Sunday, 12 August 2018

WHAT MARIJUANA PRODUCTION IN AUSTRALIA COULD MEAN FOR COMMERCIAL REAL ESTATE


July 27, 2018 MELISSA HOWARD

Contributing writer

It might be early days, but the marijuana industry could open new doors for Victoria's commercial real estate sector. Photograph: Taylor Weidman/Bloomberg0

The unlikely property sectors that are tipped to go gangbusters this year
Healthcare property outperformed offices, industrial and retail assets in 2017

The legalisation of medical marijuana in Australia and the speculation that recreational marijuana may well be next could open up fresh possibilities for commercial real estate in Australia as major players race to establish domestic manufacturing facilities.

Medicinal cannabis grower, Cann Group recently signed up to lease a five-hectare site in the Melbourne Airport precinct, owned by Australia Pacific Airports Corporation Limited, the company which runs Melbourne Airport.

Cann Group, owned in part by Canadian company, Aurora Cannabis, will breed, cultivate and manufacture medicinal cannabis for sale and use within Australia, and for export.

Commercial Real Estate has learnt that several companies involved in the medical marijuana industry are currently actively seeking commercial properties to house their facilities.

A 13-acre marijuana greenhouse in Enniskillen, Canada, owned by marijuana company Tilray. Photo: Tilray via AP

Spectrum Cannabis Australia, owned by the world’s biggest medical marijuana company, Canopy Growth Corporation, plans to invest $16 million in Victoria over the next four years to establish Spectrum’s Asia-Pacific (APAC) headquarters and research and development facility.

“Our goal is to act quickly and establish a market presence here in Victoria,” said Spectrum APAC managing director, Ben Quirin.

Mr Quirin told Commercial Real Estate that Spectrum is currently focused on looking at “secure” commercial properties in the “agricultural areas” of Victoria with a mind to expansion. “There’s a footprint required for today, but then I am looking at how do we expand over time?”

“We’ve been looking at various sites at present,” said Mr Quirin. “And understanding what’s suitable for us. The focus for us at the moment is actually looking at where we can establish a greenhouse grow, plus having the ability for us to establish a manufacturing facility so that we can do our end-to-end supply chain.”

Mr Quirin declined to reveal the specifications or locations of properties under consideration, but said the company was open to both buying and leasing.

“I think the fortunate thing is that Canopy, as an organisation, is in a position to look at different options.”

Another company, AusCann, also owned by Canopy Growth, aims to become the leading suppliers of medical cannabis products to the Australian market, with plans to build production and research infrastructure in Australia.

The company recently raised $30 million to, in part to fund “expansion of AusCann’s Australian manufacturing plant for final dose form manufacturing”.

Could medical marijuana bring a new wave of demand for industrial property? Photo: Rohan Thomson/ The Canberra Times

The federal government has recently enabled the licensed cultivation and manufacture of medicinal cannabis, and this week updated a list of legal Australian manufacturers and suppliers of medical marijuana. In Victoria, the Daniels government has been a vocal supporter of medical marijuana, and stated it aims to have Victoria supplying half of Australia’s medicinal cannabis by 2028.

“In markets where it has been legalised for medicinal and/or recreational purposes, we’ve certainly seen an impact on the commercial real estate sector,” Kathryn House, communications director at CBRE, told Commercial Real Estate.

“However, it’s early days in Australia and what impact it could have on our local real estate market will depend on the industry’s growth moving forward.”

Canopy Growth has already taken out patents for recreational marijuana products in Australia and expects legalised recreational marijuana will eventually follow medicinal.

How US markets reacted to legalisation

The impact on industrial real estate from the legalisation of medical, followed by recreational, marijuana has been significant in America.

According to US agent, Bradco Companies president Joseph W. Brady, legalisation affected the commercial real estate industry, “particularly through the rapid price escalation per square foot in the industrial and retail sectors” and that “several warehouses in the cultivation zone of California that would have sold in the range of USD $30 to USD $40 per square foot ($431 to $575 a square metre) have jumped as high as USD $142 per square foot ($2033 a square metre)”.

A 2016 CBRE study found that the marijuana industry was a driver in the recovery of Denver, Colorado’s real estate market.

It also reported that within just one year of recreational marijuana being legalised in Denver, one in 11 industrial buildings in central Denver housed a marijuana-related business.

In two years, commercial property prices increased by 17.6 per cent, and, within three years, a massive 4.2 million square feet (390,000 square metres) of commercial space in Denver were being used by the industry.

Vietnam begins to tighten monetary policy - May Hurt real Estate


VietNamNet Bridge - In the context of pressure on inflation and exchange rate, macroeconomic stabilization must be the top priority, experts say.



