Swiss residential property risks grow in buy-to-let - Property search

Swiss residential property risks grow in buy-to-let - Property news

Swiss residential property risks grow in buy-to-let - Real estate news

Swiss residential property risks grow in buy-to-let - Property finder

Swiss residential property risks grow in buy-to-let - House prices
Swiss residential property risks grow in buy-to-let

Swiss Residential News: On 21 June 2018, the Swiss National Bank (SNB) announced its decision on interest rates, which it left unchanged. Switzerland’s economy has been sailing into the headwinds of a strong currency since the SNB scrapped its exchange rate cap in January 2015 and the Swiss franc briefly went beyond parity with the euro.

To weaken the currency, the SNB introduced negative interest rates and went on a spree of asset buying.

Yesterday, the Bank said it will maintain its -0.75% interest rate and continue to buy assets as required. 5 years ago, the the SNB set up an operation in Singapore so that it can buy and sell assets around the clock.

High on the list of SNB concerns is Swiss residential property, in particular, buy-to-let investments. Low mortgage rates have drawn more investment into the sector.

In a statement, Fritz Zurbrügg from the SNB said that affordability risks for new mortgage loans in the residential investment property segment rose significantly last year. Concern is reflected in high loan-to-value and high loan-to-income ratios. Loans in this asset class are particularly vulnerable to a substantial interest rate rise coupled with a real estate price correction, he said.

Article from Lenews

June 22, 2018 / by / in ,
Technology and Real Estate

There is no question that technology and real estate has changed a lot in the last few decades. The process of selling homes used to require a lot of time to be dedicated to showing the home to clients. This was usually started by going through the process of selecting the best properties to further inspect them. This meant scheduling appointments with clients looking for homes, meeting up with them at the property, and taking at least one or two hours to go over the entire place.
That is just one of the many aspects of real estate that used to be time consuming, but the point is that things used to be quite different before the internet completely changed the way the world works. Then we had another strong impact with mobile technology giving an incredible boost to the way we communicate and the way we capture images and video.

Technology and real estate online. a game changer.

Due to how easily anyone could take picture of homes and post them, online, the process of finding a house become easier for people. Agents started to upload images of those homes because they knew that clients appreciated not having to go out to see each home. This was a huge time saving feature that have them the chance to pick the homes they really wanted to see.
The biggest issue with technology and real estate is that it has made the industry much more competitive. There are many agents that are now working exclusively online and this is becoming a very common practice. That phenomenon is forcing traditional agents to start incorporating more technology into their services.
This means they should constantly upload the homes they are selling in their personal accounts. Some agents find Instagram ideal for this purpose. Others feel that Facebook is better. Every agent should be professional and secure they own domain with their personal website.
The important thing is for agents to understand the value of getting involved in the digital age. They should learn about proper online marketing strategies and they should be experienced in the use of popular social media platforms.

Final Thoughts

The modern world is fast paced and technology allows us to get much more done in less time. The need to evolve and adapt to this new world is crucial for success. The good news is that there is enough room for everyone to get onboard. If you need help with your marketing then just contact us for advise and see how our listings website can help.

November 22, 2017 / by / in
London Housing Market

London Housing Market: The RICS’ monthly UK residential market survey reported a steady decline in the UK housing market continued through the month of October. This was a result of the steep decline in demand from both buyers and sales, which has led to a fall in house prices in the London housing market.
The figures released by the survey of chartered surveyors revealed that there was a decline from interested buyers with about 20% of respondents interviewed witnessing a drop in new buyer inquiries during the month. In the same vein, agreed sales also witnessed a drop as well in its figures. According to RICS chief economist, Simon Rubinsohn, factors like the cost of moving, Brexit-related uncertainty and the recent interest hike are responsible for the national decline that is being witnessed in the country.

He retreated this by saying a combination of factors such as an increase in the cost of moving from one house to another, a lack of new stock being introduced into the market, uncertainty in the political sphere as a result of the Brexit talks coupled with a new interest rate hike are all taking their toll on activities in the UK residential market.

