Property market improving in Brisbane

NOW is a really good time to live in Brisbane.

It’s an even better time to own a house in Brisbane as it has just been dubbed the most stable city in Australia.

Brisbane’s average house prices have climbed again for its 14th quarter in a row.

A new report released by the Real Estate Institute of Queensland said average house prices in December last year reached $632,000, about six per cent higher than 12 months ago.

In the September quarter last year, house prices reached $615,000, about $5000 more than what was recorded in the June quarter.

House prices in Brisbane have now risen 14.2 per cent in five years and family homes with four bedrooms, two bathrooms and a lock up garage have become hot property, with some even selling for more than the new average price.
REIQ chief executive Antonia Mercorella said sellers were experiencing higher returns on what they paid for properties and buyers and homeowners could have confidence in the market because of the steady growth.

“We prefer this consistent, sustainable growth over a period of time rather than a booming market,” she said.

“This allows consumers, both vendors and buyers, to have confidence in what the market is doing so there are no nasty surprises around the corner.”

Ms Mercorella said there was a level of fear when buying and selling in Sydney and Melbourne, fear that was just not there in Brisbane.

For those now worried the rising house prices will push them out of entering the market, Ms Mercorella said there were still plenty of properties on the cusp of Brisbane that sold for an average of $500,000.

“Sydney and Melbourne are no comparison when it comes to affordability — when it comes to that, Brisbane is way out in front,” she said.

“We are always conscious of becoming too expensive and yes some people will feel nervous about the Brisbane median hitting the $632,000 mark but the affordability is still strong outside of the Brisbane local government area.”
Brisbane is transforming and thriving and Ms Mercorella said that was making it a more desirable place to live.

“We are seeing lots of new units and apartments coming up in the inner city area and we are embracing a new style of living,” she said.

“We also have a number of exciting developments like the Queen Wharf project, which is going to completely transform the face of Brisbane.”

Ms Mercorella said many run down and derelict properties around Brisbane were also being demolished, making room for newer homes.

It is also developing a laneway culture, which Ms Mercorella said was modernising and maturing the city.
The median housing price is a new record for Brisbane and Ms Mercorella said there were great investment opportunities in the city at the moment.

“Whether you’re a local or interstate investor, we have some of the strongest rental returns around the country,” she said.

“You could get a 60 per cent rental return depending on where in Brisbane you buy.

“Not only are you able to pick up an asset less than what you’d pay in Melbourne or Sydney, but the rate of return in many instances is greater in Brisbane.”

Realestate.com.au reports Holland Park and Holland Park West have the hottest properties in Brisbane at the moment, making it the best place to sell but the most competitive place to buy.

The median house price in Holland Park is $650,000 and $667,000 in Holland Park West.

Windsor, Coorparoo, Taringa, East Brisbane, Wilston, Gordon Park, Burleigh Heads and Camp Hill are also in the list of the 10 best places to own a home in Queensland.

Resource: http://www.news.com.au

Is it the Best Time to Buy Camden Property Trust (NYSE:CPT)?

Business Wire] Camden Property Trust (NYSE:CPT)(TREND ANALYSIS) announced that it has been ranked #9 on FORTUNE Magazine’s 19th annual “100 Best Companies to Work For” list. This marks the ninth consecutive year that Camden has been included on FORTUNE’s list. The full list and related stories will be published in a special March 15th double issue available on newsstands March 7th, and can be accessed online now at http://fortune.com/best-companies/.

“We are honored to be recognized for the ninth consecutive year as one of the best workplaces in America,” said Keith Oden, President of Camden Property Trust. “Our inclusion on this list is a tribute to the hard work and dedication of our nearly 1,800 Camden associates.” Camden was selected among hundreds of companies vying for a place on the list this year. Applicant companies opt to participate in the selection process, which includes an employee survey and an in-depth questionnaire about their programs and company practices. Great Place to Work® then evaluates each application using its unique methodology based on five dimensions: credibility, respect, fairness, pride and camaraderie.

Stock Performance: Click here for a free comprehensive Trend Analysis Report

Camden Property Trust (NYSE:CPT) stock is currently trading 0.33% below its 52-week-high, 24.13% above its 52-week-low. The 1-year stock price history is in the range of $67.27 – $83.78. Camden Property Trust (CPT) has a price to earnings ratio of 30.25 versus Financial sector average of 15.9. CPT stock price has outperformed the S&P 500 by 7.7%. The Residential REIT company is currently valued at $7.26 billion, and its share price closed the last trading session at $83.5. The stock has a 50-day moving average of $77.34 and a 200-day moving average of $75.77.

Camden Property Trust (CPT) current short interest stands at 4.3 million shares. It has increased by 2% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 0.69 million shares, the number of days required to cover the short positions stand at 6.3 days.

CPT is forecasted to report earnings per share of $1.19 and a revenue of $231.77 million for the 1st Quarter of the fiscal year 2016. Camden Property Trust (CPT) expects to post results on April 28. The Residential REIT company announced last quarter earnings per share of $1.20 against a consensus Street estimate of $1.19, beating the average estimate by $0.01. The company posted a revenue of $229.7 million compared to an estimation of $228.8 million.
Is this a Buying Opportunity? Click here for a free Trend Analysis Report

There are currently twenty-four analysts that cover Camden Property Trust stock. Of those twenty-four, ten have a Buy rating, twelve have a Hold rating and two have a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $83.09.

A recent analyst activity consisted of Mizuho Securities upgrading their Neutral rating to Buy on March 21. On the date of report, the stock closed at $81.73.

JP Morgan reiterated their Neutral stance on March 2, and increased their price target on CPT stock from $83 to $85. This corresponds to a 1.8% upside from the last closing price. On the date of report, the stock closed at $78.43.

Another research firm was Credit Suisse who reiterated their Neutral stance on January 29. Credit Suisse increased their price target on Camden Property Trust from $73.72 to $84. This translates to a 0.6% upside from the last closing price. On the date of report, the stock closed at $76.3.

Camden Property Trust is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, development, acquisition, management, and disposition of multifamily residential apartment communities. The firms properties principally consist of mid-rise buildings and two-and three-story buildings with various amenities, such as swimming pools and a clubhouse, whirlpool spas, tennis courts, and controlled-access gates. Camden Property Trust was founded on May 25, 1993 and is headquartered in Houston, Texas.

Resource: http://www.streetreport.co

Why German Housing Is Europe’s Best Property Market

After six months of failed takeover bids, shareholders need to trust that management teams have learned their lesson.The takeover party is over. Revelers are nursing wounds following a brawl. Stand back from the fray, however, and German housing still looks an unusually healthy asset class.

The shindig started three years ago, when two large portfolios of German homes— LEG Immobilien and Deutsche Annington, subsequently renamed Vonovia —were floated on the Frankfurt stock exchange by their private-equity owners.

A race to consolidate the fragmented sector ensued. A third company, Deutsche Wohnen, bought Berlin specialist GSW, while Vonovia bolstered its position as market leader by paying €3.9 billion ($4.4 billion) for another smaller rival. With share prices soaring, management teams and investors alike were having a fine old time.

The trouble started last September, when Deutsche Wohnen—now the number two player—made a bullish bid for LEG, the number three. LEG was game, but Deutsche Wohnen called off the deal to defend itself against a €14 billion hostile offer from Vonovia.

Deutsche Wohnen rushed through a €1.1 billion acquisition widely seen as an expensive poison pill. Vonovia’s bid fell through when it was supported by just 30% of shareholders in a vote last month.
This frantic activity has brought nothing but bills. Deutsche Wohnen’s full-year accounts included a €47.5 million hit for failed transactions—16% of adjusted funds from operations, its key profit measure.
Both antagonists are acting contrite. Deutsche Wohnen Chief Executive Michael Zahn assured analysts last week that he saw no scope for further consolidation in the listed sector. His counterpart at Vonovia has made similar noises. Deutsche Wohnen now argues that synergies from big deals aren't enough to justify the takeover premiums shareholders expect.

This still leaves unanswered questions. Deutsche Wohnen’s latest pitch to investors bigs up Berlin, where about three-quarters of its assets are located. House prices in the city shot up last year, prompting concerns the market was overheating. Based on his plan to buy LEG, focused on the cooler North-Rhineland-Westphalian market, Mr. Zahn seemed to be siding with Berlin bears. Has he really changed his mind?

Corporate governance remains a worry, too. Deutsche Wohnen’s finance director left during the autumn bidding wars—some say because he didn’t agree with the LEG deal. This, combined with Mr. Zahn’s refusal to consider Vonovia’s offer, has made some wonder whether management has shareholder interests at heart.

