2018/10/10: there's a paradox here: New York real estate is valuable because of the people who want to live there because of the vibrancy of the city -- but as the city is choked off from real activity, the value of the real-estate begins to fall. And once the fall starts, it accelerates: as with all bubbles, a crisis of faith in the market precipitates a panicked sell-off, which deepens the crisis.
That dynamic is playing out in New York today: September 2018 sales volume is down 39% from September 2017, with prices dropping by 9%;
There is a ton of super-lux property about to enter the market: 9 skyscrapers this year, and 20 more by 2020.
Garrett Derderian of Stribling thinks the real number is more like 1:15, since, he claims, developers have been lowballing their supply numbers, mindful that a full picture will send prices falling further. “They are holding back homes that they would otherwise be actively marketing, and which would therefore show up in inventory figures,” he says. Inventory figures are being “significantly manipulated” by the practice of excluding this so-called shadow inventory, according to Miller.
Prices for super prime homes have been falling steadily. “In the market north of $10m, you’re seeing prices off anywhere from 10 to 30 per cent from the peak in 2014,” says Miller. In the third quarter of this year, the average home sold above $10m went for 13 per cent less than its asking price, the biggest discount of any price bracket tracked by Stribling.
2017/09/27: Many young homeowners in booming cities owe more than they earn, and some even falsify salary details to get bigger mortgages.
“Chinese banks typically allow homebuyers to use up to half of their monthly incomes to repay mortgages,” said Julia Fan, a former state bank manager. “But the market in cities like Shenzhen and Shanghai is full of buyers whose out-of-pocket property spending is much more than their actual monthly salaries.”
Bill Duan, a manager at a Chinese investment bank, said it was not unknown for Chinese buyers to exaggerate their salaries or use fake payslips when taking out mortgages and loans, “and this may be when the problem starts”.
“It’s known among industry insiders that local branches of the banks in many cities do not always double-check salary details with employers, even though the applicants offered salary certificates for several times the city’s average wages,” he said.
After excavating your mega-basement in Holland Park, it's cheaper and easier to leave the JCB entombed down there with the pool, personal cinema and staff quarters.
2013/04/09: The collapse of Spain's property-led economy stands to highlight the intense yet fraught relationship between capital and the built environment in times of economic crisis.
As seen at developments such as Valdeluz, capitalism’s destructive creativity is particularly visible at moments of economic crisis. Envisioned as a new town with 9,500 houses for nearly 30,000 residents, it lies approximately fifteen minutes south by car from the neighbouring town of Guadalajara. As a dormitory town for Guadalajara and Madrid (which lies 60 kilometres away), Valdeluz’s isolated location is ameliorated by the presence of a new, high-speed train station and miles of new roads. In reality, however, neither the trains nor the roads are frequented as often as the developers imagined.
DETROIT -- The lens that magnified Detroit's critical tax crisis has sharpened its focus. Loveland...
* "Global warming has not slowed down
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Skeptics of Montgomery County's proposal to allow homeowners to build accessory apartments more easily claim it will change or harm single-family neighborhoods. But recent trends in housing suggest that those neighborhoods will change anyway. Slightly less than half of Montgomery households live in single-family homes today, and pretty soon they may no longer be
Economics for the 21st Century and Beyond
Tall-building boom may indicate impending disaster in China and India, claims report by Barclays Capital