Hong Kong Property Deals Hit Three-Year High in April
Real estate transactions registered in Hong Kong nearly doubled in April, hitting a three-year high, just months after the government took steps to revive the market.
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Real estate transactions registered in Hong Kong nearly doubled in April, hitting a three-year high, just months after the government took steps to revive the market.
It was a move that rattled the commercial mortgage-backed securities market: the firm brought in to wind down a deal tied to an ill-fated apartment venture held onto more than $160 million that bondholders were expecting to get back.
Wall Street analysts see a double-digit upside potential for the S&P 500’s biggest losers this year: real estate stocks.
Todd Boehly’s Eldridge Industries formed a venture with AECOM Capital executives to bet on US commercial real estate.
The Federal Reserve’s slowed path toward cutting interest rates offers an extended chance to lock in attractive yields for longer and investors should “right-size” their allocation to bonds over stocks, according to Vanguard Group Inc.
Apr 14, 2022
BNN Bloomberg
,Macquarie Group Head of Economics David Doyle said the Canadian housing market is facing “significant headwinds” if the Bank of Canada does indeed increase its benchmark interest rate by another one-and-a-half per cent.
In a television interview Thursday, Doyle said if the central bank moves its benchmark rate of 2.5 per cent by the end of 2022 it would slam the brakes on domestic housing activity, which has become a significant contributor to overall economic activity in recent years.
“We do think the Bank of Canada will raise the overnight rate to 2.5 per cent by the end of the year, and I think if you see that, you will see absolutely significant headwinds for housing activity, which is actually what I’m most concerned about,” he said.
Markets are currently pricing in just such a rate scenario, with expectations for no fewer than the equivalent of six 25 basis point increases by the end of the year. Additionally, the Bank of Canada raised its view of the nominal neutral rate – essentially where rates are neither accelerating nor hindering growth – at the mid-point between two and three per cent.
Doyle said that while home prices could also dip as a result, he expects the extent of the declines could vary significantly by geography, with further flung locales outside of urban centres that have seen pandemic-era prices surge seeing more substantial drops.
“There will be, I think, negative consequences for house prices – whether that means there’s flat or declining prices, I think is a bit ambiguous, it might depend where in the country you are,” he said.
“There’s probably greater headwinds in the more rural areas that have seen a significant run-up during the pandemic. The closer you are to the centre of the city, you might be more well-insulated.”
The average non-seasonally-adjusted Canadian home price hit a record $816,720 in February, up 20.6 per cent from a year ago, while average prices in Toronto are hovering just shy of $1.3 million.