These companies might be best avoided were German housing not such an attractive asset class. Rents are growing steadily, but remain among the most affordable, relative to incomes, in the Western world. Berlin is still cheap compared with other German cities, sensationally so versus other European capitals. Easy monetary policy is pushing the sector’s borrowing costs ever lower.

True, share prices trade at a premium to book values. But Green Street Advisors, a real-estate research outfit, still rates German housing top of a league table of 21 publicly traded property markets across Europe and North America for forecast returns relative to local bond yields.

To take advantage, investors just need to trust that management teams have learned their lessons.

Resource: http://www.wsj.com

Choosing the Best Estate Agent

It’s no secret that Estate Agents haven’t gained the best name for themselves over the years… so when it comes to selling your home it’s natural to feel confused about who to trust and imperative to choose the right Estate Agent. With over 17,000 Estate Agent branches in the UK… you may question: How would you even begin choosing the Best Estate Agent? Well, fear not… here’s our breakdown:

Recommendations:
Many people will ask for recommendations from neighbours, friends or family. It’s key to remember that recommendations are based on the individual experience of a particular agent, selling a particular home in a particular area. If you go for an agent based on recommendations, be sure to understand others’ perspectives on that agent, obtaining a wide view before signing the contract. It is helpful to speak to numerous agents in the area & even more helpful to go on open house viewings with prospective agents. This will allow you to understand their viewing technique without putting them out.

Using Local Estate Agents:
Many homeowners will look in their local area for Estate Agent boards and shop fronts, speaking to each Agent as they go. This allows you to see and speak to potential Agents quickly however, this method does not allow you to understand how each agent actually performs. Spend time asking each agent important questions such as:

Q: How many similar properties have you sold recently?
Q: How much did they sell for?
Q: How long did they take to sell?
Q: Do you have buyers ready for a property such as mine? If so, how many?
Q: What checks to you put in place to ensure a buyer can afford my property?
Q: What is your advertising strategy?
Q: How are viewings managed? Who conducts the viewings?
Q: Are there any additional charges?
Q: What contracts do you offer? Can these be viewed up front?

These questions are important for any Estate Agent viewing your property, ensure that you understand and like their answers, questioning anything that you are unsure of.

Estate Agent Comparison:
If you want to use a local agent but cleverly, avoid the leg work, use Estate Agent Comparison sites. These clever tools usually compare Estate Agent Fees so you can see the agents in the area with a few taps on your keyboard...but be sure to use an unbiased comparison tool such as GetAgent.co.uk. The GetAgent team always provides an unbiased online comparison of traditional Estate Agents in your local area. GetAgent.co.uk, provides property statistics & sales data allowing you to quickly compare Estate Agents by:

    % of asking price they achieve
    Number of properties listed in the area
    Quote price each agent would charge to sell your property
    Average time it takes the agent to sell a property

With data sourced from Zoopla, Rightmove, OnTheMarket & Land Registry, GetAgent’s comparison of Estate Agents provides a truly objective view of the sales statistics… for the cherry on the cake, it even whittles down to the BEST 6 Estate Agents & allowing you to easily request a free, no obligation valuation, with just a click of a button!

When choosing your Estate Agent, it’s easy to just instruct the cheapest… but remember: the lowest cost doesn’t necessarily mean they would be the best Estate Agent to go with.

It’s understandable your home is an investment and as such, it’s important for you to gain as much of the sale price as possible, but you may gain more back from an Estate Agent who values your house at a slightly higher rate, achieves 99% of their asking price, but charges a slightly higher fee, than an Agent who charges a lower fee, but does not achieve their asking prices! I know which one I would choose!

Reaource: http://www.money-marketuk.com

Garapan Annex property eyed by Best Sunshine

A local source reports that Best Sunshine International, owned by Imperial-Pacific, has been eyeing an idle piece of property owned by the Northern Marianas Housing Corp. (NMHC) located in the heart of the busy Garapan district.

Best Sunshine is in the process of completing the construction phase of the Grand Mariana Casino Resort, a $7.1 billion casino-resort project in Garapan.

Representatives from the company have made inquiries on at least two occasions about the property. According to GGRAsia, local housing officials declined to comment. The five-hectare property owned by NMHC, Garapan Annex, is located next to the Best Sunshine Live ‘temporary casino’ on the largest island of the Northern Mariana Islands, Saipan. NMHC has reportedly been looking to sell the property for quite some time. It reviewed the plan to issue a ‘Request for Proposal’ last year. To facilitate the request, the services of Guam-based Cornerstone Valuation Guam were sought by the public housing agency to provide advice concerning the best use of the idle property. The NMHC has received letters of interest from both investors and local businesses as well as firms in the People’s Republic of China since the intent to issue a Request for Proposal was announced. Earlier estimates indicate that the NMHC property could be worth at least$8 million.

Best Sunshine recently purchased Flame Tree Terrace and other properties in Saipan. The company had initially planned a single integrated casino resort to follow the temporary casino on Beach Road, but land availability has proved to be a challenge. In addition to Best Sunshine Live the company is developing the $190 million Grand Mariana Resort and has taken over the lease of the Marina Resort and Spa which was set to expire soon. Best Sunshine is looking at 160 hectares (about 400 acres) of public land in Marpi, part of which is included in that lease. In total Best Sunshine expects to invest over $7 billion in the area and offer as many as 20 hotels, an integrated casino resort, and a kilometer-long shopping strip. Other plans mention include the world’s largest water park.

In January, the Commonwealth Casino Commission announced that Best Sunshine was financially capable to complete the construction phase of the Grand Mariana Casino Resort slated to open by 2018, with the full complement of development to be completed by 2022.

Resource: https://news.worldcasinodirectory.com

St. Paul considers $68 million sale of Penfield Apartments

St. Paul took an unusual and controversial step four years ago when it took over redevelopment of a deteriorating former public safety building downtown and turned it into a high-end apartment complex.

But old critiques about the city competing with private developers and putting too much money toward one project have faded. This week city officials are patting themselves on the back as they consider the sale of Penfield Apartments for $68 million — which would net the city a $7.7 million profit.

“We had this hole in our downtown,” Mayor Chris Coleman said, and if the city let the recession pass without moving forward on critical projects like the Penfield, downtown would not be seeing the growth that’s occurring now.

“We took a very calculated risk,” Coleman said. “And it paid off.”

The City Council, acting as Housing and Redevelopment Authority (HRA), will vote Wednesday on whether to sell the building to the international real estate firm LaSalle Investment Management Inc.

The building, which includes 254 market-rate apartments and a Lunds & Byerlys grocery store, is credited with helping spur high-end development downtown.

Developers have invested $240 million in residential buildings downtown since the Penfield project, Planning and Economic Development Director Jonathan Sage-Martinson said.

“The economy is certainly a part of that, people’s interest in living downtown is certainly a part of that. But the Penfield really helped show there was a market,” he said.

Laura Lindall is part of that market. She moved from Woodbury into the Penfield in August 2014. She likes the “city vibe” and said the location of the apartments, at 10th and Robert streets, is unbeatable — she can walk around downtown or easily access Interstate 94.

The building is beautiful and well-maintained, Lindall said, and she hopes that doesn’t change if it is sold. She pays $2,100 a month for her two-bedroom unit with a patio that looks out on the complex’s lush courtyard.

“This was new, classy high-end apartments — from that standpoint it really was a different product,” said Joe Spartz, president of the Greater St. Paul Building Owners and Managers Association. “It really did help move the needle, I think, in the downtown area.”

It also brought in a significant grocery operation, which previously didn’t exist downtown, Spartz said.

Lindall said the ground-floor Lunds & Byerlys is a big draw and buzzes with people during lunch time.

There had been demand for a grocery store in the area for a decade before the city’s Penfield development created the opportunity for Lunds & Byerlys to come in, Coleman said.

Skepticism at first

The city decided to step in and take over the project after previous plans for a private development failed and the housing market crashed.

Some community members were skeptical of the decision in the wake of past public-private development partnerships like Cray Plaza, formerly Galtier Plaza, which opened unfinished and more than half empty in the 1980s, and ended up costing the city $9 million.

The Penfield complex cost $62 million to build, with most of the funding coming from a U.S. Department of Housing and Urban Development (HUD) loan, the city’s HRA and a tax-increment financing district.

After the property is sold to LaSalle, the Penfield tax-increment financing district, which captures property tax revenue to fund development, would be decertified so the revenue would flow to the city, county and school district, according to city documents.

The income from the sale would repay the HUD loan and the HRA, and return money to other tax-increment financing district balances, Sage-Martinson said.

He anticipates part of the $7.7 million profit would go toward paying off the city’s debt for Highland National Golf Course.

