International News

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KKR to acquire student housing portfolio from Blackstone for USD 1.64 billion

Author : PNT Bureau

Private equity firm KKR has agreed to purchase a portfolio of 19 student housing properties from Blackstone Real Estate Income Trust (BREIT) for USD 1.64 billion. The portfolio consists of over 10,000 beds across 19 communities near top universities in 10 states. Upon closing, KKR's student housing platform University Partners will take over management as it expands its owned and managed portfolio to over 25,000 beds worth USD 4 billion. Blackstone, through its company American Campus Communities (ACC), is the largest owner of student housing in the U.S., with more than 190 properties, representing approximately 140,000 beds....

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Spring Slowdown: higher mortgage rates and rising prices dampen home sales in the U.S.

Author : PNT Bureau

The spring home buying season in the U.S. started slowly as mortgage rates rose and home prices increased. Existing home sales dropped 4.3% in March, the first decline since December, but slightly exceeded analysts' expectations at 4.16 million. Lawrence Yun, NAR's chief economist, attributed the stagnation to stable rates and limited inventory growth. While 60% of March home sales closed within a month of listing and 29% sold above asking price, inventory remains constrained. By month-end, there were 1.11 million unsold homes on the market, down 14.4% year-over-year. Economists anticipate a slight rate decline through 2022, which may boost affordability and reinvigorate the market....

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Malaysia to construct Southeast Asia's largest integrated circuit design park

Author : PNT Bureau

Malaysia unveils plans to construct Southeast Asia's largest integrated circuit design park, offering incentives like tax breaks and waived visa fees to attract tech companies and investors. The country aims to elevate Kuala Lumpur into a regional digital hub and ranks among the top 20 countries in the global startup ecosystem by 2030. Malaysia�s Prime Minister Anwar Ibrahim emphasised on Malaysia's transition to advanced front-end design work in the semiconductor industry, with collaboration opportunities with companies like Arm Holdings. Additionally, Malaysia's sovereign wealth fund, Khazanah Nasional, announced a 1 billion ringgit fund to invest in local innovative companies....

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Zhengzhou city in China directs state-owned companies to purchase secondhand houses

Author : PNT Bureau

Amidst China's nationwide property market slowdown, smaller cities like Zhengzhou are facing challenges. To boost the local property sector, Zhengzhou is implementing a unique initiative encouraging residents to trade in their existing homes for new ones. Under this program, Zhengzhou Urban Development Group Co. will buy up to 500 second-hand homes from residents who then use the funds to purchase new properties within the city center. However, concerns linger regarding the effectiveness of such measures, given the persistent liquidity crisis and buyer hesitancy. Analysts are closely monitoring the program's outcome to gauge its impact on the broader property market and economic growth in China....

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Paris Mansion Chateau d'Armainvilliers tops list of most expensive homes for sale

Author : PNT Bureau

The Chateau d'Armainvilliers, situated in Seine-et-Marne, epitomizes luxury and grandeur. It was originally owned by the Rothschild banking dynasty and later renovated by King Hassan II of Morocco. The estate boasts 100 rooms, including opulent salons and themed suites, with additions such as a hammam spa and a medical facility. Despite its grandeur, its EUR 425 million listing price has sparked debate among real estate experts. Concerns persist about the adaptability of 1980s renovations and their marketability. Nevertheless, nestled amidst its natural surroundings, including majestic redwoods and a private lake, the chateau remains a timeless symbol of refinement and elegance....

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High-end property sales in Dubai increase due to overseas demand

Author : PNT Bureau

Sales of homes valued at USD 10 million or more in Dubai surged by 6% in the first quarter compared to the previous year, driven by robust demand from international ultra-rich buyers. The market, dominated by cash purchases, saw Palm Jumeirah emerge as the top-selling area. Despite concerns about a potential downturn, Dubai remains a global leader in luxury home sales, offering relative affordability and attracting high-net-worth individuals seeking second homes....

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Big Tech reduces office space, causing a hit to the office real estate market

Author : PNT Bureau

Major tech companies like Amazon, Meta, and Google are scaling back on office space, a stark reversal from their pre-pandemic expansion. Remote work, accelerated by the pandemic, is driving this trend as employees successfully adapt. Coastal cities like Seattle and San Francisco are particularly affected, with Salesforce reducing its San Francisco office space by 700,000 square feet. Landlords face challenges due to oversupply, with office space values plummeting. Stanford University research suggests remote work boosts productivity and satisfaction, but concerns about collaboration persist. A hybrid model may emerge, necessitating new office designs prioritising collaboration for dispersed teams....

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New York's SHoP Architects completes 685-foot skyscraper in Detroit's Hudson's development

Author : PNT Bureau

"The Tower," a 685-foot (207-meter) skyscraper, has reached its full height in Detroit's Hudson's Detroit development, becoming the city's second-tallest building. Designed by New York's SHoP Architects, the building features a sleek glass facade with vertical terracotta fins and a pyramid-shaped front. It will house residences and a hotel, with a nearby structure for retail and offices. Local developer Bedrock funded the project as part of efforts to revitalise Detroit's downtown, adding an iconic element to the city skyline....

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Canada to allow certain first-time home buyers to extend their mortgage to 30 years

Author : PNT Bureau

Canada plans to extend the mortgage payment period to 30 years for first-time home buyers of newly built homes, aiming to aid younger consumers and stimulate the housing supply. Finance Minister Chrystia Freeland announced the move, part of the upcoming federal budget, to make monthly payments more manageable. However, experts warn of potential consequences, including driving up home prices and wealth transfer implications. Despite intentions to address affordability, concerns remain regarding the policy's broader impact on the housing market....

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Millions of new homes planned as Canada leases public land

Author : PNT Bureau

Canada aims to address its housing shortage by leasing public land for affordable housing construction, with plans to build 3.9 million homes by 2031. However, this falls short of the 1.2 million units needed between 2023 and 2030. Prime Minister Justin Trudeau announced measures to tackle the crisis, including changes to tax structures and combating mortgage fraud. Critics emphasize the substantial investment required, estimated at CAD 2 trillion. Housing responsibilities in Canada primarily rest with provinces and major municipalities, with Ottawa relying on policy measures and funding despite lacking direct involvement in construction....