Thursday, 15 November 2018

Free Bali Real Estate Seminars - Jan.2019 - Latest Laws - Earn *10 -20% Yr.

Buyers, sellers, brokers, agents, investors, lessors or renters will benefit from attending one of our two free Real Estate Seminars in Bali in January.

Free Seminar Schedules: Dates & Times: 1. Thurs. Jan 17th. 6:30 PM to 7:45 PM or 2.  Sat. - Jan. 19th. 2:00 PM - 3:15 PM.

Location: Bali, Emerald Villas, Jl. Karangsari, # 5, Sanur, Bali, Indonesia.

Seminar Topics: At these seminars you will learn about:

Ø The Past, Present and Future of Bali Real Estate.
Ø Clarification of laws allowing foreigners total control up to 80 years.
Ø How to avoid legal problems and make sure a property is safe.
Ø How to avoid complicated laws - Indonesians married to foreigners.
Ø Why this is the second-best time to buy this century.
Ø Where are the best locations to buy for maximum profits?
Ø What properties offer the potential of *10% to 20 % per year?
Ø Discover how you can sell your property fast for the highest prices and lowest commissions on a brand-new web site.
Ø  Free listing on B.A.R.E. 
Ø First Class Beachfront property at almost 50% discount.
Ø Low cost properties with Luxury Villas starting as low as $158,000 for a three-bedroom 650 m² 3-bedroom, 4 baths with private 9 mtr. Pool.
Ø Ridiculously low-priced ocean view building lots $25,000 for 500 m².
Ø Brand new Bali Luxury Retirement Villas starting at $198,000.

Limited Seating & Free Parking: 
Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation Or Email: or Tel: Office: 62-361- 284069 – Bahasa Indonesia  62-8123632177

Canadian Real Estate Developers Are Ramping Up Mainland Chinese Marketing

Best Asia Real Estate Editor's Comments:
Lawrence dictating newsletter while on vacation in Macau
Two years ago when I visited my home country Canada after I took my family from coast-to-coast.

 I returned and made a statement that I believe that most areas of Canadian  real estate were over priced and violated my true acid test of real estate.

If I can't buy a two or three bedroom home and rent it out for positive cash flow in any area in the world that is probably the end of the market.

 Which Is why I predicted the Singapore crash three years ago and major cities in Australia crash last year.

I believe Chinese, who are suffering some financial woes internally  are looking to consolidate their investment capital at home and closer to home such as Bali.

This article below points out that Canadian developers are becoming a little concerned and willing to spend a lot more money on marketing to China. Which may or may not work.

NOVEMBER 14, 2018

Canadian real estate developers facing soft domestic demand are looking to China., the largest overseas property portal in Mainland China, conducted a developer survey. Over a third of Canadian developers are looking to spend more to attract Mainland Chinese capital.
Who Did They Survey?

Juwai surveyed “dozens” of North American real estate developers, on Chinese marketing plans. The survey focused on the Chinese market, specifically in Mainland China and Singapore. The vast majority of developers were small, launching less than 500 units since 2016. In fact, 47% of developers surveys launched less than 50 units since 2016. Keep the size of these developers in mind when reading, since it marks an interesting shift.
Chinese Buyers Represented 1 In 10 New Project Buyers

The Chinese market is an important funding source for nearly all North American developers. More than 90% of respondents said 1 in 10 units were sold to Chinese buyers. Juwai notes that this is consistent regardless of size, city or developer surveyed. Only 13% of Canadian developers have dedicated Mandarin speaking staff, with the rest outsourcing. Confirmation that Mainland money is a significant, but not majority, of the building boom.
Canadian Real Estate Developers Plan To Ramp Up China Marketing

Canadian developers are looking to Chinese buyers to pick up domes market slack. The survey shows ~40% of Canadian developers plan on raising overseas marketing budgets. Specifically, they’re looking at scaling efforts in China and Singapore. “Nearly half” will keep their current budgets, and only 13% will lower. This comes as foreign buyer taxes have hit both Toronto and Vancouver, and Montreal has one in the works.

The shift to ramping up pre-sale construction marketing overseas isn’t surprising. New home absorption in Toronto is less than a point away from a buyer’s market, and ditto with Vancouver. Developers can either sell overseas to massify, lower prices, or cancel projects. The last point is difficult as rates rise, making sitting on land less profitable.
Greater Toronto New Home Sales To Active

The ratio of sales to active listings for new homes in Greater Toronto, for the month of September.
Sales To ActiveSep 2015Sep 2016Sep 2017Sep 20180510152025Ratio

MonthSales To ActiveSep 2015 9.6
Sep 2016 23.79
Sep 2017 18.58
Sep 2018 12.52

Source: Altus Group, Better Dwelling.

