NEWS
Oil prices set for decline as OPEC stands firm on output
SEOUL, Nov 30 — Oil headed for its largest monthly drop since July as Iran signaled the Organisation of Petroleum Exporting Countries won’t reduce its production target at a meeting this week.
Futures were little changed in New York and down 10…
read moreAsian stocks slip on Chinese selloff
TOKYO, Nov 30 — Asian stocks fell after Chinese shares posted the biggest one-day selloff in three months. Material and consumer-staple shares led losses on the benchmark index at the start of a pivotal week for the region’s markets.
The MSCI…
read moreClinton calls for US$275b in new infrastructure spending
NEW YORK, Nov 30 — Hillary Clinton is calling for a US$275 billion (RM1.1 trillion) boost in federal infrastructure spending over five years and the creation of an infrastructure bank, arguing that the measures will help create jobs while…
read moreUS dollar enters crucial week ahead of ECB stimulus, payroll data
NEW YORK, Nov 30 — Currency traders are gearing up for one of the busiest weeks of the year.
The European Central Bank is forecast to boost monetary stimulus, the Federal Reserve gets its last chance to scrutinize US payroll data before its Dec….
read moreForeign investors going off the beaten track for Japanese stocks
TOKYO, Nov 29 — Foreigners who helped to fuel a three-year rally in Japanese stocks by investing in the most well-known companies are now looking off the beaten path for opportunities in the world’s third-biggest equity market, according to Nomura…
read moreIran gives investors glimpse of US$30b in oil deals to come
TEHRAN, Nov 29 — Iran is targeting about US$30 billion (RM128.1 billion) in investment by offering 70 oil and natural gas projects to international companies as the Persian Gulf country anticipates the lifting of economic sanctions.
Iranian…
read moreEmerging market funds seek escape from traditional indexes
LONDON, Nov 29 — Emerging market fund managers are seeking to escape from the straitjacket of traditional benchmark indexes in favour of a more flexible approach to capture the diverging performances of different countries and sectors.
The…
read moreIMF poised to put Chinese yuan in elite currency basket
WASHINGTON, Nov 29 — The International Monetary Fund is expected to approve inclusion of China’s yuan in its SDR basket of elite currencies tomorrow, rewarding Beijing’s strong pursuit of the global status.
The IMF executive board is scheduled…
read moreOpec officials question upbeat outlook ahead of policy meeting
VIENNA, Nov 28 — Opec officials questioned an upbeat forecast from the group’s researchers in a meeting ahead of next week’s gathering of oil ministers, with some sceptical there will be a quick easing of the supply glut in 2016.
The comments…
read moreRinggit likely to hover around RM4.25 next week
KUALA LUMPUR, Nov 28 —The ringgit is likely to hover around RM4.25 against the US dollar next week with external factors continuing to influence the local unit’s movement, a dealer said.
Inter-Pacific Research Sdn Bhd Head of Research Pong Teng…
read moreSingapore Investment Fund Steps up Real Estate Acquisition
GIC, which manages more than €95 billion of Singapore ‘s reserves, is ” underinvested ” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7% of assets in real estate, while it can invest 9% to 13%, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association yesterday.
Given its size, GIC is focusing on larger, deeper markets and ” gateway cities “, he said. ” The Brics (Brazil, Russia, India, China, South Africa), plus Indonesia and Turkey, will become the single largest contributing bloc to GDP globally. Now, therefore, if your sights are set on the long term, the emerging market must be where it ought to be and you must pay attention to emerging markets. In the short term, we must deal with volatility in the emerging market as global macro forces shift as the US dollar strengthens “.
But this does not mean that it will put money in every investment that comes calling. ” We would like to put up more money across the globe, but it really depends on whether we see those transactions that are interesting, ” Mr Goh said.
” We are a disciplined investor. If we do not see transactions that are at a price point which we think is a great investment which would give us good stable long-term returns, we do not have the compulsion to push money out the door “.
The London-based Sovereign Wealth Centre puts GIC’s total holdings at €323 billion, making it the world’s sixth-biggest sovereign wealth fund.
GIC has been adding to its real estate holdings, buying a building next to Tokyo Station last year in a bet on rising property values in Japan’s capital, Bloomberg reported. It also purchased Blackstone Group’s 50% stake in London’s Broadgate office complex in 2013 and was part of a group that acquired the headquarters space of Time Warner in New York City for €1.2 billion.
