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- ExpoReal: Global Capital Targets European Real Estate
By Peter Damesick, Chairman, EMEA Research … Looking ahead, there are several reasons to think the flow of global capital into Europe real estate will increase further together with greater diversity of sources. Sovereign wealth funds (SWFs) are already major players in global real estate investment. SWF assets are set to continue growing and the pool of commodity-based SWFs is expanding. SWF allocations to real estate are increasing. The world’s pension funds are a further major source of real estate investment. In particular there a number of very large pension funds which currently have no or minimal global real estate — these include the world’s largest, the Japanese Government Pension Investment Fund with $1.4 trillion of assets.
A source of global capital which is now becoming very significant in international real estate investment is the huge and growing pool of long term savings in the world’s emerging economies. Among these economies, the generation of potentially mobile capital is greatest where countries have population age profiles biased toward the high savings middle age cohorts combined with strongly rising incomes per head and expansion of the middle class. South Korea and Malaysia, for example, are two countries which show this potent combination. China, by virtue of its size and rising per capita incomes, is set to become a major source of capital, with Chinese insurance companies already investing in European real estate. Over the longer term, India will see a massive expansion in its middle class and become a major source of cross-regional capital flows.
- Veros warns housing hot spots won’t stay as hot | REwired
So let’s pop the bubble talk right now. As Eric Fox, the Veros VP of statistic and economic modeling, prices are up for sure, but will not appreciate at a greater rate.
So these top markets are now at 10%+. That rate of growth will slow to around 5%, Fox said, as those markets work through supply issues.
Affordability will remain in the markets for the next two years as “we don’t see interest rates getting out of hand,” Fox said.
- North American Buyers Drive European Retail Property Investment Market – SA Commercial Property News | South African Commercial Real Estate Marketplace
The first half of 2013 saw significant North American investment in European retail with North American investors being the strongest net buyers of property in this sector, according to the latest CBRE Research.
A total of £15 billion was transacted in retail real estate in H1 2013, which is an increase of 17% on the same period in 2012.
- Sold! Auction.com Looks to Revolutionize Selling Real Estate | Commercial Observer
It’s quite a story. It’s quite a plan.
Auction.com, which bills itself as the “nation’s leading online real estate marketplace,” has sold more than $26 billion in real estate this way—100,000-plus properties—since its first auction was held in 2007. And the company has ambitious growth plans that could, if all goes smoothly, revolutionize not only how real estate is sold, but also the role of many who currently draw commissions on sales, such as lawyers and brokers.
Those plans involve a delicate adjustment in course and the successful execution of several initiatives.
- Chinese buyers have ‘insatiable appetite’ for Hawaii real estate – Pacific Business News
The Chinese are buying single-family homes in high-end areas ranging in price from $500,000 to $1.5 million, and 70 percent of them pay cash, Muhs said.
“They buy it because they can afford it and they are looking for deals, like distressed assets and when the economy slows,” Muhs said. “They come to top locations like New York City, Los Angeles, San Francisco with central locations and good schools, but Hawaii is there in the top 10, sometimes in the top five.”
He also pointed out that Chinese buyers like new, or newer, projects and look for infrastructure, such as shops and other amenities.
- Asia’s Wealthy Class Getting Much Wealthier – WORLD PROPERTY CHANNEL Global News Center
Asia-Pacific will have more millionaires and billionaires than any region in the world as early as next year, according to a study of High Net Worth Individuals (HNWI).
The number of Asian HNWI – people with at least $1 million in investable assets – grew by 9.4 percent in 2012 to reach 3.68 million and their wealth increased by 12.2 percent to US$12 trillion, the report from Capgemini and RBC Wealth Management. Asia-Pacific says.
If they don’t implode, we’ll continue seeing more and more investors from there over here in the US.
Source … https://www.worldpropertychannel.com/asi a-pacific-residential-news/asia-high-net -worth-individuals-capgemini-rbc-wealth- management-hnwi-ultra-hnwi-asia-wealth-h nwi-population-japan-wealth-hong-kong-ta iwan-7437.php
- Which Management Style Will China Adopt? – Nathan Richter and Stephan Richter – Harvard Business Review
The three nations that, in one way or another, lead the global economy at the moment are the United States, Germany and China. They lead it in very different ways.
For the United States and Germany, strong multinational corporations and technological innovation are the driving factors. In the case of the U.S., innovation is driven by a can-do spirit and a healthy appetite for risk, with established corporations and startups introducing some of the world’s most important and game-changing technologies. In Germany, a commitment to product quality and engineering excellence has been key both for multinationals and small- and medium-sized enterprises (SMEs).
