Booking starts now! Last Seafront Plot In East Coast! Call +65 9691 9907
Silver Sea condominium details, floorplans, site map
Silversea, the luxurious development located in the East Coast area, has 383 apartments and the living spaces of most large units are designed with sweeping pool or breathtaking sea views. Penthouses are crafted with different designs, offering exclusive living atop every tower to enjoy the most spectacular views
District: 15
Tenure: 99-year leasehold
Total Units: 383
Building:
Four 21-storey towers
All units come with balconies except for 2-Bedroom units. Seaview units starts from 11th floor upwards
Preview sales for Tower 4 Total 98 units
21 units 2 bedrooms – 947sqft
42 units 3 bedrooms- 1270sqft
16 units 3+1 bedrooms- 1474sqft
16 units 4 bedrooms- 2120sqft
3 units Penthouse- 4090sqft
Sizes of bedroom
2bedroom : 969 – 1152sf
3bedroom : 1485 – 1582sf
3 + study : 1647 – 1701sf
4bedroom : 2497 - 2766
Penthouse : 3552 / 4381 / 4962sf
Facilities
• 2 x 50m lap pool
• Garden Pavilion
• Outdoor Int’l Dining Pavilion
• Tennis Courts
• Day Cabana
• Bubble Pool
• Spa Beds
• Spa Seats
• Sky Promenade on 11th storey
• Infinity pool
• Five Elemental Spas
• Heated Jacuzzi Pool
• Lounge & Bar
****NOTE****
Prices are expected to be increased after this preview as is the norm for all new projects. Grab the 1st few units to gain from this opportunity! Special pricing range for private preview with lowest floor starting from $1250psf only and highest selling floor (13th floor) priced at $1720psf. Includes the sea view units. We will help you negotiate and try all near offers for you.
Exclusive soft launch viewing is strictly by appointment only.
Call Stuart Chng now at +65 9691 9907 for a friendly discussion.
Hurry, promotion for early birds!
East Coast Property Real Estate
Silver Sea condominium details, floorplans, site map
Singapore Property
Showing posts with label International Property news. Show all posts
Showing posts with label International Property news. Show all posts
Tuesday, June 30, 2009
Sunday, March 1, 2009
BEST PRICES! Casa Merah Condominium for Sale. 68 genuine units avail. www.Casa-Merah.com
GUARANTEED BEST PRICES! Casa Merah Condominium for
Why call us?
1. We have access to the entire inventory in Casa Merah Condominium.
2 bedrooms
3 bedrooms / 3+ study
4 bedrooms
2. Guaranteed BEST Prices in the market! We are in constant contact with Casa Merah owners. Thus, rest assure you'll be getting the BEST prices updated daily.
Condo details:
- 99 years lease hold
- 556 units
- Address: 1, 3, 7, 9 Amber Gardens
- Estimated TOP 3rd Quarter 2009
Call Stuart Chng at (65) 9691 9907 for a One Stop Casa Merah specialist. We have access to all units for sale.
Visit the Casa Merah
Wednesday, August 27, 2008
US housing upturn unlikely before '09
August 27, 2008
US housing upturn unlikely before '09
Recently-passed law to avert foreclosures a key move: official
(WASHINGTON) A recovery from the worst US housing slump since the
Depression is unlikely until 'well into 2009,' Housing and Urban
Development Secretary Steve Preston said on Monday.
'I think we're right in the middle of it, and I think we have a ways
to go before we start seeing a turnaround,' Mr Preston said in an
interview in Washington. 'We'll be well into 2009 before we see some
real energy in this market.'
A slowdown in home sales and a drop in prices has contributed to
record foreclosures as borrowers struggle to meet their monthly
mortgage payments.
Mr Preston said a foreclosure-prevention law Congress passed last
month will be important in aiding mortgage-finance companies Fannie
Mae and Freddie Mac, which are supporting most new mortgages.
'We have to begin seeing the inventory of new homes begin to reduce
so that we can see the buying activity begin to pull us out of the
situation we're in,' Mr Preston, 48, said.
US banks repossessed almost three times as many US homes in July as a
year earlier, and the number of properties at risk of foreclosure
jumped 55 per cent, California-based RealtyTrac Inc said in an Aug 14
report.
The law enacted last month creates a Federal Housing Administration
programme in HUD to insure as much as US$300 billion in refinanced 30-
year, fixed-rate mortgages for 400,000 struggling homeowners. The law
lets the US inject capital into Fannie and Freddie through stock
purchases or government loans.
Mr Preston deferred to the US Treasury and Federal Housing Finance
Agency, the new regulator of Fannie Mae and Freddie Mac, on whether
the companies should be bailed out or nationalised.
'I don't know what the future holds for them,' he said. Mr Preston
said 'it's possible' he may propose other solutions to the housing
crisis, without being specific.
'Many of the policy solutions are out there and working,' he
said. 'My guess is that you're going to see more fine-tuning of these
programmes to ensure that they're working, rather than large-scale
change.'
Other programmes include an industry-led effort called the Hope Now
Alliance organised last year to help troubled homeowners modify their
mortgages to make monthly payments more affordable.
A programme HUD started a year ago called FHA Secure is also aimed at
averting foreclosures by helping borrowers with adjustable-rate
mortgages refinance into FHA-insured mortgages.
Mr Preston, who was head of the US Small Business Administration, in
June replaced Alphonso Jackson, who quit amid a federal criminal
probe into contracts awarded by the agency.
US housing upturn unlikely before '09
Recently-passed law to avert foreclosures a key move: official
(WASHINGTON) A recovery from the worst US housing slump since the
Depression is unlikely until 'well into 2009,' Housing and Urban
Development Secretary Steve Preston said on Monday.
'I think we're right in the middle of it, and I think we have a ways
to go before we start seeing a turnaround,' Mr Preston said in an
interview in Washington. 'We'll be well into 2009 before we see some
real energy in this market.'
A slowdown in home sales and a drop in prices has contributed to
record foreclosures as borrowers struggle to meet their monthly
mortgage payments.
Mr Preston said a foreclosure-prevention law Congress passed last
month will be important in aiding mortgage-finance companies Fannie
Mae and Freddie Mac, which are supporting most new mortgages.
'We have to begin seeing the inventory of new homes begin to reduce
so that we can see the buying activity begin to pull us out of the
situation we're in,' Mr Preston, 48, said.
US banks repossessed almost three times as many US homes in July as a
year earlier, and the number of properties at risk of foreclosure
jumped 55 per cent, California-based RealtyTrac Inc said in an Aug 14
report.
The law enacted last month creates a Federal Housing Administration
programme in HUD to insure as much as US$300 billion in refinanced 30-
year, fixed-rate mortgages for 400,000 struggling homeowners. The law
lets the US inject capital into Fannie and Freddie through stock
purchases or government loans.
Mr Preston deferred to the US Treasury and Federal Housing Finance
Agency, the new regulator of Fannie Mae and Freddie Mac, on whether
the companies should be bailed out or nationalised.
'I don't know what the future holds for them,' he said. Mr Preston
said 'it's possible' he may propose other solutions to the housing
crisis, without being specific.
'Many of the policy solutions are out there and working,' he
said. 'My guess is that you're going to see more fine-tuning of these
programmes to ensure that they're working, rather than large-scale
change.'
Other programmes include an industry-led effort called the Hope Now
Alliance organised last year to help troubled homeowners modify their
mortgages to make monthly payments more affordable.
A programme HUD started a year ago called FHA Secure is also aimed at
averting foreclosures by helping borrowers with adjustable-rate
mortgages refinance into FHA-insured mortgages.
Mr Preston, who was head of the US Small Business Administration, in
June replaced Alphonso Jackson, who quit amid a federal criminal
probe into contracts awarded by the agency.
Investing in India's real estate sector
August 27, 2008
Investing in India's real estate sector
Foreign investors need to address some key issues and regulatory
requirements before jumping in
By ROHAN SOLAPURKAR
INVESTMENT in the Indian real estate sector continues to grow, albeit
the pace may be slowing just a little. Foreign developers as well as
private equity funds remain bullish, long-term, on India's property
market.
Not only is investment flowing into the 'first-tier' cities, but
attractive real-estate deals are also being negotiated and signed
in 'second-tier' cities such as Indore, Jaipur and Cochin.
From a foreign investor's perspective, the recent correction in real
estate prices in some parts of India is good news in that it could
result in land being available at attractive values.
But although Indian property may make an attractive investment for
foreign investors, it is important that they address some of the
regulatory issues prior to making an investment.
According to India's current foreign direct investment (FDI) policy,
100 per cent FDI is allowed under the automatic route - that is,
without requiring government approval - for the construction and
development projects that include housing, commercial premises,
resorts, educational institutions, recreational facilities, city and
regional-level infrastructure and townships.
But this is subject to certain conditions:
- Minimum area for development under each project should be:
i) 10ha in the case of services housing plots; or
ii) 50,000 sq m in the case of construction development projects.
iii) In case the project is a combination of the two, any one of the
two conditions would have to be met.
- Minimum capitalisation of US$10 million for wholly owned
subsidiaries and US$5 million for joint ventures with Indian parties.
- The funds have to be brought in within six months of commencement
of business of the company.
- The original investment is subject to a lock-in period of three
years from the completion of minimum capitalisation.
- At least 50 per cent of the project must be developed within a
period of five years from the date of obtaining all statutory
clearances.
- Investors would not be permitted to sell undeveloped plots.
Though the investment policy seems straightforward, investors still
need to address some key issues and comply with other regulatory
requirements.
For example, when it comes to funding, India's exchange control
regulations permit external commercial borrowings (ECBs) - that is,
commercial loans in the form of bank loans, buyers' credits,
suppliers' credits, and loans from shareholders.
There are several restrictions on the end use of ECB funds. One of
these is that the proceeds of ECBs cannot be used for the purpose of
acquiring real estate in India. Accordingly, ECBs cannot be used for
real estate development in India.
Preference shares are also considered as ECBs and, likewise, cannot
be used to invest in a real estate project in India.
The only exception is the use of compulsory convertible preference
shares or fully and mandatorily convertible debentures, which would
be treated as part of equity and would be considered as FDI.
Therefore, apart from pure equity funding, only compulsory
convertible preference shares and fully and mandatorily convertible
debentures can be used. This would tend to minimise the options
available for funding a project in India because all funds would have
to be in the form of equity or instruments which can be converted
into equity.
As per the FDI regulations, a foreign investor's original
investment 'cannot be repatriated before a period of three years from
completion of minimum capitalisation'.
* Original investment
The question therefore arises as to the meaning of the term 'original
investment'. Should the term be interpreted as 'minimum
capitalisation' or should it be interpreted to mean the funds brought
into the company in the first six months?
Since the term is not defined, it becomes important to have a correct
interpretation, as the 'original investment' is subject to a three-
year lock-in period. The view that seems to be emerging is that funds
brought into the company in the initial six months - that is, the
minimum capitalisation of the commencement of business - is the
original investment and subject to the lock-in period.