However, Mr Goh also acknowledged that the investing environment is increasingly competitive.
” The environment has changed dramatically (compared to when GIC was first established). These days, there are many more (sovereign wealth funds) “.
The use of technology and data can give GIC a possible advantage. Mr Goh said: ” We also think about how we can become better at what we do, not just by thinking whether we can do larger transactions, and part of our effort is how we can use technology and data to be a real competitive edge for us in real estate “.
And to improve returns and beat the benchmark, GIC has put a ” focus on key markets that are deep, where the transactions are a lot more, because then we can get the local team to be experts in those markets “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreGeorgia Catches the Eye of Property Investors
It has been two decades since Georgia gained independence from the former Soviet Union during which time increasing numbers of tourists have been making inquisitive forays into the beautiful landscape of the country known as the Balcony of Europe.
Georgia is located in Eurasia, providing a link between Europe and Asia and a melting pot of cultural influences taken from its neighbours: Russia in the north, Turkey in the west, Armenia and Iran in the south and Azerbaijan in the East.
Georgia’s capital is Tbilisi, a destination that is becoming increasingly popular with tourists and property investors alike. Green Valley International Real Estate Group , one of UAE’s leading conglomerates specialised in real estate development, investment and holdings, has announced the launch of its €130m project in the up and coming capital of Georgia.
The Green Valley City project is spread over an 88,000m² expanse where 35 % is covered in lush greenery, said the company in a statement. The launch comes as part of the company’s efforts to expand and mark its presence across the country’s rapidly growing real estate segment.
The Green Valley City project is strategically located across Tbilisi’s Green Belt area, one of Georgia’s most prominent natural forest reserves. It will integrate modern architecture that is in compliance with the highest standards of environmental sustainability.
The project will be feature 10 buildings which will house 510 residential units ranging from studios, one- and two-bedroom apartments. It will also provide a private district, catering to luxury villas that are built in the form of elevated stairs to offer panoramic views to its residents, said the UAE developer.
Unveiling the project, Ali Saeed Al Salami, the general manager, Green Valley International Real Estate Group, said: ” Georgia is one of the most attractive destinations for real-estate development and investments in Europe – complete with remarkable nature areas, a secure living environment, socio-economic stability, advanced infrastructure, outstanding investment facilities and attractive incentives such as tax exemption and permanent residency “.
” Another key driver is its strategic location, which is a relatively short distance from the Arab World. This has prompted us to develop Green Valley City – aimed towards addressing the growing demand of Arab and Khaliji investors for Arab projects underway in Europe, ” he added.
” As with all of our projects, we are committed to developing Green Valley City in compliance with set international standards and guidelines. For this project, we will be providing special offerings and facilities to Arab and GCC citizens who would like to invest in it, which further reinforces our commitment to encourage Gulf investments in foreign markets, particularly in Europe where real-estate and construction industries continue to score high growth rates “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreDubai Unveils City to be Home to 9.5 Million People
Dubai urban planners have completed a blueprint for the city to house 9.5 million people – more than four times its current population.
Dubai Municipality has completed a citywide urban design plan which sets out future density and population levels across the Emirate, according to the organisation’s assistant director general Abdullah Rafia.
He told Dubai Chamber’s CEO conference earlier this week that countries across the world need to contend with rapid population growth, especially in cities, as 70% growth in the world’s urban population is expected by 2030.
” Fortunately, here in Dubai, all of the population is urban, ” he said. ” Our urban design needs to be sustainable – to have a design that limits sprawl but considers the impact [of population growth] “.
” We have already designed the urban design for the whole of Dubai. The urban area of Dubai will consist of one-third of the area of the emirate of Dubai and its maximum capacity will hold over 9.5 million people, ” he said.
He added that there is no time frame for its blueprint for the city to be reached, but said that with the urban design plan in place, ” our future can be properly implemented “.
Mr Rafia also said that the municipality is moving ahead with its plans for Desert Rose – a new, sustainable city planned to be built in Dubai that will house up to 160,000 people.
” This is at the early stage, ” he said. ” We’ve contracted the infrastructure designers, so they are engaged. We already have the concept design finished, so a lot of things are finished. It is something that can be built real fast, ” he said.
Speaking about the high degree of sustainability it plans to incorporate into the design, he said: ” Our designers told me we are very close to [achieving] zero emissions “.
