International News

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China aims to stabilize housing and equity markets through stimulus and fiscal policies

PNT Reporter

China's top regulators have pledged to implement measures to stabilize the housing and equity markets while introducing more effective fiscal policies. These efforts follow a key meeting led by President Xi Jinping, where increased stimulus was called for. The government plans to boost demand and regulate land supply in the housing sector, while the China Securities Regulatory Commission aims to strengthen market supervision. The Ministry of Finance will focus on sustained fiscal policies and improved regulations. Despite a modest economic rebound, China's credit expansion has slowed, suggesting that further monetary easing may be necessary. The central bank is expected to cut interest rates and relax financing conditions in the coming months to support the economy....

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City of London to build a 73-storey skyscraper to rival the Shard

PNT Reporter

The City of London has approved a 73-storey, 309.6-meter skyscraper, set to rival the Shard's height. Named 1 Undershaft, the tower will offer 154,156 sq m of office space, educational facilities, and a public garden. Despite delays since 2016 and conservationist concerns over its impact on historic landmarks, the revised design meets post-pandemic office needs. Investor Aroland's project signals confidence in London's premium office market amid rising borrowing costs and remote work trends. With City construction up 7% between April and September, this development highlights sustained global investor faith in London's real estate and economic resilience....

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ESR monetises Jiangsu logistics assets with SGD 289 million REIT spin-off

PNT Reporter

ESR Group, a Hong Kong-based real estate and logistics firm, has announced plans to raise approximately 2.10 billion yuan (289.24 million dollars) by spinning off and listing its Jiangsu Friend logistics projects on the Shanghai Stock Exchange. The assets will be offered as a Real Estate Investment Trust (REIT), with units priced at 2.628 yuan each. ESR will retain an ownership stake of at least 39.37 percent in the newly listed entity. This move is part of ESR's broader strategy to monetise its logistics assets, raise funds, and support the continued expansion of its logistics and real estate portfolio....

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Blackstone acquires Tokyo Garden Terrace in record $2.6 billion deal

PNT Reporter

Blackstone has agreed to acquire the 36-storey Tokyo Garden Terrace Kioicho for USD 2.6 billion, marking the largest-ever real estate investment by a foreign investor in Japan. The mixed-use development includes premium offices and a luxury hotel. Seibu Holdings' decision to sell aims to strengthen its financial position. This deal highlights Japan's appeal to global investors, driven by low borrowing costs and stable rental yields. The acquisition underscores growing confidence in Japan's commercial real estate market and economic resilience, reinforcing its status as a prime investment destination for high-value properties....

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UK targets 1.5 mn new homes in 5 years; allocates GBP 100 mn to support planning reforms

PNT Reporter

Britain unveiled plans to build 1.5 million new homes over five years, addressing the housing crisis and stimulating growth. Prime Minister Keir Starmer's reforms aim to fix a planning system that has hindered development. Local authorities face mandatory housing targets, with a 12-week deadline for plans or risk ministerial intervention. Development will focus on brownfield sites and review lower-quality "grey belt" land. The government allocated GBP 100 million to support councils. Experts caution that workforce shortages, rising construction costs, and infrastructure needs must be addressed for these ambitious targets to succeed....

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Trump Organisation partners with Dar Global for new luxury projects in Riyadh

PNT Reporter

The Trump Organisation has leased its brand for two new luxury real estate projects in Riyadh, Saudi Arabia, developed by Dar Global, a London-based real estate firm. This collaboration builds on previous successful ventures, including a golf resort in Oman and projects in Dubai and Jeddah. Eric Trump cited the success of these ventures as fuelling enthusiasm for the Riyadh developments. Dar Global, part of Saudi developer Dar Al Arkan, manages projects worth USD 7.5 billion across several countries. As the Trump Organisation expands its Middle Eastern presence, the Riyadh projects reflect global demand for luxury real estate and raise questions about balancing Trump's business interests with his political career....

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Thailand outlines debt measures to aid borrowers and boost economic recovery

PNT Reporter

Thailand's cabinet has introduced measures to tackle high household debt, including suspending interest payments and reducing instalments for loans like housing, car, and small business debts. These steps, benefiting 1.9 million borrowers with debts worth $26.3 billion, aim to ease financial pressure and support economic recovery. The government also cut banks' contributions to the Financial Institutions Development Fund by half for three years, encouraging them to assist borrowers and curb bad loans. With household debt at 89.6% of GDP, officials project a 4% growth rate for late 2024, aided by stimulus measures. Plans for $29.5 billion in additional credit are underway to boost financial stability and promote sustainable growth....

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Ireland leads Europe in housing completions and construction growth

PNT Reporter

Ireland is set to record the highest rate of new housing completions among 19 European countries this year, achieving a level 80% above the European average. Forecasts suggest completions per 1,000 people will reach 5.9 in 2024, rising to 7.0 in 2025. Despite challenges such as material costs and workforce shortages, Ireland's construction sector is expected to grow, with total output projected to increase by 1.4% in 2024 and 6% in 2025. Employment demand in the construction industry remains strong, with roles such as site managers and engineers among the most sought-after professionals....

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Sunac China gains bondholder approval for bold debt restructuring plan

PNT Reporter

Sunac China, a leading property developer, is executing an unprecedented restructuring plan to cut its 15.4 billion yuan ($2.12 billion) onshore bond debt by over 50%. Two out of ten bonds have already gained bondholder approval, with voting for the rest extended to December 23rd. The plan offers four innovative options, including swapping debt for income rights to Sunac's Hong Kong-listed shares-a first in China's bond restructuring history. Other options involve upfront cash with extended maturities, discounted bond purchases, or repayment from a land sale. This strategy highlights Sunac's effort to balance bondholder recovery with its financial struggles amidst China's property sector challenges....

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Norwegian government eases mortgage loan-to-value restrictions to boost housing market

PNT Reporter

Norway's government has raised the loan-to-value (LTV) ratio for mortgages from 85% to 90%, reducing the equity requirement for homebuyers to 10%. This policy, announced by Finance Minister Trygve Slagsvold Vedum, aims to make housing more accessible and stimulate real estate and construction sectors. Introduced in 2015 to curb excessive borrowing and prevent housing bubbles, Norway's stringent mortgage rules have slowed lending and construction amid high household debt, which reached 253% of disposable income in 2022. The adjustment balances accessibility and financial stability, supported by Norway's central bank but opposed by its Financial Supervisory Authority....