A Bloomberg Intelligence gauge of Chinese developer shares fell 3.3% on Thursday, extending losses from a mid-May high to almost 21%. Sunac China Holdings Ltd. was the biggest laggard with a slump of 12%, while CIFI Holdings Group Co. sank 8.4%.

Real estate stocks have retreated amid skepticism over a broad support package unveiled by the central government on May 17. While investors initially cheered the policies, which include lower down-payment requirements for homebuyers, they have since questioned how useful they will be in reviving demand and addressing a housing inventory glut.

There’s also the concern about the size of the measures. Officials have said that a central bank program would incentivize bank loans worth 500 billion yuan ($69 billion), but that’s a small fraction of the value of China’s vacant apartments.

”The latest sales data show there’s not much improvement in property fundamentals,” said Jeff Zhang, an analyst at Morningstar Inc. “We may need to wait until the end of year to see a narrowing of declines or a rise in monthly sales as a result of the government’s rescue package.”

New-home sales at the 100 biggest real estate companies dropped 33.6% from a year earlier in May, easing from a 45% decline in April, China Real Estate Information Corp. data showed. While the slight month-on-month pickup buoyed property shares earlier this week, worries over the long-term outlook later pushed investors to take profits.

“We only do short-term investment in Chinese property stocks as the industry’s fundamentals are still weak,” said Joy Young, the founder of Shenzhen Infinite Fund Management Co.

As some investors wait for a clearer sales-recovery picture, others are seeking clues on major policy shifts that may be unveiled at the Third Plenary Session in July.

Beijing will likely follow other cities such as Shanghai and Shenzhen in relaxing housing curbs, according to John Lam, an analyst at UBS Group AG. Other possible measures may focus on destocking, he added.

Morningstar’s Zhang expects the Chinese government to be more active on property supports until July’s plenum, “but the room for policy adjustments may be smaller than before, as the May rescue package is already very forceful.”

Source: Bloomberg

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But what do you need to think about before you embark on your property search?

The Connexion spoke to property experts to find out what potential movers should consider when looking to buy property in France.

Do your homework

Make sure you research France and its varied regions before you start house hunting, or better yet, take a trip to research possible locations.

“France is a huge country with massively varied countryside, architecture and climate. A holiday spent touring the part that you are drawn to is good research,” says Julie Savill, from estate agency Beaux Villages, which has local property experts across France.

“Take a map and start marking areas, towns or villages that you like. Narrow down your search area before you even start thinking about viewings!” she says.

How remote do you want to be?

Many people dream of moving to rural France and escaping the hustle and bustle of the city, but it is worth thinking carefully about just how rural you want to be and what the ramifications of a rural life could be.

“There are plenty of properties where you can be very rural, with no neighbours and a short or long drive to the nearest village. For some, this seems idyllic, however, you need to consider whether the novelty of seeing very few people and always having to drive to get your bread and provisions will wear off over a period of time,” says Natasha Alexander of Suzanne in France, a British-owned estate agency based in Normandy.

“We recommend you do some research into the nearest village and large town and decide how close you would like to be,” she says.

Create a wishlist

Writing down what you definitely want in your new house can be useful when it comes to starting your property search.

“How many bedrooms/bathrooms? Will you do renovation work or just decorating? Do you want the luxury (and the cost) of a pool? Would you be happiest in a village or do you want to be completely alone in the countryside?” says Ms Savill.

Also consider what kind of house you would ideally want to buy.

“Do you dream of a renovated farmhouse, a maison de maître, a pavilion style house – how do you wish to live? Is it preferable to live on one floor or do you require something that is a new-build where the energy efficiency is the best it can be,” says Ms Alexander.

And it is just as important to think about your red lines.

“Are neighbours an absolute no? What about modern properties?” says Ms Savill.

Research the French housing market

Get acquainted with France’s housing market, which could be very different from that in your home country.

“Researching the housing market is essential. Prices vary significantly depending on the region and may not be as cheap or expensive as expected, says Patrick Joseph from My French House, a UK-based company that helps house hunters find properties in France.

“Some buyers still harbour the dream of finding a chateau to renovate or a farm in Provence for the price of a terraced house in the UK, but this is usually unrealistic. The good news is that asking prices for resale properties have been reducing over the past few months as the national market cools,” he says.