The figure also shows that respondents continue to register a decline in London housing market, with about 63% more respondent reporting a decrease in price instead of an increase during the month of October. This figure represents the lowest since 2009. While on the national level, about 1% more surveyors registered an increase in price instead of a decrease. This figure represents a drop from about 6% that was reported in September. The gleam projections for the London housing prices are being reflected in mainstream forecasts. Real estate agents Savills are forecasting that there would be further fall in prices by about 1.5% in 2017 and a further fall of about 2% in 2018, this would happen before prices would stabilize in 2019 and then return to growth from then onwards.

November 12, 2017 / by / in ,
Real Estate Industry partnership that works

Getting the best deals in the real estate industry can be cumbersome most times because, without a proper listing of such property on sales directories where the prospective buyer would see and appreciate them, such property might remain unsold or sold for lesser value. In fact, real estate agents without the adequate exposure to reach a worldwide audience might have been getting paltry sum on deals that could make them a considerable higher price.

Furthermore, some real estate agents ironically focus all their resources on selling properties and have little or no provision for further marketing. Even as a giant in the real estate industry, you might be tempted into believing that you are making lots of sales and probably undermine marketing stride in the face of numerous sales, real estate agents might be taken aback to realise the advantages of a proper international marketing strategy in the present real estate industry.

Our company has over the years dedicated time, resource and passion into designing unique services and making genuine contacts that have the wherewithal to propel a real estate agents company to the global stage with a resultant effect of giving a massive global audience to your business in the shortest time possible.

With our vast social media presence, we can efficiently handle your marketing needs while you may focus your attention on striking the best deal with millions of prospective property buyers we would channel to your real estate company. Since your properties will be listed on our website at qlistings and all over our other channels, the more the sales, the better your profit margin.

Come partner with us today and experience a tremendous increase in your sales and market dominance in this incredibly competitive real estate industry. Let us take care of the global exposure for your properties.

November 9, 2017 / by / in
Find a property for sale in Spain

Are you looking to find a property for sale in Spain? With so many great places in Spain to choose from, the Orihuela Costa is a great spot for many tourists.

Getting a bargain property for sale in Quesada may be easier than you think. Situated just a couple of miles inland from Campoamor, Quesada is loved by most visitors. A lot of people can find a property for sale in Spain in a place of their choice and Quesada just may be at the top of the list. Here, there is a collection of urbanisations where a lot of British expats like to buy their first home in Spain. Urbanisations offer a unique lifestyle, one that gives a person a lot of company all year round. Prices range from €50,000 to €1 million, so depending on the budget there are property possibilities for the majority.

Alternatively, you can find a property for sale in Spain by searching the bargain-rich place of Pinoso. For a lot of people who crave a rural, Spanish lifestyle, Pinoso may just be the ideal location. The authentic Spanish traditions offer a sense of the country’s culture. Located just over forty-five minutes inland from Alicante city, it is growing in popularity especially with expats. Buyers should be looking for a budget of around €50,000 to €70,000 in Pinoso when searching for a property.

The North Costa Blanca is also a great location to remember when looking to find a property for sale in Spain. Dénia is a favouritsed place in this part of the country as it is built around an old port town that also has a beautiful castle. It is the most northerly resort in the entire Costa Blanca. Even more exciting, Dénia is also one of the largest places to find a property for sale in Spain, which means there is a bigger choice of properties. A popular budget spot here is in Las Marinas. It is a sought-after place with lots of beach pads, which cost around €100,000 in and nearby to the area.

So, find the bargain you’re looking for, today. There are so many properties on the market that you should be able to find a property for sale in Spain with ease and reassurance.

October 10, 2017 / by / in ,
Villas for sale in Spain – how easy is it?

Countries that have a hot climate generally attract a lot of attention, which is why a nearby country for the majority of people living in Europe think that the villas for sale in Spain is a wise investment. With beach resorts to suit a lot of people’s tastes, there is a wide range of affordable homes that have great accessibility points for travellers. Costa Blanca ties with the Costa del Sol for being places that are the most popular second home destination and this comes as no surprise.

