Homebuilder D.R. Horton braces for decline in Q1 sales due to soaring mortgage rates
Author : PNT Bureau
D.R. Horton, a major U.S. homebuilder, anticipates a decline in home prices in the future due to affordability concerns. The current prices are high as there is a gap in supply of houses for sale. A reluctance among homeowners with lower fixed mortgage rates to re-sell and upgrade at higher interest rates is cited as the key reason behind this shortage. In Q4, D.R. Horton’s net income fell 4.71% to $4.45 per share but exceeded analysts’ estimates. Meanwhile, revenue surged 8.96% to $10.50 billion, surpassing expectations of $10.01 billion, fuelled by increased demand driven by incentives. The builder plans to sustain higher incentives in fiscal 2024, including rate buydowns, aiming to sell 86,000 to 89,000 units, up from 82,917 the previous year....
China considers $137 billion low-cost financing to stimulate housing market
Author : PNT Bureau
China is planning to allocate at least 1 trillion yuan ($137 billion) in low-cost financing to support urban village renovation and affordable housing programs. This move aims to bolster the struggling property market, with funds to be injected in phases through policy banks. The People's Bank of China is considering options like Pledged Supplemental Lending and special loans, signalling a significant effort to stabilize the property market amid its most significant downturn in decades. The initiative follows Beijing's recent announcement of fiscal stimulus measures and underscores China's commitment to supporting economic recovery and stabilizing consumer confidence....
UK home-builder Persimmon plans to exceed homebuilding targets despite market uncertainties
Author : PNT Bureau
UK home-builder Persimmon experienced a significant uptick in sales rates since October. Analysts from Investec suggest that this improvement may be attributed to increased marketing efforts and additional selling incentives. The housing market faces challenges, with elevated mortgage rates impacting sales and builders issuing profit warnings. Persimmon remains cautiously optimistic, reporting stable overall pricing but acknowledging a slight decline in private average selling prices within its order book. The company anticipates a reduction in headcount as part of a group-wide recruitment....
Spain's Inmobiliaria Colonial records 299 million euros loss in 2023
Author : PNT Bureau
In the first nine months of the year, Spain’s Inmobiliaria Colonial faced a net loss of 299 million euros due to declining asset values amid tightened central bank policies. The valuation of assets until June impacted the nine-month results. Despite market challenges, the real estate group reported an 8% rise in operating profit to 129 million euros, driven by lease adjustments and increased occupancy. Colonial adjusted its full-year earnings forecast to 0.31 euros per share. The company’s net debt decreased to 5.12 billion euros, as a result of divestments totalling 574 million euros. However, Colonial’s shares saw a 5.3% decline year-to-date....
Abu Dhabi launches ADREC to transform real estate sector and attract global investors
Author : PNT Bureau
The Abu Dhabi Department of Municipalities and Transport (DMT) has launched the Abu Dhabi Real Estate Centre (ADREC), aiming to enhance the emirate’s real estate sector. ADREC seeks to unify and strengthen the sector through comprehensive regulations, increasing efficiency, transparency, and support for residents, investors, and professionals. It focuses on strategic planning, promotion, regulation, and transaction management. The centre will oversee development projects, participate in real estate events, and promote the Abu Dhabi market globally....
Outlook 2024: A positive shift in UK housing prices, says Savills
Author : PNT Bureau
Savills predicts that the UK housing market has passed its lowest point, with prices expected to stabilize by next summer. Despite a 4% decline in 2023, the agency forecasts a 3% drop in average house prices in 2024, followed by a recovery in subsequent years. Savills anticipates Bank of England interest rate cuts in 2024, contributing to the market's revival. London and the south-east may experience further price declines, while Wales and the north-east are projected to see robust growth. Cash buyers remain resilient, but overall property transactions are expected to decrease by 20% in 2023....
Rent cap triggers escalation in eviction cases and heightened unaffordability in Turkey
Author : PNT Bureau
Turkey, facing the aftermath of a devastating earthquake, imposed a 25% cap on property rent increases, spurring tensions. Landlords, aiming to sidestep the cap, resorted to illegal means, resulting in 47,000 eviction cases and 100,000 instances of unauthorized rent hikes in the first half of 2023—double the figures from the same period in 2022. Turkey's housing market, ranked as the least affordable globally, has witnessed a surge in rental rates, up by an average of 121% in the past year, leading to violent conflicts and raising concerns about housing affordability and social stability....
Canada takes the lead in APAC real estate investments amidst changing market dynamics
Author : PNT Bureau
In the third quarter of 2023, the Asia-Pacific commercial real estate market investment activity declined by 53.4% year-on-year due to high-interest rates, causing negative risk premiums in some markets. Canada attracted the largest share of outbound investments from the Asia-Pacific region for the first time, surpassing the United States. Canada secured 42% of APAC outbound investments, with the United Kingdom at 26% and Germany at 10%. This shift was accompanied by an eighteen fold increase in deal volumes from APAC to Canada, primarily driven by investments in data centres....
Affordability challenges in real estate market fuel demand for prefabricated homes in the U.S.
Author : PNT Bureau
The prefabricated housing market is experiencing a rebound in the U.S. as Americans, priced out of traditional real estate options, turn to more affordable alternatives. Census Bureau data reveals a consistent increase in manufactured home shipments for five consecutive months until August. Elevated mortgage interest rates and soaring home prices have made traditional homeownership challenging for many, leading to increased interest in prefabricated homes. Despite past stigma, these factory-built homes offer cost advantages, with the average price of a prefabricated home, according to May data, at $129,900—about 40% more economical than new or existing site-built homes, even when factoring in land costs....
Chinese buyers lead surge in overseas investments in Australian real estate
Author : PNT Bureau
Australia is experiencing an unprecedented surge in foreign property investments, particularly from mainland China, Hong Kong, Taiwan, and Vietnam. Inquiries have risen by 400%, with Chinese buyers leading the trend. Government approvals have increased by 40%, especially in major cities like Sydney and Melbourne. Median house prices attracting Chinese investors have risen by over 25% since 2019. This surge aligns with China's post-COVID economic resurgence and increased migration, with Australian net overseas migration reaching a record 500,000 people. Chinese buyers are now inclined toward family homes, indicating a shift in their investment approach....
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