However, the risk is that if an amount in excess of the minimum
capitalisation is invested during the first six months, the entire
amount would be treated as 'original investment' and would be subject
to lock-in. To minimise this risk, only funds to the extent of
minimum capitalisation should be invested during the first six months.
Investors in real estate have to bring the funds into India within
six months of 'commencement of business'. Again, the
term 'commencement of business' has not been defined. It can be
interpreted in various ways; for instance, in the construction
business it could mean the point at which construction actually
commences.
The view emerging from Indian regulators is that the
term 'commencement of business' means when the shareholders agreement
or joint venture agreement is signed. Accordingly, the funds have to
be invested within six months upon signing the agreement.
Finally, there are questions surrounding partially completed
projects. The FDI guidelines do not clarify whether FDI would be
permitted into these.
The question would arise as to the meaning of 'partially developed'.
In this connection the view appears to be that if the project is less
than 25 per cent complete, FDI would be permitted. However, in this
case it may be prudent to seek prior approval of the Foreign
Investment Promotion Board before making an investment.
Given the fact that India desperately needs good-quality housing and
commercial space, the current slowdown in deals in India is likely to
be temporary.
In due course, growth in the Indian real estate sector will resume
with more acquisitions and consolidation. But foreign investors
planning to enter India's real estate sector need to address a number
of regulatory issues before they go in.
The writer is the head of tax of BDO Raffles in Singapore. The views
expressed in this article are his own
Investing in India's real estate sector
Foreign investors need to address some key issues and regulatory
requirements before jumping in
By ROHAN SOLAPURKAR
INVESTMENT in the Indian real estate sector continues to grow, albeit
the pace may be slowing just a little. Foreign developers as well as
private equity funds remain bullish, long-term, on India's property
market.
Not only is investment flowing into the 'first-tier' cities, but
attractive real-estate deals are also being negotiated and signed
in 'second-tier' cities such as Indore, Jaipur and Cochin.
From a foreign investor's perspective, the recent correction in real
estate prices in some parts of India is good news in that it could
result in land being available at attractive values.
But although Indian property may make an attractive investment for
foreign investors, it is important that they address some of the
regulatory issues prior to making an investment.
According to India's current foreign direct investment (FDI) policy,
100 per cent FDI is allowed under the automatic route - that is,
without requiring government approval - for the construction and
development projects that include housing, commercial premises,
resorts, educational institutions, recreational facilities, city and
regional-level infrastructure and townships.
But this is subject to certain conditions:
- Minimum area for development under each project should be:
i) 10ha in the case of services housing plots; or
ii) 50,000 sq m in the case of construction development projects.
iii) In case the project is a combination of the two, any one of the
two conditions would have to be met.
- Minimum capitalisation of US$10 million for wholly owned
subsidiaries and US$5 million for joint ventures with Indian parties.
- The funds have to be brought in within six months of commencement
of business of the company.
- The original investment is subject to a lock-in period of three
years from the completion of minimum capitalisation.
- At least 50 per cent of the project must be developed within a
period of five years from the date of obtaining all statutory
clearances.
- Investors would not be permitted to sell undeveloped plots.
Though the investment policy seems straightforward, investors still
need to address some key issues and comply with other regulatory
requirements.
For example, when it comes to funding, India's exchange control
regulations permit external commercial borrowings (ECBs) - that is,
commercial loans in the form of bank loans, buyers' credits,
suppliers' credits, and loans from shareholders.
There are several restrictions on the end use of ECB funds. One of
these is that the proceeds of ECBs cannot be used for the purpose of
acquiring real estate in India. Accordingly, ECBs cannot be used for
real estate development in India.
Preference shares are also considered as ECBs and, likewise, cannot
be used to invest in a real estate project in India.
The only exception is the use of compulsory convertible preference
shares or fully and mandatorily convertible debentures, which would
be treated as part of equity and would be considered as FDI.
Therefore, apart from pure equity funding, only compulsory
convertible preference shares and fully and mandatorily convertible
debentures can be used. This would tend to minimise the options
available for funding a project in India because all funds would have
to be in the form of equity or instruments which can be converted
into equity.
As per the FDI regulations, a foreign investor's original
investment 'cannot be repatriated before a period of three years from
completion of minimum capitalisation'.
* Original investment
The question therefore arises as to the meaning of the term 'original
investment'. Should the term be interpreted as 'minimum
capitalisation' or should it be interpreted to mean the funds brought
into the company in the first six months?
Since the term is not defined, it becomes important to have a correct
interpretation, as the 'original investment' is subject to a three-
year lock-in period. The view that seems to be emerging is that funds
brought into the company in the initial six months - that is, the
minimum capitalisation of the commencement of business - is the
original investment and subject to the lock-in period.
However, the risk is that if an amount in excess of the minimum
capitalisation is invested during the first six months, the entire
amount would be treated as 'original investment' and would be subject
to lock-in. To minimise this risk, only funds to the extent of
minimum capitalisation should be invested during the first six months.
Investors in real estate have to bring the funds into India within
six months of 'commencement of business'. Again, the
term 'commencement of business' has not been defined. It can be
interpreted in various ways; for instance, in the construction
business it could mean the point at which construction actually
commences.
The view emerging from Indian regulators is that the
term 'commencement of business' means when the shareholders agreement
or joint venture agreement is signed. Accordingly, the funds have to
be invested within six months upon signing the agreement.
Finally, there are questions surrounding partially completed
projects. The FDI guidelines do not clarify whether FDI would be
permitted into these.
The question would arise as to the meaning of 'partially developed'.
In this connection the view appears to be that if the project is less
than 25 per cent complete, FDI would be permitted. However, in this
case it may be prudent to seek prior approval of the Foreign
Investment Promotion Board before making an investment.
Given the fact that India desperately needs good-quality housing and
commercial space, the current slowdown in deals in India is likely to
be temporary.
In due course, growth in the Indian real estate sector will resume
with more acquisitions and consolidation. But foreign investors
planning to enter India's real estate sector need to address a number
of regulatory issues before they go in.
The writer is the head of tax of BDO Raffles in Singapore. The views
expressed in this article are his own
US housing market 'stabilising'
Aug 27, 2008
US housing market 'stabilising'
Consumer confidence recovering as inflation worries subside, says
report
NEW YORK: United States consumer confidence recovered more than
expected this month as worries over inflation eased, while financial
markets combed through a slew of housing data yesterday for reasons
to hope the worst is over for the moribund sector.
Sales of newly constructed US single- family homes in July were lower
than economists expected, but they rose from a June pace that was the
slowest in nearly 17 years, a government report showed.
Another report said US home prices in metropolitan areas fell a
record annual 15.9 per cent in June.
Still, the monthly rate of decline slowed from May, which suggested
the decimated housing sector may be stabilising, according to the
S&P/Case Shiller report.
The Conference Board said its index measuring consumers' mood jumped
to 56.9 this month from last month's 51.9, reaching the highest level
since May, while a decline in inflation expectations should please
Federal Reserve officials worried about an unwelcome rise in price
pressures this year.
The data by no means suggested the stagnant US economy was vaulting
to recovery, though some analysts said it showed signs of
stabilisation that could herald a slow turn for the better if it is
maintained.
'Confidence is still quite depressed, but it's a glimmer of hope from
the lows we saw in June,' said Ms Dana Saporta, economist at Dresdner
Kleinwort Securities in New York.
'I attribute the increase to the drop in gasoline prices, which
offset a deteriorating labour market.'
Stock prices rose modestly after the consumer confidence data and the
US dollar extended its gains against other currencies.
The improvement in consumer sentiment came during a month when oil
prices retreated further from July's record highs but consumers'
evaluation of their present situation and the job market deteriorated
further.
The index of 'jobs hard-to-get' rose to 32 this month from a revised
30.2 last month, pushing the gauge to its highest since October 2003.
'Consumer confidence readings suggest that the economy remains stuck
in neutral, but may be showing signs of improvement by early next
year,' Ms Lynn Franco, director of the Conference Board Consumer
Research Centre, was quoted as saying in the report.
The Conference Board, an industry group, said its gauge of inflation
expectations fell to 6.7 per cent - its lowest since 6.1 per cent in
March - from July's revised 7.5 per cent.
It hit a record high of 7.7 per cent in May and June and was
originally reported at 7.6 per cent for last month.
US housing market 'stabilising'
Consumer confidence recovering as inflation worries subside, says
report
NEW YORK: United States consumer confidence recovered more than
expected this month as worries over inflation eased, while financial
markets combed through a slew of housing data yesterday for reasons
to hope the worst is over for the moribund sector.
Sales of newly constructed US single- family homes in July were lower
than economists expected, but they rose from a June pace that was the
slowest in nearly 17 years, a government report showed.
Another report said US home prices in metropolitan areas fell a
record annual 15.9 per cent in June.
Still, the monthly rate of decline slowed from May, which suggested
the decimated housing sector may be stabilising, according to the
S&P/Case Shiller report.
The Conference Board said its index measuring consumers' mood jumped
to 56.9 this month from last month's 51.9, reaching the highest level
since May, while a decline in inflation expectations should please
Federal Reserve officials worried about an unwelcome rise in price
pressures this year.
The data by no means suggested the stagnant US economy was vaulting
to recovery, though some analysts said it showed signs of
stabilisation that could herald a slow turn for the better if it is
maintained.
'Confidence is still quite depressed, but it's a glimmer of hope from
the lows we saw in June,' said Ms Dana Saporta, economist at Dresdner
Kleinwort Securities in New York.
'I attribute the increase to the drop in gasoline prices, which
offset a deteriorating labour market.'
Stock prices rose modestly after the consumer confidence data and the
US dollar extended its gains against other currencies.
The improvement in consumer sentiment came during a month when oil
prices retreated further from July's record highs but consumers'
evaluation of their present situation and the job market deteriorated
further.
The index of 'jobs hard-to-get' rose to 32 this month from a revised
30.2 last month, pushing the gauge to its highest since October 2003.
'Consumer confidence readings suggest that the economy remains stuck
in neutral, but may be showing signs of improvement by early next
year,' Ms Lynn Franco, director of the Conference Board Consumer
Research Centre, was quoted as saying in the report.
The Conference Board, an industry group, said its gauge of inflation
expectations fell to 6.7 per cent - its lowest since 6.1 per cent in
March - from July's revised 7.5 per cent.
It hit a record high of 7.7 per cent in May and June and was
originally reported at 7.6 per cent for last month.
UK mortgage defaults up in 2nd quarter: S&P
Aug 27, 2008
UK mortgage defaults up in 2nd quarter: S&P
LONDON: The number of Britons failing to meet mortgage repayments
rose significantly in the second quarter and the pattern suggests
worse lies ahead, according to a report by Standard & Poor's (S&P).
While the bulk of defaults remained in the subprime sector, a sharp
contraction of credit availability has led to growing strains even
for prime borrowers.
House prices in Britain have dropped by about 10 per cent since last
August after a decade in which property values almost trebled. With
unemployment also rising and a recession looming, banks have
tightened their lending criteria. Many now refuse to offer mortgages
to homebuyers with less than a 25 per cent deposit.
