It’s Friday desk clearing time for this blogger. “Retired NBA star Deron Williams, formerly of the Brooklyn Nets, has finally sold his Tribeca penthouse at 35 North Moore St. for less than half its original asking price.”
“Condo inventory was up for the fourth consecutive month. GBAR President Jason Gell noted that the increase in condos available is largely coming from downtown Boston’s luxury market. That market experienced a 51% increase in listings from October 2019, he said. ‘It’s a strong seller’s market everywhere except the downtown Boston condo market, where listings are up over 50 percent from a year ago and the price per square foot has dropped by nearly $50. In fact, we may be looking at one of the best buying opportunities in Boston since the last recession,’ he said.”
“Squint long enough at the cranes poking through Seattle’s skyline these days and they may start to resemble middle fingers. But more nascent construction raises the question: Should builders be this optimistic about downtown’s future? For developers and realtors looking for quick returns, the answer is no. A condo backlog has signaled that it could be a while before inventory and prices approach comfortable levels for realtors.”
“After more than three years on the market, a Beverly Hills mansion initially listed for $100 million has sold at less than half that price. The 20,000-square-foot (1,900-square-meter) house sold this week for $48.4 million, including furniture, according to a Multiple Listings Service report. It’s the latest luxury Los Angeles property to go for a steep discount. The market is particularly tough for so-called spec houses, built by developers with lofty price expectations that have often proved unrealistic.”
“‘It was never worth that to begin with,’ Jonathan Miller, president of appraiser Miller Samuel, said of Opus’s original $100 million price tag. ‘High-end properties are moving, but they’re not moving for prices that are disconnected from the market.’”
“Even sellers of non-spec houses have had to ratchet back their price expectations. Before heading to prison for her part in the 2019 college scandal, actress Lori Loughlin sold her Bel Air mansion for $18.75 million, a nearly 50% drop from the $35 million she originally sought. Ellen DeGeneres and Portia de Rossi asked $40 million for their Montecito home that sold for $33.3 million. Travis Kalanick purchased his $43 million Bel Air mansion at a 42% price cut this year. A sprawling home built by Bruce Makowsky sold last year for $94 million — a 62% discount to its $250 million asking price.”
“Foreclosure lawsuits increased significantly in South Florida this year due to the coronavirus pandemic’s impact on the real estate market. There were 34 large foreclosure lawsuits filed from November 2019 to November 2020. That’s an increase of 23, or 161%, from the prior year. The properties targeted in 2020 included a mix of retail, office and industrial space; hotels; apartments; condominiums; and an equestrian training facility.”
“Some buyers are becoming wary of the bidding wars that have propelled prices to new records in the Greater Toronto Area. ‘I’m sensing a little bit of a pullback with buyers,’ says Leslie Battle, an agent with Royal LePage. ‘I think it’s the thin edge of the wedge that we’re going to see a little bit more of.’ Real estate values are disconnected from the realities of an economic recession and decreased immigration, in her opinion. ‘We may see some fall-out from people who are forced to sell,’ she says.”
“One morning, after years of financial prudence and solid creditworthiness, you wake up and it’s all gone. You’re no longer worthy. You’re a risk. In fact, you’re sub-prime. That is the fate facing thousands of Britons who, often for no fault of their own, could begin 2021 as ‘subprime’ borrowers if they have had more than six months’ of relief from COVID-19 debt woes. Despite raiding retirement savings to pay the arrears in May, Julia McPherson’s credit score tumbled from a near-perfect 997 in January to a ‘very poor’ 296 in July on a scale devised by a leading scoring agency.”
“The hit means she can no longer borrow at rates she considers fair or affordable. ‘Unless you are extremely wealthy, you’re only ever one or two months away from debt,’ said McPherson, who criticised lenders for denying customers access to low-interest rate loans as the pandemic continues.”
“For the aspiring landlord, there’s one bit of prime real estate that could prove particularly interesting. Sotheby’s is running the sale on an entire apartment block located in The Address on Adderley in the Cape Town CBD. It’s a buyers market out there at the moment due to the pandemic, which is bad news for homeowners.”
“The recent collapse of Chennai-based Lakshmi Vilas Bank marks the failure of the fifth financial institution in less than three years. ‘In absence of any viable strategic plan, declining advances and mounting non-performing assets (NPAs), the losses are expected to continue. The bank has not been able to raise adequate capital to address issues around its negative net-worth and continuing losses,’ the RBI said. The frequency at which financial institutions are failing in the country is alarming. IL&FS, Diwan Housing Finance Corporation, Punjab and Maharashtra Cooperative Bank and Yes Bank are four other banks and financial institutions that have collapsed since 2018.”
“The Housing and Local Government Ministry will be conducting a study and analysis on the state of supply and demand of residential projects to address the property glut in the country. ‘There is a heavy overhang in residential property caused by poor planning of projects and unsuccessful housing loans,’ Minister Zuraida Kamaruddin said. ‘Currently, property developers do not have data on demand estimation for residences to guide their projects,’ she told the Dewan Rakyat.”
“A potential surge in ‘distressed sales’ forced on cash-strapped Victorian homeowners in the fallout of the COVID-19 recession, has prompted a state Treasury warning about a further softening of the real estate market. Budget papers warn that the twin effects of desperate owner-occupiers and property investors forced to offload houses and apartments that have been left vacant while international borders remain closed could drive prices lower.”
“Property prices in Victoria dropped by just under 5 per cent between March and October, according to the Victorian Department of Treasury and Finance, with the budget papers showing sale volumes in October were 25 per cent below normal levels, with a higher-than-usual number of distressed listings. ‘Mortgagees with housing equity less than 10 per cent of the value of their asset account for 5 per cent of total loans but nearly double the share of deferred loans,’ the budget papers state. ‘This suggests such mortgagees are finding it more difficult to meet loan repayments.’”
“Chinachem Group is changing its land-bidding strategy to focus on mass housing and move away from super-luxury trophy projects as the Hong Kong developer marked its 60th anniversary in the business. The Lands Department has called for bids by December 18 for the land valued by the market at more than HK$10 billion (US$1.29 billion). Bids received at a previous auction in October 2018 failed to meet the government’s price expectations. ‘We now have no plan’ to bid for the land, said chief executive Donald Choi.”
“Beijing-based rental expert Danke Apartment is struggling to get its house in order. The pandemic-induced cash crunch has left its clients – property owners and tenants – jostling each other. Danke sources flats from property owners then rents the renovated and furnished units for tenants, similar to WeWork’s WeLive service. Nevertheless, the firm running short on liquidity has been defaulting on rents since September in major cities, including Beijing, Shanghai and Hangzhou.”
“A property owner in Tianjin, surnamed Wang told CGTN that he had not received monthly rental payments from Danke for the last two months. ‘Danke’s staff told me to contact the company for solutions,’ he said, adding, ‘The staff said the company has delayed payment of their salaries as well.’”
“The issue has led many to question Danke’s aggressive expansion policy based on credit. Instead of renting out these flats at a premium like some of its competitors do, Danke often issues discounts to win tenants. But no lunches are free. The company reported a net loss of 1,234.4 million yuan ($174.3 million) for the first quarter of this year, compared with a loss of 816.2 million yuan in the same period of 2019.”