Global Real Estate Job Outlook on the Rise – 61% Plan to Increase Hiring in 2012

Ferguson Partners Ltd. Survey Reveals 70% Jump in Forecasted Hiring Since 2010; Nearly 70% of U.S. Real Estate companies plan to increase hiring this year

A global survey of real estate companies conducted by Ferguson Partners Ltd., a global executive recruitment consultancy, finds that 61% of all respondents anticipate adding to their workforce in 2012 – a jump of nearly 70% from two years ago, when only 36% planned to increase hiring.

“The hiring demand is much stronger than most people in the real estate industry anticipated. It looks like most of the growth will be in middle management and entry level positions, which is a reflection of firms rebuilding infrastructure after the 2008 meltdown,” said William J. Ferguson, Chairman and Chief Executive Officer of Ferguson Partners Ltd. “From a global perspective, the U.S. is showing some momentum, Europe is unsteady and the impact of China’s economic slowdown on Asia is an unknown. Yet, despite ongoing challenges around the globe, an abundance of capital flow is helping to increase demand for investment and other talent.”

The 2012 Global Hiring Forecast is based on the responses of over 120 professionals, including CEOs and other senior-level executives from companies active in commercial property investment and commercial mortgage lending, along with a sampling of respondents from investment banks, REIT securities, law firms, corporate real estate groups, and pension funds. Ferguson Partners Ltd. conducted the annual international survey from November 1, 2011 through December 15, 2011 with executives representing real estate firms across North America, Europe and Asia.

The Findings

Hiring optimism makes significant jump since 2010.

Sixty-one percent (61%) of all respondents anticipate an increase in total workforce size in 2012 – up from 56% in 2011 and a significant jump from 2010, when only 36% planned to increase hiring. This constitutes an increase of nearly 70% since two years ago.

Junior professionals in highest demand.

Eighty-one percent (81%) of respondents expect executive hiring to remain flat in 2012. However, in an effort to rebuild the infrastructure that was decimated in 2008, 65% of respondents plan to hire junior-level people to their workforce, while 56% said that they would be hiring mid-level management. This represents an increase of 10% and 8%, respectively since 2011.

By comparison, in the U.S. few will be adding executive talent (about 6%) while 71% of the respondents said that they would be adding junior talent, and another 59% said that they would be adding middle management.

Strongest hiring demand in North America.

Ranked as the top region globally in forecasted demand for 2012, 45% of respondents with operations in North America plan to hire there. In the U.S., 68% of the respondents said they would be adding staff in 2012. This is largely due to the fact that organizations in this region downsized significantly in 2008. Anticipated hiring by real estate companies in Europe ranked second at 30%, slightly up from 25% in 2011. Despite the economic challenges facing the eurozone, companies are still seeing opportunities for growth in this region; big private equity players from the U.S. have been building teams to identify distressed investment opportunities. Tied for second, Asia’s anticipated hiring ticks up slightly with 30% of companies with operations in the region planning to hire, compared to 27% in 2011. In contrast, only 16% of companies with South American operations anticipate hiring.

From a geographic perspective, demand was comparable across the United States with the exception of the Midwest, where demand was predicted to be more modest at 28%. The gateway cities appear to be most active. Demand in the South at 44% is higher than anticipated as baby boomers retire.

Professionals who can stabilize value and drive cash flow are in highest demand.

When asked about functional hiring, 44% of the respondents said that they would be adding to their property management/leasing teams, and more than half (51%) said that they would be adding to their asset management/portfolio management teams. And, since equity capital is still abundant, both acquisitions professionals (48%) as well as capital raisers (39%) tend to be in greater demand than other functional groups. In addition, as the lending business becomes more robust, nearly one-third (32%) of respondents will be hiring underwriting and processing employees this year.

In the U.S., demand was comparable to global trends, with property management and asset management personnel in most demand at 52% and 50%, respectively, followed by acquisitions professionals (45%) and capital raising/investor relations specialists (33%). Lending markets continue to be active, with 33% of U.S. respondents planning to hire mortgage originators and 31% planning to hire underwriting/processing professionals.

About Ferguson Partners Ltd.

Ferguson Partners is a global boutique executive search firm that specializes in providing executive, director, and professional search services to a select group of related industries. Our committed senior partners bring a wealth of expertise and category-specific knowledge to leaders across the real estate, asset and wealth management, hospitality and leisure, and healthcare sectors. Together with its sister company, FPL Associates, which provides compensation and management consulting services, the FPL Advisory Group family of companies serves clients across the globe from offices in Boston, Chicago, Hong Kong, London, New York, and Tokyo.

Source: http://www.prweb.com/releases/prweb2012/2/prweb9239807.htm

Kuwait real estate sales strong in Jan – NBK ECONOMIC REPORT

KUWAIT: Real estate sales activity picked up in January, totaling KD 318.1 million in value, a 64% increase year-on-year (y/y). The level was the third best level on record. All three sectors of real estate saw big increases, with the residential sector taking up 54% of total sales. The uptick in sales should persist for the year albeit perhaps with less impetus.

Residential sector sales were KD 170.3 million for January, a 40% y/y climb. A major contributor to this increase was the high number of transactions concluded, totaling 806 transactions —a 4-year peak for the sector. The majority of these transactions (71%) were for plots of land, as opposed to finished homes. Residential sales should continue to do well in the near future, as it appears backed with solid demand.

The investment sector (mainly apartments and buildings intended for rental), saw KD 127.3 million in transactions for January, a little more than double the amount of last January. This was supported by a higher average transaction size, compared to 2011. Although this sector has mostly trailed the residential sector in monthly sales value, it continues to be a major factor in the recovery of the real estate sector as investors look for income property and investment alternatives.

The commercial sector recorded 8 transactions in January. They totaled KD 20.5 million in value, an increase of KD 11.5 million from last January. Month to month volatility in both monetary value and the number of transactions is common in this sector.

The Savings and Credit Bank (SCB) approved 298 housing loans, totaling KD 16.2 million. Of these loans, 59% will go into financing new houses constructions while 31% will be used to purchase existing homes. Additionally, KD 10.9 million loans were disbursed by the SCB, a 22% y/y increase.

January saw a strong start for the real estate sector in 2012. The pick-up in activity should be sustained through the year.

Source: http://new.kuwaittimes.net/2012/02/29/kuwait-real-estate-sales-strong-in-jan-nbk-economic-report/

Confidence 'returning to Cairo real estate market'

There is evidence of more clarity and increased activity in Cairo’s real estate market, with confidence returning 12 months after Egypt’s revolution, says a report.

However, with significant uncertainty still evident, much will also depend upon the country’s ability to address many of the residual challenges that are still largely unresolved, said the Jones Lang LaSalle report.

Ayman Sami, head of Jones Lang LaSalle’s Egypt Office, said: “It’s a challenging time but we are optimistic about the long term fundamentals of the Cairo real estate market. If the country is able to address its political issues then we are confident that activity will return to the market relatively quickly as demand exists across a number of sectors. We are already seeing some evidence of increased activity but continued certainty is a basic requirement for the economy to fully rebound.”

Indicators that 2012 should see a potential improvement in the Cairo real estate market, according to the report, include:

• Current and active demand for between 5,000 and 15,000 sq m of office space from a number of international FMCG and petrochemical occupiers.

• Retailers continue to open new stores with recent examples including American Eagle and Pinkberry opening their first stores in Egypt at CityStars and LC Waikiki (a Turkish retailer) opening their first store in December 2011 at Sun City Mall in Heliopolis.

• Some Real estate projects will continue towards completion in 2012. Cairo Festival City will deliver its first office phase in mid-2012 and Damac is looking to open its retail and office project opposite Dandy Mall before the end of the year. The market is witnessing a revival of other mixed use projects driven mainly by UAE and Qatari developers.

Sami said: “For the longer term investor, Egypt will always be an attractive market with considerable potential. There is opportunity in the many challenges that need to be addressed, such as more affordable housing, but the sector needs stability to be able to do this.”

