Weakening economy, cost-of-living squeeze and rising interest rates are cooling market, index shows
Annual house price gains across the UK have slowed for a third month as the weakening economy, cost of living squeeze and rising interest rates started to have an impact on the property market.
The average UK house price hit a new record high of £271,613, but there are “tentative signs of a slowdown,” Nationwide building society said.
Continue reading...A North Adelaide studio apartment has been ridiculed online, with some likening it to ‘your first custom house in the Sims’
Convenience: in every sense of the word, 4/201 O’Connell Street has it.
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Continue reading...British crown estate portfolio rises in value by 8.3% to £15.6bn
The value of rights owned by the Queen’s property company to exploit the seabed around Britain’s coastline has swelled to £5bn after a record-breaking auction of plots for offshore windfarms.
Profits for the crown estate, which generates money for the Treasury and the royal family, jumped by £43.4m to £312.7m in the year to the end of March.
Continue reading...Buyers face bidding wars to snare homes despite soaring inflation, cost of living crisis and fears of property crash
It took less than a week to sell a two-bedroom garden flat in north London, with a guide price of £950,000. Featuring a large patio, garden, oak floorboards and underfloor heating, it is in a mixed area on the outskirts of Islington and Camden.
“We’ve been inundated with people wanting to see it,” says Andrew Groocock, a regional partner at the estate agents Knight Frank, which helped organise 23 viewings. “It ticks the boxes of exactly what’s hot in the market at the moment. It’s still an incredibly buoyant market. The last two years have been remarkable.”
Continue reading...Asking prices up 1.7% in March, biggest monthly rise for this time of year in 18 years, according to Rightmove
The average price tag on a home in Great Britain has topped £350,000 for the first time, according to Rightmove.
Typical asking prices hit £354,564 in March, up 1.7% or £5,760 compared with February, the property website said. It was the biggest monthly rise for this time of year in 18 years, and pushed the annual rate of growth in asking prices to 10.4%.
Continue reading...Analysis: against the backdrop of the invasion of Ukraine, Kwasi Kwarteng announces clean-up measures
Britain has long been a haven for people of negotiable integrity to stash their cash, often via property deals made with the help of an army of lawyers, PR advisers and bankers.
Not only are super-mansions in London and the home counties a safe bet from an investment point of view, but the ability to disguise ownership via a labyrinthine network of shell companies offers a degree of anonymity to those who prefer their financial dealings to remain secret.
Continue reading...Energy-efficient passive design is catching on in New York and other cities as climate concerns rise
The first night Stephanie Silva spent at her new Brooklyn apartment was uncommonly quiet. So was the following morning and the next day. The 32-year-old native New Yorker had forgotten the last time she was able to mute the city of 8.2 million.
“It’s like a sanctuary,” Silva says, but as soon as she opens the street-facing windows, the bustling outside noise fills her living room. Once she closed the windows again, the difference was instantly noticeable. “Since moving here my anxiety went out the window,” Silva says, referring to the 10th-floor affordable apartment in Ocean Hill, part of the Bedford-Stuyvesant neighborhood of Brooklyn. But what sets this 67-unit building apart from the rest of the housing in the city is its “passive” element.
Continue reading...EU capitals concerned UK is not ensuring identity of real estate owners known in event of sanctions
Britain has frustrated its EU allies and weakened the west’s financial threat to the Kremlin by failing to close a loophole that will ensure London real estate remains a safe haven for Russian money, according to diplomatic sources in Brussels.
New legislation, described as the “toughest ever” by the foreign secretary, Liz Truss, gives the UK government powers to freeze the assets of individuals linked to the Russian state in the event of an invasion of Ukraine but fails to “capture” property owned via anonymous offshore structures.
Continue reading...Gary Hersham has been selling houses to the very rich for decades. At first, £1m was a big deal. Now he sells for £50m, £100m, even £200m. What does it take to stay on top in this cut-throat business?