Resource: http://www.startribune.com

Melbourne CBD apartment values fall 30pc, settlement fears rise

Apartments in central Melbourne are being resold at up to 30 per cent less than their off-the-plan purchase price, sales data shows.

Not all apartments have fallen in value – some have risen – but analysis of a handful of transactions shows many apartments have failed to hold their value between original purchase and resale, typically a few years later.

The figures are the clearest sign the apartment boom in the Victorian capital is running out of steam and could show more widespread falls if owners elected to sell.

One property where prices have fallen is 27 Little Collins Street, which has 171 apartments in a 32-storey tower above a Sheraton hotel. The building was completed by developer Golden Age in July 2015.

A three-bedroom, two-bathroom apartment occupying 140 square metres and with two car parks sold for $1,565,000 in August, which is 29 per cent below the purchase price of $2,195,000 in November, 2010.

The price of a two-bedroom unit in the same building fell almost 23 per cent in a year, when it was sold for $1,075,000 last April, having previously been bought for $1,320,000 in June 2014.

A number of smaller apartments without car parks suffered falls from 4 per cent to 8 per cent between 2010 and their resale last year.

Golden Age managing director Jeff Xu said sales in the building were limited and there were no empty rental apartments. 

"Some apartments will lose value, but that does not mean every apartment project will lose value," Mr Xu said on Tuesday. "It depends on the location, quality and how you manage it as well."
Price drop predicted

Melbourne's surge in new apartments led to predictions more than a year ago than an oversupply was likely to push prices down. As of November, the City of Melbourne had 20,000 apartments under construction, another 19,000 approved and a further 30,000 dwellings awaiting approval. Half of all new homes under construction were in the CBD, according to the city's Development Activity Monitor report.

While more apartments would limit the growth of rents, as long as interest rates remain low there was unlikely to be a big correction in prices, said BIS Shrapnel analyst Angie Zigomanis. That's because buyers could still cover the gap between rental income and their mortgage payments, he said.

"Anyone who has bought an apartment off-plan and then looks to onsell within a couple of years will probably be looking at a 10 per cent decline," he said."At the broader level those price falls will be mitigated by lower interest rates and the fact that people aren't necessarily going to be obliged to put their property on the market."
Treading water or falling

At 108 Flinders, a 190-apartment building by developer Riverlee completed in August 2014, data from five transactions shows prices are treading water or falling, the numbers from CoreLogic RP Data show.

The figures point to a downturn in prices and demand for investor buyers of apartment dwellings.

"Generally speaking, you're going to get a worse outcome if the apartment doesn't appeal to owner-occupiers and only appeals to an investor," said Matthew Baxter, a director of valuation firm Opteon.

"You're more likely to have a more favourable outcome if the apartment you've purchased appealed to an owner-occupier as well as investors."

Mr Baxter declined to comment on individual properties or their prices.

Apartment prices in Melbourne's 3000 postcode fell 6 per cent in the last three months of 2015, according to figures from data provider Domain. While final figures for the March quarter are not yet available, the pace of decline was likely to speed up to as much as 9 per cent, Domain senior economist Andrew Wilson said.

Domain is owned by Fairfax Media, publisher of The Australian Financial Review.
Settlement risks mount

With the number of apartments due for settlement ballooning, concern is rising about whether buyers will be able to pay for them, especially at a time when banks are tightening rules.

If banks value properties for less or cut the loan-to-value ratio they will offer customers, buyers will be forced to pay more at time of settlement. If they cannot pay more, they may be forced to sell into a weaker market

The CoreLogic numbers complement separate figures compiled by valuation firm WBP showing half of 1794 properties purchased off-plan between December 2009 and August 2015 had been revalued below their purchase price.

WBP figures subsequently broken out for The Australian Financial Review in the 3000 postcode that includes central Melbourne show that the 197 properties valued suffered an average fall in value of $51,272, or 9.15 per cent.

In one case, a two-bedroom, one-bathroom unit purchased for $740,000 on 3 August last year was revalued at $600,000 – a 23 per cent discount –16 days later.

"For settlement risk, are we cautious? Yes, but are we worried? No. I'm not," Golden Age's Mr Xu said.

Developers could reduce the chances of customers not paying for their apartments by knowing who their customers are and communicating well throughout construction, he said.

"After you know their background, you have to have strong financial reserves to be prepared if something happens," Mr Xu said.

"If the customer cannot settle, you have to ask why. Can you give them some vendor finance, or help them to come through the hard period? They become loyal customers."

Resource: http://www.afr.com

Apartments.com Continues Reign as the Leading Apartments Listing Site with New Ad Campaign

WASHINGTON, March 29, 2016 /PRNewswire/ -- Apartments.com, owned by CoStar Group, is launching ten new commercials as part of its "Change Your Apartment, Change the World" advertising campaign this week.  The series of spots, which feature actor Jeff Goldblum as infamous Apartments.com spokesman and Silicon Valley Maverick Brad Bellflower, were directed by Bob Odenkirk of "Breaking Bad" and "Better Call Saul" and created by ad agency RPA.

The new commercials build upon Apartments.com's tremendous advertising success in 2015, as well as its unprecedented Super Bowl commercial.  Since re-launching Apartments.com, the site's brand awareness and usage intention has doubled.  Even more important, the site maintains a strong first place lead for unique visitors, visits and page views over all other apartment listing sites according to comScore.

"We've seen that great products, coupled with great advertising and marketing, yield tremendous results for our clients, bringing them the qualified renters they need to maximize occupancy," said Andrew Florance, CoStar Group Founder and Chief Executive Officer.

"The renter population is exploding in the United States, with one-third of all Americans renting.  And that number is expected to continue growing," he explained.  "Apartments.com offers an unsurpassed selection of rental properties spanning apartment buildings, single-family homes, condos and townhomes, with the search tools and information renters need to make one of the most important financial decisions.  Our marketing campaign may bring renters to the site – but the return visits and growing inventory are a testament to the fact that the product is superior to anything else in the market."

Florance also noted that the advertising investment has not impacted Apartments.com in its ability to remain one of the lowest-cost providers in the multifamily listing market.

"The perception that our advertisers are 'paying' for our marketing efforts is an idea our competitors like to tout," he said.  "But in reality, Apartments.com offers one of the least expensive apartment listing site subscriptions in the industry, and the site clearly provides more value for the investment."

The campaign will run all year long and spans a mix of television (including primetime, cable, sports, and syndication), digital, social and SEM platforms.  It represents an investment of $100 million, intended to further expand Apartments.com's leadership as the most trafficked site, and ultimately provide the most potential and qualified renters for its advertisers.

The campaign is expected to deliver approximately six billion impressions to adults 18 – 49 years old, and to build continued awareness and excitement about Apartments.com and how it can help connect renters with their perfect homes; help small property managers reach the renters they want; and further the idea of limitless possibilities surrounding the renter era.   

About CoStar Group

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members. Apartments.com, ApartmentFinder.com and ApartmentHomeLiving.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move's family of websites, which include realtor.com®, doorsteps.com and move.com.  CoStar Group's websites attracted an average of more than 22 million unique monthly visitors in aggregate throughout 2015. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Toronto with a staff of approximately 2,600 worldwide, including the industry's largest professional research organization. For more information, visit www.costargroup.com.

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations, beliefs, intentions or strategies regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that CoStar's product development efforts and the advertising campaign do not produce or continue to produce the expected results when expected or at all; the possibility that Apartments.com does not maintain current levels of unique visitors, total visits or page views; the risk that the renter population does not continue growing; and the possibility that Apartments.com does not continue to offer a less expensive advertising option than others in the industry. More information about potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including in CoStar's Annual Report on Form 10-K for the year ended December 31, 2015, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as CoStar's other filings with the SEC available at the SEC's website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update such statements, whether as a result of new information, future events or otherwise.

Resource: http://www.prnewswire.com

385 luxury apartments coming to Reston

Plans for the expansion of Metro’s Silver Line are driving development years ahead of the anticipated opening of the next stations. The JBG Companies recently broke ground on VY / Reston Heights, a 385-unit apartment community that is part of the mixed-use neighborhood known as Reston Heights.

VY will include 89,000 square feet of retail space. The Reston Heights district has several existing properties along Sunrise Valley Drive on the south side of the Dulles Toll Road, including two hotels, a condo and two office buildings.

The eight-acre community is a half-mile from the future Reston Town Center Metro station, which is expected to open in 2020. The community is within a few minutes’ drive to the Wiehle Avenue Metro station, which is already open, and to Dulles International Airport.

[Reston celebrates 50 years as a planned community]

Reston Heights is anticipated to include a public plaza with outdoor dining, a play area and an amphitheater for events.

