European Real Estate Deals Slump to Lowest Level in 13 Years
The deep freeze that’s gripped Europe’s real estate markets since borrowing costs jumped worsened at the start of the year as deals plunged to their lowest levels since 2011.
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The deep freeze that’s gripped Europe’s real estate markets since borrowing costs jumped worsened at the start of the year as deals plunged to their lowest levels since 2011.
Investors are looking for the next policy domino to fall in Asia amid an escalating campaign against a resurgent dollar, after Indonesia used a surprise interest rate hike to defend the rupiah.
Vietnamese billionaire Pham Nhat Vuong pledged to invest at least another $1 billion of his personal wealth into VinFast Auto Ltd., providing the capital needed for expansion of the struggling electric vehicle maker.
Macrotech Developers Ltd., a real estate firm that operates under the brand name Lodha, expects pre-sales to grow about 20% in the year to March after reporting its highest ever quarterly revenue.
Distressed Indonesian property developer PT Agung Podomoro Land has hired financial advisory firm Kroll Inc. to advise on an exchange of $132 million of bonds due in June, according to people familiar with the plan.
Nov 18, 2016
BNN Bloomberg
The head of Canada’s housing watchdog is warning that high household debt levels could potentially put the country's economic future in jeopardy.
Speaking at the Bank of England in London on Friday, Canada Mortgage Housing Corporation president and chief executive Evan Siddall said accommodative monetary policy is increasing risks among highly-indebted households. Still, he admitted hiking interest rates to counteract the problem is “too blunt an instrument.”
He also warned efforts to help first-time homebuyers enter the market might only inflame prices.
"While additional measures are not currently on the table, we will continue to be vigilant and monitor the housing market – and share our views as a policy advisor to government – in order to ensure the long-term stability of the market and of the financial system," Siddall said, adding the CMHC needs to “explore a potential future path to higher minimum down payments.”
Siddall also called the proposal to reallocate mortgage risks “one of the most significant changes to the Canadian regime since securitization was introduced 30 years ago.”
The federal government recently launched a public consultation on proposed changes to Canada’s mortgage system, which would require lenders to take on a portion of losses on insured loans that default.
“Critics have called the proposal ‘a solution in search of a problem,’” Siddall said.
“They don't mention that the Canadian system has not been stressed since the Great Depression. Further, they choose to ignore the strong academic support that loudly warns against the drunken brew of elevated house prices and an advanced credit cycle.”