Check transport links back to your home country

Those who plan to buy a second home or stay in their home country for part of the year should look into transport links.

“Have you looked at the various routes available and the costs involved in travelling back to your home country. Are there good links back? How long will it take?” says Ms Alexander.

“This may not be of great importance if you do not plan to do this regularly but if you are commuting between the two countries this may be a deciding factor as to where your house will be.”

Be realistic about your budget

It can be easy to ignore your budget when picturing yourself in that beautiful chateau, but it pays to be realistic.

“Consider currency exchange rates so you know just how much you have to work with,” says Ms Savill. “Estate agency fees are generally included in advertised prices and you will need to pay in the region of 8% notaire fees on top. This includes the equivalent of stamp duty/land registry in the UK.”

“Setting your budget is a fundamental step,” agrees Mr Joseph. “If you need financing, apply for a decision in principle from a French bank or broker as early as possible; the criteria for mortgages are very strict. If you need to sell a property elsewhere, try to coordinate the timing of listing your home with your visits to France,” he says.

Mr Joseph also recommends researching currency transfers and the buying process in France, for example, how exactly to make an offer and when to pay your deposit. “These will differ from your home country,” he says.

Beware of the land trap

It is not only your budget about which you should be realistic – while many people dream of buying a property with land – consider how much you will be able to look after.

“A lot of properties come with a lot of land. If this is to be a holiday home, think carefully about the work and cost of maintaining a big garden or even a field and woodland if you are only there occasionally,” says Ms Savill.

Natasha Alexander says Normandy, and its excellent value for money, is attractive to people who want to buy land, for example to run a business or have a smallholding.

“Consider how much land is too much. Don’t forget acres and acres need to be maintained and looked after. Do you want this burden, in particular, if you want a lock-and-leave holiday home?” she says.

Be prepared to change your mind

There is nothing wrong with changing your mind about what you want, says Julie Savill.

“Be prepared to change your mind once you start viewing. That cute old stone property might just feel very dark once you get inside and a complete lack of neighbours could turn out to leave you more isolated than you anticipated,” she says.

And be willing to see a few wild cards.

“Sometimes really good properties don’t come over so well in photographs. Be prepared to go and see a couple of places that challenge your wishlist,” Ms Savill says.

Check out the local schools

If you are moving with young children, make sure to research the local schools before deciding on a house.

“Do you have easy access to the local primary school? While it may seem very quaint and again idyllic to live in the countryside when the children are very young. Have you considered when they become older and wish to play with friends after school?” says Ms Alexander.

“A little planning ahead could mean that you are not spending a lot of time taxiing your children to and from various sports clubs and the school itself.”

Consider healthcare options

It is important to think about healthcare options, whether you are planning to stay in France into old age or perhaps have a current healthcare condition that will need regular attention once you move.

“None of us like to think of getting older or sick, but consider your local clinic for services and the closest hospital. How long will the journey be if you need regular treatment?” says Ms Alexander.

Check the Internet connection

Something that could easily slip your mind is checking the local internet speed of the house you are looking at.

“While many areas have fibre now you will need to check the speed of the internet connection, in particular, if you use the internet for your work,” says Ms Alexander.

Find an agent

A good agent can help you navigate the process of buying in France.

“Buying privately is absolutely possible if you feel informed and confident enough to deal with a negotiation and contracts, which will all be in French,” says Ms Savill.

“An agent will have excellent local knowledge and a great awareness of the correct pricing for your local area. Speak to a few people and find someone you connect with,” she says.

Source: The Connexion

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He said the property market has demonstrated significant growth and resilience, with individual property counters experiencing up to 600% growth in share price appreciation.

He said property counters in the stock market have been on the rise from January 2023 to June 2024, with 76 out of 100 on Bursa Malaysia experiencing an increase in share prices.

“(Meanwhile,) 22 counters showed a decrease in share prices, (and) two counters maintained their share prices despite fluctuations,” Nga said in a statement today.

He noted that among the top counters were DPS Resources Bhd, registering 600% growth in share price, UEM Sunrise Bhd, posting a 347% increase and WMG Holdings Bhd, which appreciated by 326% from January 2023 to June 2024.