Up to this point, China’s economic development has been focused on cost competitiveness and the adoption of foreign-developed technologies and innovations. Its global impact has been due mainly to its massive scale. The global financial crisis, however, marked the beginning of a new period in China’s economic history. China can no longer rely predominantly on foreign consumption as an engine for growth. It has to develop domestic consumer markets and orient its production towards them. Furthermore, rising wage costs make it highly unlikely that China can continue to grow by being the factory for many of the world’s simpler products.
To move itself forward and to move up the value chain, China needs to begin developing a management system and, more important, a culture for technological and product innovation. Germany and the U.S. offer the two main — and quite contrasting — models.
Read the whole thing. It’s thought provoking.
- Private-sector job gains pick up slightly: ADP – Economic Report – MarketWatch
Despite September’s gain, job growth is softening. Over the three months through September, the economy added an average of 162,000 private jobs per month, down from 220,000 at the start of the year, according to ADP.
“The job market appears to have softened in recent months,” said Mark Zandi, chief economist of Moody’s Analytics, which prepares ADP’s report. “Fiscal austerity has begun to take a toll on job creation.”
- Austin, Tex., Stands Out in Hotel Recovery That Has Hugged Coasts – NYTimes
AUSTIN, Tex. — Skittish developers have delayed new hotels across much of the country until the economy returns to health, and financing does, too. But in Austin, developers aren’t that wary.
A $300 million JW Marriott hotel, the biggest JW Marriott in the country and the city’s biggest hotel at 1.2 million square feet, is under construction on a full block near the Capitol. Developers broke ground on a Westin over the summer and a $350 million Fairmont will be going up a few blocks away.
Eight hotels containing almost 4,000 rooms are scheduled to open across Austin within the next three years, making the Texas capital one of the most active markets in the country for new hotel construction.
- Bank bailout legacy: five years later | Business | theguardian
Insiders and outsiders weigh in on the government program that bailed out Wall Street amid the 2008 crisis with taxpayer dollars.
Sheila Bair, Christy Romero, Neil Barofsky, Guy LeBas, Anat Admati, …
The collapse of Lehman Brothers ushered in the deepest economic crisis since the 1930s and motivated the US government to buy into financial institutions.
This series looks back on the Troubled Asset Relief Program (Tarp) — the government intervention that sought to calm the financial crisis and restart the economy in 2008.
- The Top 10 in Lease Negotiations – Cresa Blog
By Ryan Conboy, Senior Advisor, Cresa Pittsburgh
As you negotiate your commercial real estate lease, there are many different clauses that could impact your tenancy. A lower rental rate may not always be your company’s main priority. Here are ten issues to negotiate other than your rental rate.
It’s a good list, and landlords should be familiar with the items too.
- Don’t Rule Out an Asia Banking Crisis, S&P Says – Real Time Economics – WSJ
Asia came through the global financial crisis relatively unscathed and has been pacing world growth for the last decade. But it could be the next world hot spot for a banking crisis.
Standard & Poor’s Ratings Services warned Thursday of a threat to the region’s financial stability from a credit and debt bubble in China. In a downbeat look at Asia’s banking system, the ratings firm said slower economic growth in China could fuel a spike in bad loans even as the shadow banking sector continues to expand.
“A regional banking crisis isn’t out of the question,” S&P said in its report.
Much of S&P’s concern stems from the off-balance sheet lending by China’s banks—known as shadow banking—that goes unmonitored by regulators.
Unknown unknowns are lurking?
- Governments must not relax credit standards to boost growth, IMF warns | Business | theguardian
The International Monetary Fund has warned governments to resist the temptation to relax credit standards to boost growth as it highlighted the UK’s lack of lending to small businesses.
The global lender of last resort, which helped rescue Ireland, Portugal and Greece from bankruptcy, said policymakers need to weigh the short-term benefits of relaxing credit standards against the potential for a repeat of the 2008 lending bubble.
The warning comes less than a week after Conservative leader David Cameron pledged to bring forward the coalition’s Help to Buy mortgage support scheme, that critics say could spark a surge in house prices ahead of a devastating crash.
Keynesian economists have long criticised the IMF for backing moves by member governments to tackle supply-side reforms, including making credit easier, in opposition to calls for boosts to public spending to increase the demand for goods and services.
These critics, including Princeton University’s Paul Krugman, have argued that both the supply of credit and policies to increase demand are needed to recover from a deep recession and financial crisis.
What do you think?
- The real estate world is flat [VIDEO] | Inman News
As vice president for international development, Larry Oberly is responsible for the operations and growth of the Re/Max network’s international presence.
- World Trade Center Towers | Palazzo Resort Hotel Casino
The Palazzo Resort Hotel Casino Location: Las Vegas, Nev. Size: 7.4 million square feet When it officially opened in January 2008, this 7.4 million-square-foot, $1.8 billion casino-resort complex displaced the Pentagon in Washington, D.C., as the largest building in the U.S.