The five-story apartment building, designed by Cunningham Quill Architects, was inspired by the original 1960s development at Lake Anne Village in Reston, a modern European-modeled community. The mixed-use buildings and adjacent parking garage will have tall natural wood beams that echo the vertical designs of Reston’s first buildings at Lake Anne.

Residences will include junior one-bedroom to three-bedroom apartments. Forty-six of the units will be workforce affordable homes. Rents have yet to be confirmed.

VY / Reston Heights is expected to open in late 2017 for residents and in early 2018 for retailers.

Resource: https://www.washingtonpost.com

Green Hills apartments fetch near record price

Village Green Hills Apartments in Green Hills has been purchased for $22.5 million, marking the latest Nashville-area acquisition for Los Angeles-based investor and developer Champion Real Estate Co.

The purchase price equates to roughly $274,390 per unit, which ranks among the highest prices paid for apartments in the Nashville area. The roughly $287,000 per unit that Dayton, Ohio-based The Connor Group paid for the 331-unit Elliston 23 in Midtown nearly two years ago remains the marketwide record.

Village Green Hills Apartments is Champion Real Estate's sixth Nashville-area acquisition over the past three years. "It's a trophy asset and a great location," said Parker Champion, the company's managing partner. "We look forward to owning it for a long time and continuing to operate it in a Class A manner."

The ability to achieve top market rents given Village Green Hills Apartments' core location at 2215 Abbott Martin Road and high barriers to entry made the property appealing, Champion said. He also cited quality of the construction, including large floor plans with high-end finishes, as another appeal.
Steve Massey, a multifamily broker at commercial real estate firm CBRE in Nashville, agreed that the outstanding location of the apartments and the lack of rental units in the Green Hills area increased demand in the eyes of potential buyers and thereby resulted in the pricing. Massey wasn't involved with the transaction.

Champion called the apartment complex's location a walker’s paradise, adding that it's only steps from the Mall at Green Hills, Trader Joe's and Hill Center, which includes Whole Foods and many lifestyle retailers.

Champion and its affiliates own six Nashville-area multifamily properties with nearly 200 rental units, from entry-level studios and student housing to high-end townhomes. Last year the firm bought Amplify on Main apartments in East Nashville and added a six-unit multifamily complex in Hillsboro Village.

Champion is seeking more value-add properties across Nashville to continue to grow its portfolio, officials said. Since 1995, the firm has completed more than $1 billion in projects nationwide.

Miller F. Harris of Brentwood-based The Kirkland Co. represented both sides in the Village Green Hills Apartments transaction.

Resource: http://www.tennessean.com

Goll House developer could build 186 apartments

The apartment tower proposed for the Goll House site on Milwaukee's east side, delayed by density concerns, may not need to reduce a lot of apartments in order to obtain city zoning approval.

I reported Monday that Department of City Development officials have expressed those concerns about Madison developer Chris Houden's proposed 202-unit luxury apartment tower at the site of the Goll House, 1550 N. Prospect Ave.

Around 60 nearby residents, at a recent community meeting, said they were concerned about the effects on traffic from Houden's proposed 26-story apartment building. Houden, in response, is modifying the building's design to obtain Common Council approval.

But it turns out that the property's zoning allows a building with 186 apartments without council approval, according to the Department of City Development. That unit count is calculated in part by taking into account the development site's square footage.

If Houden's new design has 186 apartments, that would amount to an 8% reduction in the unit count.

Resource: http://www.jsonline.com

Shooting at University Trails Apartments Leaves One Person Hospitalized

TALLAHASSEE, Fla. -- Around 4:40 p.m. Tuesday, law enforcement officers responded to a shooting at 2566 W Tennessee Street at the University Trails apartment complex.

According to the Tallahassee Police Department, a suspect entered the leasing office at the apartment complex and opened fire.

One person was shot multiple times and was taken to the hospital. Authorities say that person is expected to recover.

TPD tells us they believe the motive for the shooting happened earlier in the day. Investigators say an employee was let go today and the shooter is believed to be the boyfriend of the former employee.

The shooter was quickly taken into custody.

TPD Officer David Northway said, "The boyfriend is the suspect in this case and he is in custody at this point. The other half of it is being questioned by our officers at this time."

The leasing office was completely blocked off with crime scene tape as authorities investigated the scene.

Many residents were left to watch as the place they called home turned into a crime scene.

"I was coming down the street and I saw all the fire trucks and police cars and as I'm going to turn into the neighborhood and I realize I can't. A few people are walking across the street and they say someone was shot three times," said resident Amanda Squires.

Resident Tara Turner said, "I've been here for over a year and nothing's gone wrong and literally there's been nothing. This is a good part of town. I just came here to go to college."

Police are emphasizing that residents are now safe and authorities believe this was an isolated incident.

No names have been released by police at this time. It's also not clear why the girlfriend was fired from her job at the complex.

We will bring you more information on this investigation as it becomes available.

Resource: http://www.wctv.tv

Puravankara Projects to develop residential projects in Pune, Mumbai

Mumbai: Bengaluru-based real estate firm Puravankara Projects Ltd is re-entering western India with plans to develop residential projects in Pune and Mumbai in the next two years.

The company on Tuesday said it is developing a luxury residential project “Purva Silversands” in Mundhwa, a suburb in Pune, at a total cost of Rs.480 crore.

Spread over 30 acres, the project is being built in partnership with local builders Oxford Group and Ekta World, which currently owns the land parcel. It is expected to yield a total saleable area of 1.5 million sq ft of residential space.

In the first phase of the project, it plans to develop around 1473 units with sizes ranging between 600 sft and 2000 sqft. Each unit will sold at Rs.4,995 per sq foot. The company expects to deliver in the next 48 months.

Puravankara Projects, which started 40 years ago in Mumbai and later moved its base to South India, is also looking to re-enter Mumbai’s residential market. It has already secured two projects in the city’s Mulund and Bhandup area for which it is waiting for regulatory approval. The company, however, declined to provide further details on its Mumbai projects.

“Our foray back into the western region is a ‘home coming’ for us. We aspire to make a difference in the western cities with our unique theme based projects that offer a lifestyle living,” said Ravi Puravankara, chairman, Puravankara Projects Ltd in a statement.

He said Pune has a thriving job market and high rental growth, with the government’s thrust on improving infrastructure making the city “a very promising market, with an immense need for high quality homes”.

Ashish Puravankara, managing director, Puravankara Projects said its Pune project is strategically located with a “judicial mix of residential, business, leisure and support services”.

“Very few builders do well when they enter a new different market. Even the biggest names in real estate find hard to sustain themselves when they move out to a different region. Purvankara has established a name for themselves in the south. May be they could leverage their brand,” said a real estate consultant who requested not to be identified.

Resource: http://www.livemint.com

Residential property sales in Scotland reach eight year high

The Scottish residential property market has recorded is highest January home sales in eight years and average prices also rose, according to the latest index figures.

Sales in the first month of 2016 increased by 24% year on year with the biggest surge in Midlothian with a rise of 38% with flats and terraced houses driving the growth, the Your Move data shows.

Average Scottish house prices increased by 0.8% in January to £171, 079, up from 0.3% the previous month. The strongest growth was in Stirling where property values have jumped 13.5% over the past year.

Christine Campbell, Your Move managing director in Scotland, pointed out that transactions in Scotland easily outpaced sales south of the border, as England and Wales only saw a 1% rise over the same time period.

She explained that the surge in Scottish home purchases has been propelled by second home and buy to let buyers eager to avoid paying the 3% Land and Buildings Transaction Tax (LBTT) surcharge which is being introduced from 01 April.

She pointed out that as this tax hike was only announced in December’s Scottish Budget, January’s surge in sales may only be the tip of the iceberg.

She also explained that the growth in Midlothian has been aided by the lower rate of LBTT on the purchase of cheaper properties, with flat and terraced house sales accounting for the largest rise. This trend can also be seen in Glasgow, which narrowly beat Edinburgh to become the area with the highest absolute increase in sales.

The only areas in Scotland which have seen a decline in sales from November to January, compared to the previous three months are Aberdeen City and Aberdeenshire. In Aberdeen City sales have fallen by 11% in this time period, as a result of the oil crisis and the large proportion of expensive detached homes in city which are hit hardest by the LBBT.

‘January marks the sixth consecutive month of year-on-year growth in house prices, as the market finds a sturdy footing, putting the shaky start to 2015 behind it. The boost in property values has been driven by improving economic conditions, with employment in Scotland at an all-time high,’ said Campbell.