One important takeaway from the survey is the developers aren’t all large. Large developers with dedicated resources to reach the Mainland market are noted for chasing foreign capital. However, the survey shows smaller developers are increasingly interested in the source of funding.

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Monday, 12 November 2018

Australian House prices’ ‘perfect storm’

Bali Asia real estate editor's comments:
Lawrence at seminar last year predicting Australian
real estate prices would fall in three major cities

Sometimes I wish I was not right most of the time on real estate for the past 40 years, especially in the past year Australian real estate 

If you've been reading my blogs for the last year or more you are well aware that I've been advising people get out of Australian real estate in cities such as Melbourne, Sydney and Brisbane.

When I first made this in mid 2017  I hesitated because I have many Australian friends, having lived in Bali for 22 years.

When I gave a similar prediction in Hawaii in 1982 and put advertisements in the newspaper to get out of Hawaii real estate everybody thought I was crazy and I lost a lot of friends and associates then. Nobody praised me two years later when  prices dropped 30%.

Nobody will praise me a year or two from now after Australian real estate has gone through a correction and prices will drop  20 to 50%.

None of my friends who I told to sell the their Australian real estate  a year ago have sold now they almost hold me responsible for the downturn.

Not true, the downturn was caused by excessive buying by foreigners who purchased without even considering cash flows. They didn't even ask of if rentals would cover their expenses.

Now they're stuck with overpriced real estate which is going down and the government doesn't want to have them there. Guess what they're doing? They and smart homeowners and investors are selling.

We have gone from "I don't believe it stage", to the "okay maybe you're right stage". Now we are at "how far do you think is going to fall Lawrence stage"?

Before it's all over it may be very ugly.

Smart investors will sell now at whatever price they can get because the future is going to be far worse.

The really smart investors, especially the baby boomers, will sell in those three major cities I mentioned earlier and buy in Bali because we've already had a correction.

We just underwent the worst correction in the history of Bali in fact the first correction maybe in over 100 years and it wasn't pretty. Beachfront properties dropped as much is 50% and the average property is down 20 to 30%.

We have been recovering since the beginning of this year when I started getting very bullish. Now it's getting even more bullish. People are starting to realize that like Australian real estate and Singapore real estate which I predicted three years ago I am now right about Bali real estate recovering and it will go up rapidly with new demands from Chinese and baby boomers who want to retire in Bali.

My seminars are over for the year but if you want to find out where and what to buy and how to earn 10 to 20% per annum. which I believe can easily be made but is not guaranteed. contact me direct or +628123814014.

I'll be happy to give you an hour my time in my office and show you why this is the "second best time to buy Bali real estate this century".

There appears to be no end in sight to falling property values, with Sydney and Melbourne’s ‘housing correction’ striking rest of nation.

Auctioneer Vic Lorusso, left, at a property that failed to sell in Roseville, Sydney, last Sunday. Picture: Hollie Adams

Australia’s housing prices are being revised down day by day.

The housing correction, like the five-year boom, is a Sydney and Melbourne phenomenon.

But it now seems to be spreading to other, so far resilient, capitals and to what had been the finally improving regional areas.

Yesterday, researcher Core­Logic downgraded its outlook for the country’s $7 trillion housing sector, saying the market was at its weakest point since the start of 2012. Sydney’s housing prices have fallen 7.4 per cent during the past year, the worst 12-month ­result since 1990 when the Hawke government was in power and ­interest rates hit 17 per cent. Melbourne’s housing values were down 4.7 per cent.

Bill Moss, former head of property for Macquarie Group, predicts the market has further to fall.

“I’m not a negative bear on this,” he tells The Australian. “It’s a normal correction, it’s not a wipe-out by any means.”

The former investment banker says it is almost “a suburb-by-suburb story”, with some areas falling much further than others.

“A lot of people that were going to buy are sitting on the sidelines,” he says.

To gauge where it’s all going, Moss is watching the leading indicators of off-the-plan apartment sales, settlements of new apartments by offshore buyers, and the banks’ willingness to lend on off-the-plan sales.

