The Directorate of Real Estate in Lebanon has released a report which was published by Bank Audi Weekly Monitor this week. The report states that the total value of property sales in Lebanon in the first half of 2009 was at L£3.7033 trillion (Dh90.59 billion), down by 5.2% from the same period 2008.
Worldwide economic downturn brings with it the expectation of mergers and acquisitions, unpredictable pricing in the realms of the sales and rent markets and cautious lending, in a bid to reach a (supposedly) smooth road to market and economic recovery.
Dubai-based developer, Emaar properties saw another slide in share prices after closing it’s offices in Algeria due to “a lack of progress which is beyond the company’s control.” The action came after announcements that Emaar will be merging with several other government-owned developers, and threw more confusion and lack of confidence into Dubai’s stock and real estate markets. Investors reacted badly to the proposed merger and, Emaar’s shares fell sharply on the announcement. Several analysts have stopped rating the company, because of lack of transparency in the deal, but one thing is clear – the merger is highly likely to damage existing shareholders. Emaar shares dropped another 7.2%, to close at 2.60 dirhams (71 cents) Sunday after the Algerian announcement.
Whatever the government press release farms (newspapers) might be saying, those who have tried to refinance with poor credit will know that the economic crisis is alive and well currently. The news from the UK is frankly shocking at the moment, and any suggestion of a house price recovery should be taken with a very large pinch of salt.
Following on from Emaar’s recent announcement that they will merge with selected parts of Dubai Holdings, another merger has just been announced - Standard & Poor’s Ratings Services said today that it had decided to keep its ‘A’ long-term credit ratings on Dubai-based real estate developer and hotel operator Dubai Holding Commercial Operations Group LLC after an announcement that the company will now merge with Emaar. This is the S&P press release:
Asking prices for houses in the UK dropped in June, after rising consecutively in the preceding four months, a report from the property website Rightmove showed Monday. With sales volumes considerably off compared to last year, it would appear sellers are finally coming to terms with the realities of the market. The average asking price of property slipped 0.4% month-on-month in June, after rising 2.4% in May. The average asking prices declined to £226,436 from £227,441 in the preceding month. Despite the fall in June, the asking prices have increased 6% since January, Rightmove said.
SINGLE LARGEST ONE-MONTH DECLINE – Index Stands 25.3% below April 2008 Levels; 29.5% below peak of October 2007
The Moody’s/REAL National All Property Type Aggregate Index from Real Estate Analytics, LLC, (REAL), measures 135.31 for April 2009, a decrease of 8.6% from the previous month and single largest one-month decline. The Index, which has captured price data through the end of April 2009, is now 25.3% lower than it was a year ago and 29.5% below the peak measured in October 2007. The index also indicated a 27.4% drop in prices over the past two years.
More on MOODY’S/REAL COMMERCIAL PROPERTY PRICE INDEX DECLINES 8.6% FOR APRIL
Foreclosure rates in the U.S. are big news world wide. The continuing glut of foreclosed and distressed properties on the U.S. market caused home values to drop another 16.8% over this time last year, and in some parts of the U.S. the drop was even steeper.
The U.S. real estate market is either showing signs of recovery or continues to melt down to new and ever more frightening lows, depending on what you read and who is writing it.