‘However, this stability may be under threat if the effects of the impending LBTT surcharge mirror those seen with the introduction of the original tax. There could soon be a swift peak in prices as investors rush to buy before the surcharge comes into force, followed by a dip in home values after the implementation of the surcharge,’ she warned.

She reckons that the 13.5% or £24,508 year on year price growth in Stirling has been fuelled by Stirling Council’s programme to build 210 new properties in the area, with an additional investment of £9 million planned for 2016.

‘A further boost was provided by the recent sales of two million pound homes in the countryside close to the city, possibly as second home purchases are brought forward to avoid the LBTT surcharge,’ Campbell added.

Resource: http://www.propertywire.com

This Week's Top Careers in Residential Property Management from FirstService Residential

Dania Beach, Fla. (PRWEB) March 23, 2016

FirstService Residential, the leading property management company in North America, is raising awareness of career opportunities beyond the traditional real estate sector through its "Spotlighted Careers" recruitment series that highlights property management jobs.

"Spotlighted Careers" stems from the company's "I Am FirstService Residential" microsite – the industry's first employment site for career candidates. As a result of its continuous growth, the company currently has close to 650 positions available throughout North America. This week's "Spotlighted Careers" include:

TITLE: Community Lifestyle Director
LOCATION: Ladera Ranch, CA

TITLE: Community Manager
LOCATION: Dewey, AZ

The "I Am FirstService Residential" microsite introduces new audiences to the dynamic opportunities and rewards of property management professions. Innovative elements such as profiles and career paths of successful associates demonstrate advancement within the organization. The site also features job openings in numerous markets across 23 U.S. states and three Canadian provinces that comprise the FirstService Residential portfolio.

For more information on this week's "Spotlighted Careers" and other property management jobs, visit join.fsresidential.com.

About FirstService Residential
FirstService Residential is North America's largest manager of residential communities and the preferred partner of HOAs, community associations and strata corporations in the U.S. and Canada. FirstService Residential's managed communities include low-, mid- and high-rise condominiums and cooperatives, single-family homes, master-planned, lifestyle and active adult communities, and rental and commercial properties.

With an unmatched combination of deep industry experience, local market expertise and personalized attention, FirstService Residential delivers proven solutions and exceptional service that add value, enhance lifestyles and make a difference, every day, for every resident and community it manages. FirstService Residential is a subsidiary of FirstService Corporation, a North American leader in the property services sector. For more information, visit http://www.fsresidential.com.

Resource: http://www.benzinga.com

Residential growth fuels property value increase

Residential properties in Rochester are growing more in value this year than in recent years, increasing in value an average of 8 percent in the city, according to the Olmsted County Assessor's Office.

The assessor's office has prepared the county's 2016 property tax statements, and the documents will be mailed to residents beginning Monday. The valuations included in those statements will be used to determine property taxes payable in 2017.


For property owners, upcoming boards of appeals meetings will be the best chance to challenge any changes to property classification or value, said Mark Krupski, an Olmsted County assessor. Values at this time are "proposed" while later in the season the values will be "certified."

"This is the opportunity, the most opportune time, to talk about the value that their property tax will be based upon the following year," Krupski said.

Residential properties are not the only properties increasing in value, though the growth this year was larger than in recent years, Krupski said. Apartments, commercial and agricultural properties in Rochester are each increasing in value, on average.

Commercial properties in the city increased by an average of 5.5 percent, according to data from the assessor's office. Specific commercial uses experienced higher average increases — restaurants increased in value 11 percent and hotels and motels increased by 12 to 15 percent.

Apartments in the city of Rochester increased in value by an average of 11 percent. Agricultural land within the city grew in value by 15 percent while agricultural land outside the city saw no increase in value.

While increasing values are a positive for property owners in terms of wealth and equity, it can also mean a higher value on which property taxes will be based.

It is early in the season to make any specific prediction on tax impact but early indications are that increasing values alone will not produce higher taxes in most cases, Krupski said.

"Given that there are so many properties going up, I don't suspect it's going to have any specific, adverse effect on any one property type or (any one) property," Krupski said.

Another positive sign for property taxpayers is a second consecutive year of growth in the tax base. The county saw about $260 million in new construction in the last year, about a 2 percent growth in the tax base.

Outside the city of Rochester, residential properties are also increasing in value. Dover and Eyota residential properties increased by an average of 15 percent, Pine Island properties grew by 13 percent and Stewartville properties increased by 8.5 percent.

For more information on property tax statements and a schedule for boards of appeal and equalization, see the county website at co.olmsted.mn.us.

Resource: http://www.postbulletin.com

Miami residential property market prices still growing

Residential property in Miami, one of the most popular locations with overseas buyers in the United States is seeing prices continue to rise, the latest index figures show.

The median sales price for single family existing homes rose 10.3% year on year in February to $270,221 while that for condominiums increased 9.5% to $206,950, according to the data from the Miami Association of Realtors.

However, median prices are still significantly below their peak in 2007 and currently remain around 2004 levels despite some sectors seeing strong growth. For example the condo market has recorded prices rises in 56 of the last 57 months.

‘Miami real estate remains a bargain especially compared to other world class cities, and domestic and international consumers proved that in February as total dollar sales volume in single family homes increased 7% compared to the previous year,’ said Mark Sadek, chairman of the association’s board.

Sales, which posted a record year in 2013 and near record years in 2014 and 2015, fell by 5.8% year on year but total sales for February remain in line with Miami historical averages.

A breakdown of the figures shows that single family home sales fell by just 0.3% in February while condo sales fell by 10.4%. The index report suggests that this is due to a strong new home construction market.

Single family home sales spiked 18.5% year on year in February in the $200,000 to $600,000 sector which represented about 59.6% of all total single family home sales in February 2016.

Existing condos priced at $150,000 to $300,000 range experienced an 8.6% jump in February sales, representing about 38% of all total condo home sales in February 2016.

The median number of days between the listing and contract dates for Miami single family home sales decreased 6% year on year to 63 days. The median number of days between the listing date and closing date for single-family properties decreased 0.8% to 120 days.

For condos, the median time to contract decreased 12% year on year to 72 days. The median number of days between the listing date and closing date decreased 2.4% to 122 days.

Miami real estate is selling close to listing price. The median percent of original list price received for single family homes was 95.2% in February 2016, an increase of 0.4%. The median of original list price received for existing condominiums was 93.8%, a 0.2% increase.

Only 23.4% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 35% in February 2015. Short sales and REOs accounted for 5.7% and 17.8% respectively, of total Miami sales in February. Short sale transactions dropped 25.6% year on year while REOs fell 39.9%.

Cash sales in Miami are still twice the national average and due to the high number of overseas buyers. Cash transactions comprised 52.4% of February total sales compared to 58.7% last year.

Inventory of single family homes increased 4.7% in February while condominium inventory increased 16.3% and the data also shows that there is a 5.7 month supply of Miami single family homes, an increase of 3.6% from February 2015 and continues to be a sellers’ market. There is a 10.6 month supply of condominium inventory, a year on year increase of 20.5% and continues to be a buyers’ market. A balanced market between buyers and sellers offers between six and nine months’ supply of inventory.

New listings of Miami single family homes increased 24.7% from 1,635 in February of last year to 2,039 last month. New listings of condominiums increased 13.4% to 2,826 last month, compared to 2,491 during the same time period in 2015.

Resource: http://www.propertywire.com

Residential Property

Residential Property

The top seven property developers did better last year with a 15% jump in presales - but aggregate profit inched up just 2% as income from the condo presales will be booked over the next several years. We estimate presales growth of 19% this year for our top seven, with demand largely in the mid to high end segment, where household debt to income is lower. However, profit will grow less as backlog is less. An extension of the government's incentive program offers little earnings upside at 3%, unlikely to bring stock rerating.

Rising new supply and presales in 4Q15. In 4Q15, the value of new launches rose 24% YoY and 30% QoQ while presales of the seven leading property developers (AP, LH, LPN, PS, QH, SIRI, and SPALI) grew 38% YoY and 25% QoQ, both driven by strong momentum for low-rise. This brought 2015 new launches to Bt424bn (+28% YoY) and total presales to Bt181bn (+15% YoY) thanks to condo recovery.

4Q15 best. Combined net profit rose 11% YoY, but jumped 47% QoQ to Bt11bn in 4Q15, 35% of 2015 profit of Bt31bn - growth of just 2% YoY. The rise in 4Q15 indicated the return of transfers, aided by government incentives, plus more housing completions. Revenue rose 25% QoQ to Bt57.8bn and gross margin improved 110bps to 33.7%.