Figures from the Council of Mortgage Lenders show there were 18,900
home repossessions in Britain in the first half of this year, up from
13,400 in the same period last year.
S&P said its delinquency index for UK non-conforming residential
mortgage-backed securities rose to 23.31 per cent in the second
quarter. That was up from 22.17 per cent in the first quarter and the
highest since the index began in 2004.
Delinquencies for prime residential mortgage-backed securities rose
to 2.94 per cent from 2.33 per cent in the previous quarter.
'The rise in delinquencies is being driven by affordability pressure,
especially for those borrowers whose loans are resetting to higher
floating interest rates,' said S&P credit analyst Kate Livesey.
'With no sign of credit conditions easing and house prices continuing
to fall, we expect delinquencies to continue rising and losses to
increase over the coming quarters.'
S&P lowered the ratings on tranches of 11 nonconforming UK
residential mortgage-backed securities transactions in the second
quarter and placed the ratings of eight transactions on CreditWatch
negative, reflecting deteriorating collateral performance.
It noted that losses were appearing earlier in the lives of some of
the most recent transactions, suggesting worse pain to come.
UK mortgage defaults up in 2nd quarter: S&P
LONDON: The number of Britons failing to meet mortgage repayments
rose significantly in the second quarter and the pattern suggests
worse lies ahead, according to a report by Standard & Poor's (S&P).
While the bulk of defaults remained in the subprime sector, a sharp
contraction of credit availability has led to growing strains even
for prime borrowers.
House prices in Britain have dropped by about 10 per cent since last
August after a decade in which property values almost trebled. With
unemployment also rising and a recession looming, banks have
tightened their lending criteria. Many now refuse to offer mortgages
to homebuyers with less than a 25 per cent deposit.
Figures from the Council of Mortgage Lenders show there were 18,900
home repossessions in Britain in the first half of this year, up from
13,400 in the same period last year.
S&P said its delinquency index for UK non-conforming residential
mortgage-backed securities rose to 23.31 per cent in the second
quarter. That was up from 22.17 per cent in the first quarter and the
highest since the index began in 2004.
Delinquencies for prime residential mortgage-backed securities rose
to 2.94 per cent from 2.33 per cent in the previous quarter.
'The rise in delinquencies is being driven by affordability pressure,
especially for those borrowers whose loans are resetting to higher
floating interest rates,' said S&P credit analyst Kate Livesey.
'With no sign of credit conditions easing and house prices continuing
to fall, we expect delinquencies to continue rising and losses to
increase over the coming quarters.'
S&P lowered the ratings on tranches of 11 nonconforming UK
residential mortgage-backed securities transactions in the second
quarter and placed the ratings of eight transactions on CreditWatch
negative, reflecting deteriorating collateral performance.
It noted that losses were appearing earlier in the lives of some of
the most recent transactions, suggesting worse pain to come.
Tuesday, August 26, 2008
Vendors drop prices of Asia-Pac commercial properties
August 26, 2008
Vendors drop prices of Asia-Pac commercial properties
These assets have been priced down by 25-100 bps in last few months:
DTZ
By UMA SHANKARI
COMMERCIAL properties in the Asia-Pacific region have been priced
down by 25-100 basis points in the past three to four months, more in
line with investor expectations, property firm DTZ said yesterday.
'The number is an average figure - it varies from market to market,'
said John Stinson, DTZ's regional director for sales and investments
and capital markets for Asia-Pacific.
Mr Stinson, who was speaking to reporters at a seminar, said the re-
pricing has been greater in some markets, such as Tokyo and
Australian cities.
For Singapore, it is hard to pin a number to the drop in the asking
prices for commercial properties, mainly because of a low number of
transactions, he added. But some sellers have marked down their
commercial assets about 10 per cent, said Shaun Poh, DTZ's senior
director for investment advisory services and auction in Singapore.
Mr Stinson identified Singapore as one of the 'gateway cities' that
international investors will look at when increasing their exposure
in the Asia-Pacific area.
'In the next two-three quarters, core (prime) products in gateway
cities - Hong Kong, Singapore, Tokyo and Sydney - will see some
interest,' Mr Stinson said.
In Singapore, the opportunities for investors are increasing as
vendors price their assets lower, he noted.
DTZ's executive director and regional head for consulting and
research Ong Choon Fah said: 'Owners are a bit more realistic now
than they were previously.'
Right now, there are still more sellers than buyers in Singapore,
according to a recent survey of investors by DTZ. More than 10 per
cent of investors had 'selling priorities' while less than 5 per cent
had 'buying priorities', the survey found.
'Buyers are sitting on their hands, waiting for the markets to
adjust,' said David Green-Morgan, DTZ's Asia-Pacific research
director.
DTZ's research also showed that across the Asia-Pacific region,
investors with 'buying priorities' outnumber those with 'selling
priorities' when it comes to industrial and hotel properties.
Mr Green-Morgan noted that investments into Singapore and the region
are likely to continue to be driven by private equity.
In July, DTZ predicted that the value of investment transactions
worldwide will fall to US$500 billion this year, from a high of
US$730 billion in 2007 and US$600 billion in 2006.
The decline assumes that after a weak first half in 2008, there will
be a relatively modest pick-up, likely to be driven mainly by the
Asia-Pacific market.
Vendors drop prices of Asia-Pac commercial properties
These assets have been priced down by 25-100 bps in last few months:
DTZ
By UMA SHANKARI
COMMERCIAL properties in the Asia-Pacific region have been priced
down by 25-100 basis points in the past three to four months, more in
line with investor expectations, property firm DTZ said yesterday.
'The number is an average figure - it varies from market to market,'
said John Stinson, DTZ's regional director for sales and investments
and capital markets for Asia-Pacific.
Mr Stinson, who was speaking to reporters at a seminar, said the re-
pricing has been greater in some markets, such as Tokyo and
Australian cities.
For Singapore, it is hard to pin a number to the drop in the asking
prices for commercial properties, mainly because of a low number of
transactions, he added. But some sellers have marked down their
commercial assets about 10 per cent, said Shaun Poh, DTZ's senior
director for investment advisory services and auction in Singapore.
Mr Stinson identified Singapore as one of the 'gateway cities' that
international investors will look at when increasing their exposure
in the Asia-Pacific area.
'In the next two-three quarters, core (prime) products in gateway
cities - Hong Kong, Singapore, Tokyo and Sydney - will see some
interest,' Mr Stinson said.
In Singapore, the opportunities for investors are increasing as
vendors price their assets lower, he noted.
DTZ's executive director and regional head for consulting and
research Ong Choon Fah said: 'Owners are a bit more realistic now
than they were previously.'
Right now, there are still more sellers than buyers in Singapore,
according to a recent survey of investors by DTZ. More than 10 per
cent of investors had 'selling priorities' while less than 5 per cent
had 'buying priorities', the survey found.
'Buyers are sitting on their hands, waiting for the markets to
adjust,' said David Green-Morgan, DTZ's Asia-Pacific research
director.
DTZ's research also showed that across the Asia-Pacific region,
investors with 'buying priorities' outnumber those with 'selling
priorities' when it comes to industrial and hotel properties.
Mr Green-Morgan noted that investments into Singapore and the region
are likely to continue to be driven by private equity.
In July, DTZ predicted that the value of investment transactions
worldwide will fall to US$500 billion this year, from a high of
US$730 billion in 2007 and US$600 billion in 2006.
The decline assumes that after a weak first half in 2008, there will
be a relatively modest pick-up, likely to be driven mainly by the
Asia-Pacific market.
UAE mortgage market seen growing 220% in next 3 years
August 26, 2008
UAE mortgage market seen growing 220% in next 3 years
(ABU DHABI) The mortgage market of the oil-rich United Arab Emirates
(UAE) is projected to grow 220 per cent to 64 billion dirhams (S$24.7
billion) in the next three years, local newspaper Gulf News reported
yesterday.
According to a study by the Dubai-based real estate company Bonyan
International Investment Group, syariah-compliant house financing
will make up more than 60 per cent of the figure.
The UAE is viewed by global investors as the best market for capital
gains growth, and has been identified as the only Gulf country to
witness an increase in consumer confidence for the second half of
this year, Bonyan said.
'This can be attributed to the UAE's pioneering move to allow
foreigners to invest in local property, which created outstanding
opportunities for world-class developers to attract investors to the
country,' it noted.
Capital gains and income yields have been much higher in the UAE than
most other international property markets, with investors acquiring
investments with no personal income or capital gains taxes.
The UAE has seen a boom in its real estate sector since 2002, when
Dubai, the UAE's commercial and financial hub, gave foreign investors
the green light to buy property on a freehold basis.
The government of Dubai issued a 35-article mortgage law last Tuesday
in a bid to regulate the emirate's booming real estate market.
UAE mortgage market seen growing 220% in next 3 years
(ABU DHABI) The mortgage market of the oil-rich United Arab Emirates
(UAE) is projected to grow 220 per cent to 64 billion dirhams (S$24.7
billion) in the next three years, local newspaper Gulf News reported
yesterday.
According to a study by the Dubai-based real estate company Bonyan
International Investment Group, syariah-compliant house financing
will make up more than 60 per cent of the figure.
The UAE is viewed by global investors as the best market for capital
gains growth, and has been identified as the only Gulf country to
witness an increase in consumer confidence for the second half of
this year, Bonyan said.
'This can be attributed to the UAE's pioneering move to allow
foreigners to invest in local property, which created outstanding
opportunities for world-class developers to attract investors to the
country,' it noted.
Capital gains and income yields have been much higher in the UAE than
most other international property markets, with investors acquiring
investments with no personal income or capital gains taxes.
The UAE has seen a boom in its real estate sector since 2002, when
Dubai, the UAE's commercial and financial hub, gave foreign investors
the green light to buy property on a freehold basis.
The government of Dubai issued a 35-article mortgage law last Tuesday
in a bid to regulate the emirate's booming real estate market.
US existing home sales up 3.1% in July
Aug 26, 2008
US existing home sales up 3.1% in July
NEW YORK: The pace of existing home sales in the United States rose
last month to a five-million-unit annual rate, the National
Association of Realtors said in a report yesterday.
The report showed prices dipped while the inventory of homes hit a
record high. The inventory of homes for sale rose to a record 4.67
million units or a 11.2 months' supply at the current sales pace,
matching a record set in April.
The median national home price declined 7.1 per cent from a year ago
to US$212,400 (S$299,000).
According to Mr David Wyss, chief economist at Standard & Poor's, the
3.1 per cent rise in sales was a bit better than expected.
'I think we are beginning to see some early signs that bargain
hunters are showing up and sales have been doing a little bit better
over the last few months than expected... It's a little bit
encouraging,' he said.
'We're seeing more and more people putting their houses on the
market, and that's to be expected because when sales pick up, usually
the inventory picks up... Obviously things are still very weak. Five
million units is not very much,' he added.
Said Mr Boris Schlossberg, director of currency research at AFT
Forex, New York: 'The market was expecting a bounce anyway, but this
is still mildly dollar-positive. I do think the impact on the dollar
would be short-lived. The flows this week are still being driven by
macroeconomic factors such as oil and equities.'
