Scott Mcdonald, Author at Amora Escapes

Housebuilder secures housing site in Barns Green for 32 new energy efficient homes

Scott Mcdonald — Tue, 06 Feb 2024 11:39:28 +0000

Located off Chapel Road, the site – to be known as Sumners Fields – is situated in Barns Green’s largely rural community, surrounded by expanses of countryside. Designed by Worthing-based ECE Architecture, the 32 homes will include one-, two-, three- and four- bedroom apartments and houses. 12 of these properties are allocated for affordable housing, providing an above policy 37.5% allocation.

Hunter Developments Holdings Ltd and the Smith Family worked in close cooperation with Sigma Homes in developing the design proposal for the site.

Geoff Potton, Chief Executive of Sigma Homes, said: “We are delighted to have secured another prime site in such a highly sought-after village, which is less than 5 miles from Horsham. With so many development proposals in the district currently held up by planning and pre-construction delays caused by Natural England’s current advice on water neutrality, this will be one of the first schemes to be delivered within Horsham District which achieves a water neutrality solution. The plans sensitively respond to the site characteristics and will result in a high quality, sustainable addition to Barns Green.

“This mix of open market and affordable homes – suitable for first time buyers, families, and downsizers – are much-needed to meet local housing demand. As with all our developments, this scheme will be constructed utilising timber-frame technology and a range of other ‘green’ features including grey water recycling, to enable residents to significantly reduce their water usage, carbon footprint and energy bills.

“2023 was a major milestone for Sigma Homes, as it marked our tenth year in business. With three other highly sustainable developments currently under construction across West Sussex, and with several more in the planning stage, we understand what our customers are looking for and the enviable lifestyle this county offers. The design, layout and build quality of our homes has been attracting discerning buyers for a decade now. We are immensely proud of the reputation for quality homes in prime locations that Sigma Homes have become synonymous with.”

The village of Barns Green is a highly sought after location and benefits from a range of local amenities, including a village shop, post office, primary school, sports club, and village hall. Regular public transport is available to nearby villages and towns, including Horsham. The site is a five-minute drive (2.2 miles) from Christs Hospital train station, which has services running to London Victoria in under 70 minutes. There is also a frequent 32-minute train service to Gatwick Airport. If future residents wish to have a day out or travel to the coast, there are also services running to the historic market town of Arundel (20 minutes) and the popular seaside resort of Bognor Regis (41 minutes).

The character of Barns Green is predominantly of a traditional style and material palette. Existing nearby properties include a combination of red brick and white painted window frames, timber-cladded rural homes, and more contemporary post-war dwellings. Due to the range of styles present within the village, Sigma Homes’ new development will follow a conventional yet modern style.

New landscaping, public open space, and ecological enhancements will be provided with most of the existing trees and hedgerows will be retained and enhanced. There will be sufficient parking available for each new home, as well as cycle storage. Electric Vehicle charging points will be provided to all houses with a garage and driveway, with further charging points allocated to the apartments.

Headquartered in the West Sussex town of Horsham, Sigma Homes was founded in 2013. The company has five live developments in premium locations across the south of England and is on track to deliver 200 homes per annum by 2026. All homes are constructed using timber frames, which improves efficiency, as well as delivering sustainability benefits. It was one of the first SMEs to be accepted onto the New Homes Quality Board, providing buyers with further peace of mind during the buying process, through the backing of this stringent new Code.

Source: Sussex World

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Are Australian House Prices Dropping? Here’s How Much Prices Have Risen or Fallen in Each Capital City

Scott Mcdonald — Tue, 26 Dec 2023 12:46:25 +0000

Australia’s median property value is now at a record high of $753,654.

But experts are expecting prices to stabilise next year.

Property analytics company CoreLogic research director Tim Lawless said the 2024 housing market was shaping up to be very different.

“[There are] expectations that value growth will be lower and more diverse from region to region and across housing types,” he said.

“We don’t expect to see a material lift in housing activity until interest rates reduce, and that isn’t likely until the second half of next year.”

But before we get into next year, let’s look at Core Logic’s property figures from November.

What’s the most expensive city to buy in?

Data from CoreLogic says Sydney is still the most expensive place to buy a property, with a median house value of almost $1.4 million.

But in terms of how capital city property prices changed in November, Perth topped the list.

Meanwhile, prices decreased a fraction in Melbourne, Hobart and Darwin.