Office: Currently there is about 700,000 sq m of Grade A office stock across the Cairo metro area. No new Grade A space was completed in 2011 but up to 120,000 sq m could be delivered by the end of 2012. However Jones Lang LaSalle anticipates this is more likely to only be around 60,000 sq m given the current situation with many planned projects experiencing extended delays. This will include Cairo Festival City, Mivida by Emaar Misr and Citadel Plaza by Alkan Holding. Prospective tenants are therefore seeing an improved standard of available space and greater choice. Vacancy is approximately 35 per cent but is expected to increase in 2012 given the proposed new space due to be delivered.

Average office rents peaked in 2010 at $55 per sq m per month for prime Grade A space but declined by 20 per cent in 2011 to $ 45 per sq m per month.

Retail: Total stock at the end of 2011 of mall based retail space was approximately 786,000 sq m. Major completions included Phase 1 of Mall of Arabia in Sheikh Zayed and Sun City Mall in Heliopolis which is currently 40 per cent operational. Despite delays a possible 260,000 sq m of new retail space could enter the market before the end of 2013. Cairo Festival City is not expected to be open until 2013. With the completion of other retail developments, such as a number of mixed use schemes could push the total retail floor space in Cairo to as high as 1.8 million sq m by 2014 with 29 per cent of supply comprising super regional and regional malls by 2015. This percentage is expected to increase with the completion of multiple community and regional malls.

Source: http://www.africanmanager.com/site_eng/detail_article.php?art_id=18001

REAL ESTATE: What's your neighbor's house selling for?

ST. CLAIR COUNTY

BELLEVILLE

* 3705 Little Flower; from Department of Housing and Urban Development; to Bettie Elghannan; $18,000 mortgage, but no sales price available.

* 508 Springwood Drive; from First Bank; to James F. Schrader and Cindy A. Schrader; $144,000.

* 1103 Bel Aire Drive; from CPI Housing Fund LLC; to Ellen C. Thieleman; $20,000.

* 300 Country Meadow Lane; from Jason Lehmann and Katherine Kilcauski; to Kathryn E. Kirby; $45,000.

* 300 Brookhaven Drive; from Marc D. McCleary and Holly McCleary; to Douglas J. Meek, trustee, and Elizabeth S. Meek, trustee; $172,000.

* 220 18th Fairway Drive; from Elizabeth S. Meek; to Marc D. McCleary and Holly J. McClary; $495,000.

* 204 Todd Lane; from Deutsche Bank National Trust Co.; to Larry Glaenzer and Cynthia L. Glaenzer; $55,500.

* 33 S. 87th St.; from Michael V. Palmer and Norma J. Hosto Palmer; to Floyd Dale Johnson and Diana M. Johnson; $60,000.

* 5907 Memory Lane; from Department of Housing and Urban Development; to JT Dell Properties Inc.; $20,140 mortgage, but no sales price available.

* 33 S. 85th St.; from Kerley Properties LLC; to John Lewis and Edna Lewis; $98,500.

* 409 Hazel Ave.; from Laverne J. Will; to Branson Burris and Heather Burris; $40,000.

* 7 Signal Hill Blvd.; from Isom Handyman Services LLC; to Simon F. Herley and Jessica R. Herley; $189,500.

* 101 N. 47th St.; from Community First Bank; to Gina Bozza-Reilly; $85,000.

CAHOKIA

* 1103 St. Clement; from Department of Housing and Urban Development; to Kenneth E. Parrett; $13,050 mortgage, but no sales price available.

CASEYVILLE

* 8797 Sterling Place; from Carol Diane Sheer; to Brian K. Brown and Mandy Hoover; $30,000.

* 501 Old Caseyville Road; from Carmen M. Singleton-Bacon and Byron Bacon; to Mindy Baker; $79,000.

* 1004 Peeble Beach Drive; from John Logan Livers and Tammy Livers; to Wesley Cox and Julie Cox; $380,000.

COLLINSVILLE

* 1034 Villa Ridge; from Gregory K. Kellerman and Janet S. Kellerman; to Jennifer Hendrix and Tasha Rupprecht; $45,500.

* 520 John St.; from Danil A. Engelmann and Scott A. Engelmann; to Gary J. Anderson; $5,000.

COLUMBIA

* 1578 Rueck Road; from William J. Summers II and Sara J. Summers; to John Potter; $210,000.

FAIRVIEW HEIGHTS

* 9111 Highland Park Drive; from Springleaf Financial Services of Illinois; to Mike Geolat; $13,000.

LEBANON

* 720 N. Monroe St.; from First Collinsville Bank; to Wendy J. Kelly; $110,000.

* 801 Scott Troy Road; from Janice K. Goepfert; to Gary Fausz; $61,000.

* 405 W. Randle; from Taffy Bequette; to Keith G. Rohling; $65,000.

MARISSA

* 310 N. Hamilton Ave.; from Jewelena Poole; to James Inman and Beth Inman; $11,000.

MASCOUTAH

* 216 Jackson St.; from Jason R. Kunz and Sheryl L. Kunz; to Hobbs Properties; $55,000.

* 103 W. George St.; from Dave Diecker; to Kyle S. Moll and Kayla M. White; $139,000.

MILLSTADT

* 730 W. Van Buren; from Robert Forbeck and Gladys Forbeck; to Becky S. Fults; $160,000.

* 415 W. Parkview Drive; from Robert Leyden and Darlene Leyden; to Andrew D. Dohrman; $164,500.

O'FALLON

* 141 Marigold Drive; from LF & Son Construction LLC; to Gerry Baird and Rose Baird; $365,000.

* 291 Eagle Ridge; from Stacey Russell; to Robert P. Meder and Elizabeth S. Meder; $65,000.

* 1205 River Birch Drive; from Tony Huff and Sue Huff; to John M. Roskom and Brenda S. Roskom; $210,000.

* 121 6th St.; from Department of Housing and Urban Development; to Roy Temsmeyer and Reba Temsmeyer; $37,554 mortgage, but no sales price available.

* 517 Longfellow Drive; from Marilyn Lippold; to Jerry Bradshaw and Carie Bradshaw; $180,000.

SHILOH

* 2281 & 2301 Country Road; from Reta L. Fleshren; to Derek Strunk and Dana Strunk; $27,500.

* 3232 Hunters Way; from Doris M. Rowden and Lou-Ann C. Schaefer; to Nicole R. White and Eric J. White; $155,500.

SMITHTON

* 4 S. Smith St.; from Bradley J. Delaria Jr. and Courtney R. Delaria; to Matthew E. Ludgate; $110,000.

SWANSEA

* 263 Melinda Court; from Margaret N. Riddle; to Henry L. Ward; $219,000.

* 1719 Naughton Way; from Maria Ortiz-Allen; to John J. Lincoln and Pamela A. Smith; $195,000.

TRENTON

* 11033 Midgley-Neiss Road; from Bobby L. Goodspeed and Dottyle L. Goodspeed; to Richard A. Henss and Sharon Henss; $21,000.

WASHINGTON PARK

* 2234 N. 49th St.; from Arthonia Strong; to Tamara Douglass; $3,000.

MADISON COUNTY

ALTON

* 3510 Old Straube Lane; from Randall G. Forsythe and Kathy Forsythe; to Allan C. Marlow and Dawn L. Marlow; $245,000.

* 2925 Edgewood Ave.; from Sprague Properties LLC; to Keith C. Brown; $22,000.

* 814 McKinley Blvd.; from Roberta Bechtold; to Alexander Robinson; $58,500.

COTTAGE HILLS

* 1217 East Drive; from Glenn Cauley and Shelley Cauley; to Joshua A. Smith and Linda M. Smith; $105,000.

* 246 Arbor Drive; from Robert B. Bettord; to TB Holdings LLC; $74,000 mortgage, but no sales price available.

EAST ALTON

* 560 Pine St.; from Michael Waters and Susan K. Waters; to Aaron B. Tite; $94,000.