He added that whether the crisis in the housing sector will end or
not will depend largely on oil prices. 'If oil continues its decline,
then that should boost consumer spending and hopefully support the
housing market,' he said.
According to Mr Philip Dow, director of equity strategy at RBC Dain
Rauscher, however, the problem cannot get better until the inventory
begins to decline.
'Our best guess is that it'll be the middle of next year before you
begin to see any improvement,' he said.
US existing home sales up 3.1% in July
NEW YORK: The pace of existing home sales in the United States rose
last month to a five-million-unit annual rate, the National
Association of Realtors said in a report yesterday.
The report showed prices dipped while the inventory of homes hit a
record high. The inventory of homes for sale rose to a record 4.67
million units or a 11.2 months' supply at the current sales pace,
matching a record set in April.
The median national home price declined 7.1 per cent from a year ago
to US$212,400 (S$299,000).
According to Mr David Wyss, chief economist at Standard & Poor's, the
3.1 per cent rise in sales was a bit better than expected.
'I think we are beginning to see some early signs that bargain
hunters are showing up and sales have been doing a little bit better
over the last few months than expected... It's a little bit
encouraging,' he said.
'We're seeing more and more people putting their houses on the
market, and that's to be expected because when sales pick up, usually
the inventory picks up... Obviously things are still very weak. Five
million units is not very much,' he added.
Said Mr Boris Schlossberg, director of currency research at AFT
Forex, New York: 'The market was expecting a bounce anyway, but this
is still mildly dollar-positive. I do think the impact on the dollar
would be short-lived. The flows this week are still being driven by
macroeconomic factors such as oil and equities.'
He added that whether the crisis in the housing sector will end or
not will depend largely on oil prices. 'If oil continues its decline,
then that should boost consumer spending and hopefully support the
housing market,' he said.
According to Mr Philip Dow, director of equity strategy at RBC Dain
Rauscher, however, the problem cannot get better until the inventory
begins to decline.
'Our best guess is that it'll be the middle of next year before you
begin to see any improvement,' he said.
Monday, August 25, 2008
Home seizures by UK lenders hit 12-year high
Business Times - 25 Aug 2008
Home seizures by UK lenders hit 12-year high
Repossession orders in H1 jump 48% as price slide continues
By JANE MOIR
IN LONDON
HOME repossessions have surged to a 12-year high in the UK, as lenders take a tough line on debt-ridden owners. And the outlook for the rest of the year looks bleak, as house prices continue to fall.
Figures released by the Council of Mortgage Lenders (CML) show the number of home owners subject to repossession orders in the first half of the year was up 48 per cent to 18,900.
As property economist Kelvin Davidson of consultancy Capital Economics said: 'There's no denying the figures will rise further. We are talking pretty big falls in property prices.'
The news has triggered criticism in some corners of a harsh stance taken by lenders, and comes amid a warning that repossessions for full-year 2008 are likely to hit 45,000, up from 26,200 last year.
CML has said the figures are no surprise but stresses the 45,000 statistic is small relative to the 11.74 million mortgages in the UK worth more than £1.2 trillion (S$3.1 trillion). However, it noted that a dramatic reduction in credit availability is taking a toll on borrowers, as it tends to rule out remortgaging.
At the same time, credit ratings agency Standard & Poor's estimates that one in six home owners in Britain will be in negative equity by the end of 2009 if house prices continue to fall.
Mr Davidson said the figures have been largely anticipated, but the rate of acceleration seems to be much faster than expected. 'I guess in terms of risk, everything has moved much faster than what people thought,' he said.
Lenders have been aggressive in seeking recourse against errant home owners, with Ministry of Justice figures showing the courts made 28,658 repossession orders in England and Wales in the second quarter of 2008, an increase of 24 per cent from the same period last year.
Housing charity Shelter has accused lenders of using the courts as the first rather than last resort.
The charity's chief executive Adam Sampson has dubbed the rise in repossessions 'simply staggering'.
'The real horror is that struggling home owners today have less protection than in the 1990s, but most people don't even realise it,' he said.
The charity has seen an increase in the number of people fearful of losing their homes. 'They are being punished by rising household bills, escalating fuel charges and food prices that are going through the roof,' Mr Davidson said.
He urged lenders to be more flexible. 'They must play their part and ensure they look at all options before rushing to court. They must use repossession as the last rather than first option. The government needs to show it really is on people's side when they face the threat of repossession.'
According to the UK Financial Services Authority, lenders have largely complied with standards for treating customers in arrears. It has, however, voiced concern that some specialist lenders are more prone to resort to court action.
Mortgage lending, meanwhile, continues to remain subdued in Britain. According to CML, gross mortgage lending totalled £24.8 billion in July, a 27 per cent drop from the same month last year.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Home seizures by UK lenders hit 12-year high
Repossession orders in H1 jump 48% as price slide continues
By JANE MOIR
IN LONDON
HOME repossessions have surged to a 12-year high in the UK, as lenders take a tough line on debt-ridden owners. And the outlook for the rest of the year looks bleak, as house prices continue to fall.
Figures released by the Council of Mortgage Lenders (CML) show the number of home owners subject to repossession orders in the first half of the year was up 48 per cent to 18,900.
As property economist Kelvin Davidson of consultancy Capital Economics said: 'There's no denying the figures will rise further. We are talking pretty big falls in property prices.'
The news has triggered criticism in some corners of a harsh stance taken by lenders, and comes amid a warning that repossessions for full-year 2008 are likely to hit 45,000, up from 26,200 last year.
CML has said the figures are no surprise but stresses the 45,000 statistic is small relative to the 11.74 million mortgages in the UK worth more than £1.2 trillion (S$3.1 trillion). However, it noted that a dramatic reduction in credit availability is taking a toll on borrowers, as it tends to rule out remortgaging.
At the same time, credit ratings agency Standard & Poor's estimates that one in six home owners in Britain will be in negative equity by the end of 2009 if house prices continue to fall.
Mr Davidson said the figures have been largely anticipated, but the rate of acceleration seems to be much faster than expected. 'I guess in terms of risk, everything has moved much faster than what people thought,' he said.
Lenders have been aggressive in seeking recourse against errant home owners, with Ministry of Justice figures showing the courts made 28,658 repossession orders in England and Wales in the second quarter of 2008, an increase of 24 per cent from the same period last year.
Housing charity Shelter has accused lenders of using the courts as the first rather than last resort.
The charity's chief executive Adam Sampson has dubbed the rise in repossessions 'simply staggering'.
'The real horror is that struggling home owners today have less protection than in the 1990s, but most people don't even realise it,' he said.
The charity has seen an increase in the number of people fearful of losing their homes. 'They are being punished by rising household bills, escalating fuel charges and food prices that are going through the roof,' Mr Davidson said.
He urged lenders to be more flexible. 'They must play their part and ensure they look at all options before rushing to court. They must use repossession as the last rather than first option. The government needs to show it really is on people's side when they face the threat of repossession.'
According to the UK Financial Services Authority, lenders have largely complied with standards for treating customers in arrears. It has, however, voiced concern that some specialist lenders are more prone to resort to court action.
Mortgage lending, meanwhile, continues to remain subdued in Britain. According to CML, gross mortgage lending totalled £24.8 billion in July, a 27 per cent drop from the same month last year.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Saturday, August 23, 2008
CapitaLand to gain $313m from China assets
August 23, 2008
CapitaLand to gain $313m from China assets
It is injecting four assets into its 50% owned Raffles City China Fund
By KALPANA RASHIWALA
PROPERTY giant CapitaLand said yesterday that it will realise a total
portfolio gain of $313 million from injecting four Raffles City
assets in China as seed assets into its 50 per cent owned Raffles
City China Fund.
The gain will comprise a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets as well as $130
million fair value gain for Raffles City Shanghai.
The US$1 billion (about S$1.4 billion) real estate private equity
fund - the group's largest to date - will buy CapitaLand's effective
55.9 per cent stake in Raffles City Shanghai, and 100 per cent of the
Raffles City projects under development in Beijing, Chengdu and
Hangzhou.
The property group is expected to receive a total consideration of
about US$841 million (about S$1.15 billion) which takes into account
the agreed value of Raffles City Shanghai at 4.51 billion yuan (S$889
million) and the agreed land values of the other three Raffles City
projects.
Net of its 50 per cent stake in the fund, CapitaLand will obtain an
eventual net cash flow of about US$420 milllion (S$574 million).
Besides originating and retaining a sponsor stake in the fund,
CapitaLand is also managing the fund and its properties.
'CapitaLand, through its 50 per cent stake in the fund, will continue
to enjoy sustained rental income as well as appreciation in capital
value of the prime assets,' the group said in a release yesterday
evening.
CapitaLand Group president and CEO Liew Mun Leong said that the total
transaction proceeds of $1.15 billion will strengthen the group's
balance sheet and boost its ability to seize new opportunities in
China.
On the stockmarket yesterday, CapitaLand ended three cents lower at
$4.45. Morgan Stanley last week downgraded the stock to Underweight
from Equal-Weight and revised downwards its price target for the
share to $4.16 (from $5.94), pegged at a 15 per cent discount to its
end-2009 estimated net asset value per share of $4.89 (from a $5.94
estimated NAV per share for end-2008 previously).
CapitaLand to gain $313m from China assets
It is injecting four assets into its 50% owned Raffles City China Fund
By KALPANA RASHIWALA
PROPERTY giant CapitaLand said yesterday that it will realise a total
portfolio gain of $313 million from injecting four Raffles City
assets in China as seed assets into its 50 per cent owned Raffles
City China Fund.
The gain will comprise a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets as well as $130
million fair value gain for Raffles City Shanghai.
The US$1 billion (about S$1.4 billion) real estate private equity
fund - the group's largest to date - will buy CapitaLand's effective
55.9 per cent stake in Raffles City Shanghai, and 100 per cent of the
Raffles City projects under development in Beijing, Chengdu and
Hangzhou.
The property group is expected to receive a total consideration of
about US$841 million (about S$1.15 billion) which takes into account
the agreed value of Raffles City Shanghai at 4.51 billion yuan (S$889
million) and the agreed land values of the other three Raffles City
projects.
Net of its 50 per cent stake in the fund, CapitaLand will obtain an
eventual net cash flow of about US$420 milllion (S$574 million).
Besides originating and retaining a sponsor stake in the fund,
CapitaLand is also managing the fund and its properties.
'CapitaLand, through its 50 per cent stake in the fund, will continue
to enjoy sustained rental income as well as appreciation in capital
value of the prime assets,' the group said in a release yesterday
evening.
CapitaLand Group president and CEO Liew Mun Leong said that the total
transaction proceeds of $1.15 billion will strengthen the group's
balance sheet and boost its ability to seize new opportunities in
China.
On the stockmarket yesterday, CapitaLand ended three cents lower at
$4.45. Morgan Stanley last week downgraded the stock to Underweight
from Equal-Weight and revised downwards its price target for the
share to $4.16 (from $5.94), pegged at a 15 per cent discount to its
end-2009 estimated net asset value per share of $4.89 (from a $5.94
estimated NAV per share for end-2008 previously).
