International News

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China's Country Garden teeters on the brink of its first-ever default

Author : PNT Bureau

Country Garden Holdings, one of China's largest property developers, has issued a warning of its impending first-ever default and debt restructuring, underscoring the worsening crisis in China's real estate sector. The company's financial troubles reflect broader issues in the property market, despite government efforts to stabilize it. With its massive debt load, Country Garden's situation has profound economic implications, raising the urgency for Beijing to take stronger measures. The firm's stock performance has plummeted, and its struggles are mirrored in declining home sales and low confidence among potential buyers. The company is engaging advisers to navigate its financial challenges, and the outcome will significantly impact China's economy and property market....

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UK house prices experience biggest yearly decline in over a decade

Author : PNT Bureau

In September, the UK’s housing market exhibited mixed signals as reported by mortgage lender Halifax. House prices experienced a 0.4% decline compared to August, which was less severe than the previous month’s 1.8% drop. On an annual basis, prices were 4.7% lower than September 2022, slightly surpassing August’s 4.5% decrease. This downward trend coincides with the Bank of England’s expected decision to maintain high interest rates, potentially constraining buyer demand in the coming year. Rival lender Nationwide also reported a 5.3% annual decrease in house prices for September, matching August’s decline, though monthly prices remained stable. Despite recent drops, prices still remained significantly higher than pre-pandemic levels, with an average home price of £278,601....

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Resurgent demand for Greek vacation homes fuelled by expatriates and international tourists

Author : PNT Bureau

The Greek real estate market is experiencing a surge in demand for vacation homes, with a notable influx of buyers from the Greek diaspora and abroad. According to Elxis, a leading real estate agency in Greece, expatriates from the United States, Canada, and Germany are making a strong comeback to purchase properties in their homeland. This renewed interest is partly driven by the rapid recovery of property prices in Greece. Additionally, there is a growing trend among buyers to use these homes for both vacations and short-term rentals, further boosting the market. The return of U.S. tourists to Europe, including Greece, has contributed to this demand, with Greek expatriates among those rediscovering their homeland....

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Florence takes action against Airbnb and short-term rentals amidst housing crisis

Author : PNT Bureau

Florence, Italy, has implemented strict regulations on short-term rentals like Airbnb in its historic centre due to rising prices and housing shortages. This move aims to protect housing for local residents. Landlords can receive tax incentives if they transition from short-term to long-term leases. Mayor Dario Nardella cited a 15.1% price increase this year and concerns from the 40,000 residents in the city centre. Similar housing crises affect other European countries. The central government is considering a bill that may require a minimum two-night stay in historic areas and a national identification code for tourist rentals, with penalties of up to €5,000 for non-compliance....

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Canadian homeowners bracing for interest rate hike as mortgage renewals loom

Author : PNT Bureau

In the midst of a global bond yield surge, Canadian homeowners face an unsettling reality as mortgage rates escalate. With at least 75,000 individuals receiving notices monthly, experts estimate a potential C$600 increase in payments. Brokers advise re-amortization, offering a lifeline amidst rising concerns. This financial turbulence not only tightens household budgets but compounds Canada's cost of living crisis. As the Bank of Canada contemplates further interest rate hikes, the struggle intensifies, leaving homeowners grappling with unprecedented challenges in this gripping narrative of economic uncertainty....

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Sunac China's $9 billion restructuring plan gains court approval in Hong Kong

Author : PNT Bureau

A Hong Kong court has granted approval for Sunac China's $9 billion offshore restructuring plan, marking a significant milestone in the property developer's debt restructuring strategy. This development sets a precedent for other financially strained Chinese property developers grappling with challenges since mid-2021. Sunac confirmed that all scheme conditions have been met, and the scheme became effective on October 5, 2023. Last week, The company's creditors had previously endorsed its debt restructuring plan, involving debt conversion and new notes. While Beijing has implemented support measures, analysts emphasize the need for further actions to facilitate a comprehensive recovery in the sector....

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Egypt's real estate market attracts wealthy GCC investors

Author : PNT Bureau

Egypt has gained prominence as a lucrative destination for investments from the Gulf Cooperation Council (GCC), with 94% of affluent GCC investors expressing a strong interest in acquiring property in the country, according to Knight Frank's Destination Egypt report. These investors, holding over $1 million in investable assets, are particularly drawn to the Egyptian real estate market, with 56% planning to make a purchase within the next year. The report reveals that the average budget for GCC nationals investing in Egyptian residential property is approximately $1.1 million, with some high-net-worth individuals allocating even more. Egypt's robust property market, bolstered by significant institutional commitments, continues to attract GCC investors, particularly from the UAE....

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Dubai property market sees strong demand for apartments in September 2023

Author : PNT Bureau

In September 2023, Dubai's property market trends, as reported by Property Finder, reveal that 57% of potential buyers are interested in apartments, while 43% explore villas and townhouses. For rentals, 81% are searching for apartments, with 19% seeking villas. Notably, the demand for villas has increased from the previous year. Among renters, two-bedroom apartments are the most sought-after. Furnished apartments are preferred by nearly 70% of tenants. Dubai Marina, Business Bay, and Dubai Hills Estate are among the top areas of interest for both buying and renting properties. These insights reflect the evolving preferences of Dubai's property market....

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Dubai's DAMAC Properties introduces DAMAC Casa: A Luxury Oasis with a Twist

Author : PNT Bureau

DAMAC Properties has introduced DAMAC Casa, a luxury real estate venture in Dubai's Al Sufouh region. This aquatic-themed tower features opulent lodgings and offers one of Dubai's first scuba simulators with virtual reality adventures, including underwater and outer space experiences. The tower design is inspired by the lotus flower and offers sweeping water views. It includes circular outdoor terraces, retreats inspired by oases, a spa, children's play area, and a chill-out lounge. DAMAC Casa offers various apartment options, from 1 to 5 bedrooms, and ultra-luxury units with private pools. The project aims to provide residents with a unique and immersive underwater living experience....

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China’s SCE Group initiates offshore debt restructuring after default

Author : PNT Bureau

China SCE Group, a major property developer, has defaulted on its offshore debt, joining a growing list of Chinese real estate firms in financial turmoil. The company, based in Xiamen, announced that a non-payment incident triggered a default on its dollar-denominated bonds. This default highlights the continued challenges faced by China's property sector, which has seen declining investor confidence since a 2021 crackdown on credit accumulation by developers. Despite recent measures to support the sector, such as easing borrowing rules, uncertainties linger, making the outcomes of restructuring efforts by these companies crucial for China's economic stability....