Here’s a quick rundown of how prices changed in November:

Perth: Up by 1.9 per cent
Brisbane: Up by 1.3 per cent
Adelaide: Up by 1.2 per cent
Canberra: Up by 0.5 per cent
Sydney: Up by 0.3 per cent
Melbourne: Down by 0.1 per cent
Hobart: Down by 0.1 per cent
Darwin: Down by 0.3 per cent

Now let’s get a more detailed look at the capital cities:

Adelaide

Monthly change: 1.2 per cent increase

Adelaide median house value: $756,989

Median unit value: $479,428

Since Adelaide property prices bottomed out in March 2023, they have risen 8.7 per cent.

Meanwhile, rental vacancy rates remained extremely tight in November at 0.3 per cent — the lowest of all capital cities.

Brisbane

Monthly change: 1.3 per cent increase

Brisbane median house value: $870,526

Median unit value: $552,332

Alongside Adelaide and Perth, Mr Lawless said Brisbane property values continued to show remarkably low levels of advertised supply while purchasing activity was above average levels.

“This imbalance between available supply and demonstrated demand is keeping strong upward pressure on housing values across these markets, despite the downside factors leading to weaker housing market conditions across the lower eastern seaboard,” he said.

Canberra

Monthly change: 0.5 per cent increase

Canberra median house value: $965,378

Median unit value: $590,425

Darwin

Monthly change: 0.3 per cent decrease

Darwin median house value: $572,504

Median unit value: $380,761

Mr Lawless believes we won’t see the same rates of value growth in 2024.(ABC News: Liz Pickering)

Hobart

Monthly change: 0.1 per cent decrease

Hobart median house value: $702,722

Median unit value: $526,961

Hobart was one of three capital cities to record a decline in values over November, albeit a small one.

Looking at annual figures, Hobart dwellings have recorded a 3 per cent decline.

Meanwhile, rental conditions have eased in Hobart with vacancy rates sitting at 1.9 per cent — the highest across the capitals.

Melbourne

Monthly change: 0.1 per cent decrease

Melbourne median house value: $943,725

Median unit value: $610,490

Melbourne’s home values slipped 0.1 per cent in November, their first monthly decline since hitting the trough in January this year.

Mr Lawless said while the Melbourne Cup Day rate rise took some heat out of the market, there were other factors at play.

“Rising advertised stock levels, worsening affordability and persistently low consumer sentiment are also acting as a drag on value growth in some markets, such as Melbourne.”

Perth

Monthly change: 1.9 per cent increase

Perth median house value: $676,910

Median unit value: $457,296

It’s full steam ahead for Perth property values, rising 1.9 per cent in November — the largest monthly gain since March 2021.

The annual growth rate of property prices is now up 13.5 per cent, eclipsing that of Brisbane (10.7 per cent) and Sydney (10.2 per cent).

Listings are almost 40 per cent below their five-year average for this time of year.

Sydney

Monthly change: 0.3 per cent increase

Sydney median house value: $1,397,366

Median unit value: $836,220

Growth in Sydney home values slowed sharply in November, lifting 0.3 per cent, which is less than half the 0.7 per cent gain recorded in October.

November’s modest rise was also the smallest monthly increase since February this year.

Mr Lawless said he believed Sydney’s housing market could be on course for a dip as early as next month.

What’s the housing market forecast for 2024?

PRD chief economist Diaswati Mardiasmo says things will get “more unaffordable” in the new year but we could see “breakthroughs” towards the end of the year.

She says the outlook will be driven by a number of trends.

“We are going into the new year with low supply and increasing demand, a higher cash rate, lower savings and people prioritising primary needs versus secondary.

“At the same time, governments are trying to stimulate supply and people are also ‘getting used to’ the higher cash rates and changing economic landscape.

“Therefore, the first quarter may not feel any different, other than perhaps some areas starting to see a recovery in house prices.

“This will feel like there’s no hope as everything becomes more unaffordable.

“However, as we innovate through this resilience we will start to see some breakthroughs, all of which we will feel more towards the later part of 2024 as inflation and the cash rate lower.”

Source : ABCNews

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India’s Red-hot Real Estate Market Attracts Global Private Credit Investors

Scott Mcdonald — Mon, 04 Dec 2023 00:26:32 +0000

NEW YORK — China’s property market troubles have global private credit investors looking increasingly toward India as Prime Minister Narendra Modi’s infrastructure push drives up real estate prices.