EDWARDSVILLE

* 201 Third Ave.; from Melissa Durbin and Jared Staples; to Elizabeth M. Koonce and Carlyn R. Underwood; $117,500.

* 579 Clover Drive; from Debbie Huff; to Darrin R. Bonney and Spring M. Bonney; $163,500.

GLEN CARBON

* 8 Charles Drive; from Matthew Pringle and Sarah Pringle; to C. Michael Schmitt, Michael Schmitt and Beth Schmitt; $167,000.

GODFREY

* 109 N. Alby Court; from Michael D. Paslay; to Ralph G. Paslay and Marsha K. Paslay; $148,000.

* 5114 Williams Place; from Daniel P. Yamnitz and Karen M. Yamnitz; to Justin Manker and Amy Manker; $157,500.

* 5312 Dixon Drive; from Mary Ellen Fulkerson; to Thomas Juravich and Maralee Juravich; $174,000.

GRANITE CITY

* 6112 Old Alton Road; from Elona R. Mathis and John W. Mathis; to Patrick D. Sowell and Cherise M. Sowell; $161,500.

* 4817 Karen Drive; from Marcus J. Garley and Molly J. Garley; to Jonathan L. Birdsong, Amy M. Birdsong, Roy Logan; $207,000.

* 15 Mercer Drive; from Gerin Enterprises Inc.; to Charles D. Ingram; $114,000.

HIGHLAND

* 2035 Steinkoenig School Road; from Robert L. Simons and Sharon D. Simons; to Jeff Winter; $35,000.

MADISON

* 828 Alton Ave.; from Andrew Economy and Debra Economy; to Joseph Gerald Hamm and Sherry Hamm; $36,000.

TROY

* 913 Long Branch Road; from Matthew Hemann and Traci Hemann; to Phillip Solomon; $157,000.

* 118 Center St., West; from Regions Bank; to Greg Campbell and Carol Climino; $40,000.

* 215 Staunton Road; from Justin P. Manker and Amy Manker; to Ryan Trepka and Heather Trepka; $118,000.

* 301 Quail Lake Drive; from Greg Kappler, Gregory Kappler, Melissa Kappler; to Melissa S. Loveland and David A. Shaw; $228,000.

* 8400 Herrick Park Drive; from PM Office Park LLC; to Huntington Chase Homes Corp.; $47,000.

WOOD RIVER

* 77 Eastmoor Drive; from Mark Edward Osborne and Terri Lynn Osborne; to Paul A. Peters and Mary A. Peters; $125,000.

MONROE COUNTY

COLUMBIA

* 512 N. Metter Ave.; from Leroy A. Gummersheimer; to Cave Creek Properties Inc.; $67,500.

* 941 N. Main St.; from Marla S. Hinton, Danny L. Weihl, Marla S. Weihl; to Danny L. Weihl; $106,400 mortgage, but no sales price available.

* 1512 Clover Ridge; from Pete P. Szuba; to Alan J. Meitl; $375,000.

* 1036 Arlington Drive; from Emily K. Carter, Matthew Carter, Emily K. Pritchett; to Emily K. Carter; $142,500 mortgage, but no sales price available.

WATERLOO

* 114 Lincoln Drive; from Cheryl L. Dix and Steven C. Dix; to Cody J. Shields; $168,000.

* 3 Fawn Run; from Alice E. West, trustee, and Bobby L. West, trustee; to John L. Wirth Jr.; $310,000.

* 606 S. Market; from Marvin A. Gruber and Devin E. Gruber; to Karen Gruber; $140,000.

* 400 S. Library St.; from Jack A. Dependahl; to Russell A. Walster; $75,000.

Read more here: http://www.bnd.com/2012/02/26/2071917/real-estate.html#storylink=cpy

Source: http://www.bnd.com/2012/02/26/2071917/real-estate.html

Real estate experts say Phoenix sees improvements

PHOENIX - Researchers at Arizona State University say metropolitan Phoenix's real estate market saw signs of improvement in January compared to the same month a year ago.

A report from the university's W. P. Carey School of Business says the improvements seen last month include higher prices for single-family homes and fewer foreclosures.

The median price for all sales was $120,500 in January, up from $113,166 during the same month a year earlier.

Maricopa and Pinal counties recorded about 2,450 single-family home foreclosures in January. That's down from almost 4,200 foreclosures a year earlier.

Source:http://ktar.com/6/1505891/Real-estate-experts-say-Phoenix-sees-improvements

With inventory lower, properties sell faster

Inventory levels for single-family homes and condominiums in the Boston area are at an all-time low, signaling a shift to stability in the Hub’s housing market.

In Boston proper, real estate inventories are down 17 percent from last year, according to data from Multiple Listing Services Network PIN. In neighborhoods such as Back Bay, South End, the waterfront and Beacon Hill housing inventories are down 10 percent, 19 percent, 36 percent and 36 percent, respectively. These lower inventory levels also accompany fewer days on market — down 12 percent from last year — and median prices that are on the upswing with a 10 percent increase citywide.

Real estate expert cite several factors driving these downtown market trends. The downtown Boston market has not seen any large-scale residential condominium projects since 2007 because funding has been non-existent for the past several years.

According to Yanni Tsipis, a lecturer at the MIT Center for Real Estate and senior vice president at Colliers International, “We are largely through this period of distress. In the downtown market, as existing inventory of newer construction burns off, it appears likely that there will be a build-up of demand for new production and upward pressure on pricing.”

Tsipis also said many of these potential sellers in the downtown market are also “move up” buyers or buyers who move to the newest building or development in the city from their existing one. With construction just beginning on several downtown projects, these “move up” buyers have won’t have any new large-scale buildings to buy into for the next several years.

In cities and towns surrounding Boston there is a similar trend. Cambridge’s housing inventory is at an all-time low of 126 housing units, down 43 percent from last year with a 4 percent decrease of days on market to 110. Arlington’s inventory is down 21 percent from last year and days on market are down 33 percent, from 118 days to 79 days. Inventory in Quincy is down 6 percent, with days on market down 4 percent from last year to 150.

“Massachusetts has not been hard hit as other areas, and the market is stabilized. We don’t have the amount of foreclosure’s the rest of the country has seen,” said Nicolas Retsinas, a senior lecturer in real estate at the Harvard Business School and director emeritus of Harvard University’s Joint Center for Housing Studies.

With regards to the lower inventory levels, Retsinas added, “Sellers have been spooked by the decrease in prices in the past. We are seeing a lag in inventory because of it.”

Strict lending requirements continue to strain the market. “At the moment we are going through a very tight period for credit and we should have more of a demand today given the demographics,” Retsinas said. “We are on the verge of recovery because of the tightened credit.”

Source: http://www.bostonherald.com/business/real_estate/view/20220224with_inventory_lower_properties_sell_faster/srvc=home&position=also

Two areas where investing in property wallops alternatives

The recent downturn in property prices has caused even many property aficionados to question whether real estate is the best investment choice.

In a following article we will discuss the disadvantages of investing in real estate because, yes, there are some, but for this article let’s look at the top two reasons where it beats alternatives.

1. Leverage

What is leverage? In one simple sentence you could say it is doing more with less.

An example of leverage is a student borrowing money in order to complete an education which will pay them back in the future with increased earnings.

Leverage in real estate is typically achieved by borrowing money from banks up to a certain percentage of the total price of the property.

Leverage will amplify the results of the investment to you either up or down.

A demonstration of confidence that real estate typically goes up in price is that a bank would never lend you money at 4% over 20 years to invest in stocks or mutual funds whereas that is exactly what Czech banks will do for you to purchase investment real estate.

If you have leverage, inflation actually works to your advantage since your debt becomes ‘cheaper’ with time. Thus a 1,000,000 CZK mortgage today is not the same as what it was 10 years ago and 10 years in the future a 1,000,000 CZK mortgage will seem like nothing.

2. Tax Advantages

There are a few tax advantages of property that you will not get with other investments.

