International News

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A wave of cancellations in German housing construction reaches new high

Author : PNT Bureau

Germany's residential construction sector faces a crisis with a record number of project cancellations, reaching 22% in October, up from 21% the previous month. Rising interest rates and construction costs have created a challenging environment, leading to a lack of orders reported by 48% of companies. This downturn contrasts sharply with the previous market stability, causing disruptions, insolvencies, and stalled deals. Industry leaders remain hopeful, emphasizing adaptation and financial planning to navigate these challenges, shaping the future trajectory of Germany's real estate sector....

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A Slice of Nolita: Joe Jonas and Sophie Turner’s condo up for grabs at $6M

Author : PNT Bureau

In the heart of Manhattan's Nolita, a 2,900 sq ft, three-bedroom haven once owned by Joe Jonas and Sophie Turner hits the market for $5,999,999, embodying the intersection of love, divorce, and celebrity real estate. Purchased in 2018 for $5.6 million, the upscale condo underwent price reductions from $6.5 million to $5.4 million before being taken off the market in 2021. In an exclusive boutique building, the residence showcases the couple's sophisticated lifestyle with an open-concept space, oak flooring, a stylish kitchen, and a private terrace. This real estate chapter adds to their ventures, including homes in Encino, CA, and Miami, revealing a tale of love and property in the world of celebrity real estate....

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Google and Lendlease part ways on major Bay Area real estate projects

Author : PNT Bureau

Google, owned by Alphabet, is facing significant cutbacks and uncertainty surrounding its ambitious Downtown West campus project in San Jose. Once envisioned as a sprawling urban development with housing units and public parks, the project is now mostly a demolition site, raising concerns about its long-term impact. Google's downsizing efforts, which began earlier this year, have included reducing its San Jose development team. While the company had made commitments to the San Jose community, offering a substantial community benefits package, the fate of the project remains uncertain. San Jose Mayor Matt Mahan maintains confidence in Google's commitment, but the situation reflects the challenges and adjustments tech giants like Google are making in their real estate ventures....

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Property foreclosures surge in China amidst economic uncertainty

Author : PNT Bureau

China saw a 32.3% increase in property foreclosures in the first nine months of the year, with 584,000 homes being seized due to owners struggling with debt amid a property market downturn and an uncertain economic recovery. The survey by China Index Academy highlighted a rise in residential foreclosures and a decrease in properties being bought at auctions. The province of Sichuan experienced the highest number of foreclosures. Despite better-than-expected economic growth in Q3, the troubled property sector, facing a liquidity crisis, remains a major concern that could impact the financial sector both domestically and internationally....

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Swedish origin Skanska’s earnings fall short amid property market challenges

Author : PNT Bureau

Skanska, a Swedish construction company, reported disappointing third-quarter earnings due to property market challenges, resulting in asset write-downs and goodwill impairment charges. Skanska’s shares dropped by 12% as the operating profit fell from 1.52 billion crowns to 549 million crowns, missing the estimated 1.58 billion crowns. The company attributed these issues to changing property values and interest rate hikes globally. They expect weak property markets in the Nordics but anticipate strong construction activity in the U.S. Despite concerns about a recovery in the development businesses, Skanska’s CEO, Anders Danielsson, emphasized the need for stability in inflation and interest rates....

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Asia Pacific cities anticipate shortage of eco-friendly office spaces

Author : PNT Bureau

A recent report by JLL, reveals that Mumbai and Hong Kong, the lowest-ranked cities in sustainable office spaces, are expected to face a severe shortage of 62% and 68% in high-quality eco-friendly office spaces, respectively. Singapore, Melbourne, and Delhi are also projected to experience undersupply, with deficits of 56%, 43%, and 44%. This scarcity is driven by businesses' ambitions to achieve net-zero carbon (NZC) goals, causing tenants to prioritize building-specific sustainability criteria, like energy efficiency and renewable energy sourcing. The report underscores the need for retrofitting in the Asia Pacific region to align with impending regulations and meet the rising demand for sustainable office spaces, encouraging investors and property owners to make gradual improvements to gain a competitive edge and reduce the risk of financial penalties or rental losses. Some government...

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Canada struggles with housing crunch and inflation challenges

Author : PNT Bureau

Canada's Liberal government has announced plans to maintain its immigration targets at 465,000 new residents for this year, rising to 485,000 in 2024 and 500,000 in 2025. The levels are set to be sustained in 2026. This decision aims to balance economic and population growth while considering impacts on critical systems like housing and infrastructure. However, experts, including the Royal Bank of Canada, suggest that a higher immigration rate might be necessary for long-term stability. The delicate balance between attracting immigrants for growth and managing associated challenges remains a significant concern for Canada....

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WeWork, once the most valuable U.S. start-up, falls into bankruptcy

Author : PNT Bureau

WeWork, supported by SoftBank, has filed for U.S. bankruptcy protection due to its struggling business model, with shares plummeting by about 98.5 percent in a year. The company, which maintained office spaces at 777 locations worldwide as of June, acknowledged its inability to survive without restructuring costly leases. About 92 percent of WeWork's lenders have agreed to convert their debt into equity, reducing the debt load by $3 billion. Expensive leases and the shift of corporate clients to remote work challenged WeWork's profitability, with space costs accounting for 74 percent of Q2 2023 revenue. SoftBank hopes the restructuring agreement will pave the way for WeWork's revival....

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Dubai housing prices surge by 27% in Q3 2023, showcasing robust demand

Author : PNT Bureau

In Q3 2023, Dubai’s housing real estate market showed mixed trends. Housing prices surged by 27.2% year-on-year and 2.1% quarter-on-quarter, with villa rentals experiencing a substantial 38.7% annual increase. Average annual rents for various villa sizes ranged from Dh312,000 to Dh492,000, while apartment asking rents increased by 19.1% annually. Residential occupancy reached 88.9% in Dubai. Despite the strong demand, the rental market witnessed a gradual slowdown with a 20.6% annual growth, slightly lower than the previous year. The market also saw a significant increase in transactions and market value, underscoring Dubai's enduring appeal as a dynamic real estate hub....

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Hong Kong records record high supply of new homes amidst buyer reluctance

Author : PNT Bureau

Hong Kong's potential supply of new private homes has reached a record 107,000 units, reflecting a cautious approach by buyers due to economic factors and borrowing costs. However, this surge doesn't guarantee immediate completion. Developers completed 10,100 units in the first nine months, half of the yearly forecast. Construction slowed, with 3,200 units started in Q3, yet 11,500 commenced in the first three quarters. Despite market uncertainties, Chief Executive John Lee Ka-Chiu relaxed property curbs to stimulate sales, potentially influencing buyer behaviour. The impact of these changes on the market remains uncertain....