CapitaLand's 4 new properties in China fund
Aug 23, 2008
CapitaLand's 4 new properties in China fund
SOUTH-EAST Asia's biggest real-estate player, CapitaLand, is
injecting four properties into the recently launched US$1 billion
($1.41 billion) Raffles City China Fund.
The Raffles City-branded properties, three of which are under
construction, are in the Chinese cities of Shanghai, Beijing, Chengdu
and Hangzhou.
All four properties are mixed developments.
Raffles City Shanghai, which was completed in 2003, has both office
and retail space. Raffles City Beijing, which will be finished next
year, will also have serviced residences.
Raffles City Chengdu and Raffles City Hangzhou, which are expected to
be completed in 2011 and 2012 respectively, will also have a five-
star hotel and serviced residences, in addition to office and retail
space.
CapitaLand has a 50 per cent stake in the fund, which it manages.
In return for injecting the four properties, it will receive
approximately US$841 million, the company said yesterday.
CapitaLand's 4 new properties in China fund
SOUTH-EAST Asia's biggest real-estate player, CapitaLand, is
injecting four properties into the recently launched US$1 billion
($1.41 billion) Raffles City China Fund.
The Raffles City-branded properties, three of which are under
construction, are in the Chinese cities of Shanghai, Beijing, Chengdu
and Hangzhou.
All four properties are mixed developments.
Raffles City Shanghai, which was completed in 2003, has both office
and retail space. Raffles City Beijing, which will be finished next
year, will also have serviced residences.
Raffles City Chengdu and Raffles City Hangzhou, which are expected to
be completed in 2011 and 2012 respectively, will also have a five-
star hotel and serviced residences, in addition to office and retail
space.
CapitaLand has a 50 per cent stake in the fund, which it manages.
In return for injecting the four properties, it will receive
approximately US$841 million, the company said yesterday.
Thursday, August 21, 2008
Key Japan real estate sector seen tripling
August 21, 2008
Key Japan real estate sector seen tripling
Logistics property market investments may grow 3-fold in a few years:
LaSalle
(TOKYO) Japan's market for investment in logistics real estate - such
as warehouses, distribution centres and ports - is seen growing
threefold within a few years as more players enter a sector
considered stable even in an economic slowdown, an executive of
LaSalle Investment Management said.
The real estate securitisation investment market was about 320
billion yen (S$4 billion) in 2007, accounting for only 3.8 per cent
of Japan's total Reit (real estate investment trust) investment.
But LaSalle, which manages US$54 billion assets in global real estate
markets, sees such logistics-area investment accounting for more than
10 per cent of total J-Reit investment in the near future, executive
officer Yosuke Yoshikawa told a Tokyo seminar.
'Logistics property investment is still immature here for reasons
such as a dearth of investment opportunities and limited information
disclosure . . . maybe that's why only one J-Reit is solely focusing
on the logistics field,' Mr Yoshikawa said.
'But considering its big and established presence in Europe,
especially in Britain, and the relative strength of the economic
slowdown, logistics real estate investment has a big growth
potential,' he said.
After raising 360 billion yen, the Tokyo-based investor
launched 'LaSalle Japan Logistics Fund Two' last year.
LaSalle still has some 280 billion yen left to invest until 2010
after spending 80 billion yen since the fund's launch, another
executive told Reuters after the seminar.
A planned investment would include development of multi-purpose
logistics centres and 'off-balance- sheet' support for logistics
companies.
LaSalle is a unit of Chicago-based property services company Jones
Lang LaSalle Group which manages property investments of
institutional investors such as pension funds and companies.
Tokyo-based LaSalle bought out an asset management company in 2007
and injected fresh capital into a Reit that has since been renamed
LaSalle Japan Reit Inc.
LaSalle Japan Reit closed down 12.3 per cent at 191,200 yen
yesterday, while the Tokyo Stock Exchange's Reit index shed 0.3 per
cent to 1,269.54.
Key Japan real estate sector seen tripling
Logistics property market investments may grow 3-fold in a few years:
LaSalle
(TOKYO) Japan's market for investment in logistics real estate - such
as warehouses, distribution centres and ports - is seen growing
threefold within a few years as more players enter a sector
considered stable even in an economic slowdown, an executive of
LaSalle Investment Management said.
The real estate securitisation investment market was about 320
billion yen (S$4 billion) in 2007, accounting for only 3.8 per cent
of Japan's total Reit (real estate investment trust) investment.
But LaSalle, which manages US$54 billion assets in global real estate
markets, sees such logistics-area investment accounting for more than
10 per cent of total J-Reit investment in the near future, executive
officer Yosuke Yoshikawa told a Tokyo seminar.
'Logistics property investment is still immature here for reasons
such as a dearth of investment opportunities and limited information
disclosure . . . maybe that's why only one J-Reit is solely focusing
on the logistics field,' Mr Yoshikawa said.
'But considering its big and established presence in Europe,
especially in Britain, and the relative strength of the economic
slowdown, logistics real estate investment has a big growth
potential,' he said.
After raising 360 billion yen, the Tokyo-based investor
launched 'LaSalle Japan Logistics Fund Two' last year.
LaSalle still has some 280 billion yen left to invest until 2010
after spending 80 billion yen since the fund's launch, another
executive told Reuters after the seminar.
A planned investment would include development of multi-purpose
logistics centres and 'off-balance- sheet' support for logistics
companies.
LaSalle is a unit of Chicago-based property services company Jones
Lang LaSalle Group which manages property investments of
institutional investors such as pension funds and companies.
Tokyo-based LaSalle bought out an asset management company in 2007
and injected fresh capital into a Reit that has since been renamed
LaSalle Japan Reit Inc.
LaSalle Japan Reit closed down 12.3 per cent at 191,200 yen
yesterday, while the Tokyo Stock Exchange's Reit index shed 0.3 per
cent to 1,269.54.
Lobbies in New York shedding their greenery
August 21, 2008
Lobbies in New York shedding their greenery
(NEW YORK) For decades, it has been practically an unwritten rule of
office building design that a high-end building should have lushly
landscaped lobbies or atriums. The forest's worth of magnolia, pear
and eucalyptus placed inside the Ford Foundation building in 1967
perhaps kicked off the trend, which culminated in the late 1980s when
the World Financial Center decorated its Winter Garden with rows of
soaring palms.
Today, though, tastes seem to be undergoing a change, with owners
seeking a leaner less-is-more look for their lobbies where the only
touches of greenery are often a few cut flowers in a security desk
vase.
Plants are also less common now in upstairs hallways and offices,
according to landlords, property managers, brokers and landscapers,
as tenants take less space than in decades past. With the smaller
footprints, they tend to use flora sparingly.
While more buildings are planting their roofs with grass, trees or
shrubs, the interior landscaping industry finds itself in a difficult
place, professionals say.
'We were very lucky before, because everybody wanted plants, and lots
of them,' said John Mini, a landscaper in Rockland County since 1973.
His work included rebuilding the Winter Garden, where 16 palms had to
be replaced after the Sept 11 attacks. Twenty years ago, he
estimates, 80 per cent of all New York City office building lobbies
were landscaped; today, he says, only about half are. 'It's all
changing, and unless we keep up, we will be in trouble,' he said.
Some notable new high-rises have opted for plantless lobbies. These
include the IAC Building, designed by Frank Gehry in West Chelsea;
and One Bryant Park, the Bank of America tower in Midtown developed
by the Durst Organization, where tenants already occupy the lower
half of the building.
Next year, One Bryant Park will add an urban garden room at the south-
west corner of the Avenue of the Americas and 43rd Street, which will
feature an enclosed public space with plantings and benches
accessible from the sidewalk, but separated from the lobby by a wall,
according to the Durst Organization.
Retrofitted buildings also often tend to be less leafy, like 1330
Avenue of the Americas, a 40-storey glass-and-steel high-rise at West
54th Street owned by the Macklowe Organization that is opening this
week after a US$30 million nine-month renovation.
Within the lobby, gone are the '80s-style planters with funky
curves', the focal point has become blue chairs and a glass table
atop a new terrazzo floor, said Paul Amrich, the CB Richard Ellis
broker who is marketing the property.
'Cluttering a lobby with plants doesn't work well from a leasing
standpoint,' Mr Amrich said. He said the building, which has a
cleaner entry and a new facade, had been able to raise annual rents
to as much as US$130 a square foot, from US$80 before the
renovations. The building is 80 per cent leased.
Elaborate landscaping can require a lot of water and maintenance.
Since this is potentially costly, it can make a big impact on a
building's operating budget, a heightened concern at a time of rising
inflation, said Thomas R Krizmanic, a principal of Studios
Architecture in the firm's New York office.
'Indoor landscaping isn't a priority on the minds of my clients,' he
said, citing the building at 731 Lexington Avenue, whose office
segment is known as the Bloomberg Tower and whose residential segment
is called One Beacon Court. Mr Krizmanic helped design the building,
which was developed in 2005 by Vornado Realty Trust.
The bulk of plants in the office part of the complex are 40 ficus
trees lining a sixth-floor connecting walkway, though a lack of
natural light on the ground floor also made plants impractical for
the lobby, Mr Krizmanic said.
That owners and tenants are installing fewer plants while generally
supporting trends for more environmentally friendly buildings seems
like a contradiction to MJ Gilhooley, the programme coordinator for
the Green Plants for Green Buildings, an advocacy group based in
Loveland, Ohio.
Mr Gilhooley, whose group was initially financed by the landscaping
industry, acknowledged that the most salable aspect of indoor plants
was their ability to beautify spaces. But, she said, referencing a
range of scientific studies, they can also make workers more
attentive, absent less and more productive. Spiky-leafed bamboo
palms, for one, are known to absorb potentially harmful formaldehyde
emitted by certain woods and insulations, she said.
Yet, the US Green Building Council, which promotes eco-friendly
construction through its Leadership in Energy and Environmental
Design benchmarks, or LEED, which developers must meet to be
certified, does not award points for indoor plants.
'The meat and potatoes of green buildings are usually what you can't
see,' said Russell Unger, the executive director of the council's New
York chapter.
Still, the council does encourage planted roofs, and landscapers are
responding, said Teresa Carleo, the founder of Plant Fantasies, a 21-
year-old company in Manhattan that has one completed commercial
project to its credit and five planned.
For instance, on the 7,000-square-foot roof at 250 Hudson Street, a
former printing plant in Hudson Square being converted to offices by
Jack Resnick & Sons, Ms Carleo will install crab apple trees and
prairie grasses in stark contrast to the lobby, which will be
essentially bare, she said.
Residential roofs are being similarly dressed up, said Howard
Freilich, the founder of Blondies Treehouse, a 29-year-old
landscaping business in Westchester County.
While office building lobbies once clearly made up most New York
projects for the company, he said condos do now.
An example is the Caledonia, a Related Cos, complex on West 17th
Street where Mr Freilich recently planted three roof gardens that
totalled 20,000 square feet and included 100 trees and 1,000 cubic
yards of soil.