A lot of Brits have the interest of browsing through the list of villas for sale in Spain. Retirees too are very keen to invest in the Spanish property market and buy their very own second holiday home, being a villa on the Spanish coast.

The Costa Blanca is divided into two parts: the north and the south. Both are lined by the AP-7 motorway which is a very good connection to the entire Spanish region.

But where are the top places to look for villas for sale in Spain?

The South part of the Costa Blanca has been so popular over recent years and it looks like this isn’t going to change any time in the future. There is a strip of beaches that all connect and runs south from Torrevieja forming the Orihuela Costa. A lot of villas for sale in Spain, in the Southern region, are mainly prevalent in Villamartin, Los Dolses, Campoamor, Playa Flamenca, La Zenia and Punta Prima.

A reason for this popularity in this part of Spain is due to the wide variety of amenities, beaches, and shopping centres. Tourists and even expats who live in this part of Spain full-time just cannot get enough of the lively strips that can be discovered. Pilar de la Horada is an admired spot and is also the most southerly resort in the Costa Blanca. It is made up of a quiet old town with beaches and a marina at Torre de la Horada.

In particular, the energy in the air in the Costa Blanca is thriving, which means that villas for sale in Spain, in this part, are being bought very quickly. There is a sense of fun and freedom complimented with the scorching sun that cannot be taken advantage of.

Find your perfect holiday home by contacting Qualityinvest for villas for sale in Spain today. Don’t delay and find yourself your dream second home.

September 10, 2017 / by / in ,
Cyprus Property Recovery underway according to RICS.

Cyprus property recovery is underway with the latest figures showing that prices for villas and flats are increasing and sales are also rising.

The latest figures from the Royal Institution of Chartered Surveyors (RICS) shows that across Cyprus residential prices for both houses and flats increase by 0.6% and 0.9% respectively in the third quarter of 2016.

Meanwhile, data from the island’s land registry show that sales increased by 121% year on year in December 2016, the largest annual rise for a decade. This followed increases of 50% in September, 37% in October and 46% in November.

Year on year sales rose across the island with transaction rising the most in Nicosia and Limassol with growth of 156%, followed by Paphos with growth of 137%, Famagusta up 107% and Larnaca up a more modest 18%.

A breakdown of the RICS data shows that the biggest increase in property prices was in Paphos where house prices increased by 1.77% and in Limassol where apartment prices were up by 1.4%.

Values for holiday homes also increased, up by 1.6% for flats and 0.4% for houses. Compared to the third quarter of 2015, prices increased by 0.6% for flats, 0.9% for houses.

The RICS report points out that during the third quarter of 2016 the Cyprus economy showed further signs of stability with the economy’s performance being better than expected and tourism mildly outperforming forecasts.

However it also points out that due to the prevailing economic conditions and the turbulence in Cyprus’ banking system, there were relatively few transactions during the quarter although volume was higher on a year on year basis.

Across Cyprus rents increased quarter on quarter by 0.7% for apartments and 3.3% for houses and were up 5.3% year on year for flats and 6.7% for houses.

Both report suggest that it is foreign buyers returning that are helping the property market to recover. RICS pointed out that local buyers are few and far between while the land register figures show that 31% were buyers from overseas.

Sales to foreign buyers rose 162% in December compared with December 2015. They increased in all district compared with December 2015. In percentage terms Famagusta led the way with sales up 1,400%, (having sold just one property in December 2015, followed by Paphos where sales rose by 227%. Meanwhile, sales in Nicosia, Limassol and Larnaca rose by 180%, 172% and 18% respectively.  propertywire

February 4, 2017 / by / in ,
Turkish Citizenship For Investment could stimulate the Market.

Foreigners who invest in property worth at least $1 million and keep it for a minimum of three years will be eligible for Turkish citizenship, according to the new law published by the Turkish Government on 12 January 2017. This is similar to the Golden Visa schemes offered to non-EU citizens wishing to be become a resident in a number of European countries including  Spain and Portugal, which is one of the most popular.