More presales in 2016. The top seven developers target Bt215.6bn in presales in 2016, +19% YoY, gaining Bt20.5bn or 10% of target in 2M16. Demand will be largest in the mid to high income group since they feel the slow economy least and have the most room for borrowing. The household debt/income ratio was nearly unchanged for this group at 19-24% in 2009 versus 19-25% in 2013 (latest survey by NSO), far below the bank's threshold of 50-70%. Those in the low income group are heavily indebted with household debt/income ratio rising to 50percent from 47%, meaning they are less able to buy despite incentives. Presales will peak in 2Q16-3Q16 as condo launches multiply.

Household debt accumulation slowing. BoT data shows high outstanding household debt at ~81% of GDP at end-2015, but there is a bright spot - new debt is growing at a much slower rate in both absolute terms and percentage of GDP. Our view is that household debt bottomed out and will stabilize: good news for housing.

Small profit growth. With low aggregate backlog of Bt135bn at end-4Q15, -21% YoY, we expect small revenue growth of 6% with net profit growth of 4% (core profit growth of 11%) in 2016. Earnings visibility is also lower with backlog securing only 39% of 2016 versus 50-59percent for 2013-2015.

Would incentive extension help? The uncertainty about extension leads us to leave this out of our model, where we assume an April 29 end date. We continue to hold that these are not boosting demand, simply helping transfers especially for condos, which were purchased several years ago. If it is extended, the benefit to developers in the lower transfer fee will raise earnings by merely 3%, not enough for stock rerating.

Top pick: LH. We like LH, as its earnings are turning the corner to a growth cycle in 2016-2017 with good core profit growth of 18% in 2016 and 23% in 2017. With record backlog of Bt20.4bn, LH's earnings visibility is improving and forecast risk is reduced.

Resource: http://www.nationmultimedia.com

China to apply VAT to some residential property sales - finance ministry

China will apply value-added tax to residential properties sold less than two years after their purchase, the country's finance ministry said on Thursday.

The government will introduce a 5 percent value-added tax (VAT) on the sale of all residential property held for less than two years.

In Beijing, Shanghai, Guangzhou and Shenzhen - cities which have seen some of China's fastest property price increases - capital gains on the sales of larger homes held for at least two years will be subject to a 5 percent VAT levy.

Sales of smaller homes in the four cities will not be subject to the VAT levy, according to the statement.

For the rest of the country, sales of properties held for at least two years will be exempt from VAT.

Resource: http://www.reuters.com

Indian residential property to attract $ 1 bn investment

Singapore: Residential property in India is expected to recieve USD 1 billion investment this year, given its attractive rate of returns averaging at a high of 20-22 per cent per annum, an industry expert said here today.
"Private Equity funds in Indian real estate sector has already raised USD 420 million in the first two months of this year, compared to USD 520 million for the whole of last year," said Rubi Arya, executive vice chairman of the Mumbai-based Milestone Capital Advisors Ltd.

Mid-segment housing and affordable housing can take returns to as high as 20-22 per cent per anum through hybrid investing, that is capital security plus equity upside, she said.
"We feel that with the Real Estate Bill mandate, availability of deals for Private Equity firms will certainly go up," she said, adding that the reforms in the real estate sector will also help further accelerate fund raising and investment opportunities both for residential and commercial sectors.

"With such positive developments, the India story is growing by leaps and bounds and it is just a matter of time when this sector begins its upward journey once again, albeit after a prolonged period of gloom," she added.

Costs on real estate construction are seeing stability with fuel prices down, which leaves developers with overall margins for positive growth.

"Investors can look forward to far higher transparency and ease of doing business with developers with the recently passed real estate bill. This has led to a lot of warming up of Non Resident Indians (NRIs) and Foreign Direct Investments towards Indian real estate," she noted.

The availability of foreign capital will naturally increase with the government permitting NRI investments into domestic Alternate Investment Funds.

The Real Estate Investment Trusts will soon see listings by developers and thus lifting the commercial reality market to a highly profitable investment climate, according to Arya.

Milestone manages USD 800 million or 25 million sq ft residential, warehousing, commercial and office spaces since it began operating as PE funding concern in 2008.


Resource: http://zeenews.india.com

Editorial: Dallas housing projects audit shows City Hall still has work to do

Dallas City Hall still has renovation work to do on its own Housing Department.

That’s the takeaway from a just-released city audit regarding oversight of $30 million in taxpayer financing for affordable housing projects.

The report doesn’t accuse anyone of wrongdoing, but it does criticize the lack of adequate documentation — from drawing board to ground breaking. The audit covers 2012 through 2014, the end of former Housing Director Jerry Killingsworth’s 11-year tenure and the first year after his departure.

Killingsworth’s work included pushing high-profile projects in the southern half of the city. Some of those have done pretty well; others not so much.

In early 2014, City Manager A.C. Gonzalez called for a full-scale review of the department — including this latest audit. We applauded Gonzalez’s decision at the time, noting that the plainly named Housing Department was among the most inscrutable of all City Hall departments.

Now the audit results echo our assessment of two years ago: It’s all but impossible to unravel what was spent where and whether taxpayers got their money’s worth.

Gonzalez told us Monday that he agrees with the audit’s findings and that the Housing Department has already begun improving internal controls on its projects. But he cautioned that the work is far from finished.

“We needed to be doing things far differently in that department — and in a lot of departments — and we’ve begun that process,” Gonzalez said.

That’s good to hear.

If the city isn’t able to fully verify each project every step of the way, taxpayers are justifiably uneasy. Not to mention that inadequate documentation leaves no road map for lessons learned that can benefit future projects.

Killingsworth had a well-earned reputation of trying to get projects moving on an ad hoc basis. The result was that decisions regarding affordable housing and the redevelopment of neighborhoods often appeared to be handled in the shadows of City Hall.

No doubt Killingsworth was trying to do deals amid an economic bust. But ingenuity is no excuse for poor accountability.

City auditor Craig Kinton’s report, released Monday, sampled records of 30 of 54 single-family and apartment projects completed in the audited years. The city gave $29.9 million to finance those developments, and the City Council approved the funding.

Now Gonzalez and Housing Director Bernadette Mitchell must continue to work to assure that documentation is based on set guidelines with solid internal controls. Likewise, the bidding process must be formalized.

City Council member Scott Griggs, chair of the council’s Housing Committee, is right when he says that these policies should have been in place long ago. Perhaps his panel, alongside city staff, can do more to assure this happens.

No punch list in the Housing Department is more important.


Resource: http://www.dallasnews.com

Urbanising Angola, one housing project at a time

Kora Angola is working in partnership with the Angolan Government to construct 40,000 affordable, high-quality housing units across 15 Angolan municipalities and 6 provinces, including one of its most ambitious undertakings, the Horizonte Housing Project

Kora Angola is one of the country’s main players in the push for urbanisation. As a semi-private real estate company, its goal is to develop sustainable infrastructure and real estate initiatives that meet the needs of the local population, large swathes of which remain isolated in rural areas, far from the resources and opportunities that could dramatically help rebuild their lives. Working in partnership with the Angolan Government, one of the company’s main projects involves the construction of 40,000 affordable, high-quality housing units across 15 Angolan municipalities and 6 provinces. Angola’s emerging middle-class families are the target consumers of these properties, which are intended to satisfy a need for housing, but more holistically, to serve as the foundation for a healthy, more urbanised society. The properties will come with courtyards, parks, and open public spaces, in addition to being strategically located near educational institutions and the basic social services that will promote more interconnected neighbourhoods and a higher quality of life.

One of Kora Angola’s most ambitious undertakings, the Horizonte Housing Project, is currently unfolding in the province of Uige and the municipality of Quilomoço. Following reinforcement of the soil to ensure a secure foundation, plans to build a first phase of 1,010 housing units have begun in Quilomoço. According to Nimrod Gerber, the CEO of Kora Angola: “This is a special project bringing with it the realisation of the dream of many families in Uige – their own home and a safe and comfortable environment where they can raise their children. Kora Angola is leading in the construction sector and in the market through the positive impact it’s consolidating for the people, communities and local economies.”

Also taking into account the need to nurture a local economy, the housing units will come equipped with commercial areas where inhabitants can start small businesses, thereby contributing to what Gerber refers to as an “Urban Community,” or “open spaces for the growth of new centres of social and economic development that will promote the decentralisation of population growth in Angola.”

Ultimately, providing affordable housing and fostering the creation of vibrant, urban communities is one of the most effective means of reducing poverty and empowering people to make the best of local resources and networks.  Angola’s government approach is doing this by allowing and aiming large scale development, creating the right conditions for investors and committing to build the complementary infrastructures. The Ministry of Urbanism has made a huge impact in insisting on summoning and including different government entities in each and every process. Therefore, the government vision of “new centralities” and Kora’s concept of “urban communities” building combine very well.

