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International Realty News & Trends

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  • Re : International Realty News & Trends

    China new home prices fall again in May 2022, more stimulus expected

    Read more at:
    https://realty.economictimes.indiati...ected/92259739


    Average new-home prices in 70 major cities dropped 0.1% on a month-on-month basis, after a 0.2% decline in April, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Thursday.

    BEIJING: China's new home prices in May fell for the second month this year, depressed by still fragile demand as widespread COVID-19 curbs dented already weak buyer confidence, suggesting more policy stimulus is needed to return the market to growth.

    Average new-home prices in 70 major cities dropped 0.1% on a month-on-month basis, after a 0.2% decline in April, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Thursday.

    From a year earlier, prices slipped 0.1%, down for the first time since September 2015 and retreating from a 0.7% gain in April.

    Year-on-year price growth has eased since May last year due to a slowing economy, tight mortgage disbursement and as sentiment weakened amid a liquidity crisis that led to some high-profile loan defaults by developers.

    Shares of mainland developers fell on Thursday, with the CSI300 Real Estate Index down around 1.4% after opening about 2% higher.

    China's property sector, traditionally a pillar of growth, deteriorated further in recent months, spurring authorities to take additional measures to stimulate home demand hit by COVID-19 restrictions in some of the country's biggest cities.

    Shanghai was locked down for two months until the end of May, while Beijing shut entertainment and other venues in some districts to contain outbreaks.

    In January to May, property sales by floor area sank 16.8% from a year earlier in the Chinese capital, according to the local statistics bureau on Thursday.

    The central Chinese city of Wuhan, where the new coronavirus was first detected in late 2019, eased home purchase curbs for some buyers in May, allowing households with more than one child to buy up to three properties.

    In May, more than 100 cities implemented easing measures to support the property sector, mainly targeting homebuyers in small and medium-sized cities, including cuts in mortgage rates, smaller down payments and a relaxation in purchasing rules.

    In May, 25 out of 70 cities surveyed by the NBS reported an uptick in new home prices from the previous month, compared with 18 cities recording a gain in April.

    The property sector in small cities remained bleak last month with monthly new home prices down for the ninth month.

    "Despite more local housing easing measures in recent months, we believe the property markets in lower-tier cities may continue to face strong headwinds from weaker growth fundamentals than large cities, including net population outflows and potential oversupply problems," Goldman Sachs analysts wrote in a note.

    China's property market woes are likely to worsen this year with prices remaining flat and sales and investment falling further, according to a recent Reuters poll.

    To boost demand, financial authorities last month cut their benchmark rate for mortgages and lowered the mortgage rate floor for first-time home buyers.

    Property sales by floor area in May fell at a slower pace for the first time in three months.

    More easing policies targeted to help demand are expected in the coming months to stimulate the sector.

    More stimulus policies are needed to stabilise the property market, especially further reductions in mortgage rates for buyers, said Zhang Dawei, an analyst with property consultancy Centaline.
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    • Re : International Realty News & Trends

      Austria makes mortgage standards binding to slow housing boom


      Jun 20, 202216:27


      Austria is following through on a pledge to make mortgage standards compulsory, starting on Aug. 1, in response to a continued boom in its housing market, the Financial Market Authority said on Monday.

      At the behest of the European Union's financial stability watchdog, Austria said in February it would switch from widely flouted recommendations to binding standards, with lenders allowed to deviate from them in up to 20% of cases.

      The new standards include capping loan-to-value ratios at 90%, limiting maturities to 35 years and imposing a maximum debt service ratio of 40%.

      "The aim of this decree is to limit the systemic risks in residential property financing in light of the property price boom, turnaround in interest rates, fragile economic environment and current lending practices," the FMA said in a statement on a decree it has issued, which will come into force on Aug. 1.

      As a result of consultations before the decree was issued, its start date was pushed back by a month and the minimum size of loan covered was raised to 50,000 euros ($52,695) from 40,000, it said.

      The standards were announced months ago by the Financial Market Stability Board, which brings together officials from the FMA, Austrian National Bank (ONB) and Finance Ministry. The ONB called last week for the standards to be made compulsory as soon as possible, suggesting tensions over the start date.

      Austrian residential property prices have continued to rise sharply, the ONB said in a report last week that put the year-on-year increase at 12.3% in the first quarter of this year, after 12.6% in the fourth quarter of 2021.

      The central bank said residential property prices were 35% overvalued relative to fundamentals in the first quarter. In Vienna, it put the figure at 40%.