More than $4 billion flowed into India in the form of private credit during the first half of 2023, with over 50% going into real estate, Ernst & Young reports. This compares with $5.3 billion in all of 2022. Fund managers surveyed by the firm expect real estate deals to continue to increase in the next year and a half.

“It has a lot to do with the strong economic fundamentals, but India has also benefited from the shift of sentiment away from China,” said Edwin Wong, a partner at Ares Management and head of Ares Asia.

India surpassed China as the world’s most populous country this year, U.N. projections show, and also has overtaken China in economic growth. Last year the Indian economy grew faster than any other major market, a feat it is expected to repeat through fiscal 2024, when the economy is projected to grow 6.3%, according to the International Monetary Fund.

“When people look at India’s economic achievement in the past years, its favorable demographics and strong and stable government that has been pushing through reforms that are beneficial to foreign investors, the growth story of India does look quite promising,” Wong said.

Private credit investors provide loans in deals where traditional bank financing is unavailable. They serve a niche market in India, where regulations limit banks’ ability to fund or lend in real estate transactions, especially in early stages of land development.

Following the pandemic, consumer preference shifted toward home ownership, and for larger homes, said Nishant Kabra, head of land and capital markets for North and West India at JLL Capital.

“That sort of flip has really continued, and it doesn’t seem to be abetting,” he said. “So you have residential setting new highs quarter after quarter. That has created more liquidity in the system, and real estate developers have become aggressive on land acquisitions.”

India’s real estate sector makes up 6%-7% of gross domestic product, a share projected to double by 2025, according to accounting firm Grant Thornton’s India branch. The country’s real estate market is expected to reach $1 trillion by 2030.

Modi has emphasized infrastructure spending to drive economic growth, and India’s capital investment increased 33% in its full budget laid out earlier this year.

This kind of capital investment into roads, railways and affordable housing will accelerate the country’s already rapid urbanization, which has exacerbated housing shortages.

“Much of the capital that is needed to fund the growth of India is going to come from the private sector,” Wong said.

A 2016 real estate regulation act and recent changes to bankruptcy codes have helped boost investor confidence in India, but navigating the complex web of land leasing and approvals remains daunting for outside investors, and working in private credit can help investors overcome some of those hurdles.

“Investors can work alongside many of the established players in the equity space,” said MSCI’s Benjamin Chow, who leads research on commercial real estate capital markets in Asia. “Private credit also targets a relatively safer portion of the capital stack, as investing via debt rather than equity provides a bigger buffer against losses.”

Chow said there have been only a few explicit investment announcements regarding scaling down in China while ramping up in India, but overall appetite for China’s real estate from global institutional investors has waned.

“Against this backdrop, this is India’s moment to shine,” he said.

But the Indian rupee’s weakness against the U.S. dollar is dampening the appetite at least for some.

“Unless you’re a local operator looking to make returns in rupees and have difficulty exporting your capital, in which case on a relative basis it’s likely that property lending is more appealing than corporate [lending] right now, it is very hard to justify investing there relative to many other places in the Asia Pacific,” said Dan Zwirn, CEO of Arena Investors.

Source : NikkeiAsia

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What’s the Outlook for Property Prices in 2024?

Scott Mcdonald — Thu, 16 Nov 2023 13:53:03 +0000

Property prices are tipped to rise in 2024 despite a likely fresh interest rate increase next week, as demand for housing outstrips supply.

Major bank economists predict the Reserve Bank will lift the cash rate by a quarter of a percentage point on Melbourne Cup Day to tame higher than expected inflation.

It follows news that dwelling values have continued to rise – up nationally by 7.6 per cent so far in 2023, on CoreLogic figures, and the research group predicts that values could reach a record high by mid-November.

While a new national record could be reached in the next two weeks, it may be broken again in 2024, as economists predict house prices to rise between 3 and 5 per cent over the year.

Economists had earlier predicted price falls of about 15 to 20 per cent, but last year’s downturn proved shorter than expected – and since the market turned around early this year, values have been going up again.

CBA is predicting 5 per cent growth across Australia in 2024, with Sydney’s house prices to rise by 4 per cent, and Melbourne’s by 5 per cent.

CBA’s head of Australian economics Gareth Aird said he expected Melbourne’s house prices to rise by slightly more, as they had not risen by as much as Sydney’s this year.