Resource: http://www.theworldfolio.com

'1MDB yet to propose housing project to monetise Penang land'

PARLIAMENT 1MDB has not yet put forth development proposals to monetise its land in Penang, the Finance Ministry said.

1MDB had in February last year said it planned to monetise the land in Air Itam and Air Putih through joint projects or by selling the plots.

"(But) as of now 1MDB or its agencies have not submitted its housing or development project plans to the Penang state government," the Finance Ministry said in a written reply to Parliament yesterday.

It was responding to a question from Lim Guan Eng (DAP-Bagan) on why the federal government had not fulfilled its promise to build affordable houses in Penang through 1MDB.

1MDB had first announced the affordable housing project in 2013.

The Star reported today that two more companies had submitted bids for the 1MDB land, bringing the total number of bidders to four.

Citing sources, daily named the bidders as Suiwah Corp Bhd, a supermarket chain operator; Titijaya Land Bhd, a Klang Valley-based property developer; a joint-venture between Ideal Property and BSG group and a company related to a well-known developer in the state.

The property is currently valued at RM1.325 billion, compared to the RM1.06 billion 1MDB originally paid for the land.

1MDB has sold off two of its assets, Edra Global Energy and Bandar Malaysia, in order to cover its massive RM42 billion debts.

However, the government has consistently maintained that 1MDB is not in trouble as it has more assets than debts.


Resource: https://www.malaysiakini.com

Sanctuary Scotland housing project helps families’ fortunes

An affordable housing project has made life better for dozens of families in Glasgow.

Many children have been moved into more secure, more attractive and more spacious homes at Sanctuary Scotland Housing Association’s new development in Ruchill.

The £9.5 million project’s 70 properties help address a local shortage of affordable housing.

Happy tenants recently receiving keys to their new homes include Charlotte Taylor who shares a three-bedroom house in Hugo Street with partner Barry and daughters Sienna (3), Hollie (1) and Lucy (7 months).

Charlotte, 24, said: “We love our new home – it’s much better for our family.

“Our two-bedroom flat in Arden was two flights up and impossible with a double buggy.

“Moving here has been a very welcome lifestyle change. It’s great to be able to walk out the front door and have a garden where the girls can play.”

Musu Fofanah moved to Hugo Close from temporary accommodation following the death of her partner.

Like daughters Munjay (13) and Mumama (6), she is thrilled to have a place to call “home”.

Musu, 37, said: “Moving here has made a big difference to our lives – it’s great to have this security.

“The girls love having their own rooms and a garden to play in after school.

“I screamed with joy when offered the house. We’re so happy to be here.”
The development was built in partnership with Glasgow City Council and the Scottish Government, thanks in part to a £3.9m grant.

Fifty two of the homes are available for social rent. The remaining 18 have already been sold through the Scottish Government’s shared equity scheme.

A communal play park within the development is widely used by local children and complements other landscaped areas.

Gordon Laurie, director – Sanctuary in Scotland, said: “The reaction our new-build homes receive is a reason why we want to build many more.

“We will continue to work with Glasgow City Council to improve the amount of affordable housing available to tenants.”

Councillor Frank McAveety, leader of Glasgow City Council, said: “This is a fantastic housing project for Glasgow, bringing 70 high-quality, affordable new homes to Ruchill.

“It is great to see another development of homes in the city that make such a positive change to people’s lives, and enabling such projects all across Glasgow is a key priority for the council.”

Resource: http://www.scottishhousingnews.com

Acton Selectmen Back 40B Housing Projects

ACTON, MA—Two 40B housing projects are on their way to becoming a reality in Acton, which currently only has 6.5 percent of its housing units designated as affordable.

The Acton Selectmen supported two housing projects, one located off Powder Mill Road and another on High Street. Projects are eligible for Chapter 40B status if 25 percent or more of the units offered are affordable. Acton Community Housing Corporation chairwoman Nancy Tavernier told Patch that every affordable housing unit counts.

"Its building [affordable housing units]little by little," Tavernier told Patch. "Every little bit counts."
Only 6.5 percent of the housing in Acton is considered affordable, and 40B projects are only possible if a municipality has less than 10 percent of affordable housing.

The Powder Mill Road project will consist of 12 townhouse units, three of which will be affordable. Eight single-family homes will be built on the 248 high street development, including two affordable and six market-rate homes.

The selectmen will now send support of the projects to the state for approval, Tavernier told Patch.

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Resource: http://patch.com

Housing projects on track

AFFORDABLE housing will remain the Government’s top priority, said Datuk Seri Najib Tun Razak.

The Prime Minister said the Government had implemented various programmes and initiatives to support and achieve its “1Family 1House” plan.

A total of 2,114 My First Home Scheme applications had been approved, with loans amounting to RM431mil between 2013 and January this year, he added.

“For the Youth Housing Scheme, as of the end of February, a total of 876 applications were approved by Bank Simpanan Nasional involving loans totalling RM215.15mil.

“It is the responsibility of the Government to provide access to affordable housing for each household, especially the low- and medium-income groups, in line with the objective of improving the people’s standard of living,” he said in reply to Shaharuddin Ismail (BN-Kangar).

Najib, who is also the Finance Minister, said the Government had increased the number of affordable homes, including the rakyat housing projects, Federal Territories affordable housing projects, 1Malaysia Civil Servants Housing Programme and Mesra Rakyat projects via agencies such as PR1MA and Syarikat Perumahan Negara Bhd.

He said access to housing loans had improved, with the number of loan applications rejected by financial institutions dropping from 30% in 2012 to 20% last year.

Asked if the Government had plans to ease loan restrictions for those with bad financial track records to apply for housing loans, Najib said banks did not gauge an applicant’s ability to repay loans based on the Credit Tip-Off Service (CTOS) and Central Credit Reference Information System (CCRIS).

“It is also based on the individual’s wages and disposable income,’’ he said, adding that dissatisfied parties could refer to Bank Negara’s credit counselling and debt management unit.

Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim said the RM804mil Mesra Rakyat project allocation under the Prime Minister’s Depart­ment would be distributed fairly to all 222 constituencies nationwide.

He noted that the allocation had been reviewed from RM1.33bil to RM804mil following the Budget revision on Jan 28.

All projects must meet several criteria before approval, including having a high impact on the people, he added.

Resource: http://www.thestar.com.my

Punjab FM announces big incentives for affordable housing projects in election year

 CHANDIGARH: The Shiromani Akali Dal-BJP government in Punjab on Tuesday announced a slew of incentives for affordable housing projects about nine months ahead of the next assembly elections.

Finance minister Parminder Singh Dhindsa in his budget speech has proposed 50% rebate on charges for change of land usage (CLU), external development charges (EDC) and license fee on all affordable housing projects.
 He also proposed 50% rebate on stamp duty charges on all conveyance deeds, or land sale deeds, in the affordable housing sector.

"All such rebates will be passed on to the final buyer," the finance minister said. "Our government is committed to provide affordable housing to low income and middle income classes.

In order to provide further relief to buyers of built-up properties, the government proposes to reduce the stamp duty by 20% on the first purchase conveyance deed of all new flats in order to ensure that such constructed flats are available at affordable prices," he said.

Dhindsa also proposed 25% rebate on CLU, EDC and License fee on all new housing sector projects as well as new extensions of ongoing projects. He also suggested at least 15% reduction in collector rates used for assessing stamp duty.

The state government has also approved 'Urban Mission' with an outlay of Rs 6,083 crore for providing 100% basic civic amenities such as water supply, sewerage, sewage treatment plants, roads, street lights and solid waste management through Punjab Infrastructure Development Board.

For the developmental works under the Urban Mission, an allocation of Rs 2,000 crore is proposed for urban local bodies in 2016-17.

The Punjab government has notified Housing for All (Urban) Policy for the benefit of economically weaker sections. It proposes to construct 50,000 affordable houses during 2016-17.


Resource: http://articles.economictimes.indiatimes.com

Real Estate Bill has builders on the edge

NEW DELHI: The new bill on regulating real estate has caused a tizzy among builders who are concerned over two key provisions that could cause project delays and financial stress. Legal experts, however, say there is no reason for worry.

Developers are apprehensive that the registration of underconstruction projects could lead to delays. They're also concerned that setting aside 70% of the funds collected from customers will strain their already stretched liquidity position.

 Lawyers and experts who were part of the deliberations of the select committee of the Rajya Sabha on the Real Estate (Regulation and Development) Bill said the language of the law is not retrospective but prospective and the attempt is to only bring transparency and order into this unorganised sector.