It’s no good watching the past. he says. Instead, keep an eye on what points to the future.

A new report from global property firm JLL found existing and new Sydney unit sales plummeted 21.6 per cent during the past ­financial year, Brisbane sales fell by 18.1 per cent and Melbourne sales were down by 12 per cent.

It warned of more pressure on prices and rents in the new and ­existing apartments markets in the three cities, with overbuilding adding to the sector’s woes.

Despite all the gloom, it’s worth recalling just how much Sydney and Melbourne’s prices surged in a headlong five-year run from 2012.

Housing values in Sydney ­recorded a white-hot 72 per cent increase in the five years to last year’s peak, according to Core­Logic. They have fallen 8.2 per cent in the past 13 months.

In Melbourne, there was a 57 per cent surge. The city’s housing values are now down 4.9 per cent since last year’s peak.

Falling prices were inevitable.

“We had to have a correction due to the excessive demand,” Moss says. “It doesn't mean a lot as long as people keep paying their mortgage.”

And if they can’t?

“The next thing you could see is the banks selling the family home,” he says. “After all, they have an obligation to shareholders.”

But again, there are caveats. Most of the pain would be in the interest-only loans taken out at the peak of the boom, he says.

“When markets go up people want 100 per cent of the upside, but they don’t want to take 100 per cent of the downside.”

This week prominent Queensland-based developer Don O’Rorke described the housing market as facing the perfect storm.

O’Rorke, executive chairman of Consolidated Properties, which has 2500 apartments in the pipeline, says the Hayne royal commission into the financial services sector and the banks’ overly cautious approach to lending for ­development and to property ­investors and riskier borrowers are weighing heavily on the apartment market.

“In effect, we have seen the banking system grind to a halt,” O’Rorke says.

Added to this are government taxes on foreign buyers, China’s increasing restrictions on the ­outflow of money and the prospect that Labor will restrict the negative gearing tax break to new properties if it wins the next federal election.

“It’s almost a perfect storm working against the property ­market,” O’Rorke says.

On the positive side is strong population growth, low rental ­vacancies and, in Brisbane, comparatively cheap housing prices, with the gap between Sydney and the Queensland capital at the widest point for some time.

The tap of new apartment supply has been turned off, which in a couple of years will see new starts severely limited. Developers already are “repurposing sites”.

This week two Singaporean developers sold Melbourne CBD sites, with one to become an office building and the other speculated to be bought by an international student accommodation group. Billionaire developer Harry Triguboff blames tighter credit, saying the crackdown by the banking regulator on financing investors and the royal commission has scared the banks into pulling purse stings tight.

His Meriton group has seen ­prices for new units in Sydney fall about 15 per cent during the past year. However, Triguboff says the number of units sold started to increase about six weeks ago and he is providing less support to buyers.

So will it be a correction or a crash?

Commentators have rejected recent speculation of a 40 per cent housing price crash, but analysts are increasingly bearish. Six months ago, many were ­expecting 5 per cent to 10 per cent price falls; now it’s up to 20 per cent.

AMP Capital chief economist Shane Oliver is predicting falls in Sydney and Melbourne of 20 per cent, and national falls of about 10 per cent, but says a crash is ­unlikely.

Oliver also says he wouldn’t be surprised by an interest-rate cut.

HSBC chief economist Paul Bloxham says Sydney housing prices have experienced most of the pain, with a peak-to-trough fall of about 10 per cent.

House prices nationally will creep down 2 per cent to 3 per cent next year, Bloxham predicts.

Underpinning the market is employment growth, population growth and low interest rates, he reasons.

“We still see a soft landing,” Bloxham tells The Australian.

Yesterday investment bank UBS forecast a 10 per cent fall in housing prices by 2020, with ­Sydney and Melbourne down 15 per cent.

Price growth in all capital cities stalled and the previously stronger regional markets recorded falling prices last month, it noted

“We are concerned that, without policy easing, the largest price fall in decades could break the ­belief house prices only ever go up,” UBS economists say.

The fall in Sydney is becoming large by historical standards, ­according to CoreLogic head of ­research Tim Lawless.

“It’s not that values are falling really rapidly,” he says. “It’s really about the length of the decline, which is probably set to continue for some time yet.”

The Sydney falls are broadbased across all the city’s sub­regions, Lawless says, adding that this fall is affected by credit while previous downturns had been sparked by economic conditions or changes to monetary policy.