“This positive trajectory is expected to continue into the second half of 2024. I firmly believe that under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, our property market will have a bright future in the coming years.

“We must work together to enhance our industry’s reputation and increase the confidence level of investors to make the property market even more resilient,” said Nga.

According to the statement, Malaysia’s property market transactions were valued at RM42.31 billion, with more than 89,000 transactions recorded in the first quarter of 2023. In the first quarter of this year, the value of property market transactions hit RM56.53 billion, an increase of RM14.22 billion, with more than 104,000 deals.

“This significant growth indicates that Malaysia’s property market is recovering well and on the rise,” the statement added.

Source: The Sun

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That’s also the bad news, costing them thousands more in real estate taxes and leaving less for discretionary spending.

“To pay the higher property taxes, it just means we’ve got to take more money out of our investments when it comes time to hit those big bills,” Beverly McAdam said.

She backs a Colorado ballot proposal that could cap the growth of property tax revenue. It’s one of several measures in states this year to limit, cut or offset escalating property taxes in response to complaints.

Over the past five years, single-family home prices have risen about 54% nationally, according to S&P Dow Jones Indices.

That means higher tax bills for homeowners when governments don’t offset higher real estate values by reducing tax rates. And with offices seeing higher vacancies as people still work from home after the coronavirus pandemic, some commercial property values are declining, putting even more pressure on residential properties to deliver revenues.

“With assessed values skyrocketing over the past few years,” said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation, “homeowners are clamoring for relief, and state policymakers are increasingly exploring ways to provide it.”

Colorado, like Alabama and Wyoming, also has a new law that will limit the growth in tax-assessed values for homeowners. Property tax relief will be part of a special legislative session beginning June 18 in Kansas, while Nebraska also could hold a special session to cut property taxes.

Georgia voters will decide in November whether to authorize a new law limiting increases in assessed home values for tax purposes to the rate of inflation, unless local governments or school boards opt out.

Five years ago, Lanell Griffith and her husband paid a little less than $2,700 in property taxes on their Topeka, Kansas, home in a historic neighborhood of tree-lined, brick streets. Their bill last year was more than $3,700.

“The government shouldn’t be able to arbitrarily just increase what they say you owe them without any sort of guardrails on that,” Griffith said.

Kansas lawmakers this year passed three measures that would have reduced the state’s property tax levy for public schools. But each was vetoed by Democratic Gov. Laura Kelly because of concerns about other sections to cut income taxes. The special session will mark a fourth attempt at consensus.

In Vermont, Republican Gov. Phil Scott has vowed to veto a bill that would raise property taxes by an average of nearly 14% to provide more money for public schools. Scott said people “simply cannot afford a historic, double digit property tax increase.”

In many states, property taxes are primarily a function of local governments such as counties, cities, school boards and special districts for libraries, fire departments and water systems. Each entity sets its own property tax rate, which is added to the others to come up with an overall tax bill for property owners.

State legislatures can intervene in a variety of ways. They can establish statewide limits on how much assessed property values can rise, create partial tax exemptions for all homeowners or provide income tax credits to help offset property taxes for certain people, such as those 65 and older.

But any relief carries consequences. Limits on the growth of assessed property values may provide a greater benefit to the wealthy. Exemptions for homes used as primary residences can shift a greater tax burden to rental properties and businesses.

“If you do this too much, you can now start tying the hands of your local government and cutting them off from the ability to raise revenue,” said Richard Auxier, a principal policy associate at the nonprofit Tax Policy Center.

While signing several property tax relief laws this year, Republican Wyoming Gov. Mark Gordon vetoed one that would have exempted 25% of a home’s value from property taxes. He said it “jeopardized the financial stability of the state and counties.”

In 1982, voters in Muscogee County, Georgia, approved a local ordinance freezing assessed property values for homes used as primary residences. The result: longtime homeowners pay very little, newcomers pay more and businesses face some of the state’s highest property tax rates, said Suzanne Widenhouse, the county’s chief appraiser.

Last year, two similar homes worth around $330,000 had dramatically different tax bills. One, whose assessed value was frozen in the 1980s, owed less than $8. The other, whose assessed value was frozen when purchased about five years ago, owed $3,236, Widenhouse said.