Ring ring. Gary Hersham’s phone was going, as usual. The super-prime London estate agent blew through the Mayfair office of his company, Beauchamp Estates, scattering employees behind him. As he climbed into the passenger seat of the company car, a Volkswagen Golf rather than his personal BMW, I asked where we were going. “I don’t know!” he said. He found a postcode, and announced it to the driver. Ring ring. Hersham’s mobile has the high-pitched jangle of an old-fashioned telephone at fire-alarm volume. “I didn’t ask you for that,” he roared down the phone as we sat stationary outside his office. “What makes you assume that’s what I was doing? Could I speak to Emily please?” Emily, his fantastic secretary. Ring ring. Someone else was calling. “We’ve got to wait for Marcus!”
Enter, at a trot, Marcus O’Brien, Hersham’s protege: tall, slicked hair, suited and groomed, just 30. (Hersham is 68.) O’Brien had been out for a big dinner the night before, knowable only from his stating the fact: there was no sickly pallor, despite being crammed into the back seat of the Golf, which was now winding its way through Mayfair, past the members’ clubs and hedge funds and townhouses, a neighbourhood in which Hersham has been selling property for 43 years. His agency has sold houses for quantities of money that seem increasingly conceptual as they rise: Belgrave Square (£50m), Caroline Terrace (£60m), Grosvenor Crescent (£100m). Then the ultimate, a career peak in an already elevated range, the most expensive house ever sold in Britain: 2-8a Rutland Gate in Knightsbridge, sold in early 2020 for £215m.
Continue reading...There were winners and losers as work patterns continued changing, with repercussions for city centres and society as a whole
Of all the predictions on your 2021 bingo card, who had employees being fined for going into the office? Workers in Wales now face that threat since the tightening of Covid regulations amid the spread of the Omicron variant, with a possible £60 penalty for failing to work from home.
That is just one of many examples of how the pandemic has transformed the world of work this year – and perhaps for ever – for city centre employers, their staff and the service industry that depends on them for trade.
Continue reading...Analysis: issues of governance, rising debt, Covid and property market turmoil will delay Beijing’s quest to become the global economy’s No 1
“The east is rising, the west is declining”, according to the narrative propagated by the Chinese Communist party (CCP). Many outside China take its “inevitable rise” as read. On the way to becoming a “modern socialist country” by 2035, and rich, powerful, and dominant by 2049, the centenary of the People’s Republic, China wants to claim bragging rights as its GDP surpasses the United States, and project its power based on its expanding economic heft.
There is, however, a critical flaw in this narrative. China’s economy may fail to overtake the US as it succumbs to the proverbial middle-income trap. This is where the relative development progress of countries in relation to richer nations stalls, and is normally characterised by difficult economic adjustment and often by unpredictable political consequences.
Historically, China’s growth miracle has been remarkable. In the 30 years to 1990. The money GDP (the market value of goods and services produced in an economy) for China and the US in American dollar terms grew more or less in tandem at just over 6% and 8% per annum, respectively. . But in the next three decades, China’s GDP growth doubled to over 13%, while America’s halved to 4.5%. That pushed China’s GDP up from 5% of American GDP to 66%.
Yet, China’s growth spurt is now over, and the huge disparity in GDP growth has been eliminated. In the last few quarters, China’s GDP has been growing at half the rate of the US. Although that discrepancy is probably unsustainable, America’s $9tn GDP margin over China means that comparable rates of GDP growth in the future will sustain and even widen the margin. A Japanese thinktank has recently extended the date when it expects China to overtake the US, from 2029 to 2033. Deferrals like this are now a feature, and there will be more.
The issue though is less about the maths and more about why China is at a turning point.
Xi Jinping’s mission is not only to control the housing bubble, but rein in untethered industries and foreign capital
China’s economy has become heavily dependent on property development over the last decade. High-rise apartments have mushroomed across hundreds of cities to house a growing white-collar workforce, while glass and steel office blocks are dominating city centres, mimicking Shanghai’s glittering skyline.