As well as tighter credit, sentiment is also an issue.

“We generally do see this when the market moves into a downturn — prospective buyers are reluctant to buy in because nobody wants to buy in and see the value of the asset fall.”

So what do the bankers say?

National Australia Bank chief executive Andrew Thorburn says the lender is “not really” noticing a deterioration in credit quality, but he foresees challenging conditions for at least the next year. NAB has reported a 14 per cent drop in annual profit.

NAB doesn’t expect a sharp jump in loan arrears but holds ­concerns for more highly leveraged mortgages.

This week ANZ chief executive Shayne Elliott warned of further pain, saying growth in home lending could halve and house prices will fall further in coming years.

Elliott says it is unlikely that the falls will be significant but signalled even tougher conditions for borrowing when delivering a 5 per cent drop in the bank’s profit for the year.

Under regulatory pressure, the banks have been restricting the flow of credit to investors. Loans to investors made up 32.9 per cent of the total value of home loans in August, down from 37.2 per cent a year earlier. Across the same ­period, loans to owner-occupiers have risen from 62.7 per cent to 67 per cent.

Overhanging all of this is next year’s federal election when Labor’s policy to end the negative gearing tax break for buyers of ­existing investment properties and cutting the capital gains tax discount will come to the fore.

A panel of property executives yesterday identified the policy as a major risk.

“It will definitely change the way real estate trades in this market on a go-forward basis,” Lendlease’s chief executive for property Australia Kylie Rampa told a lunch in Sydney.

“We need to be careful about when it is implemented, subject to other forces in the marketplace.”

But Rampa is more open to the policy if it is implemented slowly and there is “a little bit more tolerance in the marketplace”.

Don’t underestimate the impact of government policies on the housing market, says Moss, nor of politicians reading the popular pulse.

“A government that is in power when housing prices fall doesn’t get re-elected,” he says. “And the same applies for a government coming into power. If the market drops, they won’t be re-elected either.

“Ultimately, the average person on an average wage has to be able to buy a home.”

Australia's doomed suburbs: The regions where house prices have plunged as much as 14 per cent in the last year

Core Logic released a report that revealed the worst-hit areas for property prices.

Eight of the top 10 worst performers over the year were found in Sydney
Melbourne's inner east ranked at the top of worst-hit places in the city
Western Australia and Queensland had some of Australia's price downturns


PUBLISHED: 01:15 GMT, 2 November 2018 | UPDATED: 22:44 GMT, 4 November 2018

Homeowners have taken another beating with new data revealing the worst property slump in three decades, with some areas suffering a 14 per cent plunge in a year.

Sydney was home to eight of Australia's 10 worst performing areas, real estate information group CoreLogic has revealed.

Ryde in northwest Sydney topped the charts with a 14.4 per cent tumble. Baulkham Hills and Hawkesbury values fell 10.8 per cent and while Parramatta suffered a 10.3 per cent decline.

According to a CoreLogic report, eight of the top 10 worst performing areas across the country in the past 12 months are in Sydney

Sydney's Ryde topped the charts with a 14.4 per cent tumble. Baulkham Hills and Hawkesbury followed closely behind with a 10.8 per cent dip and Parramatta (pictured) came in tow with a 10.3 per cent decline

Sydney's median house and apartment prices dived by 7.4 per cent in the year to October, marking the steepest annual plummet since 1990, when prices fell by a record 7.9 per cent.

Property prices in Sydney and Melbourne continued to dive despite record-low interest rates.

CoreLogic is forecasting a 15 per cent plunge in house prices in Australia's biggest cities, from their 2017 peaks.

Australia's top 10 streets for selling property revealed -...Real estate carnage escalates in Sydney and Melbourne with...

This would be worse than the 11.6 per cent plunge that hit Sydney from 1988 to 1991.

During the last double-digit property market plunge, interest rates in Australia were at a record high of more than 19 per cent and the economy was in recession.

This time, the Australian Prudential Regulation Authority's crackdown on investor loans has hit the Sydney and Melbourne property markets the hardest.

Melbourne's (pictured) inner east suburbs that includes places like Camberwell, Hawthorn East and Mont Albert took out the gong for the worst performing area in the city, after a 10.3 per cent drop

'With such broad-based weakness in housing market conditions, it’s clear that tighter credit availability is acting as a drag on housing demand and impacting adversely on the performance of housing values across most areas of the country,' CoreLogic's head of research Tim Lawless said.