Vietnam begins to tighten the monetary policy

SBV(the State Bank of Vietnam) is now trying to withdraw dong from circulation through OMO (open market operation) after pumping a huge amount of dong into circulation when purchasing foreign currencies.

In such conditions, the interbank interest rates have increased once again. After decreasing to below 1 percent and bottoming out at 0.67 percent on June 27, the overnight interest rate in the second-tier market has increased again, exceeding the 1 percent threshold.

The interest rate in the first tier market has also begun rising again at some commercial banks.


After slashing the dollar selling price on July 3, a senior official of SBV said besides the drastic measures to deal with the dong oversupply to ease pressure on the exchange rate and inflation, SBV will strictly control credit growth.


VIB in June and the first days of July raised the deposit interest rates twice. The offered interest rate for 1-2 month term deposit increased sharply by 0.4 percent, while it was 0.3 percent for 3-month deposits and 0.1 percent for 6-11 month deposits.

The Military Bank has also raised deposit interest rates by 0.2-0.55 percent.

Some banks have raised lending interest rates applied to some groups of clients, including real estate funding.

The anticipated dong liquidity narrowing and the capital mobilization cost increase in both first- and second-tier markets will put additional pressure on lending interest rates.

After slashing the dollar selling price on July 3, a senior official of SBV said besides the drastic measures to deal with the dong oversupply to ease pressure on the exchange rate and inflation, SBV will strictly control credit growth.

It is expected that the credit growth rate will be lower than the initially planned 17 percent level this year.

Commercial banks have recently been asked to control their credit growth and restrict lending to risky sectors such as real estate and BOT (build-operate-transfer) projects.

Analysts affirmed that in 2018 SBV does not feel pressure to expand credit to support GDP growth as it did last year.

Increasing the required compulsory reserve ratio has also been mentioned recently as an effective long-term solution to tighten monetary policy.

With the big cash amount in circulation (which not only includes dong spent to buy foreign currencies, but also state budget deposits at banks), OMO is not enough to withdraw money from circulation.

SBV in late May decided to lift the compulsory reserve ratio applied to Agribank from 1 percent to 3 percent for deposits of fewer than 12 months.

The monetary policy tightening has been recommended by many international institutions.

In late 2015, an HSBC report said Vietnam should tighten the monetary policy in 2016 after a period of loosening the policy to pave the way for a high credit growth rate.

Most recently, Fitch Ratings urged Vietnam to tighten monetary policy to ensure macroeconomic stabilization.




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China’s developers gain on reports of Shanghai cutting first-home mortgage rates to revive market

China’s biggest commercial city already offers the lowest rate among first-tier mainland cities

PUBLISHED : Friday, 10 August, 2018, 1:33pm
UPDATED : Friday, 10 August, 2018, 11:18pm

COMMENTS:




Zheng Yangpeng



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Shares of China’s property developers rose on Friday on reports that two state-owned banks in Shanghai have lowered their first-home mortgage rates to ease buying restrictions after two years of controls to cool the overheated market.

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Property agents and mainland state media said borrowers would be eligible for a 10 per cent discount off the benchmark interest rate, up from a previous 5 per cent, at the Shanghai branches of the Industrial and Commercial Bank of China and the Agricultural Bank of China from Friday. This means the rate will be lowered to 4.41 per cent from 4.655 per cent, they said.


In the mainland, China Vanke jumped 3.1 per cent to 23.18 yuan, China Merchants Shekou industrial Zone Holdings was up 2.6 per cent to 17.27 yuan and Poly Real Estate gained 1.5 per cent to 11.70 yuan. Nacity Property Service jumped 10 per cent to 26.80 yuan and Shanghai Wanye Enterprises surged 6.5 per cent to 12.44 yuan. A property stock gauge under the benchmark Shanghai Composite Index rose 1.1 per cent.

In Hong Kong, Agile Group rose 4.7 per cent to HK$12.34. Guangzhou R&F Properties soared 5.6 per cent to HK$15.02 and Sunac China Holdings was up 5.5 per cent to HK$26.10.

The rate cut was refuted by the two banks after the market closed, which analysts said, reflected the level of sensitivity to China’s mortgage policy. But an ICBC executive confirmed that the lenders were compelled to retract the cut following “intense reaction in the market” that led to share price swings.



ICBC issued a statement on Friday reiterating that its mortgage policy remains unchanged.

“ICBC has always clung on to the policy of ‘differential credit policy for different homebuyer groups’. … we will strictly implement the state policy on property market,” it said.