For example, in Czech Republic you can depreciate your property at a fixed rate per year which basically means you will be able to get income without paying tax on it. That’s right; income without paying tax on it, how nice is that!

Depreciation is a huge advantage of property investing but can be difficult to understand. I would really recommend searching on YouTube for an explanation if you have trouble understanding what this is. There are some great video explanations with examples.

Another tax advantage of property is that you can expense costs related to your property. So, for example, if you owned a property in another city of Czech Republic you could expense travel costs and hotel expenses if you went to inspect the property.

There may be office or vehicle costs related to managing the property which are also allowable expenses.

Can you expense your office setup if you buy stocks or mutual funds? Not a chance. The only allowable expenses in Czech Republic for stocks or mutual funds are purchase fees and broker fees.

In Czech Republic, a property also becomes free of any tax on the capital gains if you hold the property for 5 years or longer. Stocks are capital gains free in 6 months only if you own less than 5% of the company.

So in conclusion, property is more tax favored to other investments while you hold it as well as when you sell it.

Runner-up Reasons

I can add to the two above other secondary reasons such as cash flow, appreciation, principal reduction and the non-volatile nature of real estate.

It is also physical which means you can touch and feel it which can be a real comfort to investors in times such as these.

But before you run off and buy some investment real estate, be sure to read the next article which will look at some of the disadvantages of investing in real estate. It’s not a one-way street.

Source: http://praguemonitor.com/2012/02/23/two-areas-where-investing-property-wallops-alternatives

Foreigners Fuel Florida Real Estate Sales

Forbes magazine recently examined the growing interest by foreigners in Florida real estate investment. Foreign buyers are snapping up properties in South Florida, with many buying in cash. Unlike American buyers who see advantages in making property purchases using borrowed money, foreign buyers who use cash enjoy bigger savings up front and more flexibility in what properties to buy. Americans, on the other hand, see buying property with cash the exchange of one asset for another with no savings acquired through tax incentives like interest deductions. For more on this continue reading the following article from JDSupra.

Forbes Magazine published an article on Valentine's Day entitled "For Miami Real Estate, Better To Be A Foreigner," which explores the huge amount of foreign investor interest in Miami real estate development. It's not a discussion of whether or not international investors are investigating Miami and South Florida real estate: that's a given.

What Forbes' article focuses upon is the fact that one of the key advantages is the Latin American financial model for buying real estate with cash on the table, no long-term financing strategies like America is used to doing.

We've posted about buyers like those arriving in Florida from Brazil being ready to buy condos and other real estate in Miami and elsewhere with cash assets, not borrowed money. Forbes isn't the first national publication to take notice of Florida real estate's growing love affair with foreign investors; however, this article does explain the great advantage of the cash purchasing model.

For new properties, this means significant savings.

Many foreign buyers, particularly those from Brazil and elsewhere in Latin America, pay cash for their Miami real estate - such as an exclusive, ocean front Miami condo. In the "pay as you build" model that is growing in popularity here in South Florida, the foreign investor buys the real estate in a series of cash payments that cover the time span of initial agreement to buy through the construction phase to completion and the exchange of keys.

By doing so, the buyer saves a significant percentage on the price of the purchase when compared to the traditional financing model that U.S. real estate uses. And the seller gets cash on the barrel head.

The "pay as you build" model of real estate investment

Here in the United States, buying real estate with cash sounds strange. After all, there are all those tax incentives (interest deductions, capital gains considerations, etc.) to consider when you've got financing for your real estate purchase. Buy a condo with cash, you're just turning one asset into another form or asset: no big tax breaks there.

Add to that the fact that the banking industry is hurting in Florida and elsewhere, and loans for real estate purchases aren't what they used to be a few years back, and it's obvious that Miami and South Florida would have a very bleak outlook these days without the foreign investment interest.

After all, RealtyTrac has just reported that Florida default notices on home loans increased 36% comparing this year to last year. Florida banking has been damaged by the housing crisis to an unprecedented extent.

Miami has always been known as a global city, a welcoming metropolis to foreign visitors - especially those with Latin American ties. As the Forbes article points out, savvy real estate developers in the Miami area are marketing globally to bring in more and more of those foreign investors.

Not only is this a good thing for Miami and South Florida, it may be an economic lifesaver in today's economy.

Source: http://www.nuwireinvestor.com/articles/foreigners-fuel-florida-real-estate-sales-58764.aspx

What makes Miami a hot spot for international real estate

What is so special about Miami?

Go to any real estate conference and you’ll hear all about the successes of real estate in Miami, and despite the housing and foreclosure crisis, international buyers continue to snatch up property in the city. But what makes Miami so special?

Greg Freedman, Partner at BH3 and Developer of Trump Hollywood told AGBeat that international buyers are increasingly buying luxury properties “Because they are perceived as cheap. People love Florida for the weather and favorable taxes (there is no State or City income tax in Florida), and the consensus is that there will always be a steady inflow of people that want to move to Florida.”

Freedman continued, “Ask anyone in the Northeast, Midwest, Europe, Russia or Canada in February where they would rather be, and 90% of them will say “Florida.” Ask anyone in Argentina and Brazil in June the same question and you will hear the same response. As a result of the international audience that Miami attracts, the old definition of “the Season” is now a misnomer. There is no season, there is only a difference in who is coming…and there is always someone coming where at that given time, the weather in Florida is much better than where they came from.”

Paola Garcia-Carrillo, Sales Director of Residences at Vizcaya added that “Luxury homes are being purchased by international buyers because people want to take their money out of their country and invest it in the best country in the world.”

Miami vs. America

Shawn Vardi, President of Think Properties notes that in recent years, the company broke ground in Miami, coming from New York, giving them a unique perspective. Vardi said, “Miami’s property market continues to outperform the rest of the country as condominium sales in 2011 increased by more than 50%, year-on-year. A current level of supply and demand on Miami Beach, where Boulan is located, denotes a healthy market that is expected to outperform others through out the U.S. long-term. Tourism, international buyers, and investors have had positive effects on the local economy and real estate market place. For Miami Beach and Downtown, the bottom is long gone and all these areas are already in an upward swing.”

Freedman explains why Miami is an anomaly, stating that the city is one of few markets in America “whereby it is an international city that draws audiences from not only Latin America, but also Canada, Europe, and Russia. The impact of the international community in Miami is the core reason that the overhang in inventory, which was once thought to be 10 years’ worth of supply in the Downtown market alone, has been fully absorbed in less than 3 years.”

“Additionally,” Freedman continues, “compared to other major cities such as New York and Los Angeles, Miami is perceived as being very affordable. It is important to note that this international influence is geared primarily towards the Miami Downtown market and the Beach corridor. Most areas West or North of these locations (i.e. Kendall, West Palm Beach) are still severely distressed and haven’t experienced increases in absorption or valuation. As such, the anomaly of Miami and its rebound are fairly insulated to core areas whereby the outlying areas are still experiencing similar trends to the rest of the country.”

Miami 2002 vs. Miami 2012

Garcia-Carrillo says that Miami today is different from Miami in 2002 because of the housing crisis. “Banks are tighter in lending & buyers have been a lot scarcer.”

Freedman explains that pricing today is that pricing is back to 2002 levels, “which was when real estate valuations really begun their unsustainable uptick. Since 2002, real estate valuations more than doubled at their peak in 2006 and have since returned to near 2002 levels in certain markets.”

Further, Freedman notes the core differences in the market today being the following:

“A paradigm shift of more baby-boomers embracing the condominium lifestyle, thus resulting in an exodus of this demographic away from their larger suburban single family residences;

Availability of mortgage financing for luxury product has slimmed, although government-sponsored financing for lower priced residences is now more fluid;

Interest rates, where financing is available, are at all-time lows;

The Miami market (specifically the Downtown & Beach market) has seen a large influx of international purchasers taking advantage of favorable currency valuations of their national currency compared to the U.S. dollar combined with market-corrected pricing of new developer inventory that was previously priced 30%-50% higher at the peak in 2006/2007. We refer to this as a “double-whammy” whereby a Brazilian looking to purchase a $1 Million condo in 2006 is able to purchase that same condo today for about 60% less as a result of both decreased real estate prices and the strengthening of their local currency.