The rate rise in November, if it goes ahead, would be the last before rates are cut in late 2024, Aird said.

“We’re expecting one more rate hike to be delivered in November, but the bigger picture here is that we’re at the top of interest rate rises,” he said. “We’re likely to see rate cuts in the second half of next year, from September.”

Aird said an ultra-strong rental market and a lack of housing supply were keeping up house prices across the country.

Buyers won’t be fazed by another hike in rates in November, economists say.CREDIT:ANNA KUCERA

“It’s really because of the mismatch of population growth, and the rate we’re building at,” he said.

NAB chief economist Alan Oster said the bank was also expecting national house prices to rise by 5 per cent next year, with Sydney’s prices up 5 per cent, and Melbourne’s 5.5 per cent.

“I suspect another rate rise probably won’t affect house prices,” Oster said. “If you can afford what you have now, 25 basis points [0.25 per cent] won’t kill you.”

Oster said people under financial stress because of rising interest rates were getting a second job or were cutting back on their expenditure in other areas of their lives.

A lack of housing supply is keeping house prices higher.CREDIT:JAMES BRICKWOOD.

He believed rates would be cut next year. NAB had originally forecast cuts to start in August, but Oster said this may not happen until later in the year.

ANZ senior economist Adelaide Timbrell said the bank’s forecast was for national house prices to rise by between 3 and 4 per cent in 2024.

Timbrell predicted Sydney’s house prices would jump by 4 per cent, while Melbourne’s would be up by a more conservative 3 per cent.

“What’s really important to note about the inflation path [is] some of it is due to excess demand, and that includes the housing market,” he said.

ANZ also believes the November rate rise, of a predicted 0.25 percentage point, will mark the last. She said the RBA will be hawkish, holding the rates steady for a year, and they would not be cut until November next year.

Meanwhile, Westpac is forecasting a national house price rise of 4 per cent in 2024; a 6 per cent lift in Sydney and a more subdued 3 per cent in Melbourne.

Like the other banks, Westpac also predicts rates will be cut by the second half of 2024.

Westpac’s senior economist Matthew Hassan said he expected November would mark the final rate rise, though this would be contingent on inflation returning to the RBA’s goal of sub-3 per cent.

“There is a possibility of another rate rise if inflation is persistent and there is a sluggish return to low inflation,” Hassan said.

“But I think there is a tension because the rate rises have had a material impact around consumer spending and the RBA is confident the labour market [and low unemployment rates] is starting to turn as well.”

Source : TheSydneyMorningHerald

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New Launches See Decline in Q3 on Back of Escalating Property Prices

Scott Mcdonald — Wed, 25 Oct 2023 14:05:16 +0000

New property launches increased by 2% in tier one cities, reaching 97,871 units in July to September 2023, up from 96,408 units in the same period previous year. However, it’s important to note that the quarter witnessed an 11% decrease in new launches when compared to Q2FY24 due to reduced demand stemming from higher property prices and mortgage rates.

Unsold stock declines

In the reported quarter, unsold housing stocks in Tier 1 cities in India decreased to 508,464 units, down from 526,497 units in Q3 2022, marking an 11% decline, according to research data by PropEquity, an online real estate data and analytics platform.

While Hyderabad saw a 6% increase in unsold stock among the country’s top seven cities during the same period, Delhi-NCR region experienced a 7% drop in unsold stock in Q3 2023 compared to Q2 2023, with residential property sales maintaining their positive momentum post-pandemic.

Indian developers are strategically focusing on reducing older unsold inventory, leading to a decrease in unsold stocks, while also launching fewer new projects.

KEY MARKET INDICATORS – TIER 1 CITIES
Indicators	Q3 2022	Q2 2023	Q3 2023	Q-o-Q	Y-o-Y
New Launches	96,408	1,10,468	97,871	-11%	2%
Total Absorption	1,14,216	1,22,702	1,15,904	-6%	1%
Unsold stock	5,70,932	5,26,497	5,08,464	-3%	-11%

Source: PropEquity Research

Says Samir Jasuja, Founder & CEO of PropEquity, “Housing prices have been climbing in major Indian cities in the post-COVID years. While this upward trend in capital values is attracting investors to India’s key real estate markets, there is reduction in unsold housing stock. However, due to appreciation in both prices and mortgage rates, housing demand is currently facing challenges. Going forward, if interest rates on home loans remain stable or even soften in the coming months, we anticipate an increase in housing demand.”