Alternatively, Turkey’s new rules allow a foreign investor to avail of Turkish citizenship by either making a fixed capital investment worth at least $2 million, buying $3 million worth of government bonds or depositing the same amount in a Turkish bank, or creating 100 jobs within Turkey.

After the near collapse in foreign sales for most of last year, caused mainly by the political coup and security concerns with ongoing crisis in nearby Syria, this could be a positive move that should help attract buyers back.

The threshold of $1 million will particularly suit wealthy Arab investors. Last year, Iraqis, Saudis, Kuwaitis and Russians bought the highest number of properties in Turkey. With this new law, this trend should continue, with interest from Syrians and others  also growing.

In January, a senior Turkish Government official predicted the new law would trigger an extra $1billion in revenue from property sales in 2017. Most of the sales are expected to be in Istanbul, with other areas of interest including the south-eastern provinces of Gaziantep and Kilis, and the Black Sea region as well as the ever popular Fethiye, Kalkan and Bodrum. The Antalya region and in particular Alanya hold great value for investors and could prove to be the most popular areas for investment.

Meanwhile, Turkey’s currency has continued to get cheaper for foreigners since the start of 2017, falling more than 10 per cent against the US dollar in the first two weeks of the year. This follows a year-on-year slump of 17 per cent during 2016.

February 2, 2017 / by / in
How the Trump factor might affect the US Housing Market.

Within hours of being inaugurated on January 20, President Donald Trump issued an order that, despite gaining little attention compared with many of his executive actions thus far, would ultimately affect the bank accounts of hundreds of thousands of Americans and the US Housing market.

Trump moved to immediately suspend a fee reduction for Federal Housing Administration loans. The Obama administration authorized the fee reduction on January 9.

Essentially, the suspension of the FHA rate cut stopped a reduction in mortgage insurance premiums for FHA-backed loans, although the cuts hadn’t yet gone into effect, said Ralph McLaughlin, chief economist for Trulia.

The fee was supposed to be cut by 0.25 percentage points of the total amount borrowed. To put that into perspective, had the Obama administration’s order gone into effect, Americans with $200,000 mortgages would have saved about $500 over a year, while those with $400,000 mortgages would have saved about $1,000.

Reactions were, of course, mixed. Some critics said Trump’s order would take money out of Americans’ pockets, especially low-income homeowners. Others, citing the more than $1 trillion in mortgage loans insured by the FHA, said the move would protect taxpayers in the event of another housing crash, NPR reports.

But what does it mean for you?

Business Insider spoke with three experts to cut the jargon and discern how this policy — and Trump’s administration as a whole — would affect homebuyers this year. Here are five things to know.

1. The status quo hasn’t changed …
The fee cuts Trump eliminated hadn’t been enacted yet, so Trump’s order didn’t affect those who already have mortgages.

“It’s not going to make it more expensive because the cut was never put into effect, so nobody actually got to pay lower FHA fees,” Greg McBride, chief financial analyst at Bankrate.com, told Business Insider. “I think what’s important here is that nothing actually changed, and therefore nothing changed back. The original cut in FHA fees was announced but not implemented.”

2. … but a horde of new homebuyers could be left out of the US housing market.
While much remains the same for current homeowners, eliminating the rate cut could keep potential buyers who were hoping to capitalize on it to afford a home.

“The National Association of Realtors believes that this is an important policy measure to make sure that housing continues to be accessible,” Danielle Hale, managing director of housing research at the NAR, said of the fee cut. “According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs without that cut going into place, and if we don’t get the cut, we expect 30,000 to 40,000 new homebuyers will be left on the sidelines for 2017.”

In other words, though the order wouldn’t derail current mortgage holders from making their existing payments, it could potentially deter those on the fence about buying a home.

“The estimates are roughly $400 to $450 in annual savings, which may seem small, but for some people that makes a difference between being able to comfortably buy a home and maybe deciding to rent for a couple more years,” Hale said, referring to the predicted annual savings for people with a mortgage between $160,000 and $180,000.

