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February 2024
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Wall Street Journal (February 7)

2024/ 02/ 09 by jd in Global News

“Luxury retailers, flush with cash, are spending big on real estate in the world’s most expensive and exclusive shopping corridors” including New York’s Fifth Avenue, Avenue Montaigne in Paris, and London’s New Bond Street. The “shopping spree shows that retailers are using their considerable cash to free themselves from the control of landlords and plant their flags on streets where they want a long-term presence.”


BBC (January 28)

2024/ 01/ 29 by jd in Global News

“Debt-ridden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.” Evergrande initially “sent shockwaves through global financial markets” when it defaulted in 2021. Since then, it has remained “the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.” The most recent court decision does not necessarily mean “Evergrande will go bust and collapse,” but it is expected “to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.”


Wall Street Journal (November 13)

2023/ 11/ 14 by jd in Global News

“Foreclosures are surging in an opaque and risky corner of commercial real-estate finance, offering one of the starkest signs yet that turmoil in the property market is worsening.” Through just October, the Journal found notices for “mezzanine loans and other high-risk loans” had already more than doubled the number for all of 2022 and likely reached “the highest total ever for a single year, as higher interest rates and rising vacancies punish the property sector.”


Irish Times (September 10)

2023/ 09/ 11 by jd in Global News

Some are hoping government stimulus will jumpstart the Chinese economy. “The more likely scenario is continued weak growth.” What remains to be seen is “is how quickly the government will shift away from stimulus measures to a faster fundamental overhaul of its growth strategy.” China needs to tackle “more persistent and structural growth challenges,” which have resulted from “an economic strategy that has historically over-relied on real estate, high local debt, inefficient state-owned enterprises, lower-end manufacturing, and domestic consumer internet platforms.”


Bloomberg (June 12)

2023/ 06/ 14 by jd in Global News

“The owners of the Westfield San Francisco Centre mall are giving up the property to lenders, adding to deepening real estate pain in a city struggling to bring back workers and tourists after the pandemic.” Unibail-Rodamco-Westfield and Brookfield Corp. will default on $558 million in remaining debt. “San Francisco has been among the hardest-hit cities since the pandemic as office vacancies soar, retail vacancies rise and concerns about safety deter visitors.”


Washington Post (April 14)

2023/ 04/ 15 by jd in Global News

“Businesses and consumers have found it more challenging to obtain financing.” Federal Reserve data shows “commercial bank lending fell by over $100 billion in the two weeks ending March 29,” which was “the largest two-week cutback in overall bank lending… in records going back half a century.” The same period also brought “the largest decline in commercial and industrial loans on record. And the largest decline on record in lending to real estate, and the largest decline on record in bank holdings of mortgages.”


American Banker (November 9)

2022/ 11/ 09 by jd in Global News

“Lenders made it harder in the third quarter for both consumers and businesses to access credit,” and this trend looks likely to continue. “If the U.S. economy falls into a recession, more than 80% of banks said they would ‘somewhat’ or ‘substantially’ tighten lending standards for credit cards and loans backed by commercial real estate. More than 70% of banks said they would do the same for auto, commercial and industrial and residential real estate loans.”


Financial Times (August 22)

2022/ 08/ 22 by jd in Global News

“China has slashed its mortgage lending rate for the second time this year as the country’s central bank seeks to limit the fallout from a liquidity crisis in the property sector.” While this may “reduce borrowing costs on new mortgages nationwide and provide a boost to the country’s debt-laden real estate sector,” it is unlikely to fix the “crisis of confidence faced by Chinese developers.”


New York Times (August 18)

2022/ 08/ 19 by jd in Global News

“For decades, buying property was considered a safe investment in China. Now, instead of building a foundation of wealth for the country’s middle class, real estate has become a source of discontent and anger.”


Bloomberg (June 30)

2022/ 07/ 03 by jd in Global News

“The Federal Reserve is cooling off the red-hot housing market as it fights to curb inflation by driving up interest rates.” The ensuing “housing slowdown is helping to solve the US real estate market’s most intractable problem: tight inventory.” New sellers are entering the market at a faster pace while there are “fewer buyers competing.” As a result, “the number of active US listings jumped 18.7% in June from a year earlier, the largest annual increase in data going back to 2017.”


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