However, bullish trend continues

The bullish trend in the real estate market, which began in 2022, has continued into 2023. An analysis of the first three quarters shows that new property launches in Tier 1 cities have remained consistent with 2022 levels. However, what stands out is an unprecedented surge in demand, projected to reach a decade-high of 5 lakhs units.

With an 8% increase in absorption compared to the previous year, the market’s resilience is evident. As we approach the upcoming festive season in the next quarter, the real estate market is poised for a surge in new property launches.

Source : BusinessInsider

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Market Flop: How Germany’s Property Boom Ended

Scott Mcdonald — Wed, 27 Sep 2023 01:16:54 +0000

MUNICH – It has been a tumultuous year for one prominent German property developer: his efforts to sell his penthouse atop a Nazi-era air raid shelter have stalled, and just weeks ago his firm filed for insolvency.

The one-two punch for the developer, Stefan Hoeglmaier, and his company, Euroboden, mirror the travails of the broader property sector across Europe’s largest economy as it suffers its worst slump in decades.

For years, low interest rates fueled a global boom, igniting interest in German property, seen as safe and stable as the country.

A sharp rise in rates, and soaring energy and building costs, put an end to the run. That has tipped a string of developers into insolvency and frozen deals, and pushed prices down, prompting the industry to appeal to Chancellor Olaf Scholz for help.

“We’re heading for the wall at breakneck speed. The first developers have fallen and more will follow,” said Tillmann Peeters, an insolvency lawyer with FalkenSteg.

Developers’ fortunes, including those of Euroboden, changed in 2022 when the European Central Bank began to increase rates, making it harder for to borrow and to find buyers for projects.

A statement from Euroboden management said the market environment for the company had “deteriorated quite considerably.”

The health of Germany’s property sector — Europe’s biggest property investment market outside of Britain — is critical, making up roughly a fifth of output and providing one in 10 jobs. New building during the first half of the year nearly halved from the past two years.

In 2010, in the early days of a years-long boom, Hoeglmaier bought a dilapidated above-ground bunker in a posh Munich neighborhood from the government to convert it into luxury apartments.

He and his partner, Oscar Loya — a Eurovision Song Contest star — took for themselves the three-floor penthouse, complete with music room and gold-leaf walls in the toilet.

During the decade that followed, Euroboden completed projects with renowned architects, generated tens of millions of euros in profit, raised millions from investors, and expanded to Berlin and beyond.

The penthouse made the cover of Germany’s Architectural Digest, and the couple hosted “bunker acoustic sessions,” with video clips posted to Loya’s Facebook page.

Loya, who owns stakes in two Euroboden subsidiaries, also serenaded staff at the company’s 20-year anniversary party in 2019.

The site of a project planned by Euroboden, a property developer that has filed for insolvency, in Munich, Germany | REUTERS

The property boom came to an abrupt end last year when the speed of interest rate increases caught many in the sector off guard.

Euroboden issued a profit warning in October. Late last year, Hoeglmaier put his penthouse on the market, and Euroboden closed its Frankfurt office.

In late July, Euroboden called a meeting to ask investors to restructure €92 million ($100 million) in outstanding bonds, but after they balked at the new conditions, the company cancelled the meeting days later and filed for insolvency.

“It was relatively clear that bondholders would not accept the proposal,” said Daniel Bauer, chief of the SdK association of capital investors that is representing nearly 800 Euroboden investors with €11 million in bonds.

The person overseeing the insolvency, Oliver Schartl, said that the case was relatively complex and in an early phase.

Throughout, Euroboden has blamed the pandemic, the war in Ukraine, inflation and interest rates — the same toxic mix that has inflicted pain on the entire industry.

Hoeglmaier declined to be interviewed for this story saying he needed privacy to focus on business, while Loya did not respond to requests for comment.

Euroboden is not an isolated case. Several other German property developers filed for insolvency in recent months.

Duesseldorf-based Gerch, with €4 billion of projects, is Germany’s biggest casualty so far.

Property professionals fear the downturn in Germany could prove deeper than the 1990s crash following the dash for property in eastern Germany after the fall of the Berlin wall.

“The rise in building costs, shift away from office working and rising interest rates mean we’ll see many more developers run out of steam,” said Christoph Niering, who chairs the umbrella body for insolvency administrators, VID.

