The Australian
25 October
The national sales rate average for auctions in Australia is expected to remain above 70% for the 16th consecutive week. A total of 1,605 properties went under the hammer in Sydney on Saturday – the largest total for the year. In Melbourne, agents reported one of their best weekends of sales since the last peak of the market in 2007. The news has increased pressure on the Reserve Bank of Australia to increase interest rates.
Al Bawaba (UAE)
25 October
Hines has formed a strategic alliance with Abu Dhabi National Property Company PJSC, the real estate arm and subsidiary of the National Bank of Abu Dhabi, to form a property management business throughout the Middle East. ADNP/Hines will first target management contracts on commercial real estate in Abu Dhabi and Dubai.
China Briefing
26 October
Hong Kong’s Monetary Authority has released a circular aimed at tempering the territory’s hot high-end property market by increasing the minimum downpayment on luxury homes from 30% to 40%. The circular is aimed at preventing the market from reaching unsustainable high prices. The move follows news last week that a 572 sq m flat in the territory broke all world records on price and sold for a total of HK$439m, equating to HK$767,000 per sq m. According to the circular, the loan-to-value ratio for residential properties valued at HK$20m or more will be capped at 60%.
Wall Street Journal
26 October
Commercial real estate company Capmark Financial filed for bankruptcy protection on Sunday, wiping out the investment of several private equity firms, including Kohlberg Kravis Roberts & Co. Capmark, which was created in March 2006 through a leveraged buyout of the commercial real estate assets of General Motors finance arm GMAC, had said earlier this year that it might file for bankruptcy.
The Globe & Mail (Canada)
25 October
Analyst AMP Capital Brookfield estimates that Canadian REITs have raised more than a billion Canadian dollars over the past year to invest in property. RioCan – the largest REIT in Canada – says it will make a “major” purchase in the US shortly.
