International News

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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....

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Australia's rental housing market approaches critical affordability threshold

Author : PNT Bureau

Australia’s rental housing market is currently facing skyrocketing prices and limited supply, with rents increasing significantly, leading to affordability challenges. A record influx of 500,000 people through net migration has worsened the situation. The construction industry struggles with high borrowing costs, labour shortages, and soaring raw material prices, leaving a substantial gap in housing supply. Data shows that servicing new rentals now demands a record 31.4% of income, impacting low-income households even more at 52%. Many individuals are seeking shared accommodations as the middle class’s traditional stability becomes increasingly elusive....

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Q3 sees dramatic 71% slump in global real estate fundraising, reports Preqin

Author : PNT Bureau

Global real estate fundraising significantly declined in the third quarter of the year, dropping by 71% compared to the previous quarter. A total of $18.2 billion was raised by 61 funds. Property markets worldwide have been affected by central banks' interest rate hikes, resulting in increased borrowing costs and reduced property valuations, particularly for offices due to the growth of remote work. This reduced investor risk appetite. North America-focused funds remained dominant but saw a decline in their proportion, while Asia-Pacific funds increased their share. Funds focused on Europe and the rest of the world raised just 6% of the total capital. Uncertainty surrounding interest rates is expected to continue impacting real estate fundraising and transactions, keeping investment sentiment subdued....

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Hong Kong High Court delays Evergrande liquidation decision to December 4

Author : PNT Bureau

The Hong Kong High Court has postponed the hearing to wind up Evergrande, the troubled Chinese real estate giant, to December 4. This hearing is pivotal, as it's the final opportunity for Evergrande to present a concrete restructuring proposal before the court considers liquidation. Evergrande, struggling with massive debt, defaulted on its offshore debt in 2021 and had been working on a restructuring plan. However, the recent investigation of its founder and regulatory restrictions on issuing new bonds have complicated the process. The court's decision has added immense pressure on the company, emphasizing the need for a viable restructuring plan. A liquidation could have broader implications on China's real estate sector, and its ongoing projects would continue without immediate impact....

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New generation of Indian investors transform London's real estate scene

Author : PNT Bureau

A transformation is underway in London's real estate market as Indian investors, traditionally drawn from the ranks of industrialists and Bollywood stars, shift their focus to the city. Their motivations include affordability and the desire to provide accommodations for their children's education in the metropolis. Old brownfield sites, reminiscent of Mumbai's mill projects, are being revitalized to meet the increasing demand. Barratt London, a key player, is leading the charge with eight projects and ambitious plans for more. This marks a turning point as London becomes an attractive destination for first-time investors and a global education hub....

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The FIAT House: A collaborative partnership between FIAT and UNLMTD Real Estate

Author : PNT Bureau

The FIAT House, a new collaboration between FIAT and UNLMTD Real Estate, is poised to redefine luxury living In New Jersey. Located strategically near the iconic George Washington Bridge in Fort Lee, New Jersey, this visionary project offers over 300 rental residences with an emphasis on hospitality and premium amenities. What makes this development truly exceptional is its innovative car-sharing program featuring electric FIAT 500e vehicles, aligning perfectly with the project's sustainability goals. The FIAT House represents a bold step towards the future of urban living, enhancing connectivity, community, and elegance....

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Game-changer for home sellers in the U.S. as jury's verdict alters real estate commissions

Author : PNT Bureau

A federal jury has ruled against the National Association of Realtors (N.A.R.) and major brokerages, ordering them to pay approximately $1.8 billion in damages and potentially up to $5 billion. The verdict addresses the practice of home sellers covering commissions for buyers' agents, a controversial practice criticized for imposing high fees on sellers. The significant change is that sellers will no longer be required to pay commissions to buyers' agents, giving real estate agents the freedom to set their own rates. This ruling could transform agent commissions, lead to industry changes, and prompt further legal action, potentially reshaping the U.S. real estate market....