“Most people did not see this crisis coming. It is now surprising how quickly it is unfolding.”

Lenders too were slow to respond.

In 2020, as the property market heated up, the Bundesbank warned the country’s banks, for whom property accounted for about 70% of all domestic loans, of the risks. In August, it warned again that property remained overvalued, despite recent falls, expressing hope, however, that low unemployment meant most borrowers could keep up loan repayments.

Germany and Sweden are the hardest hit on continental Europe by a global property rout that has sucked in homebuilders in China, from Evergrande to Country Garden.

Hoeglmaier’s bunker was originally erected in the early 1940s to shield residents from allied bombs. After the war, nearby grounds served as camps for imprisoned Nazis and then refugees, and local hairdressers and hotels sought permission to post their ads on its bullet-pocked facade.

Since 2005, Germany has sold some 320 bunkers.

The 380-square meter (4,090 square foot) penthouse, which occupies the fifth through seventh floors and includes a rooftop terrace, originally listed for just under €13 million. The price dropped to €11 million earlier this year, but it is still one of the most expensive apartments in Germany.

“If interested,” the listing reads “some of the furniture and lamps can be purchased.”

Source : TheJapanTimes

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Charleston County is Exploring Property Tax Incentives to Prompt Affordable Housing

Scott Mcdonald — Wed, 23 Aug 2023 00:52:25 +0000

South Carolina counties with growing populations have housing affordability problems, and to get more affordable units built, some have been repurposing tax incentives typically used to attract manufacturers.

Charleston County is now exploring that option, which Greenville, Spartanburg and Richland counties have already embraced.

The bottom line is that for-profit companies could get property tax breaks if they include homes that people with moderate to low incomes could afford when they develop new housing. The idea is that a multi-year tax reduction would make up for accepting lower rent or sale prices on some units.

“We would basically be backing off of the property taxation on an affordable development to help close that (financial) gap,” Steve Dykes, Charleston County’s director of economic development told County Council members at a July 18 meeting.

Governments have taken different approaches to encourage such things. The city of Charleston uses zoning requirements and incentives, such as allowing more height or density, to get “workforce housing” apartments created.

Workforce housing apartments are meant for people who have full-time jobs but don’t earn enough to afford market-rate rent.

Greenville and Spartanburg counties offer property tax breaks, and the details can be a bit complicated. They involve including proposed developments in what are known as multi-county industrial parks and then giving them a “special source revenue credit.”

In Charleston County, where rents have soared by more than 30 percent in just two years, the county is researching that option.

“I think, overall, it sounds like a win,” Councilman Kylon Middleton said. “It’s a crisis, and we’re not going to solve it overnight, but (this) is a good start.”

Here’s how it works: First, a multi-county industrial park is not an actual place or industrial park, but a designation assigned to properties. It’s called a “multi-county” park because it pairs affluent counties with neighboring less-affluent ones, and they get a small piece of the action.

Say a manufacturer plans to set up shop in Charleston County and create some jobs. The county can designate the manufacturer’s property as part of the multi-county industrial park, which cuts the property assessment rate for tax purposes to 6 percent, and then instead of property tax bills the owner pays a set fee.

The money from that fee gets divided up as a county decides. In Charleston County, the economic development arm of the county gets 7.5 percent of the money, Colleton County gets 1.5 percent (because, multi-county park), while the rest is divided up as property taxes would have otherwise been.

But wait, there’s more.

Multi-county industrial park designations are often paired with the special source revenue credit. So after the property’s taxable value is trimmed and property tax bills are swapped for set fees, a tax credit can be applied against those fees to reduce them.

“Let’s say they pay $1.5 million in taxes, and we give them back a half-million dollars,” said Corine Altenhein, Charleston County’s finance director. “All of that is negotiated deal by deal.”

Some counties negotiate tax credit deals one by one. Others have if/then rules — if developers do X, they get Y.

Greenville’s affordable housing tax credit rules are like that. The county’s ordinance lists different amounts of tax relief based on various percentages of affordable housing units, minimum project costs and the mix of income levels the affordable units must accommodate.

Not every Charleston County Council member likes the idea of tax breaks for affordable housing. Councilman Larry Kobrovsky, a past chairman of the county Republican Party, said that wouldn’t be fair to those who can afford housing created without tax breaks.

“Is it our job?” he said. “And at whose expense do we ensure the profits of contractors and developers?”

