The Reserve Bank of India’s decision to revise the repo rate and cash reserve ratio is another blow to the Indian real estate industry — which is already burning under a slowdown and price correction.
New Zealand’s house prices and interest rates are at their highest rates for years. Property Investors Federation vice-president Andrew King says
“a 25-year mortgage for 90 per cent of the cost of the country’s median-priced house, worth $345,000 last month, would currently cost a new home-buyer $745 a week, including rates, maintenance, insurance and an allowance for other costs. By contrast, the national median rent last month was only $305 a week.”
The devil is in the detail though. King’s figures are based on a 25 year mortgage, almost all mortgages written in the last few years are 30 years. He’s also assumed only a 10% deposit. That is low, most banks will add the extra costs on anyone borrowing more than 80% of the property’s value. King also assumes a floating mortgage rate of 10.95% – no one in their right mind would float their entire mortgage, especially now that the 2-year fixed rate has dropped to 9.2%, at that’s just an indication that interest rates are on their way back down, finally.
Q1 is the iconic 80-story skyscraper – impressive even on the Gold Coast, Australia’s home of skyscrapers. Q1 is Australia’s tallest residential tower was completed.
Less impressive are stories emerging of the losses that some property investors are taking. One 4-bedroom apartment on the 72nd floor was bought in March 2005 for A$3.4 million was re-sold in January this year for A$2.75 million, which is still a lot of money for a 417 sqm apartment, even one with “stunning views”. Which it should have as Q1, at 322.5m high, is the world’s tallest residential tower and the world’s 20th highest tower.
The prices of building materials are expected to rise by approximately five per cent during the third quarter of 2008 due to record oil prices, rising freight overheads and soaring demand.
Dropping property prices after an unrealistic boom period are causing small speculators issues in China
“When the real estate sector was booming, every morning, the first thing I did was to think how much I’d earned. Now, the first thing I do is think how much I’ve lost,” says Liu Bin, a Shenzhen real estate investor.
“I’m in a very awkward situation. All I can do now is to rent rooms out for the money to pay bank loans.” Liu says.
Not long after all the publicity of Nicole Kidman filming the, soon to be released, Baz Luhrman film “Australia” in the Kimberleys comes some sad news about another Kidnam. S.Kidnam and Co have put up for sale the enormous Ruby Plains and Sturt Creek stations which together cover almost 8000 sq km of cattle country in West Australia’s East Kimberleys.
It looks as though all the emirates are trying to emulate Dubai’s success with the recent announcement of a new residential tower in Ajman, UAE.
To be built at an estimated cost of $68 million, the Emerald Tower will be situated in the newest development area of Emirates City, located on Emirates Road, Ajman.
The Emerald Tower will be a 50-storey residential tower equipped with full amenities like health club, swimming pool, advanced CCTV and safety systems, prayer room, 8 high-speed elevators along with covered car parking for each unit.
Mumbai’s real estate bosses were forced to take some drastic measures to keep up interest in investment property in Mumbai after there was a slump in the beginning of July. The total real estate intake of the city was been left at just thirty percent of what it was. Ofcourse prices have been affected by this slump with them going done anywhere between 10 to 15 per cent in most places. Industry insiders say that this is also the case in Delhi.
British visitor numbers to Lanzarote have jumped by 15.6% during the first half of 2008. According to figures recently released by the Spanish airport authority AENA. An unexpected upsurge that flouts fears that the credit crunch could kill off overseas travel and which is also helping to maintain buoyant demand for property in Lanzarote.
The continuing mining boom and related job opportunities fueling net immigration to Western Australia isn’t stopping the state’s property prices dropping reports the Real Estate Institute of Western Australia.
WA house prices peaked at the end of 2007 when the Perth median price reached $475,000, prices have now dropped to $446,000.
