High-net-worth buyers tend to rent first to test out locations while they wait for their dream home to hit the market. Read More
BY THE NUMBERS
LISTING OF THE DAY
This new Midtown apartment on what has come to be known as Billionaire’s Row sits on the 52nd floor of a new luxury condominium building on East 57th Street. Read More
Located just north of Rome’s historic center and off the main tourist trail, Pinciano is a magnet for wealthy working professionals and has one of the city’s busiest property markets. Read More
U.K. Mortgage Approvals Have Hit a 13-Month Low as Refinances Increase
British mortgage approvals reached a 13-month low in October, while the number of loans being refinanced steadily increased ahead of an expected Bank of England rate increase. Last month, 40,488 mortgages for house purchases were approved, down from 41,576 in September, marking a 3% year-over-year drop for the month. Remortgages grew from 30,499 in September to 34,036 in October.
U.K. Home Prices Expected to Grow 3.1% in 2018
The Office for Budget Responsibility has forecast that U.K. home prices will rise 3.1% in 2018, 3% in 2019, and 2.9% in 2020. The office also predicted 15% growth between Q2 2017 and Q1 2022, less than their earlier forecast of 22% growth. The end of stamp duties for first-time buyers is expected to help price growth, while a drop in real incomes is expected to stymie it.
Lack of Supply is Pushing up Prague’s Housing Prices
Prices for high-end homes in Prague have reached as much as $13,000 per square meter, bringing them on par with (or higher than) prices in other major capitals such as Berlin and Barcelona. Prices for second-hand flats have risen 18% year-over-year in the second quarter, and 34% over the past three years. Lack of supply is considered the primary driver of price growth; only 134 apartments were under construction in May and June, and Prague’s stock of vacant apartments dropped more than 40% in the past two years.
Market Restrictions Are Expected to Hamper China’s Home Price Growth in 2018
A group of Chinese financial institutions and developers has said it expects property transactions to slow, and mortgages and loans to stagnate in 2018 in response to government restrictions on the market. However, the forecast is more positive for rentals, and a researcher from Shanghai’s Bank of Communications said, “We see the rental segment as one of the growth engines with more banks considering tapping the segment.”
Australia’s Home Values Have Surged to Quadruple the GDP
The value of Australia’s home prices has reached $7.3 trillion, or four times the value of the gross domestic product, leading to fears of a bubble burst. “The risk is that it leaves the Australian economy extremely exposed, and a minor shock could become far more significant,” said Daniel Blake of Morgan Stanley in Sydney. However, banks are still confident that the population will grow to create demand for new units still under construction in Sydney and Melbourne.
Vancouver Buyer Who Avoided Foreign Buyer Tax Ordered to Return Down Payment
A Vancouver judge has ordered a Korean buyer to forfeit her $180,000 deposit on a local home on the grounds that her failure to pay the foreign buyer tax constitutes breach of contract. The buyer had entered contract on the $2.6 million (US$2.05 million) home in 2016, two months before the imposition of the city’s 15% foreign buyer tax. The buyer had argued that the tax was discriminatory and significantly changed the value of the home but lost the case in court.
AROUND NEWS CORP
Bordeaux Whines as Rich Chinese Give Lucky Names to Old Châteaux [The Times of London]
‘Selfie Surgeon’s Trump World Tower Condo Is More Than Half Off [The New York Post]
Multimillion-Dollar Mentone Estate Draws Buyers to the Bay [realestate.com.au]
WNBA Star Candace Parker Wants to Pass Encino Estate to New Owners [realtor.com]
If you have been forwarded this email and want to sign up for the Mansion Global Daily newsletter, click here.