“Anytime you grant an exemption, you create an inequality,” she said.

A Georgia ballot measure would amend the constitution to allow increases in assessed property values to be capped at the rate of inflation. But it wouldn’t undo past increases.

In the eight years since Rob Romeijn bought a ranch-style house on 10 acres (4 hectares) southeast of Atlanta, Rockdale County has raised the assessed value of his property from $127,000 to $230,000, also bumping up his property tax bill, he said.

As a Dutch immigrant with permanent residency, Romeijn can’t vote in elections in Conyers, but he was so unhappy about the increase that he made a sign urging people to vote out Rockdale’s commissioners and protested outside county offices in April.

Colorado also has been at the center of the property tax debate. The state has experienced decades-long growth in new residents, driving up demand for housing. Meanwhile, it has struggled to find a balance between providing tax relief for homeowners and sufficient funding for local governments.

A 1982 constitutional amendment limited residential properties to 45% of Colorado’s total property tax base while also setting a fixed assessment rate for commercial properties. To keep the ratio in balance as home values rose, residential tax assessments were cut, leaving less revenue for essential services such as fire districts.

Colorado voters repealed that constitutional provision in 2020. Since then, assessed home values have risen rapidly and the General Assembly has responded. The latest law, signed in May, is projected to shave over $1 billion annually off future property tax revenue by reducing tax rates and imposing growth limits.

But that’s not enough to satisfy some residents. The conservative group Advance Colorado backed a citizens initiative asking voters in November to cap all property tax revenue growth at 4% per year and is gathering signatures for still another ballot initiative to lower property taxes.

“People are saying this is too much growth; government doesn’t need this much money,” Advance Colorado President Michael Fields said. “People are genuinely scared of losing their houses.”

Source: AP News

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Housing affordability improved in three-quarters (75%) of local authorities across England and Wales in 2023, compared with the previous year, according to the Office for National Statistics (ONS).

Affordability worsened in just under a quarter (24%) of local authorities and remained the same in 1%, the ONS said.

Average house prices increased in just over two-thirds (69%) of areas compared with 2022 – but average earnings increased in a bigger proportion of areas, at 88%.

Kensington and Chelsea in London was the least affordable area last year, with an average house price-to-earnings ratio of 34.3.

The most affordable was Burnley in Lancashire, with an average house price-to-earnings ratio of 3.7.

In 2023, 7% of areas typically had homes selling for less than five times the average earnings of workers. This was an improvement compared with 2022; however, in 1997, 88% of areas had this ratio.

The report said: “Therefore, affordability remains considerably worse than at the start of the series.”

Looking at England, in the 12 months to September 2023, the average home sold for £290,000, while average full-time earnings were £35,100.

This means that, in England, full-time employees could expect to spend 8.3 times their earnings on purchasing a home in their local authority area.

This represents an overall improvement in affordability compared with 2022, when the average home in England cost around 8.5 times the average wage.

In Wales, the average home sold for £196,500 in the 12 months to September, while the average workplace-based full-time wage was £32,400.

This gave an affordability ratio of 6.1, down from 6.4 in 2022.

House sales prices have become more affordable since 2021, but remain in line with pre-coronavirus pandemic trends, the ONS said.

The affordability ratio doubled in England from the start of the records in 1997 to 2007.

In 1997, a home in England was worth around three-and-a-half times the average wage, but by 2007 buyers faced paying just over seven times their salary typically to buy a home.

In Wales, affordability ratios doubled from 1997 to 2005 and peaked at 6.6 in 2007. Since then, they have remained between 5.5 and 6.5, with a less pronounced increase and decrease in the past three years than in England, the ONS said.

Mortgage rates have jumped amid increases in the Bank of England base rate, meaning that some existing homeowners could have a payment shock when their deal expires.

Recent signs that inflation is cooling have raised expectations around the potential for the Bank of England to start cutting the base rate in the months ahead.

Source: LBC

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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.

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Tom Bill, head of the agency’s residential research team, says: “In October, financial markets were pricing in a single interest rate cut of 0.25 per cent by the end of 2024. [Now] they are expecting five. The main reason for this changing outlook is that inflation is falling faster than expected. As a result, mortgage lenders have dropped their rates fairly significantly in recent weeks, partly to win business in a low-volume market.