'We really have to adapt and mould to the changing business to stay
alive,' he said.
Lobbies in New York shedding their greenery
(NEW YORK) For decades, it has been practically an unwritten rule of
office building design that a high-end building should have lushly
landscaped lobbies or atriums. The forest's worth of magnolia, pear
and eucalyptus placed inside the Ford Foundation building in 1967
perhaps kicked off the trend, which culminated in the late 1980s when
the World Financial Center decorated its Winter Garden with rows of
soaring palms.
Today, though, tastes seem to be undergoing a change, with owners
seeking a leaner less-is-more look for their lobbies where the only
touches of greenery are often a few cut flowers in a security desk
vase.
Plants are also less common now in upstairs hallways and offices,
according to landlords, property managers, brokers and landscapers,
as tenants take less space than in decades past. With the smaller
footprints, they tend to use flora sparingly.
While more buildings are planting their roofs with grass, trees or
shrubs, the interior landscaping industry finds itself in a difficult
place, professionals say.
'We were very lucky before, because everybody wanted plants, and lots
of them,' said John Mini, a landscaper in Rockland County since 1973.
His work included rebuilding the Winter Garden, where 16 palms had to
be replaced after the Sept 11 attacks. Twenty years ago, he
estimates, 80 per cent of all New York City office building lobbies
were landscaped; today, he says, only about half are. 'It's all
changing, and unless we keep up, we will be in trouble,' he said.
Some notable new high-rises have opted for plantless lobbies. These
include the IAC Building, designed by Frank Gehry in West Chelsea;
and One Bryant Park, the Bank of America tower in Midtown developed
by the Durst Organization, where tenants already occupy the lower
half of the building.
Next year, One Bryant Park will add an urban garden room at the south-
west corner of the Avenue of the Americas and 43rd Street, which will
feature an enclosed public space with plantings and benches
accessible from the sidewalk, but separated from the lobby by a wall,
according to the Durst Organization.
Retrofitted buildings also often tend to be less leafy, like 1330
Avenue of the Americas, a 40-storey glass-and-steel high-rise at West
54th Street owned by the Macklowe Organization that is opening this
week after a US$30 million nine-month renovation.
Within the lobby, gone are the '80s-style planters with funky
curves', the focal point has become blue chairs and a glass table
atop a new terrazzo floor, said Paul Amrich, the CB Richard Ellis
broker who is marketing the property.
'Cluttering a lobby with plants doesn't work well from a leasing
standpoint,' Mr Amrich said. He said the building, which has a
cleaner entry and a new facade, had been able to raise annual rents
to as much as US$130 a square foot, from US$80 before the
renovations. The building is 80 per cent leased.
Elaborate landscaping can require a lot of water and maintenance.
Since this is potentially costly, it can make a big impact on a
building's operating budget, a heightened concern at a time of rising
inflation, said Thomas R Krizmanic, a principal of Studios
Architecture in the firm's New York office.
'Indoor landscaping isn't a priority on the minds of my clients,' he
said, citing the building at 731 Lexington Avenue, whose office
segment is known as the Bloomberg Tower and whose residential segment
is called One Beacon Court. Mr Krizmanic helped design the building,
which was developed in 2005 by Vornado Realty Trust.
The bulk of plants in the office part of the complex are 40 ficus
trees lining a sixth-floor connecting walkway, though a lack of
natural light on the ground floor also made plants impractical for
the lobby, Mr Krizmanic said.
That owners and tenants are installing fewer plants while generally
supporting trends for more environmentally friendly buildings seems
like a contradiction to MJ Gilhooley, the programme coordinator for
the Green Plants for Green Buildings, an advocacy group based in
Loveland, Ohio.
Mr Gilhooley, whose group was initially financed by the landscaping
industry, acknowledged that the most salable aspect of indoor plants
was their ability to beautify spaces. But, she said, referencing a
range of scientific studies, they can also make workers more
attentive, absent less and more productive. Spiky-leafed bamboo
palms, for one, are known to absorb potentially harmful formaldehyde
emitted by certain woods and insulations, she said.
Yet, the US Green Building Council, which promotes eco-friendly
construction through its Leadership in Energy and Environmental
Design benchmarks, or LEED, which developers must meet to be
certified, does not award points for indoor plants.
'The meat and potatoes of green buildings are usually what you can't
see,' said Russell Unger, the executive director of the council's New
York chapter.
Still, the council does encourage planted roofs, and landscapers are
responding, said Teresa Carleo, the founder of Plant Fantasies, a 21-
year-old company in Manhattan that has one completed commercial
project to its credit and five planned.
For instance, on the 7,000-square-foot roof at 250 Hudson Street, a
former printing plant in Hudson Square being converted to offices by
Jack Resnick & Sons, Ms Carleo will install crab apple trees and
prairie grasses in stark contrast to the lobby, which will be
essentially bare, she said.
Residential roofs are being similarly dressed up, said Howard
Freilich, the founder of Blondies Treehouse, a 29-year-old
landscaping business in Westchester County.
While office building lobbies once clearly made up most New York
projects for the company, he said condos do now.
An example is the Caledonia, a Related Cos, complex on West 17th
Street where Mr Freilich recently planted three roof gardens that
totalled 20,000 square feet and included 100 trees and 1,000 cubic
yards of soil.
'We really have to adapt and mould to the changing business to stay
alive,' he said.
San Francisco Bay Area home sales up
August 21, 2008
San Francisco Bay Area home sales up
7,586, or 2% more, units sold in July, recording first sales gain
since Jan 2005
(SAN FRANCISCO) San Francisco Bay Area home sales rose in July for
the first time since 2005 and the median price fell to the lowest in
more than three years as buyers bought discounted properties in
foreclosure.
Sales increased 2.2 per cent last month from a year earlier, San
Diego-based MDA DataQuick, a property research firm, said in a report
on Monday. A total of 7,586 houses and condominiums sold in July in
nine Bay Area counties.
The median fell a record 29.3 per cent to US$470,000, the lowest
since March 2005.
'We know one-third of the Bay Area's resales in July were homes fresh
off foreclosure,' said John Walsh, MDA DataQuick president. 'Who
knows how many more involved a desperate seller and a lender who
accepted a short sale?'
Foreclosure sales are attracting buyers to inland areas where home
prices declined after rapid appreciation during the five year housing
boom. Those transactions accounted for 33 per cent of total Bay Area
sales last month, up from 29.9 per cent in June and from 4.2 per cent
a year earlier.
Eleven ZIP codes in Solano and Contra Costa counties had foreclosure
sales at least double the amount in July 2007, according to MDA
DataQuick.
Falling prices enabled 48 per cent of households to afford an entry-
level home in the state in the second quarter, compared with 24 per
cent a year earlier, the California Association of Realtors said in a
separate report on Monday. The minimum qualifying income was
US$62,870, compared with US$101,440 a year earlier, the Realtors
said.
The year-over-year sales gain was the first since January 2005, MDA
DataQuick said. Transactions increased 5.7 per cent in July from
June. Southern California home sales rose 14 per cent to the highest
level since March 2007.
Sales are slower in more expensive coastal areas such as San
Francisco, Marin and San Mateo counties, MDA DataQuick said.
Potential buyers are waiting for mortgage terms to become less strict
and sellers are reluctant to put their homes on the market as prices
fall, Mr Walsh said.
Purchases made with jumbo loans, those over US$417,000, fell by half
in July from a year earlier and help explain why the region's median
price declined the most since MDA DataQuick, a unit of Vancouver-
based MacDonald Dettwiler and Associates, began statistics in 1988,
the company said.
The Bay Area median hasn't been lower since March 2005, when it was
US$469,500.
Prices dropped in all nine counties, led by a 42 per cent decline in
Contra Costa. Prices decreased 34 per cent in Solano, 30 per cent in
Sonoma, 28 per cent in Napa, 27 per cent in Alameda, 16 per cent in
Santa Clara, 16 per cent in San Mateo, 13 per cent in Marin and 6 per
cent in San Francisco, according to MDA DataQuick.
Sales increased 47 per cent in Napa, 45 per cent in Solano, 30 per
cent in Contra Costa and 8 per cent in San Francisco. They fell 13
per cent in Santa Clara, 11 per cent in San Mateo, 10 per cent in
Marin and 9 per cent in Alameda. Sales were unchanged in Sonoma, MDA
DataQuick said.
The typical monthly mortgage payment was US$2,218 in July, down from
US$2,282 in June and US$3,222 a year earlier.
Adjusted for inflation, current payments are 15.1 per cent below
payments in the spring of 1989, the peak of the prior real estate
cycle, and 36.1 per cent below payments in June 2006, the current
cycle's peak, MDA DataQuick said.
San Francisco Bay Area home sales up
7,586, or 2% more, units sold in July, recording first sales gain
since Jan 2005
(SAN FRANCISCO) San Francisco Bay Area home sales rose in July for
the first time since 2005 and the median price fell to the lowest in
more than three years as buyers bought discounted properties in
foreclosure.
Sales increased 2.2 per cent last month from a year earlier, San
Diego-based MDA DataQuick, a property research firm, said in a report
on Monday. A total of 7,586 houses and condominiums sold in July in
nine Bay Area counties.
The median fell a record 29.3 per cent to US$470,000, the lowest
since March 2005.
'We know one-third of the Bay Area's resales in July were homes fresh
off foreclosure,' said John Walsh, MDA DataQuick president. 'Who
knows how many more involved a desperate seller and a lender who
accepted a short sale?'
Foreclosure sales are attracting buyers to inland areas where home
prices declined after rapid appreciation during the five year housing
boom. Those transactions accounted for 33 per cent of total Bay Area
sales last month, up from 29.9 per cent in June and from 4.2 per cent
a year earlier.
Eleven ZIP codes in Solano and Contra Costa counties had foreclosure
sales at least double the amount in July 2007, according to MDA
DataQuick.
Falling prices enabled 48 per cent of households to afford an entry-
level home in the state in the second quarter, compared with 24 per
cent a year earlier, the California Association of Realtors said in a
separate report on Monday. The minimum qualifying income was
US$62,870, compared with US$101,440 a year earlier, the Realtors
said.
The year-over-year sales gain was the first since January 2005, MDA
DataQuick said. Transactions increased 5.7 per cent in July from
June. Southern California home sales rose 14 per cent to the highest
level since March 2007.
Sales are slower in more expensive coastal areas such as San
Francisco, Marin and San Mateo counties, MDA DataQuick said.
Potential buyers are waiting for mortgage terms to become less strict
and sellers are reluctant to put their homes on the market as prices
fall, Mr Walsh said.
Purchases made with jumbo loans, those over US$417,000, fell by half
in July from a year earlier and help explain why the region's median
price declined the most since MDA DataQuick, a unit of Vancouver-
based MacDonald Dettwiler and Associates, began statistics in 1988,
the company said.
The Bay Area median hasn't been lower since March 2005, when it was
US$469,500.