Kobrovsky cast the lone vote against adopting Charleston County’s “Housing Our Future” plan in May. How to fund the plan aimed at spurring more housing people can afford has remained an open question.

Spartanburg County offers tax credits for housing that are negotiated case-by-case, as Charleston does with manufacturers. The multi-county industrial park and special source revenue credit arrangements must by approved at the county level, but the city of Spartanburg has been the main user of those deals in Spartanburg County.

“All it is, in its simplest form, is a credit that reduces that amount of tax paid,” said Alverson Cole, Spartanburg County administrator.

Spartanburg City Manager Chris Story said several affordable housing deals have resulted.

“I think it’s working for us,” he said. “It just fits where we are in the evolution of our community.”

“We’ve been worried, like all communities are, about significant increases in rents that are associated with increases in demand,” said Story.

Charleston County Council in July directed the county staff to research the potential for tax incentives to support affordable housing development. Doing so would require the county to create a new multi-county industrial park scenario devoted to affordable housing.

Source : ThePostAndCourier

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MJ Gleeson Pleased With Performance in “Challenging” Environment

Scott Mcdonald — Mon, 24 Jul 2023 18:01:58 +0000

Listed housebuilder and land promoter MJ Gleeson has reported reduced house sales but said it was pleased with its performance in a “challenging economic environment”.

In a trading update for the year ended 30 June 2023, the company reported that Gleeson Homes completed the sale of 1,723 homes during the period, compared to 2,000 homes sold the previous year. During the second half of the year, 829 homes were sold, down from 1,068 in 2021/22.

Gleeson said this reflected the downturn in the wider economy and the impact of higher interest rates on buyer confidence.

However, the average selling price of Gleeson homes sold during the year increased by 11.3 per cent to £186,200.

During the year, the group completed the restructuring of Gleeson Homes from nine regional management teams to six and moved to a standardised operating structure. The process resulted in annualised administrative overhead cost savings of £3.2m, at a one-off cost of £1m.

Gleeson Homes opened three new build sites during the year, starting the new financial year with 82 sites, of which 71 are actively selling.

Gleeson Land sold three sites with the potential for 413 housing development plots during 2022/23. Its portfolio as of 30 June 2023 included six sites with either planning permission or resolution to grant and which have the potential for 1,400 plots.

Guy Gusterson was appointed as managing director of Gleeson Land during the year.

Graham Prothero, chief executive at MJ Gleeson, said: “We are pleased with the year’s performance in a challenging economic environment. We have taken advantage of the quieter market to restructure Gleeson Homes, putting the business in great shape to grow as the market recovers. I am hugely impressed with the resilience of our team, who remained focused and committed through that process to deliver these results. This gives me confidence in achieving our potential.

“The changes we are implementing in the business for the new financial year will further improve our competitiveness in the current market, and position us well for gradual stabilisation in the economy.

“We are also very excited about the longer-term prospects for the business and look forward to setting out later today why we believe that Gleeson is well-placed to scale significantly over the long-term, realising its true potential.”

MJ Gleeson is headquartered in Sheffield with its Strategic Land division based in Fleet.

Source : InsiderMedia

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Rotana to Open 600-Key Property in Georgia

Scott Mcdonald — Mon, 26 Jun 2023 03:54:28 +0000

Located in Gonio, a suburb of Batumi, the resort is scheduled to welcome its first guests by 2026

UAE-headquartered hotel management company Rotana has signed an agreement with Pontus Development to open a new 600-key property in Georgia.

Pontus Rotana Resort and Spa Gonio will be located in the beach suburb of Batumi, and is scheduled to open in 2026.

The five-star resort will offer a number of services and amenities including a private beach, several dining venues, a spa, indoor and outdoor swimming pools, a fully equipped wellness and fitness center as well as a dedicated kids’ play zone.

Rotana added that guests staying at the property will also have access to the gaming facilities at the grand casino.

The hotel is located seven minutes away from Batumi International airport, while the Batumi city center is less than 15-minutes from the site of the resort. Furthermore, a 10-minute drive from the resort will land you at the Turkish border near Sarfi.

Irakli Varshalomidze, managing director from Pontus Capital, said: “We are pleased to welcome for the first time in Georgia, one of the largest hospitality management companies, Rotana, to help realise this vision and create an extraordinary getaway for all. The Georgian culture and language have deep connections to the Arab world, making our partnership with Rotana a natural fit.”