The impact of national policy

With the introduction of dozens of national policy changes and an economic collapse, because Miami deals with international dollars so frequently, the market has felt various impacts, most notably with distressed sales.

Vardi said, “What has become apparent is the availability of cash buyers coming from Latin countries and especially with the new bill allowing foreigners to purchase over a certain amount in real estate, they can then obtain a visa.”

Garcia-Carrillo agreed, noting that “Shifts in national policy have impacted distressed sales in Miami by national policies that have been beneficial to our property is through the EB5, allowing buyers from other countries to obtain visas, This home buying bill was added on to a policy that has been around for 21 years and it is just now catching on. We have a large Mexican and Venezuelan circuit of buyers.”

Also alluding to the EB5 program, Freedman added that “the continued commitment of the government in its support of agencies like Fannie Mae to maintain lending liquidity in the marketplace, which has enabled both new purchasers to obtain affordable financing, and distressed owners the ability to either refinance their homes or take advantage of short sales.”

Start spreading the news...

Source: http://agbeat.com/real-estate-news-events/what-makes-miami-a-hot-spot-for-international-real-estate/

Jersey City's real-estate market is right up the urban dweller's alley

Looking for a cool condo, a stately Victorian, a spacious loft? Well look no further than Jersey City.

New Jersey's second-largest municipality has it all, including the featured spot today in The Record's real-estate section.

Six years ago, Brittin Bleakley walked into a friend's Jersey City home for a play date and fell in love with the place, according to The Record.

She adored the home's back yard, the original stained glass window, the finished basement and the size, four bedrooms.

"I said if you ever want to sell this house, I'm your gal," Bleakley told her friend, according to The Record. "It was a great house on a great street."

This past summer Bleakley, her husband, and their two young daughters moved into the Greenville home.

"She had done a lot of work on the house, it was move-in ready," said Bleakley, who paid $270,000 for the house. "It's wonderful. I'm so lucky."

As The Record story notes, those who believe all Jersey City has to offer are high-priced waterfront condos or boarded up buildings in crime-ridden neighborhoods are barking up the wrong real estate listings.

There's actually a myriad of styles of homes and neighborhoods for buyers to chose from. Besides the home in Greenville, The Record explores the Canco Loft condo complex near Journal Square, the Van Vorst Park and Hamilton Park neighborhoods, and speaks to a couple who purchased a two-family home in the Lincoln Park neighborhood.

There's also a some interesting stats in the story:

The average property tax bill is $6,491; 38 percent of Jersey City residents were born outside the U.S.; and out of 93,000 households, 34 percent make $35,000 or less a year in income and 36 percent make $75,000 or more a year.

As far as the housing stock goes, 45 percent of it is valued at $300,000 to $499,000, while 15 percent is valued at $500,000 or higher.

Source: http://www.nj.com/hudson/index.ssf/2012/02/jersey_citys_real-estate_marke.html

Real Estate Market Shows Positive Signs

Portland's real estate market is showing signs of stabilization. The average time a home was up for sale has dropped -- from 160 days to 136 days.

Home prices may have bottomed out. The average sales price of a home in January was about $249,000. Give or take a hundred dollars, that's about the same as it was last January.

While no change might not seem like positive economic news, it is when you consider the slide that home prices have seen over the last few years.

Nick Krautter of Keller Williams Real Estate says in some close-in Portland neighborhoods, he's seeing new listings attracting multiple offers.

"Right now what I'm seeing on the market in Portland is a lot few homes on the market to choose from. And that low inventory is being compounded by the fact that we have a pretty steady demand from buyers."

Foreclosures also continue to decline.

Oregon ranked 20th in the nation for foreclosure activity in January, according to the real estate tracking firm, RealtyTrac.

About one in every 1,000 homes is now affected by foreclosure.

Source: http://news.opb.org/article/real-estate-market-shows-positive-signs/

Michigan real estate market could be on the mend

ADRIAN, MICH. -- Could this be one of the first signs that the real estate market in Michigan is coming back? According to the Daily Telegram, Lenawee County hit a record with 560 properties being noticed for a show cause hearing on tax foreclosures in 2011. The number was reduced to 408 by the time of the hearing last year but a record 78 properties ended up in foreclosure and put up for auction in July.

Lenawee County Treasurer, Marilyn Woods said the numbers are still high but there were three percent fewer properties on a tax foreclosure list that went before a Lenawee County circuit judge on Monday.

"I am hoping our office will be kept busy through March by people paying off delinquent taxes and pulling properties out of foreclosure." Mrs. Woods said, “We’ll probably get quite a few payments in the next few weeks.”

Tax foreclosures in Lenawee County went up dramatically after the 2008 financial crisis. The number of properties noticed for a show cause hearing shot up from 269 in 2008 to 482 in 2009. The list continued growing to 506 in 2010 and 560 last year before falling 14 percent this year back to the 2009 level of 482. The Telegram also reported sales of tax foreclosed properties last year fell about $12,000 short of recovering $630,630 owed in back taxes. All but 15 of the 78 parcels were sold in public auctions in July, September and November.

“So, hopefully, things are getting better,” Mrs. Woods said.

A foreclosure hearing is scheduled for March 1. Property owners will then have until March 31 to pay back taxes or make arrangements with the treasurer.

Source: http://www.northwestohio.com/news/story.aspx?id=719907#.TzyPVsWMQT0

For Miami Real Estate, Better To Be A Foreigner

It’s not that Miami isn’t welcoming to Americans, or that developers prefer Brazilians. They don’t. But in this global city today, the big real estate buyers are all from abroad. And one of the reasons, especially when it comes to new developments, is the sales model.

“Latin Americans and Europeans are used to paying in cash for real estate. American’s are not. What we’re doing with our Brickell House property in Miami is telling people that they can pay us quarterly while the project is being built so that by the time it is done in two years, you have paid for almost 70% of your home,” says Harvey Hernandez, chairman of the Newgard Development Group, a luxury property developer in Miami.

“This is the best way to buy it. Or you can wait for the project to be complete, like Americans do, and pay about 40% more,” he says.

They pay-as-they-build sales model is popular in Latin America. It’s not unusual to see new residential high rises going up in São Paulo with floors being sold before the roof of the building is even in place. For Brazilians, in particular, Miami is their second or third home. Real estate prices in upscale beachfront property in Rio de Janeiro, for example, is more expensive than it is in Miami, a city in a developed country with all the bells and whistles.

Hernandez says that within just 90 days of trying to sell Brickell House’s 374 units, 190 of them have already gone, 90% of them to Brazilians, Venezuelans, Mexicans, Russians, Chinese and Europeans. One bedroom units cost around $300,000, chump change in Europe thanks to a favorable exchange rate.

The sales success at Brickell House is the result of the world’s rekindled love affair for South Beach and new, ultra-mod American luxury in a glam global city. South Florida is in the early stages of a new development wave to cater to the foreigners, with 22 newly-announced projects accounting for more than 4,000 units in a section of the city that’s basically sold out.

“The fact that Brickell House has reached the fifty percent sales mark in just four months is further proof that Miami’s condo market is back,” says Alicia Cervera Lamadrid, Managing Director of Cervera Real Estate.

Today, fewer than 1,500 condos in the Brickell Financial District are on the market, according to a June 2011 market study by the Miami Downtown Development Authority. With the continuation of this sales velocity, the remaining unsold inventory could be sold-out in the next year leaving an inventory gap in Miami.

“Miami’s existing condo inventory has been absorbed at a faster rate than anyone could have predicted,” says Hernandez. “We are still seeing strong interest from international buyers who appreciate Miami’s status as a global business and entertainment hub and see value in the city’s Brickell Financial District. We see our sales momentum continuing through our groundbreaking this summer and we expect to be sold out by the end of 2012.”

(Can a poor reporter get a copy of one of those properties? I’ll take a two bedroom without a view.)