E-house China E&D Institute analyst Yan Yuejin said the retraction represented a rift between the central government and banks’ interests.



“From the banks’ commercial perspective, they are inclined to ease the policy,” Yan said, adding that with funding costs lowered for banks, lenders were motivated to cut rates.

The overnight Shanghai Interbank Offered Rate has dropped to its lowest level since August 2015.
ICBC has always clung on to the policy of ‘differential credit policy for different homebuyer groups’. … we will strictly implement the state policy on property market
ICBC

A lower mortgage rate, if implemented, would have been an initial reversal to the past two years’ effort to rein in home prices, underscoring the authorities’ attempt to revive a sluggish Shanghai property market to help fuel growth amid mounting worries of the overall economic slowdown.

In July, secondary home market transactions fell to 13,800 units from 15,500 units in June, and against the monthly 18,000-20,000 unit range for the past five years, according to Centaline Property Shanghai.

The official secondary home price index of China’s biggest commercial city has also sunk 1.83 per cent in June on the year, slumping for seven straight months.



Yan said first-time homebuyers drove China’s consumption, which could boost economic growth as the trade war with the US worsens.

Shanghai already offers the lowest mortgage rate among China’s first-tier cities, regardless of whether ICBC and Agricultural Bank cut their rates. Local branches of the China Construction Bank offer 10 per cent discount to first-time buyers.

In contrast, Beijing’s mainstream mortgage rate for first-time buyers stands at 10 per cent above the benchmark rate, and some joint-stock commercial banks offer a higher 15 per cent. Last month, banks in Shenzhen raised the first-home mortgage to 15 per cent above the benchmark from 10 per cent, while those in Guangzhou lowered the rate to 10 per cent above the benchmark from 15 per cent.

Additional reporting by Zhang Shidong

This article appeared in the South China Morning Post print edition as: Developers get boost on Reports of rate cut

Things to consider before buying a home in Thailand



Posted on 9 Aug at 6 PM in General Emigration News Property Abroad Relocati
Story link: Things to consider before buying a home in Thailand


Things to consider before buying a home in Thailand Buying a home in the chosen retirement destination is the goal of the majority of expats relocating overseas. 



In many countries, once a property purchase has been agreed and a deposit handed over, both parties should be able to delegate legal niceties to their lawyers and get on with preparing for the move itself. It’s somewhat different in Thailand, especially as most buyers will not need a mortgage as they’re buying using savings or part of their pension pot. Unfortunately, many either forget, don’t want to pay for or aren’t even aware of essential, often common sense, checks able to cause major problems if ignored.

Structural integrity often comes down to the optimistic assumption that, ‘if it stands up it must be OK to live in’. Unfortunately, older properties in Thailand – older than around 10 years – are liable to deteriorate both visibly and invisibly due to the weather, poor quality materials, termite attacks and even the inexperience of those constructing them or the lack of expert maintenance. Building permits don’t offer any reassurance and construction plans often aren’t taken seriously by unqualified workers. As a result, internal and structural surveys are essential.

The rules governing new-builds are many, and each should be checked to ensure compliance of the building. Off-plan purchases are especially vulnerable to omissions by developers, and are not recommended for new arrivals as a result. Zoning restrictions, height of buildings and other restrictions as to proximity to temples, beaches, protected forest areas and suchlike can, if broken, result in demolition. Contractual details that don’t match up with records held at the local land department can also bring disaster.

Even choosing the ‘right’ real estate agent can be fraught with peril, as ‘what you see is what you get’ is a little-understood concept in the Land of Smiles. Buyers should remember that any deviation from the original property description by the agent can invalidate binding sale and purchase agreements considered in Thai law as being the sale of an immovable property. In other words, should disputes or misunderstandings occur, walking away is the best option as it will save you making a potentially disastrous decision for the wrong reasons

Lastly, ensuring everything including the kitchen sink is legally transferred and registered to you before handing over your cash is essential. This includes land title documents, the construction permit, the business license of the builder and any other legal documentation related to the property. Also worth remembering is the fact that foreigners are not allowed to own land in Thailand, but can lease a plot for 30 years.

China Scrambles to Cool Overheated Real Estate Market as Housing Bubble Continues to Grow

By Iris Tao
August 9, 2018 Last Updated: August 9, 2018

This photo taken on August 2, 2013 shows commercial and residential property from the under construction Shanghai Tower in Pudong, Shanghai. (PETER PARKS/AFP/Getty Images)
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The Chinese government went all out during the first half of 2018 to cool an overheated real estate market.

