International News

link

Climate change impacts home values in Australia and New Zealand

Author : PNT Bureau

Climate change poses a stark reality for homeowners in Australia and New Zealand, where coastal and bushland properties face escalating risks. Rising sea levels, frequent flooding, and intensified bushfires threaten the value and insurability of millions of homes. In New Zealand, 20% of houses sit on floodplains, highlighting widespread vulnerability. Meanwhile, in Australia, climate risks could erase AUD 800 billion from the housing market by 2030. Insurance premiums are soaring, with predictions that 1 million homes in Australia could be uninsurable by the same year. Future buyers must prioritize location resilience, while governments and insurers must strategize to safeguard homeownership from climate-induced financial peril....

link

U.S. housing market cools as construction spending falls 0.1% in May

Author : PNT Bureau

The U.S. housing market shows signs of cooling as construction spending dipped by 0.1% in May, with single-family homebuilding seeing the largest decline at 0.7%. Rising mortgage rates have made home buying more expensive, contributing to this slowdown. The Commerce Department's report indicates a shift from the robust growth seen earlier this year, driven by increased housing supply and the largest inventory of previously owned homes since August 2022. While public construction projects and non-residential structures show mixed trends, the overall slowdown may offer some relief to potential buyers priced out in recent years....

link

Dar Global to launch $300 million luxury housing projects across US cities

Author : PNT Bureau

Saudi property developer Dar Global intends to invest USD 300 million in luxury housing projects across New York, Miami, and Los Angeles. CEO Ziad El Chaar aims to finalise their first US project by year-end, emphasising equity financing and potential debt issuance. The firm targets selling half of the homes to international buyers, differing from US-focused firms like the Trump Organisation and Kushner Companies. El Chaar acknowledged potential collaboration interest with these entities but noted their market focus divergence. Dar Global's expansion into the US underscores their growth strategy in high-end residential markets amid global investment ventures....

link

Biden administration awards USD 85 million for affordable housing development

Author : PNT Bureau

The Biden administration announced an USD 85 million funding package under the Pathways to Removing Obstacles (PRO) to Housing program to aid 21 state and local governments in removing barriers to affordable housing development. The initiative aims to update housing plans, revise land use policies, and streamline permitting processes. Vice President Kamala Harris and Acting HUD Secretary Adrianne Todman emphasized that this effort is part of a broader strategy to lower rents and increase homeownership. Additional funds and legislative proposals, including a tax credit for first-time homebuyers, are also part of the administration's comprehensive approach to tackling the housing crisis....

link

Vienna tops EIU rankings as world's most liveable city for third consecutive year

Author : PNT Bureau

Vienna remains the world's most liveable city for a 3rd year according to the EIU rankings. The Economist Intelligence Unit scored 173 cities on healthcare, culture, stability, infrastructure and education. Vienna excelled with perfect scores in stability, healthcare, education and infrastructure but lacked in major sporting events. Western Europe did well with 30 cities averaging 92 out of 100 but saw a dip in stability due to protests and crime. North America scored high in education but faced challenges in infrastructure due to housing issues in Canada. Asian cities like Hong Kong and those in the UAE improved their rankings. Tel Aviv dropped significantly due to ongoing conflict. Damascus remains the least liveable city....

link

Hong Kong property market cools after initial rise post-restriction removal

Author : PNT Bureau

Hong Kong's property market is cooling after a rise in activity following the removal of purchase restrictions in February 2024. The elimination of additional stamp duties initially boosted home sales and increased prices by 0.5% in April. However, prices dropped by 1.2% in May, indicating a shift. Contributing factors include an oversupply of unsold properties, the highest in 20 years, and high interest rates making mortgages expensive. Experts predict a further 5% to 10% price decline for the rest of 2024, with Knight Frank and S&P anticipating continued downward pressure due to these market conditions....

link

Blackstone acquires Village Hotels for GBP 850 Million

Author : PNT Bureau

Global investment giant Blackstone has acquired UK mid-market hotel chain Village Hotels for GBP 850 million (INR 10,200 crore). This acquisition, which includes 33 hotels across regional cities and suburban areas, reflects increasing investor interest in the recovering hospitality sector. Village Hotels offers amenities like fitness centres, restaurants, and co-working spaces, catering to business and leisure travellers. This purchase adds to Blackstone's UK hospitality portfolio, including the 2021 acquisition of Bourne Leisure. With over 80 hotels now under management, Blackstone aims to leverage its expertise to further develop Village Hotels and capitalise on the sector's growth as travel demand rises....

link

US banks pass federal stress test with USD 685 billion in losses amid real estate concerns

Author : PNT Bureau

Major US banks have passed the Federal Reserve's annual stress test, showing they can absorb nearly USD 685 billion (INR 5.2 lakh crore) in potential losses during a severe economic downturn. The test simulated a 40% drop in commercial real estate values, a 36% decline in home prices, and 10% unemployment, with all 31 banks demonstrating sufficient capital reserves. Despite this positive outlook for major banks, concerns persist about the commercial real estate market's health, especially as regional banks holding USD 4.7 trillion (INR 356 lakh crore) in loans were not included in the test. Further monitoring is required to assess these risks....

link

Dexus sells assets for AUD 383.2 million to reduce debt

Author : PNT Bureau

Australian real estate giant Dexus is selling three assets, including a 25% stake in Sydney's 5 Martin Place, to generate AUD 383.2 million (INR 20.4 crore) and reduce its debt. The sale of the prime office building stake, valued at AUD 148.1 million (INR 7.9 crore), comes as the company faces a decline in office property values across Australia. This move follows a reported decrease in Dexus's property portfolio value for early 2024, driven by post-pandemic remote work trends. Dexus's shares dropped 4.1% on Thursday, reflecting market concerns. The asset sales and debt reduction strategy highlight the challenges in the Australian office real estate market....

link

Beijing reduced down payments and mortgage rates to boost housing market

Author : PNT Bureau

Beijing is introducing measures to make home buying more affordable as China grapples with a property market slowdown. Key changes include reducing the minimum down payment for first-time buyers from 30% to 20%, freeing up significant funds. For a home priced at 1 million yuan (USD 145,000), the down payment drops from 300,000 yuan (USD 43,500) to 200,000 yuan (USD 29,000). Additionally, mortgage interest rates are now tied to the loan prime rate minus 45 basis points, potentially lowering costs. These policies aim to stimulate the housing market, benefiting buyers, developers, and the broader real estate sector....