Source: http://www.forbes.com/sites/kenrapoza/2012/02/14/for-miami-real-estate-better-to-be-a-foreigner/

Strong start for real estate sales in January

January 2012 data from the Real Estate Institute of New Zealand (REINZ) indicates a positive start to the year in the residential housing market, with 4,073 unconditional sales for the month. The volume of sales is up by 25.2% or 821 sales compared with the same time last year, and is the best January result the market has recorded since 2008. The national median house price remained steady at $355,000 in January compared to December and is up $15,000 (+4.4%) compared with January 2011.

In line with the usual pattern for this time of year, the January transaction numbers are lower than those of December. However, on a seasonally adjusted basis (which takes into account seasonal variations such as the New Year break) the national total was down just 4.0%. Only one region (Southland) recorded a decline in sales volume compared to January last year, with all other regions apart from Taranaki recording double digit growth.

Compared to December, Taranaki recorded the highest lift in prices for the month (+6.7%), followed by Manawatu/Wanganui (+6.5%) and Northland (+5.5%). Compared to January 2011, Taranaki also recorded the highest lift in prices (+11.4%), followed by Otago (+9.7%) and Canterbury/Westland (+8.3%). The REINZ Stratified House Price, which adjusts for some of the variations in mix which can impact on the median price, is 4.3% higher than January 2011 but has eased back in the past few months.

"The real estate market in January has continued on from the strong result in December, with a more than 25% lift in sales across the country compared to January last year and the highest number of transactions in a January month since 2008. " said REINZ Chief Executive Helen O'Sullivan. "A shortage of listings is still apparent in many areas with agents in a number of regions, including Auckland, reporting shortages of properties available to market and increasing levels of buyer frustration."

"Prices remain relatively stable despite the supply pressure, which probably reflects the reluctance of buyers to over extend themselves while economic uncertainty continues."

The national median 'days to sell' rose by 12 days in January compared to December, from 35 to 47 days; however on a seasonally adjusted basis the number of days to sell remained steady. Over the past five years the median days to sell has averaged 41 days across New Zealand.

Auckland recorded the shortest days to sell at 37 days (+6 days), followed by Canterbury/Westland with 39 days (+10 days) and Otago with 48 days (+17 days). Northland recorded the longest number of days to sell at 72 days (+18 days), followed by Waikato/Bay Of Plenty Lakes at 63 days (+16 days) and Manawatu/Wanganui at 61 days (+20 days.)

There were 231 sales by auction in January representing 5.7% of all sales, up from 137 sales (4.2%) in January 2011. Auckland represented the majority of auction sales at 68.9%, followed by Waikato/Bay Of Plenty (15.2%) and Canterbury/Westland (4.7%). All other regions combined accounted for the remaining 9.2% of auction sales.

In the Auckland region auction sales represented 11.2% of all sales, in line with the seasonal drop in auctions during January. After adjusting for seasonal factors, over 1 in 4 sales in the Auckland region are now concluded by auction.

Further Data

Across New Zealand the total value of residential sales, including sections was $1.72 billion in January, compared to $2.32 billion in December 2011, and $1.33 billion in January 2011.

The breakdown of the value of properties sold in January 2012 is:

$1 million plus 105 2.6%

$600,000 to$999,999 513 12.6%

$400,000 to $599,999 1,032 25.3%

Under $400,000 2,423 59.5%

All Properties Sold 4,073 100.0%

The REINZ Housing Price Index eased 1.4% in January compared with December. The REINZ Housing Price Index recorded falls in Auckland and Christchurch, with increases in Wellington, Other North Island, Other South Island and Section. Compared to January 2011 the REINZ Housing Price Index rose 4.3%, and the Index is now 3.8% below the peak recorded in November 2007.

Source: http://www.guide2.co.nz/money/news/property/strong-start-for-real-estate-sales-in-january/11/23214

Global real-estate markets continue promising trend

While economic uncertainty still affects the main commercial real-estate centres around the world, global real-estate markets are showing steady improvements, according to Jones Lang LaSalle's new suite of global forecasting reports.

The firm's Global Office Index reveals the fourth quarter of 2011 marked the eighth consecutive quarter where prime office rents have risen, up a further 0.8 per cent over the previous quarter and representing 6-per-cent growth over the fourth quarter of 2010. Global vacancy is edging down to the lowest point for the past two years at 13.6 per cent.

"The majority of global leasing markets are holding firm, and many are showing remarkable resilience, especially among the BRIC countries [Brazil, Russia, India and China], as well as robust showings from Canada, Australia, Germany and the Nordics," said Jeremy Kelly, director of Jones Lang LaSalle's Global Research team and author of the firm's Global Market Perspective. "While leasing markets in the major financial centres are softening, the limited supply pipeline should ensure that they do not move significantly out of balance."

Jones Lang LaSalle's Global Office Index tracks the rental performance of prime office space across 81 major markets in the Americas, Asia Pacific and Europe. Key findings of the Jones Lang LaSalle's Fourth Quarter 2011 Global Office Index include:

_ Rental growth rose the most in the Americas at 1.2 per cent in the fourth quarter over the third quarter of 2011, as landlord leverage gradually increased in the majority of markets.

_ Asia-Pacific markets saw rental growth decelerate from 2.5 per cent in the third quarter to just 0.9 per cent in the fourth quarter as corporate demand began to slow.

_ Despite the negative economic backdrop, Europe's office markets showed some improvement over the fourth quarter with growth picking up to 0.4 per cent from a virtual halt in third quarter 2011.

_ Leasing volumes will be steady in 2012 with positive rental growth expected in most major office markets. Beijing, Toronto and San Francisco are expected to top the charts with potential double-digit increases.

Investors, already wise to the resilient fundamentals in the commercial real-estate sector,

continue to choose real estate given its attractive investment status compared with alternative investments.

The Global Market Perspective shows robust capital market investment volumes in the fourth quarter 2011. A total of US$411 billion (Bt12.68 trillion) was transacted in full-year 2011, up 28 per cent on 2010. 2012 transaction levels are set to match 2011, with upside potential in the Americas.

Arthur de Haast, lead director of the International Capital Group at Jones Lang LaSalle, added that the markets are witnessing a "flight-to-quality", traditional in times of uncertainty, as investors pivot towards core assets in those major cities with strong economic fundamentals and/or with "safe-haven" characteristics. While there is capital available for commercial real estate, debt financing around the global will be more constrained in 2012. We're seeing capital appreciation slowing as yields flatten, and spreads between core and secondary assets widen.

While commercial real-estate expectations for 2012 have been tempered, barring significant financial system shocks, commercial real estate investment and leasing volumes are likely to be maintained at 2011 levels.

Source: http://www.nationmultimedia.com/business/Global-real-estate-markets-continue-promising-tren-30175734.html

Zim's real estate sector to grow

ZIMBABWE'S real estate sector is expected to register a boom in the event of a lasting political solution from the fractious inclusive government formed three years ago, an international think tank has said.

Property prices trended upwards in the post-inclusive government euphoria in 2009, and slowed down due to low demand and discord within the coalition government.

Zimbabwe's property construction sector then became lukewarm due to low incomes and a subsequent lowly mortgage bond market and limited capital inflows.

Despite all these developments, the property sector remains the second most rewarding form of investment after the money market.

Business Monitor International (BMI), a global research firm, said prices in the property sector were likely going to be bullish after a stable government despite already being higher than some regional peers.

Estimates show that 1 200 square metres of land in the capital costs US$1 000 compared to about US$700-US$800 in regional economic powerhouse, South Africa.

The property sector has over the years become an investment avenue for middle-class Zimbabweans living abroad due to limited wealth creation options on the markets. Citizens still living in the country have, however, relied on salaries and employer assisted mortgages to build houses.

"One area that domestic investors are increasingly excited about is the real estate industry," read the BMI report.

"Zimbabwe's huge diaspora sees property as a good way to leverage the country's burgeoning political and economic recovery.

