Category Archives: Real Estate

China’s property crisis deepens with developer Country Garden at risk of default

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Evergrande has filed for bankruptcy protection and firms covering 40% of Chinese home sales have defaulted

China’s property crisis has deepened with two major developers facing severe financial difficulties that threaten to send shock waves through the country’s economy and beyond.

Evergrande, the poster child for the woes of China’s property sector, filed for chapter 15 bankruptcy protection in New York on Thursday. The provision permits the company to protect its US assets and will allow cross-border bankruptcy proceedings as it undergoes a restructuring.

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China’s struggling property giant Evergrande files for bankruptcy protection in US

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The company’s chapter 15 protection will protect its US assets while it attempts a restructuring deal

China’s Evergrande Group, the world’s most heavily indebted property developer and the poster child for the country’s property crisis, has filed for bankruptcy protection in a US court.

The company sought protection under chapter 15 of the US bankruptcy code, which protects its US assets while it attempts a restructuring deal. The code also provides mechanisms for dealing with insolvency cases involving more than one country.

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Properties worth more than $25bn were bought with cash in Australia’s three biggest states in early 2023

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Many cash purchases were made in regional areas of NSW, Victoria and Queensland as buyers downsized to less expensive housing

More than one in four transactions for dwellings or land is settled with cash in Australia’s three most-populous states, with buyers largely unaffected by higher interest rates, data group Pexa said.

Many of the cash purchases (those paid for in full without a loan) were made in regional parts of New South Wales, Queensland and Victoria, often by retirees or others downsizing to less expensive properties. Cash purchases for foreign students or recent migrants also make up a sizeable share of sales in inner-city areas.

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Marks & Spencer refused permission to demolish and rebuild Oxford Street store

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M&S says ‘short-sighted act of self-sabotage’ leaves no choice but to review position on UK’s premier shopping street

Marks & Spencer has been refused permission to demolish and rebuild its main store on Oxford Street in the West End of London in a win for campaigners concerned about the carbon footprint of redevelopment.

The Department for Levelling Up, Housing and Communities confirmed that Michael Gove, the secretary of state, disagreed with the recommendation from inspectors to approve the plans and had “decided to refuse permission”.

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‘Soul-crushing’: converted Bay Area office apartment fail goes viral

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Turning offices to residences is touted as a housing fix for a work-from-home era, but a $520,000 listing takes the brief too literally


More people are working from home these days, but a video of a California office-to-residential conversion that recently went viral on TikTok would blur the line between office and home life completely.

The TikTok profile zillowtastrophes posted the video which features a one-bedroom, one-bath “recently converted” property in San Rafael, California, just 18 miles (30km) north of San Francisco, priced at $520,000, a steal for the area.

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UK house prices fall at fastest annual rate since 2011, says Halifax

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Average price of property drops by 2.6% year on year in June as mortgage rates climb

UK house prices experienced their biggest annual fall in 12 years, according to Halifax, the latest sign that soaring interest rates on mortgages is bringing a halt to the housing boom.

The average price of a UK home tumbled 2.6% year on year last month, the largest annual decrease the lender has reported since June 2011, a significant acceleration from the 1.1% decline record in May.

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Gold bars used to lure Chinese homebuyers amid market slowdown

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Property developers struggle to rebuild confidence in housing market after three years of economic pain

Gold bars, new cars and mobile phones are among the incentives being offered to potential homebuyers by Chinese property developers as they grow increasingly desperate to boost sales.

Huafa Tianfu, a developer in the eastern city of Hangzhou, has been offering up to a kilo of gold bullion to tempt people into buying its flats.

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Housebuilders cut back on construction as UK mortgage rate rises spook buyers

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Work on residential building sites slips in May to weakest level since 2009

Britain’s housebuilders are cutting back on the construction of new homes amid signs that potential buyers are being spooked by the prospect of increases in mortgage rates over the coming months.

The latest report on the construction sector found that work on residential building sites slipped in May to the weakest level since 2009, apart from when sites were locked down during the Covid pandemic.

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Agreed house sales in UK at highest point this year, says Zoopla

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But property website warns that rebound in activity could be hit by rising mortgage rates

More prospective house sellers are returning to the UK’s property market, pushing agreed home sales to their highest point of the year in May, according to Zoopla, although it warned that the rebound in activity could be knocked by rising mortgage rates.

House prices have fallen by 1.3% nationally over the past six months, the property website found, but the speed of price falls has been decreasing as buyer confidence slowly improves.

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UK homeowners and first-time buyers warned to brace for 5%-plus mortgage rates

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Lenders forced to raise fixed-term deals after latest inflation figure pushed swap rates upwards

Households looking for a new mortgage deal have been warned to expect 5%-plus fixed-rate deals in the coming weeks, after Wednesday’s inflation figures sent the money markets back into turmoil.

