Real Estate

California still showing the way on U.S. housing

25 May 2010

A key index of U.S. home prices dipped in March. But Californian cities, among the hardest hit by the credit crunch, posted gains. Yearonyear, they have appreciated far faster than the 2.3 percent seen nationally. The Golden State could pull the rest of the country along.

UK house prices still in shark-infested waters

24 May 2010

The new government wants to jack up capital gains tax, which could prompt the wealthy to dump second homes. Public spending cuts could push up unemployment, dampening demand. Wealthy Greeks and bankers may keep London afloat. But average UK house prices could end the year down.

British Land surge hasn’t helped UK banks’ assets

18 May 2010

The UK commercial property company's assets soared 13.5 pct in value last year. The rise has raised hopes that RBS and Lloyds will be able to sell down their 100 bln pounds of exposure. But the chasm in quality between the best stock and the banks' holdings will hold them back.

Fannie, Freddie bailout plays like Greek tragedy

6 May 2010

The U.S. has now blown $136.5 billion keeping Fannie Mae and Freddie Mac alive. That puts it on par with Greece s latest bailout. Yet, Washington policymakers continue to dither on what to do with the failed housing giants, ensuring the price tag will be far higher.

Pulled Chinese IPO sign of troubled times

6 May 2010

Swire has abandoned its $3 billion property listing. The Hong Kong conglomerate was not a desperate seller, and investors may have balked at the price, especially as China is trying to cool real estate fever. But fearful markets Chinese and global look like the real culprit.

California hints at broader U.S. housing recovery

4 May 2010

Its residential property market was the canary in the coalmine that signaled the start of the bust. Now, housing in the Golden State looks on the way to a healthy rebound. It could be an early sign that a wider national upturn will soon take hold.

Bold investors make fat returns from Dubai crisis

26 Apr 2010

Funds who bought the bonds of Dubai property developer Nakheel at deep discounts late last year have had their courage rewarded. The bonds have jumped 70 percent on hopes that Dubai will ensure they pay out at maturity. That bet looks increasingly safe.

Property tax should target China’s empty nests

22 Apr 2010

Beijing is focusing on credit to curb bubbly house prices. But Chinese homes are financed mostly by savings, not debt. A proposed annual tax might restrain speculation, by introducing a cost for keeping properties empty. It won't cure China's property ills, but it's a start.

General Growth faces unenviable crossroads

21 Apr 2010

The mall owner s minority holders have been pulled from the abyss. But now, one bankruptcy exit plan involves a large slug of pricey warrants while the other gives Simon, a big rival, a potentially costly blocking stake. Whichever stalking horse wins will bolt with some spoils.

Synthetic CDOs needed two to tango

19 Apr 2010

Goldman is in hot water over a 2007 example. Breakingviews explains how these creations helped investors with opposing views on U.S. subprime mortgages place bets and how even then, there were still those who believed subprime would recover as well as nowfamous shortsellers.

China’s property curbs score two out of three

16 Apr 2010

A new crop of tweaks and planned taxes may discourage some speculators and increase the supply of housing. But inflationfearing buyers don't believe prices can really go down. To really get this market under control Beijing has to be tough enough to persuade them they are wrong.

Housing short sales get helpful shot in the arm

6 Apr 2010

Housing busts are messy, drawnout affairs. Short sales when the borrower sells at a loss that the bank agrees to eat are among the quickest of fixes. It s encouraging they re on the rise. Hopefully, the U.S. government s latest interest will encourage many more.

Spain could face years of housing woe

25 Mar 2010

House sales perked up in January, but it's far too early to call the end of the slump. Unwanted new homes are still hitting the market, while more than 1 million stand empty. Even if the unemployment rate starts to fall soon, the market may not fully clear until 2013.

Reform of U.S. housing policy needs more than talk

23 Mar 2010

Fannie Mae and Freddie Mac are potentially the biggest drain on U.S. taxpayers of all. Yet Tuesday's hearing on their future in Congress seemed like a meeting to talk about the next meeting. Reining in the agencies is politically charged but it needs to start soon.

Private MBS market may soon crawl out of bunker

11 Mar 2010

The first big nonstandard U.S. mortgagebacked bond issue in almost two years may be in the works. It will need to be squeaky clean with oodles of investor protection, and the seller may lose money. But the kudos of reopening a key market could be worth it.

Funding crunch points down for UK house prices

10 Mar 2010

The downward turn so far this year is likely to persist. A funding gap for mortgage lenders creates a lack of finance for house buyers. Prices could fall substantially. Just how far depends on how successfully the authorities can buoy growth, inflation and earnings.

U.S. housing giants are city-sized property owners

8 Mar 2010

Fannie Mae and Freddie Mac owned some 131,000 homes at the end of last year, or the rough equivalent of the San Francisco housing market. It's the dark side of guaranteeing mortgages, and one reason why the government should work toward getting out of the business.

Mall owner’s bankruptcy exit plan looks gimmicky

25 Feb 2010

A scheme to revive General Growth by shareholder William Ackman and Brookfield is loaded with bells and whistles. Simon Property s plainold cash offer still sounds better, especially for creditors. But Ackman s contraption may achieve one thing: getting Simon to sweeten its bid.

Where do Chinese go to avoid a bubble? Hong Kong

24 Feb 2010

Hong Kong looks ripe for a housing bubble, with low rates, easy mortgages and an overheated land auction. But Hong Kong residents, who have been there before, are likely to be cautious. Much of the money is coming from Chinese investors, to whom Hong Kong looks like a bargain.

One big dividend U.S. taxpayers could forgo

24 Feb 2010

Freddie Mac managed to get by without any public funds in the fourth quarter. But the mortgage finance giant isn t done tapping U.S. government coffers. That makes the pound of flesh being extracted from Freddie a 10 pct annual dividend look counterproductive for now.