"Additionally, businesses are increasingly looking to move away from the central business district and into the suburbs, meaning that demand is booming for residential-to-office-space property conversions.

"Furthermore, although not necessarily undervalued, many investors believe that property values will explode to the upside if and when a lasting political resolution is reached and therefore see it as an attractive investment opportunity. Indeed, there are signs of a great deal of pent-up demand."

The stability brought about by dollarisation of the economy, according to BMI, has seen the re-emergence of a white-collar middle class earning ‘real money' as opposed to a local currency scourged by hyper-inflation.

"However, these would-be home-buyers do not have the financial resources to purchase houses for cash and options for mortgages are limited and extremely expensive where they are available. An improvement in perceptions of political risk will likely see an influx of foreign investment and lending, easing the liquidity squeeze bedevilling the economy and freeing up capital to sate this pent-up demand," read the report.

In what could be an indication of recovery in the real estate sector, government this year expects the construction sector to grow marginally by 1,5 percent on the back of improved mortgage finance.

Currently, leading mortgage financiers, Central African Building Society and CBZ building society are active on the market offering mortgage financing for low cost houses.

The industry had suffered stagnation due to underfunding.

Apart from limited capital, the sector suffered from a massive skills flight as various craftsmen emigrated to regional neighbours in search for better employment prospects.

Source: http://www.financialgazette.co.zw/property-report/11487--zims-real-estate-sector-to-grow.html

Real-Estate Crash Aids the Green Movement

The real-estate crash left pockets of the region's rural areas littered with the remnants of would-be golf courses, shopping centers and luxury subdivisions that never got off the ground. But the market swoon has yielded an unexpected upside for environmentalists.

Land trusts—nonprofit organizations that buy open fields, forests and other untamed properties to preserve them as open space—say they've received dozens of calls from developers over the past few years willing to sell them properties in upstate New York, Connecticut and New Jersey at discounts of up to 90%.

The Scenic Hudson Land Trust Inc. recently bought a 185-acre parcel of land across the river from the Franklin D. Roosevelt National Historic Site in Dutchess County. The trust had coveted the tract for years but balked at the price tag.

"If you're standing in Franklin Delano Roosevelt's bedroom, this is a commanding part of the view that he looked at from his own bedroom window, so it's a critical part of the nation's history," said Steve Rosenberg, executive director of the trust, which is based in Poughkeepsie, N.Y.

The developer, Jacob Frydman, chief executive of United Realty Partners, planned to build 175 homes and a shopping center on the site. When Scenic Hudson approached him during the boom years, he offered to sell them the land for $10 million.

But after the market crashed, Mr. Frydman said he saw things a bit differently.

"By the time 2008 rolled around, it became pretty clear to me that even though I thought this was exceptionally valuable, it was going to be a couple of years before the market caught up," he said.

The trust ultimately bought the majority of the site for just over $2 million.

Even more than previous downturns, the recent recession has created unique opportunities for land trusts to grab properties at cheap prices because land values in rural areas once ripe for second-home development and golf courses have taken a steep dive in the housing crisis.

"We used to call people, and now people are calling us. We're being offered more and more properties," said Kim Elliman, chief executive of the Open Space Institute, a New York City-based nonprofit organization that has preserved more than 116,000 acres in New York state.

The Open Space Institute recently bought several properties intended for second homes in Beaverkill Valley, N.Y., for $2,500 an acre, half of what they would have cost a year ago, according to Mr. Elliman.

But just as these trusts find themselves with unprecedented opportunities to buy plots of land, they are simultaneously squeezed by a severe lack of government funding and dwindling private donations.

"It's a shame, because there are so many properties that are now for sale that have long been targets for biologic corridors or land protection or public access for hunters and fishermen," Mr. Elliman said. "It's just a shame that there's not more money."

Many are turning to creative—and not always ideal—ways to get funding. The Open Space Institute, for example, reluctantly freed up funds by selling Arden House, a Gilded Age mansion nestled on a 110,000-acre state park in the Hudson Valley, for $6.5 million to a Chinese investor in a deal brokered by Colliers International.

Nationally, land trusts bought up parcels voraciously over the last five years. The number of acres conserved by state and local land trusts in the U.S. has swelled to a total 16 million acres from 10.9 million acres in 2005, according to a census conducted by the Land Trust Alliance, a Washington, D.C., umbrella organization for land trusts.

In New York state, nearly 1 million acres in total have been preserved by land trusts.

But Russ Shay, director of public policy for the alliance, said pressure is mounting on trusts to buy strategically and raise private funds as state and city budgets for land preservation are slashed.

In New York state, funding for the Environmental Protection Fund, about half of which is designated for open-space conservation, was cut to $134 million from $205 million in the 2008-09 budget year.

"Many of our land trust members work very closely with government agencies and their budgets have been cut, often very severely," Mr. Shay said.

Many groups are trying other fund-raising strategies in order to take advantage of the downturn.

The Trust for Public Land recently bought a 42-acre former airport in Madison, Conn.—once slated for a 127-home development—for $9.5 million. It pushed for a ballot referendum, and town voters approved $9 million to buy and maintain the parcel.

"We're turning to referendums and [ballot] initiatives, and the people are saying, 'We're willing to have this tax imposed upon us because we know this is going to be money well-spent,'" said Christopher Kay, chief operating officer of the Trust for Public Land, which is based in San Francisco.

Source: http://online.wsj.com/article/SB10001424052970203646004577213602109951044.html?mod=googlenews_wsj

Real estate developers struggle to collect money from buyers

VietNamNet Bridge – While many real estate developers feel worried stiff because their apartments have been left unsold, others feel worried stiff because they cannot collect money from buyers.

Though the real estate projects’ owners have signed the contracts on selling apartments to customers, they still do not have money, because buyers cannot make payment on schedule.

Edward Chi, Chair of the Minh Viet Investment Company, said that the biggest worry now for real estate firms is the tardiness in collecting money from buyers.

At the Tricon Towers project in Bac Anh Khanh residential quarter in Hoai Duc district of Hanoi, the majority of apartments have been sold, but the investor has not collected money in the second and third payment phases as previously planned.

The investor tries to share difficulties with the buyers by offering some preferences, including the price discounts and the delayed payment timetables. However, as the credit has been tightened, commercial banks refuse to provide loans, the liquidity has become seriously weak, and the investor cannot take back the investment capital as previously expected.

Tricon Towers is not alone. Failing to collect money is the worry of many other investors. The Mulberry Lane project in Ha Dong district developed by CapitaLand Hoang Thanh, a joint venture between a Vietnamese and a Singaporean enterprises, has seen the first phase of construction finished, under which the foundation has nearly completed. However, the investor complains that it is very difficult to collect money at this moment.

The investor may even have to face a lawsuit to be raised by the buyers, who said that the payment must be made in Vietnam dong under the current laws, while the apartment sale contracts, signed in 2008-2009, comprise the provisions about the prices in the dollar.

The rumor that real estate developers can make a profit of hundreds of billions of dong has made it more difficult for them to do business, as people have turned their backs to the real estate market.

The market’s difficulties have become so serious that most recently, South Korean Inpyung Group, the owner of Daewoo-Cleve high grade apartment project in Ha Dong district in Hanoi has to “belittle itself”.

The investor lends money to the buyers at the preferential interest rate of 12 percent per annum, so that they can have money to make payment for the second and fourth phases of payment. The sum of money Inpyung spends to stimulate the demand for its project may make nothing if compared with the huge total investment capital of 420 million dollars. However, the move can truly reflect the current situation.

While Inpyung has been facing difficulties with its project, another investor, also from South Korea – the investor of Keangnam Landmark Tower – proved to be luckier. It could sell 1000 apartments quickly at the prices of 3000 dollars per square meters.

However, the time when apartments can sell like hot cakes is over. Nowadays, real estate products have been selling very slowly despite the price discounts and preferential conditions in making payment.

CBRE, Knight Frank or Savills Vietnam, the most well known real estate service providers in Vietnam, all have reported that the liquidity of the real estate market in Vietnam has been decreasing steadily with the sales of the next quarter lower than the previous ones.