Nick Mendes, the mortgage technical manager at the broker John Charcol, said on Thursday that he doubts that there will be any two-year fixed-rate mortgages and probably few five-year deals priced at less than 5% in the coming weeks, as lenders are forced to reprice their mortgages upwards.

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Staff work in central London offices for 2.3 days a week, study finds

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Thinktank warns against wholesale switch to working from home and raises fears over lost productivity in capital

Office workers in central London are spending on average 2.3 days a week in the workplace, according to a report that warns against a wholesale switch to working from home.

The thinktank Centre for Cities carried out polling of office workers in the capital and found they were spending 59% of the time in their workplace compared with pre-Covid levels.

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Duke of Westminster’s property firm pays £50m dividend despite profits drop

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Boss of Grosvenor, which owns swathes of Mayfair and Belgravia, warns of ‘more pain’ for commercial property market

The Duke of Westminster’s property company, which owns swathes of London’s exclusive Mayfair and Belgravia districts, has paid out a £50m dividend despite falling profits.

The boss of Grosvenor, the duke’s £11.5bn property empire, warned of a period of stagflation and that UK interest rates and inflation could stay high for longer than expected, resulting in “more pain” for the commercial property market.

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Asking price of properties popular with UK first-time buyers hits record

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Average of £224,963 for homes with one or two bedrooms is 2% higher than a year ago, says Rightmove

Those people hoping to get on to the UK housing ladder are facing record asking prices, as calm returns to the sector after last autumn’s mini-budget spooked the markets.

Rightmove, the property portal, reports that the average asking price of properties popular with first-time buyers – those with one or two bedrooms – has hit a record price of £224,963 in the last month. That is 2% higher than a year ago, even though higher mortgage rates have made homes less affordable.

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Salcombe locals priced out by most expensive seaside homes in UK

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Average cost of property in Devon town reached £1,244,025 last year, driven by second home owners

“Don’t hate me,” said Theo Spink of the view from her office on Tuesday afternoon, “but the sun is shining, there’s a gentle breeze, people are arriving for Easter, eating ice-cream. It’s all rather charming.”

If the town of Salcombe, situated on the neck of a narrow estuary in south Devon, sounds idyllic, that is because “it really, really is”, she said. “When the sun shines, you could be in the Mediterranean. It is that beautiful.”

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UK homeowners still better off than renters despite spike in interest rates

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Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing

Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.

The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.

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China’s top property developer expects first loss since 2007 flotation

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Country Garden’s 2022 forecast is another blow for country’s embattled sector

China’s top property developer expects to record a loss in 2022 – its first since the company went public in 2007 – in another blow for the country’s embattled property sector.

In a filing to the Hong Kong stock exchange, Country Garden said that the losses for 2022 would amount to between 5.5bn yuan and 7.5bn yuan (£663.6m-£904.9m). In 2021 Country Garden’s profits reached 26.8bn yuan.

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UK house prices could be stabilising despite falls, say surveyors

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Rics data for February shows improvement in new buyer inquiries and sales

The UK housing market remains in decline but there are some signs of stabilisation, with an improvement in new buyer inquiries and sales last month, according to surveyors.

Many told the Royal Institution of Chartered Surveyors (Rics) that a return of optimism, and lower than expected interest rates, had given the housing market some hope for the coming months after a sluggish start to the year.

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Chinese banks try to revive housing market with mortgages for 95-year-olds

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‘Relay loans’ that can pass on to children follow other moves to make borrowing more flexible

In an attempt to stimulate China’s flagging housing market, banks in some cities are extending the upper age limit on mortgages to between 80 and 95.

Although not a national policy, banks in Beijing, Hangzhou and other big cities have started offering “relay loans” to elderly customers, which pass on to their children in the event that they cannot repay.

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Loss of nearly 15,000 UK retail jobs a ‘brutal start to 2023’, report says

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Majority of job losses are at large retailers such as Tesco and Asda, according to Centre for Retail Research

Nearly 15,000 British retail jobs have already been cut since January in a “brutal start to the year” for the high street.

A total of 14,874 retail job losses have been announced by companies so far, according to analysis from the Centre for Retail Research (CRR).

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Gulf royals own more than £1bn of UK property via tax havens

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New government register shows how offshore jurisdictions used for ownership of nearly 200 properties including hotels and country estates

The royal families of Gulf states including Saudi Arabia, the United Arab Emirates and Qatar own more than £1bn of UK property via offshore jurisdictions, such as Jersey and the British Virgin Islands, the Guardian can reveal.

Nearly 200 properties, including hotels, London mansions and country estates, belong to a few small but super-rich dynasties, according to analysis of a new government register that reveals who is behind offshore companies that own UK property.

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