International News

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China reports 22.9% drop in land sales; reveals 10 trillion-yuan debt relief package

Author : PNT Reporter

China's government reported a 22.9% decline in land-sales revenue for the first ten months of 2024, following a 24.6% drop in the first nine months, as developers limited acquisitions due to financial constraints. Land-sales, a critical revenue source for local governments, have been declining since 2022, exacerbating financial-strains. In response, authorities introduced a 10 trillion-yuan ($1.4 trillion) debt-relief package to reduce local government debt burdens and stabilize the economy. Additionally, funds from local government special bonds will be used to reclaim and acquire idle land, focusing on redeveloping stalled residential and commercial projects to boost economic activity....

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UK rents predicted to increase 18 percent by 2029 amid supply challenges

Author : PNT Reporter

According to Savills, rents in the UK are expected to rise by 18% by 2029, exceeding average income growth of 15%. This increase is being driven by increasing tenant demand and a limited supply of rental properties, as many landlords exit the market owing to rising mortgage rates, regulatory reforms, and tax pressures. Proposed energy efficiency requirements requiring rental homes to have an Energy Performance Certificate rating of C or higher by 2030 could further decrease supply. The disparity between demand and availability is projected to exacerbate financial issues for tenants, particularly in London, where housing expenses already take a considerable portion of income....

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U.S. home sales see first annual rise since 2021 amid rising inventory

Author : PNT Reporter

Sales of previously owned U.S. homes rose in October, marking the first annual increase in over three years, driven by lower interest rates and more available properties. Existing home sales increased by 2.9% compared to the previous year, exceeding expectations, while home prices rose for the 16th consecutive month. However, sales are still on track to hit their lowest annual level since 1995 due to rising mortgage rates. Inventory has grown, with homes staying on the market longer, but remains below pre-pandemic levels. Limited inventory, particularly in affordable price ranges, continues to challenge first-time buyers, whose median age has risen....

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Workspace Adapts to Post-Pandemic Trends with Smaller, Flexible Office Units

Author : PNT Reporter

Workspace, a London-based flexible office provider, is subdividing larger office spaces into smaller units to meet the demand from small businesses downsizing post-pandemic. Unlike larger landlords, Workspace offers unfurnished spaces on short-term leases, catering to small and medium-sized enterprises. The company has seen strong rental growth in units under 1,000 square feet. Despite the pandemic's impact on global commercial real estate, Workspace reported a 10.2 million Euro pre-tax profit for the first half of the year, recovering from a previous loss. The company's portfolio of 4.3 million square feet continues to perform well amidst a recovering property market....

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British Land reports 5.1% retail park valuation growth; raises earnings forecast to 28.1 pence

Author : PNT Reporter

British Land reported a slight rise in half-year profits, supported by strong performance in its retail park properties, which offset valuation declines in its office-focused Campuses. The company's retail park assets, constituting a third of its portfolio, gained 5.1% in value, while Campus valuations fell by 1.7%. CEO Simon Carter highlighted the success of investing in retail parks, as demand for affordable out-of-town spaces grows. The company raised its full-year earnings per share forecast to 28.1 pence, up from 27.9 pence, following a £441 million retail park acquisition and a share placement. The UK property market shows signs of recovery....

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New tax policies in Shanghai seek to stimulate demand in real estate sector

Author : PNT Reporter

Shanghai has introduced tax reductions on real estate transactions, including the removal of distinctions between property types for tax purposes and exemptions from value-added tax (VAT) for properties held for at least two years. The measures aim to revitalize its struggling property market amid nationwide efforts to boost demand and ease developers' financial pressures. Despite slight gains in new home prices, resale prices have continued to fall. While these changes have sparked widespread discussion on social media, many remain skeptical about their impact. Experts, including JLL's Bruce Pang, argue that sustainable recovery requires addressing economic growth expectations and housing market stability....

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Australian housing affordability hits record low as costs outpace income growth

Author : PNT Reporter

Australia's housing affordability report highlights worsening conditions, with median household income rising 2.8% in the past year, while dwelling values grew 8.5% and rents surged 9.6%. By September 2024, only 10% of the housing market will be affordable for median-income households, compared to 40% in March 2022. High-income earners also face limited options, intensifying pressure on cheaper housing segments. Additionally, the national median rental rate has reached a record 33% of median household income, exacerbating affordability challenges....

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Sustainability drives Spain's second home market trends for 2025

Author : PNT Reporter

Sustainability will take centre stage for second home buyers in Spain in 2025, driven by heightened awareness of climate change, according to Taylor Wimpey Espana. Buyers increasingly demand energy-efficient systems, renewable energy sources, and eco-friendly materials. Governments and developers are also prioritising stricter environmental regulations. Additionally, affordability challenges in major cities are pushing buyers toward suburban and secondary markets, which offer more space and value. These areas cater particularly to remote workers seeking larger homes with dedicated office spaces and proximity to nature. In response, Taylor Wimpey Espana is launching new projects across prime locations, blending luxury living with sustainability....

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Louis Vuitton wraps NYC flagship in iconic trunk facade during renovation

Author : PNT Reporter

Louis Vuitton's New York City flagship store is under renovation, concealed by a facade resembling its iconic trunks, crafted with detailed elements like engraved rivets and chrome hardware. A nearby temporary store at 6 East 57th Street offers four retail floors, a chocolate shop, and the brand�s first U.S. cafe. The space features warm interiors and a 16-metre atrium showcasing trunk-inspired sculptures by OMA's Shohei Shigematsu, clad in signature Louis Vuitton materials. This transition blends innovation with tradition, maintaining Louis Vuitton's heritage and strong brand identity while the flagship store undergoes a renovation expected to double its size....

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Chinese real estate giant Country Garden seeks creditor support for USD 11 billion restructuring

Author : PNT Reporter

Country Garden, once China's top real estate developer, has submitted preliminary terms for an offshore debt restructuring plan to avoid liquidation. The company defaulted on USD 11 billion in offshore bonds last year and faces a crucial Hong Kong court hearing on January 20, 2025. The proposal includes revised cash flow projections, weaker than prior estimates, and options like haircuts for bondholders and debt-to-equity swaps. This reflects broader struggles in China's property sector, with declining investments and new home prices. Securing creditor support is critical, as the outcome may set a precedent for other developers amid a faltering recovery in the industry....