“The real estate market has never before been so difficult as nowadays,” commented Nguyen Van Kha, Chair of the Tu Liem Urban Development Company, about the current situation of the market. Meanwhile, experts believe that the prices would decrease further in 2012.

Source: TBKTVN

RESIDENTIAL REAL ESTATE MARKET SEES GRADUAL RECOVERY

The St. Petersburg residential real estate market is on the road to recovery after the crisis, but the annual launch of residential buildings is still yet to meet levels from 2008.

“The demand for new buildings is increasing, the volume being offered is growing and new, more profitable mortgage programs are emerging,” said Nikolai Kazansky, general director of Colliers International St. Petersburg.

As a result of a decrease in the mortgage interest rate at the beginning of last year, the number of mortgage applications increased in 2011. This year, demand continues to grow, according to Anastasia Razvarzina, head of retail business development at Sviaz Bank in St. Petersburg, which receives between 30 and 60 million mortgage applications every week, Razvarzina said.

The banks try to support those who have a good credit history by lowering interest rates for them, she said, noting that the interest rate should be no more than 12.5 percent.

According to Razvarzina’s forecast, the percentage of people applying for a mortgage will increase by 30 percent this year.

“The main tendency for 2011 was the launching of large-scale development projects; development will continue in 2012,” said Kazansky.

“Small-sized one and two-room apartments in economy and comfort-class buildings will be launched on the market,” he said.

In 2011, the annual launch of residential buildings increased by 2.3 percent, and totaled 2.7 million square meters, according to data from Colliers International. Although the figures are increasing, they still haven’t reached 2008 levels when the annual launch of residential space was more than 3 million square meters.

In order to meet the market’s demands, about 4 million square meters of residential space should be built every year for the next five to six years, according to data from the Prok group of companies, published by the Big Server of Real Estate (BSN) at www.bsn.ru. Prok specialists, however, predict that the total volume of launched residential space will stay at the same level.

Location, Location, Location

The city’s Primorsky and Vyborgsky districts are considered to be among the leading areas when it comes to newly completed residential space, according to Colliers International specialists.

The overall total of completed projects and those under construction in the Primorsky district is 1.5 million square meters with 57 new buildings and six more projects preparing to be sold, according to NDV-Real Estate data. In the Vyborgsky district, the total area of newly constructed buildings is about 1.1 million square meters. Third place in the ratings goes to the Krasnoselsky district with 747,000 square meters on the market. All of the leading districts are located in the north of the city.

“Promising offers for 2012 to 2014 are expected in the Moskovsky district,” said Kazansky.

The smallest number of construction projects is in the Admiralteisky district where only one building is under construction, according to NDV-Real Estate data. Developers are however preparing five new projects in the district. The highest number of residential buildings are under construction in the Vasileostrovsky and Moskovsky districts, with 12 and 10 projects, respectively, said NDV-Real Estate experts.

Sales in 2011 increased by 13 percent compared with 2010 and totaled 2.2 million square meters overall, according to Colliers International data.

“There is now more demand for more spacious and luxurious apartments, whereas previously small-sized economy-class apartments were the most popular,” said Kazansky.

“In general we do not expect a lull in the construction of new buildings in the near future. The existing demand is met by large-scale development projects,” he said.

“By 2015, two thirds of all residential space is expected to be built within large-scale development projects.”

“There is still a deficit of new high-quality residential projects located within the vicinity of metro stations in the city,” added Kazansky.

Apartments in pre-fabricated buildings usually cost about 79,290 rubles ($2,620) per square meter, according to BSN data from Jan. 31. Newly constructed brick buildings cost 93,480 rubles ($3,090) per square meter and apartments in brick and concrete buildings cost 73,950 rubles ($2,445) per square meter. The most expensive districts are the Vasileostrovsky, Tsentralny and Petrogradsky. During 2011, the price of economy and comfort-class apartments increased by 8 to 10 percent and 15 percent respectively, according to Prok data.

The Cream of the Crop

Elite residential real estate prices increased during the last year by 13 percent and, according to Knight Frank St. Petersburg data for December 2011, range from $8,500 to $48,000 per square meter.

At the end of 2011 and beginning of this year, about 650 new apartments were planned to be built in the elite residential real estate sector, according to Knight Frank data. The number has decreased from previous years, since in 2011 developers exercised caution and were in no hurry to launch new projects on the market. Now there is a lack of high-quality projects on the market, but new projects are expected to be launched this year.

Developers are now looking for original strategies to attract clients.

“New projects with apartments that are ready to be lived in whose interiors have been designed and furnished with expensive brand-name furniture are being introduced on the market,” said Yelizaveta Konvey, head of the elite residential real estate department at Knight Frank.

“Clients prefer apartments in buildings that have already been completed rather than in those that are still being constructed,” she said. “In spite of the wide variety and appealing offers, continuing construction on neighboring buildings has posed a problem for some seeking to buy an apartment. Potential buyers fear that construction on the neighboring buildings could last three to five years, and therefore opt for another choice,” she said.

Last year also saw increasing interest in elite out-of-town residential real estate. Sales were nevertheless half of what they were in 2010, according to Knight Frank data.

Escape to the Country

The main influence on the development of the out-of-town market was the completion of some very large transport infrastructure projects, including the tunnel under the Gulf of Finland, whose construction completed the ring road. Construction work was also carried out on the Priozerskoye and Kievskoye highways. Increased access to some areas made possible by transport has had an influence on the out-of-town real estate market, and there is growing demand from those choosing to live out-of-town or in the countryside.

The biggest plans are for the Kurortny district where six cottage settlements are planned, making up 43 percent of all projected developments on the out-of-town market. The Vsevolozhsky and Vyborgsky districts are also popular, according to Knight Frank data. The Lomonosovsky district has the potential to host the most building projects, with more than 9,000 vacant land plots, both with and without buildings. More than 50 percent of all cottages sold the city last year were sold in the Vsevolozhsky district.

Prices have not changed much during the last year. The average price of an elite cottage at the end of 2011 was a little more than $1.6 million, according to Knight Frank data. A lot of special offers were available, which decreased the total cost slightly, but experts advise buyers to be wary of such offers.

“Price bonuses are not an indication of the developer’s generosity, and they ultimately lead to additional expenses for new owners when it comes to the engineering and infrastructure of the property,” said Tamara Popova, manager of strategic consulting projects at Knight Frank. “Typical extra charges incurred in exchange for discounted land are between 500,000 and 800,000 rubles ($16,520 to $26,430) to set up access, electricity, water and sometimes gas,” she explained.

“The choice for consumers is rather limited,” said Konvey. “Last year, buyers could spend several months looking for a property that met their requirements. Nowadays buyers often involve technical specialists, designers and lawyers in the process of looking for and pricing a property. The availability of transportation, appearance of the property and social and welfare infrastructure development are all important,” she said.

There has also been a trend toward budget residential space that has made developers with experience in the premium segment to develop projects oriented towards a wider audience, said Knight Frank specialists.

Townhouse Aspirations

Buying apartments in townhouses — two or three-story buildings in the suburbs containing several apartments — has become the most recent trend in the Leningrad Oblast.

“You can buy a three-room apartment for 1.5 million rubles ($49,560) in a townhouse with a parking space on the out-of-town market, while in St. Petersburg for that money you will only get a room in a communal apartment,” said Sergei Budko, commercial director of the Kivennapa group of companies.

The most popular areas in the LenOblast are Kudrovo, Novoe Devyatkino, Murino, Koltushi and Vsevolozhsk, according to Knight Frank data.

“These settlements are interesting for those looking for real estate as they are within close distance of St. Petersburg and are not highly-priced,” said Popova. “Furthermore, such out-of-town buildings don’t have as many stories as residential complexes in the city, fewer people live in the area and the ecology of the area is better [than that of the city],” she added.

Source: http://www.times.spb.ru/index.php?action_id=2&story_id=35120