Also speaking at the conference, Saeed Al Abbar, chairman of the Emirates Green Building Council, explained that sustainability standards were improving to such an extent that the most sustainable homes can now generate more energy than they consume.
” We’re going to move away from this ‘less damage’ approach to buildings with an actual positive benefit. We’re also going to see a greater focus on retrofits of existing buildings, ” he said.
” This is something that has really picked up in the past four or five years in Dubai. There’s 120,0000 buildings in Dubai. If we only focus on new builds, we miss 90% of the puzzle “.
There is a wealth of opportunity in Dubai for property investors and the massive injection of investment capital being pumped into the real estate sector provides plenty of growth potential and is set to become increasingly attractive to savvy buyers in the Emirate.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreReal Estate Crowdfunding Booming in Asia
In Asia, real estate crowdfunding is in its infancy and is mostly about presales and debts instead of equity investment, with regulators yet to pin down the details on how they should govern the fledging industry.
Mainland China had 128 crowdfunding platforms online as of the end of 2014, including 32 for equity, according to a report by 01caijing , which provides broader online financial services, including data and research.
Many developers have been actively using these crowdfunding platforms to reach out to potential home buyers at a much earlier stage than before, as part of their efforts to reduce inventories. Apart from that, crowdfunding is also being used to cut construction, marketing and sales costs while speeding up cash collection, said Shi Kancheng, chairman of Zhong An Real Estate .
Zhong An, like other online realtors, embraced the internet by testing crowdfunding in July when it put for sale online some units in a new project in Hangzhou. ” That enables us to find specified demand first and then make products, ” Kancheng told the South China Morning Post.
Crowdfunding, which pools funds from a large number of investors via the internet, was acknowledged by Premier Li Keqiang last year and legalised in December. Then 10 different ministries issued a joint set of guidelines in July to define it as a public small equity investment via the internet to fund start-up firms. In August, the China Securities Regulatory Commission issued a notice to check crowdfunding activities in the country.
Despite regulatory uncertainties, many mainland developers including Dalian Wanda Group and Country Garden have been raising funds and selling homes through crowdfunding websites such as Zhongchou.com and e-commerce platform Taobao’s crowdfunding channel.
In Singapore, where it is not clear whether such investment activities should come under the oversight of the city state’s monetary authority, real estate crowdfunding operator CoAssets has been operating for more than two years and got listed in Australia’s junior stock market in July as it expands across the region.
” We have observed that developers, after using our site to crowdfund, found it very effective to reach out to the crowd to also sell some of their products, ” CoAssets co-founder Getty Goh told a forum in Macau.
Most of the website’s recent listings are tagged as ” presales ” rather than ” crowdfunding “. For example, a developer called Jalin Realty International is marketing a residential project in Melbourne. Apart from introduction of the project and contact information, the website shows minimum investment is A$340,000 and that 28 investors were interested as of last Friday.
The listing on the National Stock Exchange of Australia is a step to bring itself to a larger regional audience and getting prepared for an eventual initial public offering in one or two more years.
Goh described CoAssets as a website for developers to raise bridge loan or short-term working capital at a maximum amount of S$5 million per deal. ” The hardest sum to raise is between the S$500,000 and S$2 million mark, because it is too big for friends and families to chip in, but too small to get banks interested in, ” he said.
CoAssets has raised S$40 million through over 30 successful deals, in the form of debts. But Goh is moving into equity investment in Malaysia, where the local securities regulator approved six equity crowdfunding operators in June, ahead of many other Asian nations.
The crowdfunding platform is also looking at opportunities in Indonesia and China. The current project listings on its website come from all over the world, including London and Tokyo as well as cities in China and Cambodia. ” There is a lot of demand for this kind of services here in Asia, ” Goh said, when pointing out that the number of registered investor on CoAssets’ website has soared above 26,000.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreTurkey Launches Golden Visa Residency Scheme
Turkish Economy Minister Nihat Zeybekci says the country is set to follow in the footsteps of Spain, Portugal and Cyprus and launch its own Golden Visa scheme to grant citizenship to those foreigners who invest from €500,000-€1m in property.
Leading Istanbul agent, Universal21 , says the move could revolutionise the Turkish property market. Director Adil Yaman, says, ” Turkey, and the country’s biggest city of Istanbul, is widely lauded as a cultural melting pot and this is certainly – increasingly – the case in the property market. In recent years growing numbers of external buyers have looked to purchase property in this wonderful country, and the exciting new announcement by the Minister looks set to escalate this to impressive levels in 2016 “.