“The best five-year fixed-rate mortgage is now under 4.0 per cent, which was made possible after the five-year swap rate fell a full percentage point over the final quarter of 2023. As a result of this more positive backdrop, we have revised our UK house price forecasts from three months ago.”

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The initiative could be announced in the Spring Budget on March 6 to help those struggling to build up enough savings to buy a home, according to a report in the Independent.

It could see the Government offer banks financial guarantees to encourage them to hand out mortgages covering 99 per cent of a home’s value.

Help: The Government is reportedly considering introducing a scheme that will allow first-time buyers to get on the property ladder with just a 1% deposit

This would be similar to the existing Mortgage Guarantee Scheme, which aims to help those buying homes with 5 per cent deposits.

If it is confirmed, the policy would no doubt be welcomed by some first-time buyers.

However, critics say that it could also push up house prices, and that struggling first-time buyers may not be able to afford the monthly repayments required on such a large mortgage, especially as rates remain relatively high.

How could it help first-time buyers?

There is little detail on the scheme, but in theory it should mean aspiring homeowners will be able to buy their first home with an even smaller deposit.

Someone buying a £300,000 property with a 5 per cent deposit needs to have built up savings of at least £15,000 to get a 95 per cent mortgage.

Under the new scheme, they may need as little as £3,000 – alongside the funds required for a solicitor, surveyor and potentially a mortgage broker.

David Hollingworth, associate director at L&C Mortgages says: ‘This would likely open up an alternative option for first time buyers struggling to build a deposit.

‘Requiring a smaller deposit could help accelerate the ability to buy, for those that can fund the remainder from mortgage borrowing.’

Path to ownership? Experts say that the rumoured mortgage scheme may be helpful – but only to borrowers who can afford the repayments

Mark Harris, chief executive of mortgage broker SPF Private Clients, adds: ‘The 99 per cent mortgages could be a good idea in the appropriate circumstances.

‘With added stamp duty costs, a 99 per cent mortgage can look identical to a 95 per cent mortgage for previous generations.

‘Add in the fact that saving for a deposit while renting is practically impossible, and this could be a solution.’

Will it make property more affordable?

Buyers are likely to find their ability to get a 1 per cent deposit mortgage is dependent on their earnings.

Many first-time buyers are not only priced out of the property market because of the deposit required, but because of how much they are able to borrow.

All mortgage lenders limit borrowers to a maximum loan-to-income ratio.

This is a cap on the amount banks will lend based on the borrower’s annual income. They are able to offer some loans above this level, but there are tight restrictions on how many.

As a general rule of thumb, most first-time buyers will find themselves limited to a maximum of 4.5 times their annual income.

If a single person was buying a £300,000 property with a 1 per cent deposit, they would typically need an annual income of at least £66,000.

David Hollingworth adds: ‘There will still be reasons why this wouldn’t be an option for many, as they may also be limited by the mortgage amount that they can borrow, as well as the challenge of saving a bigger deposit.

‘Lenders will need to see that the mortgage amount is affordable based on income and outgoings and subject to certain income multiple limits.

‘That can see borrowers requiring an even bigger deposit to bridge the gap between the mortgage and the amount that they have to pay for the property.

‘That issue certainly doesn’t disappear at 99 per cent loan to value mortgage, so could affect the number that can take advantage.’

Would it be popular?

There are some doubts over whether many first-time buyers would actually sign up to a 99 per cent mortgage deal.

The average deposit put down by a first-time buyer last year was around 25 per cent, according to UK Finance.

Meanwhile, the average first-time buyer is borrowing at 3.36 times their annual income, which is significantly under the maximum they would typically be allowed to borrow at.

This suggests buyers are keen not to overstretch themselves when it comes to buying their first home.

Are similar mortgages already available?

Skipton Building Society made headlines last year when it launched a 100% mortgage for renters to enable them to get onto the property ladder without a deposit

Skipton Building Society made headlines last year when it launched a 100 per cent mortgage for renters to enable them to get onto the property ladder without a deposit.