3. The effects of the Trump administration will likely play out along party lines.
Trulia predicts that Americans’ political viewpoints will affect their feelings about purchasing homes as the current political climate settles.

McLaughlin said:

“In a recent survey we conducted at Trulia, we found that President Trump’s surprise victory gave Republicans a renewed sense of optimism toward the housing market, while Democrats turned pessimistic toward housing in 2017.

“That said, we think that American homebuyers in economically healthy blue states will likely be rattled and more hesitant about the future [of] the US economy, which will curb their interest in making large investments. In economically stagnant red states, on the other hand, homebuyers will likely feel a surge of confidence that could bolster demand.”

4. Mortgage rates are expected to rise but might face volatility.
McLaughlin, McBride, and Hale all predict that mortgage rates will increase in 2017.

“Inflation is a little bit higher, the Federal Reserve will continue boosting short-term interest rates, and the expectation is that the economy will benefit from government stimulus and that growth will pick up,” McBride said. “All of those would argue for mortgage rates being higher a year from now than they are today.”

However, it’s important to note that although mortgage rates would likely be higher overall in a year, they could be volatile throughout because of uncertainty about what’s to come, particularly concerning Trump’s plans for financial regulation and tax reform.

“President Trump still hasn’t made clear what his plans are for financial regulation, but as those decisions come out, they may push rates out further as investors either flock to or away from US bonds,” McLaughlin said. “We’ve already seen a slight increase in mortgage rates since Trump took office, partially driven by an increase in bond yields for mortgage-backed securities.”

5. Home prices are expected to rise as well.
As long as the US doesn’t hit another recession, home prices are expected to go up.

“Primarily because the Trump administration has hinted at Dodd-Frank reform, which could eventually loosen credit and make it easier for homebuyers to borrow, while also implementing tax reforms that could put more money in the pockets of homebuyers,” McLaughlin said. “These factors combined may cause demand for housing to rise, driving prices up.”

Hale says that although prices could rise, the increase would likely plateau. While there has been an influx of new potential homebuyers in the past few years, construction hasn’t kept up with demand, causing prices to spike. But the NAR predicts new building is on the horizon.

“We’ve had years of limited inventory, and we expect that builders will respond to the rising home prices that we’ve seen by increasing building in the years ahead,” she said. “That should help prices slow down, but they will continue to rise. Our forecast for 2017 has them up 3.9%, and 3.2% for 2018 — so slower than they’ve grown recently, but continuing to rise.”

But remember …
Although politics and economics at times go hand in hand, Trump is not the only factor influencing the US housing market. Inflation, buyer demand, interest rates, and numerous other factors are at play when mortgage rates and housing prices rise and fall.

Article by Business insider.

February 1, 2017 / by / in
New York New Developments prices rising in areas.

Despite the uncertainty and volatility that defined 2016, the real estate market was and even broke several record highs mainly due to sales in New York new developments, the latest research shows.

Prices throughout much of Manhattan and Brooklyn increased in 2016 with median prices, average prices and prices per square foot all reaching records and for the first time ever, the average price in Manhattan exceeded US$2 million.

These records were largely driven by the number of new development condominium transactions, particularly in Downtown West and Midtown West, according to the analysis report from international real estate firm Knight Frank.

It points out that while activity may be moderating, prices are yet to follow suit and low interest rates and a steady jobs outlook kept demand robust throughout 2016.

It also points out that despite the stronger dollar, foreign interest has held up with international buyers making up 25% of the condominium resale market and 35% of demand for new development sales.

Demand has been particularly strong for new developments in the sub-US$3 million price segment, while supply at this price point has been particularly tight since the financial crisis of 2007.

The report explains that it is only recently that supply is beginning to increase, with more new developments in the pipeline and that is a major driver for the market. One such development aiding supply is the mass regeneration of Hudson Yards, which will bring 5,000 residential units to the market.
The report also says that New York is still regarded as a safe haven for foreign buyers who often have to contend with taxation issues and/or instability in other cities around the world. In many cases, these buyers are shaking off weaker currency exchanges for the strength of New York new developments market.