Vasanth Rajasekaran, partner at law firm Seth Dua & Associates, said the intention is to give freedom according to their business plan and security to buyers. "It seeks to harmonise the interests of both sides," he said.

According to the bill, builders will have to deposit 70% of the money paid by buyers in a separate account towards the cost of construction, including that of land, in order to protect the rights of consumers and curb the diversion of funds.

Rajasekaran said this means that after depositing the funds, the amount spent on buying land can be withdrawn by the builder proportionately and the remainder has to be used for construction. The money that hasn't gone into the separate account remains with the builder. Property experts said this will push builders to pay by cheque when buying land, reducing the flow of black money in the sector.

The other concern that builders have raised is registering projects under construction with the new authority. Sunil Seth, senior partner at Seth Dua & Associates, said this doesn't mean that builders will have to stop work. They will only have to submit details of the underconstruction projects, as in the case of new projects, to the authority and upload them on their websites.

"Seventy per cent of whatever is the outstanding payment from buyers in the under-construction project will, after registration, have to be put in a separate account," said Seth. "It will only be prospective in application."

The bill has been passed by the Rajya Sabha and once it is approved by the Lok Sabha, the section dealing with setting up of the regulatory authority will be notified first.

The bill says the government must establish the Real Estate Regulatory Authority within one year of the act coming into force. Once the authority is in place, portions of bill dealing with registration of real estate projects and real estate agents and the functions and duties of promoters will be notified.

For projects that haven't received a completion certificate when the act becomes effective, the promoter shall apply to the authority for registration within three months, according to the bill.

"This would give them at least 15 months to prepare for filing of the details with the regulatory authority," Seth said.

In this period, projects with 80-90% of their work done could get completed and be out of the ambit of the bill.

Resource: http://economictimes.indiatimes.com

Model building bye-laws to speed up real estate projects: Venkaiah Naidu

Union Urban Development Minister M Venkaiah Naidu recently released a set of model building bye-laws (MBBL), which provide for a structural framework to create an online single window system, thereby reducing corruption.

It also makes it mandatory for states to provide all building clearances within 30 days.

As per the guidelines, one does not require to come to the national capital to get green clearance for the projects involving built up area of up to 1.5 lakh sq meter.
It also focuses more on building adequate number of toilets in buildings, particularly for women, keeping in mind their participation at work place.

Currently, there are over 35 different kinds of clearances required from various agencies before initiating any new project. Besides getting clearances from the state-based agencies, the investors in certain projects require clearances from central ministries, including Defence, Civil Aviation, Environment and Forests, Culture and Consumer Affairs.

The new model building bye-laws also offer incentives to real estate developers for adopting smart energy solutions. Provision for rainwater harvesting, roof top solar energy harvesting and smart metering have been proposed in the new bye-laws.

"The local bodies can provide incentives in the form of discounts and tax rebates to those complying with green norms," said Naidu.

"The aim is complete elimination of human interaction of the applicant with the urban local body, including online approvals of various kinds of no-objection certificates. The time limit for approvals is proposed in the model regulations to be 30 days," he added.

To make the system corruption-proof, the new guideline recommends an online system, which eliminates person-to-person interaction.

"In the online procedure, the people need not come to Delhi to seek clearances," said Naidu.

The MBBL provides for integration of various types of environmental considerations. MBBL provides for three categories of buildings based on the built-up area - 5,000 to 20,000 sqm; 20,000 to 50,000 sqm and 50,000 to 150,000 sqm - and different set of environmental conditions are provided for each category.

For the first time, a risk based matrix for different types of buildings has been introduced in the bye-laws.

"The objective of this analysis is that small buildings with low risk criteria should be approved on a fast track and the high risk buildings like mall, multi-story or big comp complexes should be examined in the required detail," Naidu said.

Resource: http://www.dnaindia.com

Column | Real Estate Bill: A case of over-regulation

The Real Estate (Regulation and Development) Bill 2016 (RE Bill), now approved by Parliament, is an attempt at finding a perfect balance between two seemingly difficult extremes. In a tightrope walk, the RE Bill tries to provide an institutional framework to protect and further the interest of buyers and in the same breath also seeks to give necessary support and thrust to the development of the real estate sector.

In the statement of reasons for the 2013 version, it was stated that the ‘real estate sector plays a catalytic role in fulfilling the need and demand for housing and infrastructure in the country’. Although the sector has witnessed significant growth in the recent past, it was felt that the sector was largely unregulated and thereby needed a measure of standardisation and professionalism to promote orderly progress.

The focus areas of the RE Bill include greater accountability towards consumers, reduction of frauds and delays, reducing transaction costs and bringing about professionalism and transparency in the real estate sector. The Bill covers both developers and real estate agents alike. The RE Bill is comprehensive and prescribes regulations spanning over the entire lifecycle of a project including booking, development, final handover and responsibility in respect of any defects arising post such handover. A new regulator, termed the Real Estate Regulatory Authority (RERA), has been designated to carry out the outlined objectives. RERA is expected to be set up within a year from the date of the regulations coming into force.

The real estate sector hitherto did not have a defined regulator and any grievance regarding any real estate project were to be taken up either by the consumer courts (under the consumer protection laws) or by the competition commission suo motu or on a complaint. In that context, RERA is a welcome introduction, especially since the relief under the earlier laws were either limited to specific customers (customer protection laws) or covered only large developers leaving a huge target segment of customers/projects out of its ambit.

While the reactions to the impact of the Bill on the sector and its growth are mixed, on a closer look, it is amply evident that the interest of the buyers have far outweighed that of the developers.

The RE Bill applies to all real estate projects where the land/number of apartments proposed to be developed is in excess of 500 square meters/8 units. Every real estate project falling within these parameters is required to be registered with the RERA prior to marketing/offer to sell the same to the customers. Far-reaching in impact, the RE Bill covers all real estate projects whether ongoing/under construction or yet to be developed.

No clear transition provisions have been laid down under the RE Bill in relation to the under-construction projects, and this may have an adverse impact on timely completion. Especially in the case of any pending litigation, utilisation of the acquired funds from the customers, etc, it is unclear whether the RE Bill would apply in toto and the projects have to be stalled for want of approvals or funds or not. The first scenario would be a tragedy for the sector already ailing from high cost of funds, excess inventory and low customer interest.

While the Bill’s earlier avatar covered only residential units, the latest version extends its reach to even commercial properties (with an intent to sell all or some of the developed area). Generally speaking, commercial properties are not developed for final sale to customers but are held as rent-yielding assets. Given this, the inclusion of commercial assets which has differing characteristics from residential properties including in relation to fund raising, timelines for completion, maintenance, etc, may have been unwarranted, given that such properties are acquired by sophisticated investors who are generally more aware of the product and the remedies available under law.

The strictures raised against developers require them to register the project with the RERA which include detailed disclosure on various aspects including track-record, title of the project, etc, prior to any promotions/ advertisements/ notice given to the customers regarding the project. Even on fund-raising, not more than 10% of the project cost can be raised without an agreement to sell and the RE Bill requires 70% of the funds paid by the customers to be parked in an escrow account and used towards construction purposes only after due certification and in line with the percentage of completion of the project.

The developers are required to provide quarterly updates to the customers through a pre-designated portal on the progress of the project, including the list of apartments which have been booked and approvals pending, prior to the issue of the completion certificate. All of the above measures while laudable in spirit have created almost a stifling atmosphere for the developers to flourish. In a desire to create a protective environment for customers, the RE Bill has added layers of approval and procedural requirements which impacts developers right from fund raising to timelines for completion of the project.

In some cases, where the cost of the land is well in excess of 30%, the developer would still have to maintain 70% of the funds in an escrow. Even the amount earmarked can be taken only in proportion of the completion of the project with approvals. Since some of the costs incurred would be front-ended, this would also mean additional funding requirement in the hands of the developers which in turn would only increase the cost of the product and make it unaffordable. In case of any stressed project, the promoter would also not be able to bring in a new investor without the consent of at least two-thirds of the allottees which could further delay the project completion and impact consumers.

The RE Bill is also onerous in its requirement and lists out higher interest costs, detailed penalties, prosecution for promoters who are in violation of these regulations. Certain requirements such as insurance for construction and title of land, without such products being available in the market, also would bring additional pressure on the cost of the projects.

One therefore feels that the RE Bill is a little farther from the mean and the interest of end customers have been treated as “more equal” to that of other industry participants. Hence, while the intent of the lawmakers is undoubtedly good, the question is whether it is yet another instance of over-regulation?

With inputs from Vinay K. The author is partner,BMR & Associates LLP .Views are personal

Resource: http://www.financialexpress.com