Another product that allows first-time buyers to get on the ladder without a deposit is the Barclays Springboard mortgage, which uses equity in a guarantor’s (usually a family member’s) house as collateral.

However, it is thought that there has been limited uptake for these types of products.

Chris Sykes, technical director at mortgage broker, Private Finance, says: ‘My concern is this latest Government scheme is going to give false hope to many where the real ins and outs of the policy will not make it actually feasible.

‘It is worth mentioning that 100 per cent mortgages exist, from Skipton to other schemes where family members can act as guarantor.

‘My issue with these schemes is, just because you can afford rental payments at say £1,500 per month, doesn’t mean that you can afford a mortgage payment at £1,500 per month.

‘This is because home ownership has a number of other costs to consider: building insurance, the property repairs your landlord would have done, and so on.

‘If you were not able to save for a deposit while paying this rent, then can you afford the associated costs of having a property?’

How expensive will they be?

The other concern shared by some across the mortgage industry is the fact these products will likely come with higher rates, given there is greater risk for the lender.

The average five-year fixed rate mortgage rate for someone buying with a 40 per cent deposit is 4.74 per cent, compared to 5.41 per cent for someone with a 5 per cent deposit, according to Moneyfacts.

With virtually no deposit, the price of these mortgages will be reflected in the risk, i.e they will be very expensive Peter Stimson – MPowered Mortgages

That’s the difference between paying £1,139 a month and £1,217 a month, based on a £200,000 mortgage over 25 years.

The rates would probably be higher for those buying with a 1 per cent deposit.

Peter Stimson, head of product at MPowered Mortgages says: ‘We really don’t think 1 per cent deposit mortgages are a good idea. It’s just another gimmick initiative that is doomed to fail.

‘With virtually no deposit, the price of these mortgages will be reflected in the risk, i.e. they will be very expensive.

‘Instead, the Government should be focused on fixing the fundamental issue, which is a lack of housing stock and affordable housing.’

David Hollingworth of L&C Mortgages adds: ‘The guarantee will no doubt carry a cost and that will pull through into the pricing of the mortgage rates.

‘As you’d expect if we do see 99 per cent mortgages we’d expect that interest rates will be higher than for those with bigger deposits.

‘That then makes it a balance of whether the price is worth paying for the increased ability and timeline for buying. With rents so high that higher interest rate could still be worth taking on.’

Threat of negative equity

There are also concerns about the rumoured scheme resulting in more first-time buyers running the risk of falling into negative equity in the future, if house prices fall.

UK house prices recently recorded their fastest annual fall since 2011, according to the Office of National Statistics.

According to the data, the average sold price fell by 2.1 per cent in the 12 months to November 2023.

Negative equity is when a home becomes worth less than the remaining value of the mortgage.

If that happens, the owner may be left unable to remortgage, and in some cases be forced to sell their home to pay the bank.

Rising house prices

Government interventions such as these often appear to add fuel to house prices.

Stamp duty holidays, Help to Buy, Right to Buy and other schemes were also all meant to help more people on to the ladder.

But while many of those initiatives were successful, they also had the effect of pushing up house prices further for those that came after.

Hollingworth adds: ‘The potential downside is that if you boost the demand without improving the supply, you risk pushing prices even higher.

Chris Sykes agrees: ‘I think we’ll have to wait and see where they pitch the scheme, but it is somewhat avoiding the main issue of there not being enough houses.

Source: This Is Money

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China is speeding up efforts to resurrect the economy’s recovery and enhance the business environment as concerns about the economy’s growth forecast intensify. China’s efforts to kick-start a property sector revival are poised to have a substantial, positive impact on international stock markets and delight global investors, says the founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The upbeat assessment from deVere Group’s Nigel Green comes as The People’s Bank of China eased borrowing rules and slashed the reserve requirement ratio for foreign exchange deposits from the current 6% to 4%. Some of the country’s largest banks also cut interest rates on yuan deposits.

Green says: “Global stock markets are set to get a boost amid the rollout of steps being taken by the People’s Bank of China (PBOC) to revive the country’s beleaguered property sector. We expect the decision to ease borrowing rules and cut reserve requirements for foreign exchange deposits, plus the cutting of interest rates on deposits will have a considerable positive impact on global stock markets as investors digest news that Beijing is being proactive on this critical economic issue.”