Rotana currently operates 73 hotels in the Middle East, Africa, Eastern Europe and Türkiye, hosting more than six million guests per year.

“We are excited to be partnering with Pontus Capital to debut the first Rotana branded five-star property in Georgia. Complete with glamourous architecture, a variety of fine-dining venues and elevated recreation facilities, Pontus Rotana Resort and Spa will deliver on our singular brand promise of ‘Treasured Time’ for guests and visitors alike. The 600-key property marks a significant milestone for Rotana as we continue to expand our footprint internationally with new regions in the pipeline, and we look forward to the property’s successful launch,” said Guy Hutchinson, president and CEO of Rotana.

Rotana said at the Arabian Travel Market last month that it aims to reach 120 operating hotels spanning across 28,000 keys by 2030. Saudi Arabia and Egypt will be the key markets for the group as it expands its footprint in the region.

Subsequently, it signed an agreement with Memar Development and Investment for five new properties in Saudi Arabia. These include four under its Edge by Rotana brand which was launched last year and one Rayhaan by Rotana property, all of which will be located in Riyadh.

Beyond the Middle East, Rotana also announced plans for its first openings in the UK. It will include a 70-apartment Centro New Malden set to open this year, followed by the 31-apartment new-build Centro Kingston on the north edge of Coombe Road in 2024. Rotana plans to potentially develop up to 1,500 keys under the Centro brand in greater London.

Source: Gulf Business

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Could Low Interest Rates be Hurting Australia’s First Home Buyers?

Scott Mcdonald — Wed, 31 May 2023 13:18:00 +0000

New research has found that extended periods of low interest rates have been the death knell for first home buyers.

The report, Financing first home ownership: modelling policy impacts at market and individual levels, was undertaken for the Australian Housing and Urban Research Institute (AHURI) by researchers from Curtin University, University of Sydney, and RMIT University.

Cheaper mortgages but house prices doubled

Researchers found that mortgages fell by almost five percentage points across a 25 year period between 1994 and 2017. During the same span of time, house prices grew by more than double.

The residential price growth causes were attributed to factors such as housing availability, wages, and population growth, which accounted for two thirds of the rise. Almost one third of house price growth was due to lower interest rates, according to the research.

“Falling interest rates may seem appealing to first home buyers, but in real terms, it only increases competition and pushes prices higher, sometimes out of reach for those trying to get into the market for the first time.”

Rachel Ong ViforJ, lead author for the research and John Curtin Distinguished Professor from Curtin University’s School of Accounting, Economics, and Finance

Barriers to owning the first home

Savings were one of the barriers for first home buyers, with the study finding 84% had insufficient savings for a home deposit.

Meeting mortgage repayment requirements was another barrier for many at 71%.

An overwhelming majority were unable to buy their first home, the study found nearly nine in ten were locked out due to borrowing constraints.

“The research also notes that the housing market could see the return of young or lower income households again if a persistent rise in interest rates leads to a decline in house prices.”

AHURI

Unfortunately, while interest rates have been on a sharp rise over the past few months, and at least one or two more are still widely expected, the housing market seems to have turned a corner.

Data from across the industry is pointing towards house price growth, and while not consistent across the country, the national figures have seen there are several indicators which point towards a wider market shift towards growing prices.

Shared equity or mortgage guarantee?

Given the challenges ﬁrst home buyers face in the current market, the study also modelled two first home buyer assistance programs to support home buyers on lower incomes: a mortgage guarantee scheme according to the design of the Home Guarantee scheme and a shared equity scheme modelled after the Help to Buy program.

The research found a mortgage guarantee scheme could assist 22% of qualifying ﬁrst home buyers, while a shared equity scheme would assist 41% of eligible home buyers, a quarter of which would be in the bottom 20% of Australia’s socio-economic status areas.

“Our research indicates that while both schemes will help some households into first home ownership, the Help to Buy shared equity scheme is likely to be more accessible to people on lower incomes than the Home Guarantee scheme,” said Professor Ong ViforJ.

“It’s important to understand that while these schemes would support people living in lower socio-economic status areas, they would likely also boost demand for housing in these entry-level markets.

“It’s imperative the introduction of any such schemes is matched by an increase in the supply of local housing in order to avoid fuelling further house price rises.”

Source: The Property Tribune

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