Melbourne's inner-east suburbs including Camberwell, Hawthorn East and Mont Albert took out the gong for the city's worst performing areas, with a 10.3 per cent drop.

House and unit prices in Melbourne have fallen by 4.7 per cent during the past year.

'Sydney and Melbourne are now the primary drag on the national housing market's performance,' Mr Lawless said of the cities that comprise 60 per cent of Australia's housing market.

Housing prices in Perth and Darwin showed no signs of recovering since their markets began to fall in mid-2014.

Perth prices dropped by 3.3 per cent dip in one year, with Darwin experiencing a 2.9 per cent drop over the same period.

Outback Queensland prices dived by 11.1 per cent.

Prices in southern Queensland's Darling Downs and Maranoa regions fell 4.3 per cent.

AMP Capital chief economist Shane Oliver told the Daily Telegraph the worst wasn't yet over, with forecasts for a 20 per cent drop up by 2020

Western Australia's Bunbury sank by 9 per cent, while the Wheat Belt region dropped by 5.9 per cent.

AMP Capital chief economist Shane Oliver told the Daily Telegraph the worst wasn't yet over, with forecasts for a 20 per cent drop up by 2020.

'If anything the risks are on the downside, particularly if negative gearing and capital gains tax arrangements are changed.'

Though it's not all bad news with Brisbane, Adelaide, Hobart and Canberra values increasing.

Tasmania's capital Hobart led the trend with a 9.7 per cent jump, while Canberra followed behind on 4.3 per cent.
Read more:
Domain House Price Report - September 2018 (State Of The Market Report)

Why everyone should care about falling property prices

Chad and Erin Passlow with baby Don; they have cut back on expenditure after buying a two-bedroom home in Sydney's inner-west. Louie Douvis

by Matthew Cranston Ingrid Fuary-Wagner

When Sydney property prices recorded their largest annual decline in 28 years on Thursday, you might have thought it frightened a few people – after all about $150 billion has been wiped off Sydney home values in the last year, enough to make anyone think about the impact on the economy.

With 60 per cent of Australian household wealth tied up in the family home, there is a tendency to think that falling property values and equity levels will have big consequences for the types of gifts left under the Christmas tree this year or whether the Toyota in the garage will get upgraded to a Land Rover.

It is also one reason that the Reserve Bank of Australia is reluctant to lift record low interest rates and return to a more normal level of monetary policy settings, one that would have the capacity to combat any shocks to the financial system that could be just around the corner.

But just as your view on a falling property market depends very much on personal circumstance – how leveraged are you, do you have to sell, can you now buy, or will you merely engage in a bit of mental arithmetic to gauge your new wealth position – so does the impact on spending vary, meaning the aggregate impact across the economy is difficult to gauge.

Tightening their belts

Chad Passlow and his wife Erin have just bought a two-bedroom home in Sydney's inner-west and their weekly expenditure has already been cut back.

"We had to tighten our expenses to lift our borrowing power," Mr Passlow said, "We were trying to get our expenses below $4000 a month."

"The bank went through our expenses spreadsheet that we provided and gave line-by-line feedback and said we were too conservative with our food costs and entertainment and said we hadn't given enough provisions for childcare."

The bank also questioned why the couple didn't have a credit card.

"We also heard from a friend in the industry that apparently once a bank has queried your expenses it gets harder to get a loan through them, so we ended up going somewhere else."

While the costs of some mortgages are going up for some home buyers as the banks raise raise independent of the RBA, there is another problem lurking in the background – income growth.
The problem with income growth

Australia has a problem with income growth. There is none. Real wage growth was at zero in the June quarter.

UBS economist Carlos Cacho says there is a simple rule of thumb when it comes to falling house prices and stagnant wages, and it does not bode well for the economy.

He says that when house prices fall, people tend to try to save more and, if people are saving more at a time when there is no income growth, then that means their consumption or spending has to go down.

Over the last few years when incomes were not growing, rising house prices have filled the gap.

"What we think happened is that as household wealth increased in line with rising house prices, people saved relatively less of their incomes," Cacho says, "This means that people have been able to maintain consumption while income growth has been low."

Michelle Joynton-Smith, who sold her four bedroom house in Castle Hill last week – where home values have fallen 10.8 per cent in the last year, much more than the Sydney average of 7.4 per cent – says she is now reducing her spend.

"You have to revert to thinking twice before buying something you don't need," she says.

