December 2022

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Hanoi Real Estate Insights

Vietnam Property Market Action Needed To Avoid Crisis in 2023

Vietnam property market needs to act quickly in 2023 before it is too late and to avoid a crisis. The property market in Vietnam is not a major crisis such as what is happening in China is the past 2 years. However the government and property developers in Vietnam needs to act quickly to avoid a major crisis involving cash flows, property prices, and sales properties in Vietnam.

What is happening to Vietnam Property

Vietnam needs to act quickly to avoid a worsening property-sector credit crunch that could harm its strong economic growth. Some $4.6 billion of property developer notes tracked by Vietnam’s bond association will come due in the coming year and these firms may struggle to meet their financial obligations without government support, according to local real estate executives and analysts. The availability of funding has decreased significantly due to investor concerns over an anti-corruption campaign and a freeze on new bond issuance in the industry.

The approaching maturity wall runs the risk of setting off a wave of defaults, which could escalate the real estate problems into a larger crisis affecting the banking industry and the economy. Although Vietnam’s property debt is relatively small in absolute terms compared to China’s, it nonetheless accounts for around 11% of the country’s total economic activity. Growing concerns of a growth hit akin to that experienced by China are motivating calls for Vietnam’s leadership to take action now, before it’s too late.

Property Stock Benchmark

Signs of stress are already spreading. Fitch Ratings recently estimated a 5% drop in home sales next year, which coupled with rising costs will lead to a rise in leverage at property firms. A lack of cash has forced businesses to turn to shadow loans at very high interest rates and sell properties at discounts as deep as 40%.

Stress symptoms are already emerging. Recent predictions by Fitch Ratings for a 5% decline in home sales in 2019 combined with growing costs will increase leverage at real estate companies. Due to a lack of cash, firms have been compelled to sell properties at significant discounts of …

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Dubai
Real Estate Insights

Best Apartments to Buy in Dubai Business Hubs

Dubai is a world-renowned business hub, with its booming economy and growth as a cosmopolitan city-state attracting multinational companies to establish their headquarters. As the city continues to thrive, the housing market is also growing in parallel. For international homebuyers looking to buy property in Dubai, there are four main business districts to consider: Business Bay, Dubai Internet City, Dubai International Financial Centre (DIFC), and Dubai Silicon Oasis (DSO).

Business Bay

Business Bay is a prestigious community located along the Dubai Creek Canal, with many shopping malls, restaurants, and cafes. With lots of fine-dining restaurants and cafes along the community. Business Bay Dubai provides residents with a city lifestyle with a perfect harmony for calm and tranquility to have a proper work-life balance.

15 Northside apartment for sale Business Bay provides homebuyers close access to Business Bay Metro Station and to reach workplaces by foot. No need to rush in the morning, and you as homebuyers can live right in the heart of Dubai. The 15 Northside apartment for sale in Business Bay offers close proximity to the Business Bay Metro Station and a city lifestyle, with an annual return on investment (ROI) of 6-9%. As the community keeps growing, real estate value keeps going up in this prestigious community of Dubai.

Dubai Internet City

Dubai Internet City community is dubbed as the main entrance to commercial communities of Dubai. Dubai Internet City borders two of the most vibrant and buzzing districts such as: Palm Jumeirah, Dubai Marina, and the new island of Emar Beachfront. Dubai Internet City is also the business hub of the UAE. As the name suggests, Google, IBM, HSBC, and more fintech hirm established their headquarters in Dubai Internet City.

First known as the community connecting Dubai Marina and Jumeirah Dubai has changed to the fintech and major startup companies establishing left, right, and center. The highlights for Dubai Internet City, is because of its close proximity to vibrant cities of Dubai. Surrounded by city lights, and Dubai luxury districts, homebuyers have plenty of apartment options in Dubai. For instance, Dubai Marina houses reasonable, modern, and …

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Hong Kong Real Estate
Real Estate Insights

Hong Kong Real Estate Running Into Issues in 2023: Update

Hong Kong real estate prices are falling and continue to fall into the year 2023. Read on more to find out why the most expensive city in the world is having problems in its property market. 

As borrowing costs increase, the housing market downturn in Hong Kong is worsening.

According to information released on Friday, the Centaline indicator of secondary housing prices decreased by 2% in the week ending October 30 compared to the prior week, the most since March 2016. The index’s decline brought it to its lowest point since December 2017.

With the Centaline gauge rising by more than 500% from its low point in 2003 to its peak point last year, Hong Kong real estate was among the biggest benefactors of the low global interest rates. Due to rising borrowing prices, a contracting economy, and increased selling pressure brought on by a resident exodus, this is now beginning to turn around. Since its peak in 2021, the secondary home price index has decreased by 14%.

Due to Hong Kong’s currency linkage with the US dollar, the city’s one-month borrowing rate, often known as Hibor, has increased to its highest level since 2008. According to data from the Hong Kong Monetary Authority for new loans from September, more than 96% of mortgages are linked to Hibor.

Residential property values in the city are predicted to decrease 30% from their 2017 levels through 2023, according to Goldman Sachs Group Inc. For an in-depth analysis check out the article here.

Hong Kong Real Estate in 2023:Outlook

A “wait-and-see” mentality is common among homebuyers and homeowners as a result of the uncertain market conditions and worry about interest rate increases.

Due to poor market sentiment, the primary and secondary markets both experienced declines of 8.2% and 5.2% MoM, respectively. According to information from the Land Registry, a total of 3,875 transactions were reported in the residential market, a little decline of 6.3% MoM.

According to the Inland Earnings Department, Hong Kong’s overall stamp duty revenue from home sales registered 202 cases in September, hitting a new two-and-a-half year low. Buyer’s …

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Australia Housing Market
Real Estate Insights

Australia Housing Market In A Downturn, and Decreasing

The housing downturn in Australia continued into November but slowed down, which suggests the real estate market is starting to respond to rising borrowing costs and even the possibility of future interest rate hikes.

Sydney, the bellwether market, where prices fell 1.3% for a 10th consecutive monthly decline, was mostly to blame for the slowdown in the rate of correction, according to a data released on Thursday by CoreLogic Inc. The national index, which incorporates regional markets, experienced its smallest decrease since June in November, down 1%.

The numbers indicate that despite the greatest monetary tightening cycle in a generation, the A$9.7 trillion ($6.5 trillion) property market is holding up fairly well. Since May, the Reserve Bank has increased interest rates by 2.75 percentage points, bringing them to 2.85%.

According to Tim Lawless, research director at CoreLogic, “perhaps we are seeing the initial concern over buying in a higher interest rate environment wearing off.” However, it’s accurate to state that housing risk is still heavily weighted to the negative as long as interest rates continue to rise and household balance sheets continue to deteriorate.

A top RBA official voiced optimism in the Australian property market on Wednesday, noting that prices are still 20% higher than they were at the start of the epidemic. Additionally, as unemployment is at its lowest point in nearly 50 years, borrowers are in a good position to make their obligations, and loan arrears are expected to be kept to a minimum.

“Perhaps we are seeing the initial apprehension over buying in a higher interest rate environment wearing off,” says Tim Lawless, research director at CoreLogic. As long as interest rates keep rising and household balance sheets keep getting worse, it is true to say that housing risk is still significantly skewed in the wrong direction.

On Wednesday, a senior RBA official expressed optimism about the Australian real estate market, noting that prices are still 20% higher than they were before the pandemic. Borrowers are also in a good position to meet their obligations because unemployment is at its lowest level in almost 50 years, and …

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