Reduced To Being Investments For Speculators
The Daily Telegraph reports from Australia. “More than 3000 NSW residents have been caught rorting first-homebuyer concessions, leading to a record haul last year of $7.5 million in swindled stamp duty alone and some of the rorters even being jailed. Treasurer Eric Roozendaal made no apology for the tough approach. ‘This is an important program to help NSW families get into their first home and set them up for life,’ he said.”
The Age in Australia. “Commercial property rents will double and residential property prices will rise by up to 40 per cent during the next four to five years, a respected economist said yesterday in a bullish forecast for the Australian economy. BIS Shrapnel’s chief economist, Dr Frank Gelber dismissed the notion the housing market was suffering from a ‘bubble’ effect. ‘At the end of the day, we haven’t got a bubble in our residential market. We’re under-supplied not oversupplied. We need to build more, and we will. [House] prices will go up another 30 per cent over the next three years,’ he said.”
“Problems in Europe and America were unlikely to affect Australia’s economic outlook, he said. Almost 80 per cent of Australia’s exports go to Asia, Dr Gelber said. ‘We’re much more dependent on what happens in China.”’
The Wall Street Journal. “The construction boom in China has played a crucial role in global demand for raw materials, to the enormous benefit of resource exporters such as Australia, Brazil, Canada and much of Africa. The Chinese government this month reaffirmed its commitment to policies aimed at restraining high housing prices and property speculation. Ben Simpfendorfer, an economist at Royal Bank of Scotland, says China’s commodity consumption is likely to fall more sharply than overall economic growth.”
“‘It is heavy industry and commodities that are worst affected, as they benefited most from the earlier investment-led growth surge,’ he says. ‘The financial markets may not be recognising the risks of a sudden drop-off. They’re still not used to China’s outsized swings.’”
The China Post. “The Taipei County Government successfully sold yesterday all of the 12 commercial use land lots in the region. Competitive bidding from investors lifted the price to a record high level for land transactions in the county. In an earlier auction of land parcels for residential use in Xinzhuang on June 25, the price also set a new record.”
“Many realty market analysts said the land prices in the Greater Taipei area will continue the upward trend despite some measures taken by the Central Bank of China in an attempt to cool down speculation on the market. The limited supply of available land space in Taipei City and Taipei County prompts investors to outbid each other to get hold on the much-vaunted land parcels in anticipation of generous return on long-term investment by selling completed housing units at hugely inflated prices, they said.”
From China Daily. “Housing experts have suggested that Beijing impose a special tax on vacant homes, in order to lower the city’s vacancy rate and provide more houses to people who are in need. Between the Second and Third Ring Roads, for example, the rate of homes with electricity meters registering no use was around 20 percent. However, between the Fourth and Fifth Ring Roads, the rate rose to 30 percent, according to the survey. The survey did not include houses listed as being up for sale.”
“‘Houses should not be reduced to being investments for speculators. Their core function is to provide accommodation for people,’ said Wei Aiming, deputy to the People’s Congress of Beijing.”
“However, many multiple-home owners have expressed anger over Wei’s proposal. ‘The government should protect people’s interests if their properties are lawfully acquired,’ a man surnamed Yang said. He owns four apartments in Beijing, one for parents, one for him and his wife, and two that are vacant. ‘Those two apartments are a bit far from my office, so I choose to live in them during weekend, because they are closer to vacation spots,’ Yang said.”
“‘Compared with people in foreign countries who own their houses forever, we only own houses for 70 years. We have limited rights (on our apartments) already, why does the country want to take more? It’s not fair,’ said Yang.”
The Strait Times on Singapore. “Public resale flat prices have smashed records for the eighth straight quarter, rising 4.1 per cent in the second quarter of this year. The frenetic activity in the Housing Board (HDB) resale market shows no sign of letting up, with median COV also hitting a record of $30,000 for the second quarter - up 20 per cent from $25,000 in the previous quarter. COV refers to the cash upfront paid by a buyer over a flat’s valuation, and is often an indication of demand levels.”
“Analysts say the strength of prices have propped up the private property market, which saw prices rise 5.3 per cent in the second quarter compared to the first despite the slowdown in sales volume. In some estates such as Queenstown, for example, the median resale price for an executive was an eye-popping $781,500, while at Bishan, it was $685,500. For five-roomers, the median resale price was $682,500 for Marine Parade and $675,000 for Queenstown.”