‘Furthermore, low interest rates and a healthy job market have spurred many long term renters into first time buyers meaning properties priced below US$3 million move fast.
The strong underpinnings of the US economy and historically low interest rates are likely to be maintained for some time contributing to a stable real estate market for the foreseeable future,’ it explains.

Year on year prices in Downtown West have increased by 28.8% year on year, by 16.3% in Midtown East, by 13.9% in Midtown West and by 10.5% in Lower Manhattan. Long Island City saw annual growth of 14.1% and North East Brooklyn 4.6%.

But Downtown East has seen prices fall by 9.4% while in Brownstone Brooklyn they fell by 3.6% year on year and in Williamsburg and Greenpoint they were down 12.6%.

The report picks out the Lower East Side and East Village, Lower Manhattan, Brooklyn and Long Island City as areas to watch in 2017. It explains that the highly fashionable jet-set crowd are showing interest in the Lower East and East Village, especially new developments.

While Lower Manhattan is known as the city’s financial district it is becoming sought after for living with increased access and connectivity to the area where developers have added several luxury high-rises to the area including 1 Seaport, One Wall Street, 125 Greenwich Street and 45 Broad Street.

Long Island City, the report says has changed from an industrial neighbourhood known for its large warehouses, parking lots and film studios into a premier residential neighbourhood filled with galleries, museums and a thriving arts community and again there is a lot of interest in new development such as the Dutch and Factory House.    article by property wire.

January 31, 2017 / by / in ,
Greeks pay the heaviest property tax after the French and the Brits.

High property tax is hampering the recovery not only of the real estate market but also that of the economy in general. After successive property tax hikes in recent years Greece has one of the European Union’s highest property tax burdens as a ratio to gross domestic product.

European Commission statistics show that Greece is behind only France and Britain in terms of property tax as a percentage of 2015 GDP. Greek owners have to pay what amounts to 2.5 percent of this country’s GDP, while in Germany the amount does not exceed 0.5 percent. The rate is even lower for neighboring countries such as Italy, Cyprus, Bulgaria and Turkey.

In its latest economic bulletin Alpha Bank argued the Single Property Tax (ENFIA) continues to put people off investing in the real estate market, where transactions have all but dried up, while obstructing the rebound of construction activity in the country. “It is also a considerable obstacle to any increase in residential property prices, along with the expected recovery of GDP,” Alpha analysts stress. On the other hand, it is remarkable that despite the burden on households from ENFIA, the tax continues to fetch revenues, as property levies of various forms showed an increase for the fifth consecutive year since 2011, when ENFIA was first introduced (as EETIDE).

However, the issue now is the discrepancy seen between the increased rates and citizens’ diminishing taxpaying capacity, as the gap has broadened, according to Alpha’s report. The Bank of Greece agrees, saying in a recent report that the high taxation deters investors, with a clear impact on the market and the entire economy.

The federation of property owners (POMIDA) has warned that the tax burden many owners face grows every year, while it is actually the number of those who pay that should increase. article by ekathemerini

January 31, 2017 / by / in
Singapore Housing Stocks could be making a comeback.

Singapore housing stocks are set to make a comeback after a three-year losing streak. And analysts think property developer stocks are the best way to play that rebound.

Amid a restructuring push to boost a slowing economy, the government could signal its intention to reconsider property cooling measures as early as the budget speech in February, Carmen Lee, head of research at Oversea-Chinese Banking Corp. said in an interview. That promises to boost the city-state’s largest developer stocks, including City Developments Ltd., which is one of the top picks for OCBC’s Lee and analysts at CIMB Research Pte, Credit Suisse Group AG. Other potential winners include CapitaLand Ltd., UOL Group Ltd. and OUE Ltd.
“Between buying physical property and buying stocks, stocks offer you the liquidity and they are pricing in all the negatives,” Lee said. “They may not outperform in the next one to two quarters but if you ride this out for 18 months or so, you will see better upside.

