The analyses go back to 1989………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

According to research by Lloyds TSB International, property prices in South Africa have increased by 161% during the last 10 years, in spite of the market remaining quite unstable.
This means South Africa has seen the third highest price gains in the world, with only India and Russia seeing a faster rate of growth. Last year the average South African household income increased by 4.6%, but it’s not all good news as unemployment reached 25% during the third quarter of last year, and house prices fell by 1.1% in 2011………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

The sluggish global economy has not left the property sector unscathed, but the high-end estate market on the Indian Ocean island of Mauritius is showing remarkable resilience.
Murray Adair, CEO of the Indian Ocean Real Estate Company (IOREC) who is developing several luxury resorts in Mauritius in partnership with Flacq United Estates Limited (FUEL), says while there had been a slow-down in the property market, sales transactions in upmarket resorts on the island remain buoyant………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Kenya’s luxury real estate saw the greatest price increase globally in 2011, according to Knight Frank’s Prime International Residential Index (PIRI), which monitors price changes across the world’s top-end property markets.
Price growth in both Kenya’s capital Nairobi and the country’s Indian Ocean coastal hotspots was more than any of the other global locations included in the Index, with the value of Nairobi’s prime real estate growing by 25% in 2011 and the Kenyan coast by 20%………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Nairobi recorded the highest rate of growth in luxury real estate prices in the world in 2011 with the Kenyan coast coming in second, according to rankings released by the World Wealth Report 2012.
The Kenyan capital city recorded a 25 per cent increase topping the Knight Frank Prime International Residential Index (PIRI), while prices in the Kenyan coast rose by 21 per cent. In third place was Miami at 19 per cent………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

A new report puts Dubai as the 13th most important city in the world for the ultra-wealthy, and eighth in terms of growing in importance to the high net worth individuals (HNWIs). The Wealth Report 2012, published by Knight Frank and Citi Private Bank, ranks 120 global cities for the purpose.
The report is based on the outlook of over 4,000 ultra-rich individuals (worth on average over $100m each) towards a wide range of subjects, including their personal wealth, their feelings on property, both as a home and an investment, and their investment decisions………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

The real estate sector is probably set to repeat its 2008 story of high prices and few buyers. Property experts believe the market is overheating again, breaching the peak levels of 2008, as developers show no sign of lowering prices despite poor sales. A recent Crisil report says sales of new homes declined 40% between March 2011 to Febuary 2012.
An analysis by property research agency Liases Foras shows average property prices are 15% higher in Mumbai and 30% higher in the Mumbai Metropolitan Region (MMR) over their previous peak in June 2008. ……………………………………….Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

A lot of commentators have been making the case the China’s real estate market is in a huge bubble. That may or may not be the case, but what’s more salient is to what extent the bull market will hold this year.
Earlier in 2012 I published a piece on Emerging Money making a comparison between China real estate stocks and U.S. homebuilders, and noting that there was a possibility for a strong move in China’s stock market because of strong outperformance that expressed itself in the sector back then………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Academics warned the government to watch out for over investment in real estate after real estate-related financing approached 50 percent of GDP in January.
Real estate-linked financing — including loans for home purchases, repair and construction — totaled NT$7.15 trillion (US$242.09 billion) at the end of January, accounting for 48.15 percent of GDP, which was valued at NT$14.85 trillion in December last year, said Chuang Meng-han, a professor of industrial economics at Tamkang University………………………………………..Full Article: Source

Posted on 30 March 2012 by Laxman |  Email |Print

Our property markets started the year in a tug of war, caught between falling interest rates on the one hand and market uncertainty on the other. Now that we’re almost a quarter of the way through the year, it’s worth reviewing what’s really going on in the property markets and what’s ahead for the rest of the year.
Commsec economist Craig James is calling Australia the boom and gloom economy. Our economy is still growing – unlike many others, especially in Europe – and underpinned by a mining boom, but consumers and businesses are gloomy………………………………………..Full Article: Source

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