” Benefitting individuals looking to purchase in a growing market, providing welcome advantages alongside their property purchase, as well as the economic benefits for Turkey as a whole, this is a positive move from the government for a country open to, and welcoming of, foreign investment “.
The number of overseas buyers in Turkey rose 19% year-on–year from January to September 2015 and by 26.1% in Istanbul, according to data from the statistics office, Turkstat .
With the success of the Portuguese Golden Visa scheme, which has brought in €1.47billion of investment since its launch in 2012, €1.33billion of which was from property purchases, it is easy to see why this would be a welcome move for Turkey, says Universal21.
Compounding the notion that the nation is focused on expanding the already flourishing property market, the government says it wants to see overall foreign investment reach $10billion.
The knock-on effect of the proposed scheme to the sector and those who operate in it, as well as to the country’s coffers as a whole, is clear is welcomed by the agency.
September saw Turkey’s largest city of Istanbul overtake Antalya as the top Turkish location for house sales to foreigners, registering a growth of 26.1% from January to September 2015, compared to 2014 figures.
Universal21 are providing new projects in response to this growing demand in the city for high quality, affordable housing. Having just launched their new project, 7th Avenue, the agent is already seeing impressive interest levels. Situated in the middle class neighbourhood of Old Beylikdüzü, in close proximity to local amenities and restaurants, a 20 minute drive from Ataturk international airport, a short drive from the beach and a 10 minute walk from the area’s major shopping centre, Marmara Park, 7th Avenue is perfectly located.
Hotel investments have also increased considerably in 2015 with the Turkish government pouring investment into its hospitality sector to meet swelling visitor numbers, particularly in Istanbul. There has also been a rise in investment from the Middle East this year with buyers focusing on buy to let opportunities in Istanbul’s up and coming suburbs.
Despite geo-political tensions, Turkey’s real estate market has improved significantly this year, supported by rising tourism and increased affluence. The introduction of the golden visa scheme will further incentivise buyers from non-EU countries seeking the advantages of European residency.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreJamaica’s Hotel Sector Receives US$200m Boost from Investors
Around US$200m has been pumped into the tourism sector by international investors for the construction of two five-star hotels.
The hotels are to be located in the parish of Trelawny in Cornwall County, northwest Jamaica and will provide 800 additional rooms and 1,000 permanent jobs in the Caribbean country’s hospitality sector.
The investment has come from Ocean by H10 Hotels, a Spanish and Canadian joint venture group. Design work for the properties has commenced, and construction is slated to start in 2016, with the openings set for late 2018.
At a press conference at the Jamaica Tourist Board’s (JTB) New Kingston offices on Monday, November 16, where the announcement was made, Tourism and Entertainment Minister, Hon. Dr. Wykeham McNeill, said the investments in the sector will deliver over 10,000 spin-off jobs over the next two years.
” We are seeing a boom in the tourism sector now that is unprecedented. We are going to get new properties, we are creating linkages, so that Jamaicans, and Jamaican companies can benefit from the investments that are taking place, ” he said.
In October, the international hotel chain, Karisma Hotels and Resorts, announced an investment of over US$900 million to add some 4,000 more hotel rooms over the next decade.
By December 2015, some 2,694 new rooms will come on stream, as a result of upgrading and expansion of existing properties, as well as construction of new hotels, from an investment of US$500 million.
The Tourism Minister said with the jobs flowing, his Ministry is working with agencies such as the Housing Agency of Jamaica (HAJ) and the National Housing Trust (NHT), to ” ensure that the housing for the workers is all put in place “.
An investor with Ocean by H10 Hotels, Carlos Moleon, credited the measures being undertaken by the Government, which have made the country attractive for business, saying the Administration is doing a ” great job with their reform towards bringing in foreign investors. That is why H10 has decided to invest in Jamaica “.
For his part, Chairman of the JTB, Dennis Morrison, said the agency will ensure that subsectors such as manufacturing and agriculture can seize opportunities from the investments.
” The agriculture sector will feel the impact of that and we are coordinating the efforts, so that investors in the economy, such as furniture manufacturers, can benefit fully, ” he pointed out.