China’s property market had been facing a crisis marked by plummeting property prices, oversupply, and a debt-laden real estate sector.

This turmoil raised concerns not only for China’s domestic economy but also for global investors with exposure to Chinese assets.

“The global impact of China’s efforts to revive its property sector cannot be underestimated,” says Nigel Green.

“A healthy property market is a vital driver of economic growth. As China’s property sector stabilises, it will boost construction activities, create jobs, and stimulate related industries like cement, steel, and furniture. The resultant economic growth will have a positive spillover effect on global markets, especially for countries that rely on China as a major trading partner.”

Green continues: “China’s property crisis had dented investor confidence in the country’s markets. Therefore, by addressing the issue, China is sending a reassuring message to international investors that it is committed to maintaining stability and promoting growth.

Restored confidence will, we expect, lead to increased foreign investments in Chinese assets, benefiting both domestic and global portfolios. China’s property sector revival will offer new investment opportunities, both in the real estate market and related industries. Global investors looking for diversification and growth prospects can be expected to find China an appealing destination once again.”

Since the beginning of this year, Nigel Green has been publicly saying that Beijing will take the necessary measures to shore-up the world’s second-largest economy and that global investors “must not overlook the opportunities in China if they are serious about building long-term wealth.”

The deVere founder concludes: “Global financial markets will be buoyed by these measures that will stabilise the critically important Chinese property market, restore investor confidence, and stimulate economic growth.”

Source : FinancialExpress

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In NSW’s capital Sydney, house prices have rocketed upwards by 4.5 per cent since hitting rock bottom in November last year.

According to the PropTrack Home Price Index, the increase implied a rise in median home values of $45k, or $1470 per week since late last year.

In the past three months prices were up 2.7 per cent, representing an increase in median home values of $27k, or $2100 per week.

“Greater Sydney saw the fastest growth in home prices of any capital city over June. This marked the sixth consecutive month of price rises for Australia’s most expensive capital city. Sydney has now recouped much of the losses recorded over 2022,” PropTrack economist Anne Flaherty told news.com.au.

Ongoing property price growth acceleration in Sydney despite climbing interest rates pointed towards a significant imbalance between supply and demand, she said.

Sydney house prices have been climbing more than $2000 every week. Picture: NCA Newswire/Gaye Gerard

“The total number of properties listed for sale in Greater Sydney remains subdued and, in May, was a staggering 18 per cent lower compared to the same time last year.

“Fewer listings are contributing to more competitive market conditions which is seeing prices rise, despite higher interest rates.”

Prices were expected to continue climbing along with the population growth and a slowdown in how fast homes were being built.

“What’s more, the speed at which new homes are being built is slowing, with development approvals and construction starts slowing,” Ms Flaherty said.

“This is expected to exacerbate the issue of undersupply over the coming years which could drive prices even higher.”

Some of Sydney’s formerly more affordable suburbs have also skyrocketed in recent months.

“Price growth over June was strongest in the relatively more affordable outer suburbs, with the Blacktown, North Sydney and Hornsby, and Parramatta regions recording the strongest price growth,” she said.

Meanwhile, a handful of regions out the city’s outskirts had dropped in price.

A significant imbalance with supply and demand was to blame. Picture: NCA Newswire/Gaye Gerard

“In contrast, some regional areas are continuing to see declines, including the Southern Highlands and Shoalhaven, the Mid North Coast, and the Hunter Valley,” she said.

Every capital city except Darwin recorded increases in the latest PropTrack Home Price Index release on June 1, following prices accelerating and broadening in May.

Canberra and Hobart joined the rebound as their recent falls reversed and all regional markets saw prices rise in May except regional NSW and regional Victoria.

Canberra and Perth recorded the largest increases in May. Sydney, the market which led the downturn, has also led the recovery, with prices up 3.03 per cent in May from a November low and now down less than 2 per cent from levels seen in the same period last year.

Home price growth has been stronger in the capital cities than regional areas this year. This trend continued in May, with regional areas lifting a small 0.03 per cent and capital city prices lifting 0.45 per cent.

Regional markets have however outperformed on an annual basis.

Source : News.com.au

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