“The percentage of resale transactions done above valuation increased to 96 per cent, up from 93 per cent in the previous quarter. Meanwhile, HDB said it has launched almost 9,000 new flats in the first half of the year - last year’s total supply - and will launch another 7,200 flats in the second half of the year to meet demand.”
The Ottawa Citizen in Canada. “Majed and Magdalena Turk recently bought their first home, just in time to welcome their son into their lives. It’s micro living with a spectacular view and exactly what they wanted. Unlike previous generations, the Turk’s family home doesn’t have a backyard for a swing set, a second bedroom or even a double garage for guy stuff. In fact, at just 664 square feet high above Laurier Avenue at Bank Street, you could say their entire home is the size of a garage. And they couldn’t be happier.”
“With condos ranging from 468 square feet to 1,500 square feet in the thoroughly modern condo, the Mondrian, and prices between $120,000 and $550,000, the Toronto-based developer says they’re inundated with young urbanites keen to buy into micro-sized living.”
“‘We’re not rich, we’re just managing. My friends are seeing how much we’re saving by not renting, so they’re buying in,’ says Majed. Furniture issues aside, Majed says there is one other benefit to micro-living. ‘It makes you bond. You can’t leave and pout when you have a disagreement.’”
The Vancouver Sun in Canada. “Metro Vancouver developers may have got ahead of themselves with the number of housing projects they are pushing into the pre-sale marketing phase, says a local market research firm. ‘It’s a big jump,’ Jeff Hancock, senior manager at MPC said in an interview. ‘I wouldn’t say [the 2010 number] is too many. I would say it will be interesting to see whether the market can absorb the number of units that have just come on [the market].’”
“Hancock said the number of units now in the marketing phase has the potential to put downward pressure on prices, depending on whether developers decide to proceed to construction. ‘I think a lot of developers were just ready to go and decided to test the market,’ Hancock said. ‘And if they don’t get the pre-sales they need, they’re okay with that and will just hold back.’”
The Telegraph on the UK. “The average asking price for a home in England and Wales fell by 0.6pc to £236,332 during the four weeks to July 10, according to property website Rightmove. The company said an average of 30,000 new homes were currently being put up for sale each week, 45pc more than during July last year. Miles Shipside of Rightmove said: ‘The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50pc in the number of properties coming to market compared to a year ago.’”
“‘More aggressive pricing is now the order of the day, which means that conditions are ripe for a strong buyers’ market in the second half of 2010. This is likely to see the average price gains of 7pc for the first half of the year wiped out by year-end,’ he said.”
The London Evening Standard. “Two Australians have taken to the streets wearing sandwich boards to sell their £600,000 Kensington flat. Nathan Baws, 36, and Thor Portus, 33, decided to cut out the mortgage brokers and advisers and offer a straight deal to buyers. They want a £50,000 deposit to secure the flat, with the remainder to be cleared by £950 weekly instalments, and hope their novel approach will attract more attention than an estate agent could at a time when the housing market is struggling.”
“They are following the example set last year by unemployed graduate David Rowe, who used a sandwich board to advertise himself for work. Mr Baws said: ‘I think you’ve got to do stuff like that just to get yourself out there. English people are normally fairly conservative compared with Australians. We do whatever it takes, even if it means humiliating ourselves.’”
“The flat, in DeVere Gardens, is in a mansion block with a porter. It has two large double bedrooms and a new kitchen and bathroom. Mr Baws said: ‘We figured if we came up with a payment structure, it would make it easier for someone to buy without needing a mortgage. The phone hasn’t stopped ringing. We haven’t sold it yet but hopefully we will soon.’”
The Irish Examiner. “More than 1,800 properties were repossessed in the North in the last year, it was revealed today. The number of people ordered to surrender their keys after defaulting on mortgage payments emerged after figures showed that more than 80,000 householders and almost 19,000 business owners failed to pay their rates in 2009/10.”
“John Wilkinson, chief executive of LPS said: ‘These are challenging times for both businesses and individuals across Northern Ireland. Nevertheless, with anticipated reductions in public expenditure, the income generated through rate collection will become even more important. The fact remains, however, that there are a number of people who have the ability to pay but who refuse to.’”