      ($1 = 0.9489 euros)











      Austria makes mortgage standards binding to slow housing boom — TradingView News
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      • Re : International Realty News & Trends

        China: S&P upgrades Greenland Holdings days after cutting to 'selective default


        Read more at:
        https://realty.economictimes.indiati...fault/92548820



        Last Wednesday, S&P downgraded Shanghai-based Greenland to "selective default", after the firm proposed and later completed a one-year maturity extension of its $500-million bonds originally due on June 25.

        HONG KONG: S&P Global Ratings raised Greenland Holdings Corp Ltd by one notch to "CCC" on Wednesday, after the Chinese state-backed property developer completed a one-year maturity extension on $500 million in senior unsecured notes.

        Last Wednesday, S&P downgraded Shanghai-based Greenland to "selective default", after the firm proposed and later completed a one-year maturity extension of its $500-million bonds originally due on June 25.

        The rating agency said at that time it viewed the proposal to extend the maturity as "a distressed debt restructuring and tantamount to a default".

        On Wednesday, while upgrading Greenland rating on completion of the maturity extension, S&P said the developer continued to face heightened repayment risk owing to a significant amount of debt maturities in 2022 and its "exceptionally weak" liquidity.

        Greenland declined to comment on the latest rating action.

        "Repayments for Greenland's remaining U.S. dollar-denominated senior notes due in 2022 are subject to high uncertainty, in our assessment," the rating agency said in its note.

        Over the next 12 months, Greenland has offshore debt maturities of about $2.4 billion, as per S&P estimates. Greenland's repayment ability will largely depend on cash collection from sales and asset disposals, it said.

        A string of Chinese property developers have defaulted on their offshore debt obligations and have had their ratings slashed in the last year as a result of an unprecedented liquidity squeeze and slowing sales.
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        • Re : International Realty News & Trends

          UK house price growth slows slightly in June: Nationwide

          Read more at:
          https://realty.economictimes.indiati...nwide/92574448



          House prices in June were 0.3% higher than in May, when they rose 0.9%. Compared with June 2021, prices were 10.7% higher, a slowdown from annual growth of 11.2% in May.

          LONDON: British house prices rose at a slower pace in June than in May as higher inflation squeezed household budgets, but the average price of a home still hit a new record, monthly figures from mortgage lender Nationwide showed on Thursday.

          House prices in June were 0.3% higher than in May, when they rose 0.9%. Compared with June 2021, prices were 10.7% higher, a slowdown from annual growth of 11.2% in May. Both monthly and annual increases were slightly less than the median expectation in a Reuters poll of economists.

          "There are tentative signs of a slowdown," Nationwide's chief economist, Robert Gardner, said.

          "Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation," he added.

          Consumer price inflation hit a 40-year high of 9.1% in May, and the BoE has warned the economy is likely to come close to recession later this year.

          Financial markets also expect the central bank to keep raising interest rates over the coming months, and see them reaching 2.75% by December, up sharply from 1.25% now and just 0.1% at the start of December 2021.

          The average price of a home rose to a record 271,613 pounds ($330,064), Nationwide said, with the biggest increase in southwest England, where prices rose 14.7% on the year. London saw the smallest rise, with annual price growth slowing to 6.0% from 7.4% in the previous quarter.

          Overall, house prices have risen by more than 20% since the start of the COVID-19 pandemic, Nationwide's figures showed.
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          • Re : International Realty News & Trends

            Thailand to extend property market support measures

            Fri, Jul 01, 2022 - 8:09 PM


            Thailand plans to extend property support measures to help boost the recovery of the industry and the overall economy, the finance minister said on Friday.
            reuters

            Thailand plans to extend property support measures to help boost the recovery of the industry and the overall economy, the finance minister said on Friday.

            The measures due to expire this year include a 100 per cent loan-to-value ratio and reduced fees to help increase activity in the real estate sector, which officials said would take longer to recover.

            While a time frame has yet to be decided, the government would help until the sector recovers and becomes a growth driver, Arkhom Termpittayapaisith told a business conference.

            State banks have also been asked to freeze interest rates as long as possible to help the public after a rise in the central bank’s benchmark interest rate.

            The central bank is expected to raise its policy rate as soon as August to tame surging inflation.

            The vital tourism sector will play a key role in supporting Southeast Asia’s second-largest economy, with foreign tourists expected at 9 million to 10 million this year, Arkhom said.




            Thailand to extend property market support measures , Real Estate - THE BUSINESS TIMES

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            • Re : International Realty News & Trends

              Evergrande canvassing creditors' support against winding-up petition: Source

              Read more at:
              https://realty.economictimes.indiati...ource/92659835



              Evergrande, which is deemed to be in default on its nearly $23 billion of offshore debt and is working on a debt restructuring plan, aims to submit the backing of creditors as part of the evidence to the court ahead of the first hearing on the winding-up petition on Aug. 31, the person said.