Major cities in China have issued regulations for their local real estate markets more than 260 times through July of this year, according to data from Centaline Property Agency, one of the largest property agencies in Hong Kong. That’s an all-time high and marks an 80 percent increase in frequency compared to the same period in 2017.

In July alone, more than 60 cities announced more than 70 revised sets of real estate regulatory policies.

Chinese cities have sought to keep housing prices from skyrocketing by limiting the number of properties one can purchase and sell, raising the minimum down-payment ratio for homebuyers, and boosting the time period between a purchase and when a unit can be then listed on the market for resale.

The Chinese Communist Party (CCP) has made it a political priority to “resolutely contain the rise of housing prices,” as discussed during a meeting of the Party’s powerful 25-member Politburo on July 31, according to state-run media Xinhua.


While prices in the real estate markets of some first- and second-tier cities appear to have leveled off, prices in most third- and fourth-tier cities continue to soar.

In June, among China’s designated 70 large and medium-sized cities, 63 experienced a price increase for newly built commodity housing units, or privately developed housing on leased land, compared with last year, according to official data released by China’s National Bureau of Statistics. Prices for new commodity housing and “second-hand housing”—units previously owned that are now on the market for sale—in 31 second-tier cities also increased, by 6.3 percent and 4.6 percent, respectively, in June.

Having stepped up regulatory efforts in July, Beijing is likely to impose even more intensified restrictions on real estate in the latter half of the year, Zhang Dawei, chief analyst with Centaline Property, told Xinhua in a July 27 report.

The Chinese government is scrambling to control the real-estate market, as the Chinese economy heavily relies on real-estate investments for growth.

China’s property market is worth around $22 trillion, approximately 1.8 times the size of GDP (Gross Domestic Product) in 2017, according to an article published by U.S. investment firm Pimco on its website in June.

Ever since it was officially declared as the “pillar industry that pulls the growth of China’s economy” by the State Council in 2003, the real-estate industry has been the lifeblood of the entire Chinese economy. City governments also heavily rely on land-grant premiums and land-tax revenue as their primary source of local fiscal income.


This fiscal strategy of operating real estate as a money-making machine for the government, commonly referred to as “land finance” in China, has inextricably linked the survival of the real estate market to the Chinese regime’s.

In recent years, however, the Chinese real estate market has become overheated and is increasingly spinning out of control, as evidenced by soaring housing prices and people’s frenzy in buying properties.

Economists have long predicted that China’s real-estate bubble will soon burst. But a collapse of the property market would devastate the entire economy—and potentially threaten the Communist regime, too. An economic crisis would lead the public to question the regime’s legitimacy.

So the Chinese regime has sought to artificially keep the market afloat, with local governments supplying land to the market, banks issuing large amount of loans, and central authorities placing specific purchasing, sales, and pricing limits. But this has only further compounded the crisis.

Meanwhile, the regime seeks to sustain a prosperous, lucrative real-estate market in order to maintain a high GDP. Policies, so far, have only aimed to“contain” prices, not lower them. Hence, ordinary citizens continue to find housing prohibitively expensive.

Friday, 10 August 2018

REALTORS® SEE STRONG INTERNATIONAL ACTIVITY, ORGANIZE GLOBAL REAL ESTATE CONFERENCE


STL REAL ESTATE NEWS

08/08/2018 STL.NEWS


WASHINGTON/ August 7, 2018 (STL.News)— Realtors®, members of the National Association of Realtors®, will travel to Hanoi, Vietnam to join experts in the real estate industry from all over the world to learn, share, connect and transact during the 2018 International Real Estate Conference
(link is external)
. Now in its fourth year, IREC will take place at the National Convention Center in Hanoi from September 6-7, with an expo extending from September 8-10.
The annual real estate conference brings together top experts to discuss the industry’s most pressing trends and is an opportunity for international attendees to make connections with real estate professionals in one of the world’s most dynamic regions.
“Nearly a quarter of Realtors® reported that they worked with an international client in the last year, even as low inventory and higher home prices continue to affect the U.S. market. Demand from overseas remains strong; foreign buyers purchased a total of $121.0 billion of residential property last year and at a more expensive price than domestic buyers did, a comparison of $292,200 for a foreign median home price and $249,300 for domestic,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty.
This year’s event draws upon the success of past events in the Philippines, South Korea and Thailand and includes high-level speakers such as the U.S. Ambassador to Vietnam and a representative from the Vietnamese Prime Minister’s office.
“Realtors® understand better than anyone that the U.S. real estate market continues to be seen as a safe, secure and profitable place to invest in property. IREC brings together NAR partner associations from all over the world to discuss cross-border opportunities and the many benefits of investing in the U.S. real estate market,” Mendenhall said.
The conference kicks off with the NAR Global Leadership Summit, an invitation-only meeting where leaders from NAR’s bilateral partners will convene to discuss hot topics and trends influencing the industry worldwide. Conference sessions, which are open to all registered attendees, will cover current industry topics such as artificial intelligence; big data, and data analytics; block chain; building construction and design trends; smart cities; global real estate market trends from each region; and more.
Over 1,000 conference attendees are expected, and 60,000 are expected to visit the conference exhibit hall. The host for IREC 2018 is the Vietnam National Real Estate Association; NAR is supporting the conference as a strategic partner.
The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