Prices dropped in all nine counties, led by a 42 per cent decline in
Contra Costa. Prices decreased 34 per cent in Solano, 30 per cent in
Sonoma, 28 per cent in Napa, 27 per cent in Alameda, 16 per cent in
Santa Clara, 16 per cent in San Mateo, 13 per cent in Marin and 6 per
cent in San Francisco, according to MDA DataQuick.
Sales increased 47 per cent in Napa, 45 per cent in Solano, 30 per
cent in Contra Costa and 8 per cent in San Francisco. They fell 13
per cent in Santa Clara, 11 per cent in San Mateo, 10 per cent in
Marin and 9 per cent in Alameda. Sales were unchanged in Sonoma, MDA
DataQuick said.
The typical monthly mortgage payment was US$2,218 in July, down from
US$2,282 in June and US$3,222 a year earlier.
Adjusted for inflation, current payments are 15.1 per cent below
payments in the spring of 1989, the peak of the prior real estate
cycle, and 36.1 per cent below payments in June 2006, the current
cycle's peak, MDA DataQuick said.
Dubai's new law on mortgage
August 21, 2008
Dubai's new law on mortgage
(DUBAI) Dubai newspapers are reporting that the local government has
issued a mortgage law aimed at regulating the city-state's booming
property market.
Yesterday's reports in the Khaleej Times and the Gulf News say that the
law requires that mortgages be insured, sold by approved banks,
registered with local authorities and that they specify the property
value and terms of the loan.
They say the ruler of Dubai, Sheik Mohammed bin Rashid al-Maktoum,
issued the decree on the new law. It will take effect 60 days from
publication.
Dubai's new law on mortgage
(DUBAI) Dubai newspapers are reporting that the local government has
issued a mortgage law aimed at regulating the city-state's booming
property market.
Yesterday's reports in the Khaleej Times and the Gulf News say that the
law requires that mortgages be insured, sold by approved banks,
registered with local authorities and that they specify the property
value and terms of the loan.
They say the ruler of Dubai, Sheik Mohammed bin Rashid al-Maktoum,
issued the decree on the new law. It will take effect 60 days from
publication.
Centro's US mall manager posts US$299m loss
August 21, 2008
Centro's US mall manager posts US$299m loss
Writedown in value of business behind Centro NP's net loss in Q2
(MELBOURNE) Centro Properties Group, the Australian owner of more
than 650 US malls, said the unit that manages US assets acquired last
year for US$5.2 billion chalked up a second-quarter loss after
writing down the value of the business.
Centro NP had a net loss of US$299 million for the three months ended
June 30, the Melbourne-based parent said yesterday in a statement to
the Australian stock exchange. The unit booked a US$95 million charge
for writing down properties and a US$173.5 million impairment in the
company's goodwill and the value of its property management business.
'There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject to,
among other things, its ability to negotiate extensions of credit
facilities,' Centro NP said in a statement filed on Tuesday with the
US Securities and Exchange Commission.
Centro Properties' market value plunged in December when the seizure
in global credit market shut funding avenues for the company and it
was unable to repay borrowing used to buy New Plan. It has since won
five reprieves from lenders on repayments for as much as A$6.6
billion (S$8 billion) in debt.
Centro's US properties lost 8.8 per cent of their value amid slowing
retail sales and a potential recession, according to the parent
company's first-half earnings report. It also has 129 shopping
centres in Australia and New Zealand and is trying to sell stakes in
its funds to repay debt.
Centro NP generated net income of US$4 million in the period from
April 5 to June 30, 2007, according to its statement. April 5 was the
date the US unit was created out of Centro's acquisition of New Plan
Excel Realty, the biggest US acquisition by an Australian real estate
investment trust.
Centro NP has US$4.5 billion of real estate assets, according to its
second-quarter earnings.
Centro's US mall manager posts US$299m loss
Writedown in value of business behind Centro NP's net loss in Q2
(MELBOURNE) Centro Properties Group, the Australian owner of more
than 650 US malls, said the unit that manages US assets acquired last
year for US$5.2 billion chalked up a second-quarter loss after
writing down the value of the business.
Centro NP had a net loss of US$299 million for the three months ended
June 30, the Melbourne-based parent said yesterday in a statement to
the Australian stock exchange. The unit booked a US$95 million charge
for writing down properties and a US$173.5 million impairment in the
company's goodwill and the value of its property management business.
'There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject to,
among other things, its ability to negotiate extensions of credit
facilities,' Centro NP said in a statement filed on Tuesday with the
US Securities and Exchange Commission.
Centro Properties' market value plunged in December when the seizure
in global credit market shut funding avenues for the company and it
was unable to repay borrowing used to buy New Plan. It has since won
five reprieves from lenders on repayments for as much as A$6.6
billion (S$8 billion) in debt.
Centro's US properties lost 8.8 per cent of their value amid slowing
retail sales and a potential recession, according to the parent
company's first-half earnings report. It also has 129 shopping
centres in Australia and New Zealand and is trying to sell stakes in
its funds to repay debt.
Centro NP generated net income of US$4 million in the period from
April 5 to June 30, 2007, according to its statement. April 5 was the
date the US unit was created out of Centro's acquisition of New Plan
Excel Realty, the biggest US acquisition by an Australian real estate
investment trust.
Centro NP has US$4.5 billion of real estate assets, according to its
second-quarter earnings.
Economic tough times divide Sydney
August 21, 2008
Economic tough times divide Sydney
(SYDNEY) This is a tale of two cities.
There's the beachside Sydney, washed by white foamy waves, dotted by
cafes and high class restaurants and multi-million dollar houses and
apartments - it's boomtown Sydney.
Then there's the other Sydney. The one not in the tourist brochures,
that stretches west and is home to the bulk of the city's six million
residents, many struggling to survive the global credit squeeze, a 12-
year high interest rate of 7.25 per cent, rising food and fuel costs
and falling house prices.
Sydney, like the rest of Australia which has enjoyed 17 straight
years of economic growth and a housing boom in recent years, now has
a two-speed economy and the divide between winners and losers seems
to be widening.
By the end of 2008, an estimated one million Australian households
will be suffering mortgage stress, which means they pay 30 per cent
or more of their household income on mortgage repayments, says a
recent Fujitsu Consulting/ Wizard Home Loans survey. Hundreds of
thousands of homeowners are in severe mortgage stress and are unable
to make repayments on time.
'The sad fact is that come Christmas time, we estimate that one
million Australians will suffer mortgage stress. That's a huge number
of people that are potentially going to face losing their property
unless drastic action is taken,' said Mark Bouris, chairman of Wizard
Home Loans.
And the country's biggest city Sydney has some of the biggest
mortgages. The average monthly mortgage repayment in the city has
risen more than 40 per cent in the past five years, says a study of
the city by the University of New South Wales (NSW).
The study said homeowners in western suburbs such as Canterbury,
Bankstown and Auburn, were paying over 40 per cent of their income on
mortgage repayments. Meanwhile, wealthier eastern and northern
suburbs have seen incomes rise to accommodate higher mortgages.
'Sydney got richer in the first five years of the new century, but
that new wealth was very unevenly spread about,' said the report
titled 'Our Changing City' by The City Futures Research Centre at the
University of NSW.
Home repossessions and personal bankruptcies in Sydney's west are
rising and while some homeowners are selling up, sliding house prices
are leaving them with large debts to banks.
There were 1,077 court-ordered home repossessions in NSW in the first
quarter of 2008, compared with 921 in the same period in 2007. Of the
top 10 worst areas for delinquency, late mortgage payments, six were
in Sydney. And its Sydney's western suburbs where most homes were
lost.
While residents in the city's affluent east, north and inner west may
have large, often multi-million dollar mortgages, their properties
are holding their value. In contrast, housing prices in some western
suburbs have fallen 20 to 50 per cent.
Sydney house prices have fallen 2.1 per cent in the quarter to June,
the largest fall since 2004, and will experience an annual fall of
8.4 per cent, says Australian Property Monitors (APM).
The median price for a Sydney house in June was officially A$542,000
(S$667,000), but that will not buy you a house anywhere near Bondi in
the east, where the starting price for a house is well above A$1
million, nor anywhere north of Sydney Harbour.
Housing affordability is declining in Sydney, especially in outer
suburbs, said The City Futures Research Centre report.
'This is consistent with an analysis of the changing income growth
across the city, with stagnant household incomes in many middle and
outer west suburbs contrasting to strong income growth in the inner,
eastern and northern suburbs,' said the report.
Not only has 12 interest rate rises since 2002 divided Sydney, but so
has the rising cost of living, with inflation forecast by the central
bank to reach 5 per cent by year end.
Australia's economic boom has seen credit card debt soar to around
A$44 billion, with the average card carrying a 19.5 per cent interest
charge on a monthly balance of A$3,100.
'Household indebtedness is around historical highs,' says the Reserve
Bank of Australia (RBA). Welfare groups say financial crisis services
are swamped by people, many from western Sydney, struggling with
mortgages and sometimes up to 12 credit cards.
'It's not unusual to see a person come with a large mortgage debt but
also a string of credit cards as well, which they have often maxed
out to maintain the mortgage for as long as they can. They use credit
cards to buy food, pay utilities,' said The Salvation Army's Tony
Devlin.
'There's definitely an economic divide (in Sydney). There's two
economies operating, the one our clients operate in and the other
that you see on the front page of the Australian Financial
Review,'said Devlin.
Economic tough times divide Sydney
(SYDNEY) This is a tale of two cities.
There's the beachside Sydney, washed by white foamy waves, dotted by
cafes and high class restaurants and multi-million dollar houses and
apartments - it's boomtown Sydney.
Then there's the other Sydney. The one not in the tourist brochures,
that stretches west and is home to the bulk of the city's six million
residents, many struggling to survive the global credit squeeze, a 12-
year high interest rate of 7.25 per cent, rising food and fuel costs
and falling house prices.
Sydney, like the rest of Australia which has enjoyed 17 straight
years of economic growth and a housing boom in recent years, now has
a two-speed economy and the divide between winners and losers seems
to be widening.
By the end of 2008, an estimated one million Australian households
will be suffering mortgage stress, which means they pay 30 per cent
or more of their household income on mortgage repayments, says a
recent Fujitsu Consulting/ Wizard Home Loans survey. Hundreds of
thousands of homeowners are in severe mortgage stress and are unable
to make repayments on time.
'The sad fact is that come Christmas time, we estimate that one
million Australians will suffer mortgage stress. That's a huge number
of people that are potentially going to face losing their property
unless drastic action is taken,' said Mark Bouris, chairman of Wizard
Home Loans.
And the country's biggest city Sydney has some of the biggest
mortgages. The average monthly mortgage repayment in the city has
risen more than 40 per cent in the past five years, says a study of
the city by the University of New South Wales (NSW).
The study said homeowners in western suburbs such as Canterbury,
Bankstown and Auburn, were paying over 40 per cent of their income on
mortgage repayments. Meanwhile, wealthier eastern and northern
suburbs have seen incomes rise to accommodate higher mortgages.
'Sydney got richer in the first five years of the new century, but
that new wealth was very unevenly spread about,' said the report
titled 'Our Changing City' by The City Futures Research Centre at the
University of NSW.