Jamaica remains a luxury property market and foreign investment has been consistent in 2015, particularly for properties value at USD$1m . As one of the most developed Caribbean countries, there is a wealth of opportunity for savvy investment in its property market and with the hospitality sector meeting rising demand from tourism, there are significant opportunities for high-yielding investment.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUK House Prices Still Rising Despite Improving Supply
According to the Office for National Statistics this morning, UK property prices rose by 6.1% in the year to September 2015, up from 5.5% in August. The biggest jumps were seen in the east and southeast of England, and London, as usual.
Meanwhile, housebuilders have been reporting that business is booming. Taylor Wimpey’s chief executive has reported a record order book, boosted by wage growth starting to outpace inflation. It appears that construction is now rising to demand and supply of housing in the UK is increasing.
In the past year, more than 155,000 homes have been built, up by 25% year-on-year- significantly higher than previous estimates of just over 124,000 new homes. They feel they’re not getting enough credit for contributing to supply.
In addition, more than 20,000 new homes were created by converting commercial premises. That was up by 65% on last year. In some cases, established businesses have been evicted by landlords keen to benefit from the increase in their property’s value that comes from its conversion to residential use.
In London, more than 24,000 homes have been built, compared to earlier estimates of just over 18,000. Some of the capital’s most expensive areas saw their housing completions more than double in the most recently published statistics.
However, there is another major factor in the UK housing market, which explains affordability problems which is that it’s not just about the supply of houses – it’s about the supply of money.
With mortgages harder to come by and cash sales to investors an ever more important part of the market, it’s hard to see what will replace demand when interest from foreign buyers starts to wane. With interest rates still more likely to rise than to fall further, support is unlikely to come from the ordinary buyer in the street.
Estate agent Savills has published research highlighting the scale of the looming affordability crisis in UK housing, claiming 350,000 people will need financial assistance to rent or buy property by 2020. According to the figures, around 70,000 new households a year will be unable to afford the market rate for rental or mortgages each year for the next five years.
Houses for sale in the run up to Christmas are typically priced lower to attract buyers in a quieter market, but with low mortgage rates holding up demand at a time when supply remains low, asking prices have fallen by just 1.3 per cent, according to The Times .
Overall, the outlook for the UK property market in 2016 is generally bright, with conditions for homebuyers expected to ease, improving affordability and slowing price growth to more sustainable levels.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUAE Investors Spend 4.3bn EUR on Overseas Property in H1 2015
High net worth individuals (HNWIs) and private investors in the UAE spent €4.3bn snapping up properties across the world in the first half 2015, according to CBRE.
” Despite low oil prices, Middle Eastern purchasers remain very active, collectively investing €10.8bn outside their home markets in first half 2015. Almost €4.9bn and €4.3bn flowed out of Qatar and UAE respectively into direct real estate globally during the period, ” the property consultancy said in a report.
Nick Maclean, Managing Director, CBRE Middle East, said: ” Data from H1 2015 shows a continuing acceleration in the flow of capital out of Middle East region by private offices and HNWIs. This, to some extent, is compensating for a decline in sovereign wealth capital going overseas, naturally perhaps as a consequence of reduced revenue allocations because of recent oil re-pricing. The interest in overseas investments, particularly from the UAE, is also being influenced by some uncertainties in local real estate markets “.
Global commercial real estate investment reached €3.8bn in the first half 2015, the strongest first half of a year since 2007, and up 14 per cent year-over-year.
Although rapid growth has been maintained for several years, the rate of growth slowed during the said period and was vastly different at a regional and country level. The Americas experienced growth of 31% year-on-year, while a strong dollar impacted activity in EMEA (Europe, Middle East & Africa) and Asia Pacific (APAC). In dollar terms, EMEA was up just 5 per cent from H1 2014, with APAC down 19% year-on-year. When measured in local currency EMEA grew by 25%, while a decline in APAC was more muted at 9% year-on-year.
While recent activity was boosted by a few large sovereign wealth fund deals, the investor base is growing and so is their investment strategy towards greater geographic and sector diversification, with activity spreading beyond gateway markets to second-tier locations in Europe and the Americas, and more recently towards Asia Pacific.
Cross-border investors have grown in influence to become an important driver of commercial real estate investment globally, particularly in the last 24 months, and are changing the shape of the market. The world’s leading destinations, in terms of global capital flows, is a balanced mix of cities across all main regions—London was the most targeted city by cross-border investors in H1 2015, followed by New York and Paris.
This contrasts with the top destinations for overall investment where the bias is strongly on the US—New York was the leading city overall, followed by London and Los Angeles, the report said.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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