Valued at more than $50tn after 20 years of rapid growth, Chinese real estate is worth twice as much as the US property market and four times China’s annual income.
Continue reading...Commonwealth Bank expects a peak in 2022 and then a drop the following year as borrowing costs rise
Australia’s “red hot” property market has started to cool, with prices to peak next year and sink 10% in 2023 as higher borrowing costs and “natural fatigue” set in, the nation’s largest mortgage lender predicts.
Home prices in Sydney, which will post among the fastest gains in 2021 with a forecast 27% jump, will moderate to a 6% advance in 2022, according to Gareth Aird, head of Australian economics for the Commonwealth Bank. By 2023, though, the harbour city’s prices will fall 12%, the equal most of any capital city, matching Hobart’s predicted retreat.
Continue reading...Investor Bill Ackman trying to win approval for a controversial penthouse overlooking Central Park
The billionaire hedge fund manager Bill Ackman will on Tuesday attempt to convince New York’s powerful Landmarks Preservation Commission to allow him to build a “flying saucer” penthouse on top of a historic apartment building in the Upper West Side overlooking Central Park.
Ackman, a Harvard-educated activist investor who famously made $2.6bn (£2.2bn) profit in a single day betting on the financial impact of coronavirus during the early days of the pandemic, has been engaged in a years-long public relations battle with his merely millionaire neighbours to garner support for his planned Norman Foster-designed two-storey penthouse that has been described as a “temple to a titan”.
Continue reading...After Tesco’s website and app were down for most of the weekend, leaving many frustrated customers unable to shop online, HSBC’s business banking portal (called HSBCnet) had some issues this morning.
Large corporate customers only had intermittent access via the website or app for about an hour, from 9.10am, but the problem has been fixed, according to HSBC.
This is truly a dark day for drivers, and one which we hoped we wouldn’t see again after the high prices of April 2012. This will hurt many household budgets and no doubt have knock-on implications for the wider economy.
Continue reading...All eyes are on Xi Jinping as expectation grows that the government will have to intervene to protect small creditors
In May 2020, Chen (not his real name) decided to invest 300,000 yuan (£34,000) in property in the north-eastern Chinese city of Shenyang. “I thought the price was not too expensive and I had some extra money so I invested it,” he said. “I thought it was going to be all right because Evergrande is such a big name and enterprise.”
Chen was following in the footsteps of countless fellow Chinese, getting in on a booming property market that had turned big cities such as Beijing, Shenzhen and Shanghai into some of the world’s most expensive, amid the huge transfer of the population from rural to urban areas.
Continue reading...As debt-laden Chinese property giant enters 30-day grace period, officials look to limit unrest and job losses
The embattled Chinese property developer Evergrande is inching closer to the potential default that investors fear, after missing an interest payment deadline.
The company, which has total debts of about $305bn (£222bn), has run short of cash, and investors are worried that a collapse could pose systemic risks to China’s financial system and reverberate around the world.
Continue reading...Embattled Chinese property giant allays some market concerns despite lack of guidance over $83.5m due on a separate offshore debt
Chinese property developer Evergrande has said it would pay some of the bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors.
Markets in Taiwan and China reopened lower after a two-day break, catching up with a sharp sell-off around the world triggered by concern over Evergrande’s predicament.
Continue reading...If Chinese property company Evergrande sinks under its $300bn debt its failure would resound across the global economy
Evergrande Real Estate – or Heng Da Group in Chinese – owns more than 1,300 building projects in more than 280 cities across China.
Continue reading...Hong Kong stock fell almost 17% amid default fears that are beginning to have a knock-on effect on other markets
Shares in the embattled Chinese property company Evergrande have plunged 17% as investors weigh up whether the group’s massive debt problems could trigger a broader sell off across all financial markets.
Related: ‘China’s Lehman Brothers moment’: Evergrande crisis rattles economy
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