Home repossessions and personal bankruptcies in Sydney's west are
rising and while some homeowners are selling up, sliding house prices
are leaving them with large debts to banks.
There were 1,077 court-ordered home repossessions in NSW in the first
quarter of 2008, compared with 921 in the same period in 2007. Of the
top 10 worst areas for delinquency, late mortgage payments, six were
in Sydney. And its Sydney's western suburbs where most homes were
lost.
While residents in the city's affluent east, north and inner west may
have large, often multi-million dollar mortgages, their properties
are holding their value. In contrast, housing prices in some western
suburbs have fallen 20 to 50 per cent.
Sydney house prices have fallen 2.1 per cent in the quarter to June,
the largest fall since 2004, and will experience an annual fall of
8.4 per cent, says Australian Property Monitors (APM).
The median price for a Sydney house in June was officially A$542,000
(S$667,000), but that will not buy you a house anywhere near Bondi in
the east, where the starting price for a house is well above A$1
million, nor anywhere north of Sydney Harbour.
Housing affordability is declining in Sydney, especially in outer
suburbs, said The City Futures Research Centre report.
'This is consistent with an analysis of the changing income growth
across the city, with stagnant household incomes in many middle and
outer west suburbs contrasting to strong income growth in the inner,
eastern and northern suburbs,' said the report.
Not only has 12 interest rate rises since 2002 divided Sydney, but so
has the rising cost of living, with inflation forecast by the central
bank to reach 5 per cent by year end.
Australia's economic boom has seen credit card debt soar to around
A$44 billion, with the average card carrying a 19.5 per cent interest
charge on a monthly balance of A$3,100.
'Household indebtedness is around historical highs,' says the Reserve
Bank of Australia (RBA). Welfare groups say financial crisis services
are swamped by people, many from western Sydney, struggling with
mortgages and sometimes up to 12 credit cards.
'It's not unusual to see a person come with a large mortgage debt but
also a string of credit cards as well, which they have often maxed
out to maintain the mortgage for as long as they can. They use credit
cards to buy food, pay utilities,' said The Salvation Army's Tony
Devlin.
'There's definitely an economic divide (in Sydney). There's two
economies operating, the one our clients operate in and the other
that you see on the front page of the Australian Financial
Review,'said Devlin.
Wednesday, August 20, 2008
Billionaire denies buying world's costliest home
Business Times - 20 Aug 2008
Billionaire denies buying world's costliest home
(MOSCOW) Russian billionaire Mikhail Prokhorov denied yesterday French media reports he had bought the world's most expensive home, a French Mediterranean villa.
Newspapers said on Monday Mr Prokhorov, 43, paid 496 million euros (S$1 billion) for a property in southern France called Villa Leopolda, built in 1902 for Belgian King Leopold II.
But Mr Prokhorov's spokesman said the magnate was not behind the deal and said his boss would not do business in France until authorities apologise for briefly detaining him in a prostitution probe last year in the sky resort of Courchevel.
'Before the conflict with French authorities is settled and before he gets an apology from the French side, neither Onexim nor Prokhorov himself would do any business in France,' said Sergei Chernitsyn, referring to the metal tycoon's investment vehicle, Onexim Holdings.
Mr Prokhorov, Russia's fifth richest man, made his estimated US$22 billion fortune during the economic free-for-all in Russia in the 1990s, when businessmen bought up parts of Soviet industry at a fraction of their real value.
The unmarried mining tycoon and Roman Abramovich, Russia's third richest man and the owner of English soccer club Chelsea, regularly make headlines in Russian tabloids, which link them with exotic, big-ticket purchases around the world.
Sources close to Mr Abramovich have also denied he was behind the purchase of Villa Leopolda but both French and Russian media insist the transaction involved a Russian billionaire.
The sale, if confirmed, would put the nine-hectare estate at the top of Forbes magazine's most expensive homes list, ahead of a California house once owned by publishing magnate William Randolph Hearst, and a Romanian castle where Vlad the Impaler was imprisoned\. \-- Reuters
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Billionaire denies buying world's costliest home
(MOSCOW) Russian billionaire Mikhail Prokhorov denied yesterday French media reports he had bought the world's most expensive home, a French Mediterranean villa.
Newspapers said on Monday Mr Prokhorov, 43, paid 496 million euros (S$1 billion) for a property in southern France called Villa Leopolda, built in 1902 for Belgian King Leopold II.
But Mr Prokhorov's spokesman said the magnate was not behind the deal and said his boss would not do business in France until authorities apologise for briefly detaining him in a prostitution probe last year in the sky resort of Courchevel.
'Before the conflict with French authorities is settled and before he gets an apology from the French side, neither Onexim nor Prokhorov himself would do any business in France,' said Sergei Chernitsyn, referring to the metal tycoon's investment vehicle, Onexim Holdings.
Mr Prokhorov, Russia's fifth richest man, made his estimated US$22 billion fortune during the economic free-for-all in Russia in the 1990s, when businessmen bought up parts of Soviet industry at a fraction of their real value.
The unmarried mining tycoon and Roman Abramovich, Russia's third richest man and the owner of English soccer club Chelsea, regularly make headlines in Russian tabloids, which link them with exotic, big-ticket purchases around the world.
Sources close to Mr Abramovich have also denied he was behind the purchase of Villa Leopolda but both French and Russian media insist the transaction involved a Russian billionaire.
The sale, if confirmed, would put the nine-hectare estate at the top of Forbes magazine's most expensive homes list, ahead of a California house once owned by publishing magnate William Randolph Hearst, and a Romanian castle where Vlad the Impaler was imprisoned\. \-- Reuters
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, August 19, 2008
UK HOUSING CRISIS STARTS TO BITE
UK HOUSING CRISIS STARTS TO BITE
ANS: MY HOUSE
AN Englishman's home is his castle, so they say.
By Neville Stack
19 August 2008
AN Englishman's home is his castle, so they say.
But now it has become a nightmare for many.
Like the Sheffield family of four who had nowhere to go after their home was repossessed when they fell behind on mortgage payments.
They now live in their car.
The mortgage was £625,000 ($1.6m) and Laura Whitney and her partner Richard Webster could just about afford the payments. Then they fell into the sub-prime trap.
Their payments soared from £373 a month to £553.
Their home was taken when they couldn't pay.
What's more, they were turned down for private rented housing because the repossession left them with a bad credit rating.
Miss Whitney, who is four months pregnant, said: 'We are making do with tinned food and asking relatives to let us use their facilities. All we need is a home.'
The couple, who have seven-year-old Jessica and Jack, aged two, bought their two-bed home in August, 2006, for £67,000 with a £pounds;5,000 deposit. They had to take a sub-prime mortgage as Mr Webster had a previous credit problem.
When the credit crunch began to bite in December they asked their bank to switch to an interest-only mortgage but were refused. So their home was repossessed in July.
Mr Webster, who works for the Royal Mail and takes home £1,000 a month, said: 'The council offered us temporary housing but because I am working we would have to pay £130 a week, which we cannot afford.'
The nation has always placed great value on being an owner-occupier, but the level of repossessions and re-financing is approaching crisis level
A total of 18,900 homes were repossessed in the first half of 2008 - a 48 per cent increase since the same time last year, according to the Council of Mortgage Lenders.
Experts warned more families will be hit before the end of the year as they are unable to keep up with the rising cost of living.
Borrowers who had previously used re-mortgaging to help manage their payments had been hit the hardest by the credit crunch and the lack of affordable loans, even from the banks who not long ago were begging them to take their money.
The crisis has even got a website: www.housepricecrashuk , where sufferers can compare their sad stories.
Even pets are losing out.
A blogger who signs himself Juvenal wrote to the site:
'At the Cat's Protection League in Bournemouth they told me they were overrun with cats and kittens, because owners are dumping them 'due to the credit crunch'. I asked if owners were so 'close to the wire' they really couldn't afford the upkeep of a cat, and they said some certainly were.
'You can't get away from it folks, the squeeze is really on.'
The situation in UK is bad indeed. But in the US, where it all began, it is even worse.
Thousands of people who thought The American Dream of owning a home had come true were suckered by unscrupulous lenders into taking home loans despite not having a credit rating. At first they could pay the instalments. Then the rates always went up.
Most of the families just walked out, heartbroken.
And now they had to face being blacklisted by the credit-rating outfits.
- The writer is a former editor-in-chief of the Leicester Mercury in the UK. He has also worked in Singapore.
ANS: MY HOUSE
AN Englishman's home is his castle, so they say.
By Neville Stack
19 August 2008
AN Englishman's home is his castle, so they say.
But now it has become a nightmare for many.
Like the Sheffield family of four who had nowhere to go after their home was repossessed when they fell behind on mortgage payments.
They now live in their car.
The mortgage was £625,000 ($1.6m) and Laura Whitney and her partner Richard Webster could just about afford the payments. Then they fell into the sub-prime trap.
Their payments soared from £373 a month to £553.
Their home was taken when they couldn't pay.
What's more, they were turned down for private rented housing because the repossession left them with a bad credit rating.
Miss Whitney, who is four months pregnant, said: 'We are making do with tinned food and asking relatives to let us use their facilities. All we need is a home.'
The couple, who have seven-year-old Jessica and Jack, aged two, bought their two-bed home in August, 2006, for £67,000 with a £pounds;5,000 deposit. They had to take a sub-prime mortgage as Mr Webster had a previous credit problem.
When the credit crunch began to bite in December they asked their bank to switch to an interest-only mortgage but were refused. So their home was repossessed in July.
Mr Webster, who works for the Royal Mail and takes home £1,000 a month, said: 'The council offered us temporary housing but because I am working we would have to pay £130 a week, which we cannot afford.'
The nation has always placed great value on being an owner-occupier, but the level of repossessions and re-financing is approaching crisis level
A total of 18,900 homes were repossessed in the first half of 2008 - a 48 per cent increase since the same time last year, according to the Council of Mortgage Lenders.
Experts warned more families will be hit before the end of the year as they are unable to keep up with the rising cost of living.
Borrowers who had previously used re-mortgaging to help manage their payments had been hit the hardest by the credit crunch and the lack of affordable loans, even from the banks who not long ago were begging them to take their money.
The crisis has even got a website: www.housepricecrashuk , where sufferers can compare their sad stories.
Even pets are losing out.
A blogger who signs himself Juvenal wrote to the site:
'At the Cat's Protection League in Bournemouth they told me they were overrun with cats and kittens, because owners are dumping them 'due to the credit crunch'. I asked if owners were so 'close to the wire' they really couldn't afford the upkeep of a cat, and they said some certainly were.
'You can't get away from it folks, the squeeze is really on.'
The situation in UK is bad indeed. But in the US, where it all began, it is even worse.
Thousands of people who thought The American Dream of owning a home had come true were suckered by unscrupulous lenders into taking home loans despite not having a credit rating. At first they could pay the instalments. Then the rates always went up.
Most of the families just walked out, heartbroken.
And now they had to face being blacklisted by the credit-rating outfits.
- The writer is a former editor-in-chief of the Leicester Mercury in the UK. He has also worked in Singapore.
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