Singapore housing prices have been driven by the city-state’s policies in recent years as the government vowed to rein in soaring values in one of Asia’s most expensive housing markets. Fourth-quarter private home prices fell 0.5 percent versus the last quarter, when housing values dropped by the most in seven years, according to data released by the Urban Redevelopment Authority on Thursday.

Singapore housing Prices have declined by about 11 percent since 2013 and sales have dropped to around half of that year’s level.

Shares of the city-state’s biggest developers rose. UOL Group shares climbed 0.9 percent to S$6.51 at the Singapore close, the highest in 14 months. City Developments jumped 2.3 percent to S$9.17, CapitaLand increased 1.9 percent to S$3.27, a one-year high. OUE gained 2.2 percent to S$1.83. The Singapore property index of 44 real estate stocks added 0.4 percent.

An equal-weighted index of City Developments, CapitaLand, and UOL Group, Singapore’s three biggest property developers by market value, has outperformed Straits Times Index year-to-date after falling 3.6 percent in 2016. CapitaLand, Southeast Asia’s largest property developer by market capitalization, has dropped almost 20 percent from 2013 levels, when shares reached a cyclical high.

Singapore developers are trading at a one-year forward price-to-book of 0.7 times, an “undemanding” valuation that is close to its 2008-2009 lows, according to Credit Suisse analysts including Louis Chua. “We believe the risk-reward to be attractive today, with a potential easing of measures a key upside optionality,” they wrote in a January research report.

Developer stocks have moved higher on expectations that there could be an easing of measures, Raymond Kong, a fund manager at One Asia Investment Partners Pte Ltd. in Singapore said in a phone interview. “We are looking for a pullback first; it just popped up too fast in a short period of time.”

Singapore adopted strict measures to restrict speculation on residential and industrial properties after home prices climbed to a record three years ago. The residential curbs have included a cap on debt-repayment costs at 60 percent of a borrower’s monthly income, and higher stamp duties on home purchases, after low interest rates and demand from foreign buyers raised concern prices had risen too far too fast.

In November, the government indicated that it doesn’t intend to relax borrowing restrictions. “It is more prudent to have our current rules as the default position,” Ong Ye Kung, Minister for Education said in a written reply to a parliamentary question.

Singapore housing market saw a surge in home sales in 2016 as developers sold more than 8,000 units, a 9 percent increase compared with the previous year. Over 13,000 private residential units are expected to be completed this year, data from the Urban Redevelopment Authority showed. The pipeline supply will then drop to about 9,300 completed units in 2018 and 7,300 in 2019.

“As the supply overhang passes, we believe developers could resume land banking to position for growth,” CIMB analysts Lock Mun Yee and Yeo Zhi Bin wrote in a research note, referring to the practice of buying land as an investment. “With low gearing and deep capacity for reinvestment, we think that developers are well paced to tap into new opportunities.”  article by Bloomberg

January 26, 2017 / by / in ,
Dubai properties project to be floated in place by sea from Finland

A complete development project including homes, restaurants, shops and leisure facilities is to be made in Finland and floated to Dubai with the first parts arriving later this year.

It will be part of the emirate’s first group of floating homes with each property having boat access and the region’s longest waterfront promenade.

Dubai is used to having its fair share of innovative and flashy real estate projects but the Marasi Business Bay development is being hailed as the next iconic one to be built in the Middle Eastern location.

There will also be five palm tree lined yacht marinas and an exclusive yacht club being developed by Dubai Properties with the first parts being floated in place by the third quarter of this year.

Finnish-owned ADMARES, a pioneer in the construction of floating developments which specialises in providing properties for areas where there is a lack of land to build on, is designing and making the structures at its purpose built production facility.

The first phase includes 10 water homes, two restaurants and an exclusive yacht club and is described as a unique waterside destination concept in the region. Production has already started and the building will be fitted out before being transported to the Middle East.