_____
SOURCE: https://www.nar.realtor/newsroom/realtors-see-strong-international-activity-organize-global-real-estate-conference

China Scrambles to Cool Overheated Real Estate Market as Housing Bubble Continues to Grow

By Iris Tao
August 9, 2018 Last Updated: August 9, 2018

This photo taken on August 2, 2013 shows commercial and residential property from the under construction Shanghai Tower in Pudong, Shanghai. (PETER PARKS/AFP/Getty Images)
ShareTweetShareEmailDonate

The Chinese government went all out during the first half of 2018 to cool an overheated real estate market.

Major cities in China have issued regulations for their local real estate markets more than 260 times through July of this year, according to data from Centaline Property Agency, one of the largest property agencies in Hong Kong. That’s an all-time high and marks an 80 percent increase in frequency compared to the same period in 2017.

In July alone, more than 60 cities announced more than 70 revised sets of real estate regulatory policies.

Chinese cities have sought to keep housing prices from skyrocketing by limiting the number of properties one can purchase and sell, raising the minimum down-payment ratio for homebuyers, and boosting the time period between a purchase and when a unit can be then listed on the market for resale.

The Chinese Communist Party (CCP) has made it a political priority to “resolutely contain the rise of housing prices,” as discussed during a meeting of the Party’s powerful 25-member Politburo on July 31, according to state-run media Xinhua.


While prices in the real estate markets of some first- and second-tier cities appear to have leveled off, prices in most third- and fourth-tier cities continue to soar.

In June, among China’s designated 70 large and medium-sized cities, 63 experienced a price increase for newly built commodity housing units, or privately developed housing on leased land, compared with last year, according to official data released by China’s National Bureau of Statistics. Prices for new commodity housing and “second-hand housing”—units previously owned that are now on the market for sale—in 31 second-tier cities also increased, by 6.3 percent and 4.6 percent, respectively, in June.

Having stepped up regulatory efforts in July, Beijing is likely to impose even more intensified restrictions on real estate in the latter half of the year, Zhang Dawei, chief analyst with Centaline Property, told Xinhua in a July 27 report.

The Chinese government is scrambling to control the real-estate market, as the Chinese economy heavily relies on real-estate investments for growth.

China’s property market is worth around $22 trillion, approximately 1.8 times the size of GDP (Gross Domestic Product) in 2017, according to an article published by U.S. investment firm Pimco on its website in June.

Ever since it was officially declared as the “pillar industry that pulls the growth of China’s economy” by the State Council in 2003, the real-estate industry has been the lifeblood of the entire Chinese economy. City governments also heavily rely on land-grant premiums and land-tax revenue as their primary source of local fiscal income.


This fiscal strategy of operating real estate as a money-making machine for the government, commonly referred to as “land finance” in China, has inextricably linked the survival of the real estate market to the Chinese regime’s.

In recent years, however, the Chinese real estate market has become overheated and is increasingly spinning out of control, as evidenced by soaring housing prices and people’s frenzy in buying properties.

Economists have long predicted that China’s real-estate bubble will soon burst. But a collapse of the property market would devastate the entire economy—and potentially threaten the Communist regime, too. An economic crisis would lead the public to question the regime’s legitimacy.

So the Chinese regime has sought to artificially keep the market afloat, with local governments supplying land to the market, banks issuing large amount of loans, and central authorities placing specific purchasing, sales, and pricing limits. But this has only further compounded the crisis.

Meanwhile, the regime seeks to sustain a prosperous, lucrative real-estate market in order to maintain a high GDP. Policies, so far, have only aimed to“contain” prices, not lower them. Hence, ordinary citizens continue to find housing prohibitively expensive.
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WHAT MARIJUANA PRODUCTION IN AUSTRALIA COULD MEAN FOR COMMERCIAL REAL ESTATE

July 27, 2018  MELISSA HOWARD Contributing writer It might be early days, but the marijuana industry could open new doors for Victoria's...