And even with the run-up in prices over the last decade she says that after the sale of the house, "I won't have a lot of surplus money so I won't be able to help my kids out and I will have to work another three or four years before I can retire."

But just how much consumption slides in a falling housing market is really anyone's guess.
Last week, technology copywriter Sylvan Doyle sold his studio home at Bondi Beach for $700,000 – he bought it six years ago for $380,000.

"I don't think people spend more when their home value rises," Mr Doyle said, "That mindset doesn't apply because as the value goes up you think 'well I have to buy again, and in Sydney it's expensive'."

On the other hand, he says, "I'm not going to spend less either," now that house prices are going down.

In isolation, falling house prices do not necessarily mean people start spending less, however falling house prices are often a function of rising mortgage costs. As those costs rise, people are out of pocket more which means less spending and a slowdown in the economy.

But according to the RBA, most Australian households do not borrow the maximum amount they can so they are typically not constrained by a tightening in lending.

And that means the effect of falling house prices on savings, consumption and income may not be quite as bad as both anecdotal evidence suggests and what economists are predicting.
If you think the worst ...

Capital Economics said this week that a peak-to-trough drop in house prices of 12 per cent will result in $800 billion being shaved off household wealth, taking away 0.3 per cent of GDP growth each yearfor the next three years.

Last week, Morgan Stanley started a "Household Deleveraging Risk Indicator" for assessing debt sustainability. It said Australia "looks most exposed" and was one of several global economies that now faced a "crucial juncture" where housing markets weaken, forcing a reappraisal of leverage and wealth at the same time that global financial conditions tighten, increasing the "consumption drag from debt service and rising savings".

Morgan Stanley's Daniel Blake said growth headwinds would be felt in a deleveraging phase and that even if "a balance sheet recession is avoided" consumption would be forgone to pay down debt.

But the Reserve Bank's assistant governor Michelle Bullock set out in a September speech how we might need to be a little more optimistic when looking at the potential hit to consumption from falling house prices and rising mortgage repayments.

"There are a number of reasons why the situation is not as severe as these numbers suggest."

She noted that while scheduled principal repayments have continued to rise with the shift towards principal-and-interest loans rather than just interest-only loans, actual repayments relative to income have remained quite steady.

She also says borrowers have been transitioning loans from interest-only to principal and-interest for the past couple of years "without signs of widespread stress".

"Our data suggest that most borrowers will either be able to meet these higher repayments, refinance their loans with a new lender, or extend their interest-only terms for long enough to enable to them to resolve their situation."

She also suggests that those who hold the debt – whether its their age or security of income – mean that Australia is in a good position to manage it.

"[While] household debt-to-income ratio is high and rising, the distribution of that debt suggests that a large proportion of it is held by households that have the ability to service it."

She also noted unemployment is low and many households have built in prepayments in offset accounts and redraw facilities already.

So if there is this strong buffer to both rising debt serviceability levels and the country's limited income growth then the impact on consumption may not be as bad as some expect. Could this mean the RBA might move to raise rates?

The consensus of economists remains that the cash rate will be raised to 1.75 per cent by the end of next year.

But the financial markets aren't convinced and are still only pricing in a 40 per cent chance of a rate hike by the end of 2019.
Inflation is stubbornly low - despite soaring petrol prices

Part of the reason is inflation remains stubbornly low.

While commuters are appalled by soaring petrol prices and food, falling childcare costs and house furnishings (Nick Scali is less happy) dragged down the overall consumer price index this week to a 0.4 per cent rise over the quarter, below the consensus economist forecast for 0.5 per cent growth.

That brought annual inflation rate to 1.9 per cent down from 2.1 per cent over the year to June. Part of that figure again comes down to how much people have in their pockets and how much they can spend. The more they spend, the higher inflation goes.

But for that to happen, the RBA thinks that income growth on a year-on-year basis needs to be firmly above 3 per cent. If it's above 3 per cent then inflation is likely to reach its target of 2.5 per cent over the medium term.

But income growth is below that 3 per cent, with the most recent figures for June showing annual wage growth at 2.1 per cent.

Capital Economics Paul Dale says the RBA wants to see clearer evidence that the tighter labour market is boosting wage growth, but he, like many other economists, expect wage growth will remain muted.

Some economists think greater inflation-target flexibility – as has been the case in Norway – could lead to more gradual rate hiking cycles.

But it doesn't seem as though the RBA is willing to adopt that approach yet.