‘Our objective is to create unique, innovative and environmentally friendly real estate products, utilising ground breaking, multi-disciplinary off-site construction technology,’ said Mikael Hedberg, ADMARES chief executive officer.
‘We started at the top with our first project in the Emirates, working with Jumeirah and Dubai Holding for the Burj Al Arab Terrace. Having successfully delivered the new resort extension, the biggest ever undertaking of its kind in the world,’ he explained.

He added that with this project the developer is aiming to create a landmark development with a high degree of innovation and quality. As the buildings are more or less completed in Finland it means that once they arrive in Dubai the time it takes to put them in place is minimal.

Dubai Properties chief executive Abdulla Lahej, believes that the project is not only innovative but in line with Dubai’s Plan 2021 to create a smart and sustainable city ahead of the World Expo 2020.

‘As a leading master developer, we stay one step ahead by working with speed and efficiency to seamlessly create blueprints for success and deliver exceptional lifestyles, value and a lasting impact for the betterment of Dubai,’ he added.

Marasi Business Bay will be connected directly with Dubai’s main transport arteries Sheikh Zayed Road and Al Khail Road and it is located within 550 metres of Downtown Dubai. propertywire article

January 25, 2017 / by / in
French, German real estate markets set to benefit from Brexit

The French and German real estate markets and  office markets, especially, might be among big winners thanks to Britain’s decision to leave the European Union

The constantly evolving impact that Brexit might have might have on attracting overseas investmentis is great news for Britain’s rival French and German real estate markets, says Philip Charls, chief executive of the European Public Real Estate Association (EPRA).

The non-profit association representing Europe’s publicly listed property companies has been active in Asia in the recent three years after seeing surging capital flows from all over the region to other parts of the world, including Europe.
Although international investors tend to turn a bit more cautious after a year of black swan events (Brexit then Trump), they are actually changing their strategy: from going straight to English-speaking countries, usually exclusively UK, to focus on places with a stronger economy, such as France and Germany, said.

Both countries’ office markets, especially, might be among big winners thanks to Brexit.
One serious consequence of leaving the EU is that it means UK financial institutions will lose their so-called “passporting” privileges, that allow their products to be sold to other EU countries without restrictions.
“The impact on financial institutions is big. Imagine a Japanese bank that has an office in London and wants to sell those products in other EU countries. They might have to move their activities to other European locations, most likely Paris or Frankfurt,” said Charls.

The demand for office buildings is already growing in both cities post-Brexit, benefiting from the fact investors find both sites are undervalued in comparison to the UK capital, Charls said — a trend he expects to continue for the next couple of years.

In Paris a lot of office space is being redeveloped and its economy is improving, Charls said. On top of that, the French government has already started promotional campaigns to woo investment from London, and have plans to provide favourable tax treatment for people relocating from the UK capital.
Brexit-hit UK has slipped to sixth below France in fifth, in the World Economic League Table for 2017, which tracks the size of economies around the world and forecasts how this might change in the next 15 years.
With overall office stock above 50 million square metres, the Paris Region is the largest office market in Europe and third largest in the world, behind New York and Tokyo.

Germany too, with economic growth of 1.9 per cent in 2016, beating market estimates and its fastest pace in five years, is also likely to lure UK workers, especially to its financial hub, Frankfurt.

In October last year, Reuters reported that China’s sovereign wealth fund CIC acquired German residential property group BGP in a 1.1 billion euros deal – a rare large real estate investment in the country by China.
Charls expects Europe’s property market overall, however, to show slower growth in 2017 as investors remain cautious, but added the US interest rate rise is unlikely to have any immediate influence on the sector.
“We are usually 18 months behind the US,” he said, adding that the negative effect can partially be offset by increased rent income.
Political uncertainties, however, also remain high in Europe given several key votes are on the way. France is choosing a new president, Germany will choose its next leader, and the The Netherlands goes to the polls.
“But I don’t think you will see another Brexit happening,” Charls said. “Countries have been too shocked by what happened after the British vote.”

This article appeared in the South China Morning Post print edition as:

January 20, 2017 / by / in