Real Estate

U.S. student debt dims home-ownership outlook

17 Jul 2017

Economic growth is supposed to lure millennials out of their parents’ basements. But a study from the New York Fed suggests that borrowing for surging college costs accounts for up to a third of the decline in home buying by 28-to-30-year-olds. That purchasing power won’t return.

GLP logistics buyout just about gets from A to B

14 Jul 2017

The Singaporean group accepted a S$16 bln offer from its own CEO and Chinese buyout firms. The decision seems more about deliverability than price, which is a worry when buyers are also insiders. Still, the 25 pct premium adds enough financial bubble-wrap to ensure safe passage.

Sunac and Wanda charm market with trust loan magic

12 Jul 2017

Property giant Dalian Wanda has lent its credit profile to rival Sunac to help it buy $9.3 bln of Wanda's own properties. Investors are enthusiastic, but the deal relies on a class of shadow financing that is increasingly unpopular with regulators for good reason.

Sunac seals China knight role with $9 bln Wanda buy

10 Jul 2017

The indebted developer is taking a big portfolio of tourism and hotel properties from Dalian Wanda, allowing the latter to reduce debt. Sunac has already splashed cash to help troubled tech startup LeEco. The latest overtures will add to Sunac's imposing mountain of leverage.

Breakdown: A graphic portrait of Hong Kong

28 Jun 2017

The city’s fortunes have become ever more entangled with China’s. Breakingviews shows through graphics how the turbulent relationship has shaped the economy and markets, whilst stoking property prices and political tensions.  

Hadas: The constant challenge of deep-set problems

21 Jun 2017

The deadly fire in London’s Grenfell Tower has exposed the UK’s deeply flawed approach to housing. But serious policy flaws aren’t exclusively British. Americans fail in healthcare and Greeks won’t pay taxes. The only cure is a values revolution.

Li Ka-shing’s successor faces big disruptions

20 Jun 2017

The retirement of the 88 yr old would signal the end of an era for Hong Kong's tycoons. His eldest son is waiting in the wings to inherit the empire topped by CK Hutchison. He faces daunting challenges from the inevitable departure of his father’s trusted lieutenants to Brexit.

Public housing pressure builds for next HK leader

20 Jun 2017

The city's real estate bubble, buoyed by low rates, limited supply and mainland money, is stoking social unrest. House prices are out of reach for most; rents are punitive. Like prior leaders, Carrie Lam promises more affordable housing. It's better policy that's in short supply.

India’s $1.3 trln housing boom has a solid frame

22 Jun 2017

Developers are turning their attention from luxury to cheap housing, as a raft of subsidies and tax incentives boosts demand. A sustained uptick could provide a fillip to the economy. Investors are betting politicians will play their part and keep land in supply.

Epic rally leaves China Evergrande on shaky ground

12 Jun 2017

The Hong Kong-listed developer is 2017’s best-performing major stock, up roughly 240 pct. Business is brisk, costly debt is being repaid, and a bold mainland listing is on track. It has also quit a distracting battle over rival Vanke. A $28 bln market cap still looks overdone.

Shawbrook Bank bidders bet that slower is better

5 Jun 2017

Buyout firms Pollen Street Capital and BC Partners have raised their offer for the UK challenger bank to 868 mln pounds. The price looks low given management’s aggressive growth targets. But past troubles mean scrapping those goals might be the whole point.

Blackstone sells China some unlikely trophy assets

2 Jun 2017

The buyout firm is cashing in on an appetite for logistics by selling Logicor to CIC for 12.3 bln euros. A European e-commerce boom and shortage of property is driving up valuations and rents. Prime warehouses now have better yields than a luxury store in London’s Mayfair.

Hong Kong fights losing battle with property boom

22 May 2017

The territory is trying yet again to cool a red-hot real estate market. New curbs will make home loans less profitable for banks and increase down payments for borrowers. An acute land shortage and Chinese buyers' desire to diversify away from the yuan will limit the impact.

British property shows signs of wear and tear

17 May 2017

British Land’s full-year earnings increased 7.4 percent and leasing activity is surprisingly strong. Tweaks to the group’s portfolio should offset Brexit pressures. Still, shorter leases, lower values and a step-up in disposals are a better indicator of what’s to come.

Relief offer hints at solution for Fannie, Freddie

11 May 2017

Regulator Mel Watt wants the housing-finance firms to rebuild their capital buffers to avoid fresh bailout risk. It’s a temporary band-aid while the administration ponders the firms’ legal status. Yet Trump’s Treasury should seize the idea as the basis for more-lasting reform.

Canada’s subprime trouble is drama, not crisis

8 May 2017

A run on the Home Capital mortgage lender has eerie echoes of 2008. But structural strengths and regulatory awareness mean the Canadian financial system is far sounder than its neighbor's before the crisis. Still, high housing prices and consumer-debt levels are economic risks.

Cheap boss is a luxury Bovis can’t afford

2 May 2017

The troubled UK homebuilder's investors approved a hefty pay package for its new boss. He could earn over 100 times the average UK construction worker, up from 76 times for his predecessor. A politically incorrect salary is the price Bovis pays for a much-needed turnaround.

Evergrande’s buyback blitz raises new red flag

28 Apr 2017

The Chinese property developer spent over $800 mln buying back shares in the last month, pushing its free float down as low as it could go. That may help ease a planned backdoor listing in Shenzhen. It is also fresh evidence of Evergrande's financial aggression.

Online retailers betray limits of the internet

18 Apr 2017

Websites like Amazon and furniture seller Made.com are opening physical showrooms so punters can look before they buy online. Being footloose remains better than having old retail’s cost bases. But the new entrants wouldn’t be hiking their own expenses if they didn’t have to.

Life Down Under is good – maybe too good

11 Apr 2017

Australia is enjoying its 26th recession-free year, thanks to insatiable demand from China. Yet household debts have soared and housing markets are overheating. Taming a runaway property market without nasty accidents would make the economic achievement even more impressive.