So asking for a pay rise might be the only way Australia is going to get back to normal interest rates during a time of falling house prices.

Vietnam's Rising Value, Singapore's Slumping Sales and More

Developers Go Small in Hong Kong as New Taxes Threaten Projects Hong Kong residents will have to do more with less, as developers look to build smaller apartments to keep sales strong, according to JLL's mid-year 2018 Hong Kong property forecast. 

Although housing prices are estimated to increase 7% for the second half of the year, the report predicts growth will slow because of the government’s newly introduced vacancy tax and restrictions on pre-sales in new builds. To protect sales, developers are likely to build more units that are smaller and relatively affordable. 

New flats in Hong Kong are already 40% smaller than they were six year ago, from 1,022 square feet in 2013 to 600 square feet today, according to JLL. World Property Journal

Housing Prices in Abu Dhabi Set to Decline as More Units are DeliveredPrices for both home sales and rentals are predicted to continue to decline in Abu Dhabi this year, according to a report from Chestertons, a London-based real estate brokerage. 

The issue is supply and demand, the report said, as a three-year slump in oil prices has brought fewer people to the area. An additional 6,000 units are due to come to market this year, according to the report, and investors have been slower to bite. The National

Miami Condo Towers Sued for Allegedly Causing Damage to Nearby Buildings Three Miami condominium projects in the city’s Brickell neighborhood are being sued for allegedly damaging other buildings in the area. Construction on the three towers—Panorama Tower, 1010 Brickell and the Bond—caused damage to the neighboring property at 1050 and 1060 Brickell Avenue, the suit alleges. 

A number of developers and builders are named in the suit, which also claims residents complained about debris, cement and paint splatter, and that both the roof and cooling towers needed significant repairs because of construction-related dust and debris. The Real Deal

Sales of Homes in New Builds in Singapore See 40% Drop New residential projects in Singapore saw more than 40% fewer sales sold by developers last month than the one before according to a survey by the Urban Redevelopment Authority, a local government agency. Developers sold 654 private residential units in June, which was a 41.7% decrease from the previous month and a 20.2% year-over-year decrease, according to the survey. 

More than half of those sales were outside of the city, in suburbs or other areas. The survey also estimates that yearly home sales are significantly down so far this year, with only 4,090 private homes and 1,046 executive condominiums sold so far in 2018 compared to 6,039 homes and 2,026 EC units sold in the first half of 2017. The Business Times

Wednesday, 7 November 2018

The Best Sport for a Longer Life? Try Tennis

Best Asia real Estate Editor's comments:

Editor Lawrence and the courts in Sanur

I'm not sure whether tennis will make you live longer but I will tell you that it certainly has made me feel better in my senior years.

I started playing tennis 20 Years Ago  Bali simply because they didn't have racquetball courts which I used to be a champion at in Hawaii.

After a few short years of self taught training I became pretty good and at one point actually won the 55 and older tennis tournament for Bali.

Recently I don't win tournaments but I still win a lot of matches against people 20 to 30 years younger than me.

Last year one of our staff members Jimmy Roland a former German national tennis player and myself sponsored and ran the annual Bali tennis tournament which attracted over 40 participants including some top-notch players from around the world.

The beauty about Bali is that tennis is very inexpensive. There are some places where you can play for as little as seven dollars a month.

Tennis lessons can be had for as little as $10 an hour. So there's no excuse

In fact the other day I was beaten by gentleman who was 72 years old who was a lefty with a wicked spending serve.

If you'd like to learn how why tennis is better than most sports for those who are aging you're welcome to join me at  any time for a game or join our's senior group at the government courts on Wednesday and Friday mornings. Call me at 08123814014 to set up a match
People who played tennis, badminton or soccer tended to live longer than those who cycled, swam or jogged.
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By Gretchen Reynolds
Sept. 5, 2018


Playing tennis and other sports that are social might add years to your life, according to a new epidemiological study of Danish men and women.

The study found that adults who reported frequently participating in tennis or other racket and team sports lived longer than people who were sedentary. But they also lived longer than people who took part in reliably healthy but often solitary activities such as jogging, swimming and cycling.

The results raise interesting questions about the role that social interactions might play in augmenting the benefits of exercise.

At this point, no one doubts that being physically active improves our health and can extend our longevity. Multiple, recent epidemiological studies have pinpointed links between regular exercise and longer lives in men and women.

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