              HONG KONG: China Evergrande Group is reaching out to its offshore creditors for their support to fight a lawsuit in a Hong Kong court aimed at liquidating the embattled property developer, according to a person with direct knowledge of the matter.

              Evergrande, which is deemed to be in default on its nearly $23 billion of offshore debt and is working on a debt restructuring plan, aims to submit the backing of creditors as part of the evidence to the court ahead of the first hearing on the winding-up petition on Aug. 31, the person said.

              Last week, Top Shine Global Ltd, an investor in Evergrande unit Fangchebao, said it had filed a winding-up petition against the developer as it had not honoured a pact to repurchase shares from Top Shine in Fangchebao.

              A successful outcome of the petition could impact the developer's debt restructuring plan by diminishing the value of the overseas assets that are central to the interests of offshore creditors.

              The developer was not considering an out-of-court settlement with Top Shine at the moment, the source said. The vast majority of its creditors oppose the winding-up petition, the source added, without elaborating.

              Law firm Kirkland & Ellis and investment bank Moelis & Co, advisers to a key group of Evergrande's creditors, declined to comment.

              Evergrande also declined to comment. Top Shine could not be immediately reached for comment.

              The person declined to be named as the deliberations on the firm's restructuring process are confidential.

              The petition marks the first lawsuit of its kind against Evergrande, which has over $300 billion in liabilities.

              Evergrande, formerly China's top-selling developer, said last week that Top Shine filed the liquidation petition over a financial obligation of $110 million, adding it will "vigorously" oppose the petition.

              It also said the lawsuit will not impact its offshore debt restructuring plan, expected to land by end-July.

              Restructuring plan

              Evergrande's restructuring proposal is taking shape and the company aims to reach consensus with offshore creditors on specific restructuring terms by end of this year, said the person.

              While a liquidation or fire sale of Evergrande assets will result in very little recovery for creditors, the developer is pushing ahead with its asset disposal plan with an aim to set aside such proceeds for restructuring purposes, said the person.

              The sale of Evergrande's Hong Kong headquarters building might conclude in the coming months, the person said, after a potential $1.7 billion deal for the same collapsed late last year.

              The sale of a plot of undeveloped land in Hong Kong's suburbs is also still underway, the person added.

              U.S. asset manager Oaktree Capital Management, a lender to Evergrande to develop that land plot, has sought to seize control of the asset by appointing a receiver in February.
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              • Re : International Realty News & Trends

                Real Estate Firm Cushman & Wakefield Held in Contempt, Fined $10,000 a Day

                By Reuters
                |
                July 5, 2022, at 8:39 p.m.

                Real Estate Firm Cushman & Wakefield Held in Contempt, Fined $10,000 a Day

                More


                FILE PHOTO: Former U.S. President Donald Trump speaks to an audience at the "American Freedom Tour" event in Memphis, Tennessee, U.S., June 18, 2022. REUTERS/Karen Pulfer Focht/File PhotoReuters

                (Reuters) - A New York judge on Tuesday held real estate firm Cushman & Wakefield PLC in contempt of court for not producing documents subpoenaed in a probe of former U.S. President Donald Trump's business practices.

                The judge ordered the company to be fined $10,000 a day until it complied.

                Attorney General Letitia James has been investigating Trump's business practices for three-and-a-half years, with a focus on whether his company misstated the values of its real estate properties to obtain favorable loans and tax deductions.

                In April, James won a court order to force Cushman to comply with subpoenas for records that would help determine whether appraisals it conducted for several Trump properties were fraudulent or misleading. The properties include Seven Springs estate in New York's Westchester county and 40 Wall Street in Manhattan.

                In his order on Tuesday, Justice Arthur Engoron ruled that the daily fine on Cushman & Wakefield would commence on July 7. He criticized the company for waiting until two days after a deadline to initiate the process of asking for another extension.

                "Cushman & Wakefield fails to identify any good cause" for blowing the deadline, Engoron wrote.

                Wakefield & Cushman said it had produced "over hundreds of thousands" of pages of documents and more than 650 appraisals since the last subpoena issued in February.

                "Cushman disagrees with any suggestion that the firm has not exercised diligence and good faith in complying with the Court's order, and we will be appealing this decision," a company spokesperson said in an email to Reuters.

                The ruling adds to a string of recent victories for James in the face of Trump's efforts to derail the investigation.

                Trump, a Republican, denies wrongdoing and calls the probe a politically motivated witch hunt.

                (Reporting by Akriti Sharma and Shivani Tanna in Bengaluru; Editing by Bradley Perrett)












                Real Estate Firm Cushman & Wakefield Held in Contempt, Fined $10,000 a Day | Investing News | US News
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