News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

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  1. Having Two Homes In China Is Not Enough – In Photos: Top Global Real Estate Markets For Affluent Chinese – Forbes News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    For the truly affluent Chinese, of which there are hundreds of thousands these days, having a home in Shanghai and one in Hong Kong is passé. You’ve made your neighbors jealous if you have a home in Malibu. In fact, according to the National Realtors Association, Chinese buyers accounted for 12% of all the non-American buyers of California real estate in March of 2013. That puts them only behind the Canadians, which accounted for 23%. Here’s the kicker: China’s home buyers spent more than twice what the Canadians spent, dishing out upwards of $425,000 for a piece of the California Dream. Forbes spoke with Andrew Taylor, the Aussie CEO of, China’s biggest real estate source for those looking to buy overseas or connect to those who are on the prowl for property. Here’s Juwai’s top 10 most searched for destinations, along with comments from Taylor. Sales data not included.

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  2. Will the Economic Recovery Shut Down? – YouTube

    Freddie Mac’s Deputy Chief Economist, Len Kiefer, gives a video preview of the October 2013 U.S. Economic and Housing Market Outlook.

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  3. Indonesia Home Prices Rise as Demand Bucks Higher Rates – Bloomberg News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 percent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 percent this year.

    Inflation eased to 8.4 percent in September after reaching a four-year high of 8.8 percent in August. Bank Indonesia forecasts inflation of 9 percent to 9.8 percent at the end of the year and has already raised its benchmark interest rate by 1.5 percentage points since early June to 7.25 percent.

    “Even though the BI rate has been raised, mortgage rates won’t rise as high as surging property prices in certain areas,” said Anton Sitorus, head of research at the Indonesian unit of Jones Lang LaSalle Inc. (JLL) He expects mortgage rates to climb to an average of less than 11 percent, and estimates home prices will jump 20 percent to 30 percent a year in certain areas across Indonesia.

    That compares with a return of 5.25 percent for a two-year term deposit at PT Bank Mandiri (BMRI), the country’s largest lender by assets, and a 7.3 percent yield for Indonesia’s 10-year government bonds.

    Bank Indonesia has already taken action to try to stem the potential for property bubbles. The central bank cut the maximum loan-to-value ratio for a home buyer’s second house to 60 percent, and for third and subsequent houses to 50 percent from 70 percent previously, effective on Sept. 30. It began requiring lenders to demand minimum down-payments for housing and vehicle loans in June last year.

    Singapore’s government has increased efforts to tame property prices that had surged to a record, adopting measures including a cap on debt at 60 percent of a borrower’s income, higher stamp duties on home purchases, and higher real-estate taxes.

    But foreigners are not allowed to buy there.

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  4. China central bank may tighten cash supply as home prices fuel inflation fears | Reuters News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    (Reuters) – China signaled concern on Tuesday that ample credit could fuel inflation as a report showed house prices jumped the most in nearly three years, with double-digit gains in major cities.

    A policy adviser to the People’s Bank of China told Reuters the authority may tighten cash conditions in the financial system to address the inflation risks, while the central bank refrained from supplying cash to money markets for the second day running.

    If it also avoids injecting cash at its next money market operation on Thursday, the effect will be a net weekly drain of 58 billion yuan – the second biggest since February.

    “Policy fine-tuning will rely mainly on open market operations and I cannot see any possibility of changing interest rates or bank reserve ratios.”

    Song’s [“Song Guoqing, an academic member of the central bank’s monetary policy committee”] comments and the sharp rise in house prices highlight Beijing’s policy quandary.

    On the one hand, policymakers want to avoid a buildup of market and economic imbalances, such as a debt-fuelled property bubble.

    On the other hand, they are reluctant to use more potent instruments to control the imbalances in case they also blunt a modest economic recovery ahead of a crucial policy meeting next month.

    In our view, China should be worried about the bubble rather than trying to maintain the appearance of 7%+ growth.

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  5. Susan de Franca Grants All Your Real Estate Wishes | The New York Observer News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    Susan de Franca seems to be on real-estate marketing’s cutting edge.

    What do people use to market now that they no longer use the New York Times?

    There’s so much technology. All luxury residences have websites. Some do films and movies. Some do Q&As with the architects and the designers. [Selling properties] is much more lifestyle driven, where in the past you didn’t see all of these creative marketing outlets. Some do some print advertising, but we see less of that than we did.

    What makes a successful marketing campaign? What’s your style?

    I think the number one [thing] is to understand who you are trying to sell to. Think of your targeted demographic and then create a position for your property that will resonate with your [target] pool in a thoughtful and responsive way. A marketing campaign should also be visually and intellectually engaging. No smoke and mirrors, either. It should be clear.

    Gone are the days of smoke and mirrors—the market has become very transparent. Part of that is due to social media and there is a lot of information, compared to the past, where buyers can shop at home and do their own competitive assessment and analysis. This information is available to everyone which puts a responsibility on marketers and developers. The consumers are more educated than they used to be.

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  6. Wayne County treasurer expects up to 10,000 Metro Detroit properties to be sold in auction | News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    DETROIT, MI — In the first round of the 2013 Wayne County tax foreclosure auction, when the minimum bid was the back taxes owed on the property, only about 800 properties were sold, Wayne County Deputy Treasurer Dave Szymanksi told MLive.

    In the second round, in which the minimum bid is just $500, Szymanski said the treasurer’s office expects about 8,000 to 10,000 properties to be sold.

    There are 18,732 properties in the auction, one of the largest land sales in the world. On the auction block is a hearty mix of blighted homes, vacant lots, industrial boxes, commercial storefronts and near turn-key houses.

    Clean up the property, pay the taxes, or be prepared to lose your purchase.

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  7. Buy Stocks That Profit from Real Estate, Not Rental Properties | Benzinga News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    … the best tenants always leave when they can afford to buy their own home. Another is the housing market needs a rising rate of home ownership by individuals to be robust, when the opposite is happening in the United States. The rents being received are also not enough to adequately cover long term expenses for single family houses.

    None of these REITs is profitable; with operating margins that are well into the double digit negative territory (-74.40 percent for American Homes 4 Rent, -81.70 percent for Silver Bay Trust, and -99.30 percent for American Residential Properties).

    It’s early in the game yet. Of course, the article is about stocks and likely not written from a buy-and-hold perspective.

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  8. US bonds add to gains after weak jobs numbers

    No surprise here for our readers.

    U.S. bonds pushed higher on Wednesday, building on the previous session’s gains after weak employment numbers.

    Yields on 10-year benchmark bonds fell to 2.487 percent on Wednesday, after the Labor Department’s September jobs report piqued hopes the Federal Reserve will delay tapering its bond purchases until next year.

    September payrolls rose by 148,000, well below the 200,000 hurdle which the Fed’s Charles Evans said on Monday would be needed for the central bank to start tapering.

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  9. A Wish List for China’s Third Plenum | iMFdirect – The IMF Blog News Alerts. Oct. 24, 2013. Afternoon Edition. #RealEstate

    Capacity continues to be built well ahead of final consumer demand and returns to capital are diminishing. And demographic trends suggest surplus labor will be exhausted by around 2020, so it will become more difficult to offset diminishing returns by relocating surplus labor from the countryside to factories.

    China’s leadership recognizes the challenges and has already indicated their reform objectives. The priority now is to lay out and then, critically, implement concrete reform plans to manage the transition to a new growth path.

    This coming year will be the most critical for China in my lifetime.

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