About 60 percent of the rich Chinese people, each of whom has a net asset of at least 60 million yuan (S$12.12 million), said they intended to migrate from China, a report has found. About 14 per cent of them have either already migrated from China or have applied for migration. The three most favoured […]
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US crisis deepens as home owners turn to short-term loans
The Straits Times March 25, 2008 Such ‘payday loans’ come with high interest rates, piling on the debts CLEVELAND (OHIO) – AS HUNDREDS of thousands of American home owners fall behind on their mortgage payments, more are turning to short-term loans with sky- high interest rates to get by. While hard figures are hard to […]
Opportunistic investors recoil from Asia property
Business Times – 11 Mar 2008 They see more scope for picking up cheaper properties in US, Europe; loans in Japan tougher (HONG KONG) Opportunistic investors are pulling back from Asian property because they see more scope for picking up distressed assets in the United States and Europe, and loans are harder to get in […]
Property investors set sights on market trough in US, Europe
March 11, 2008 HONG KONG – OPPORTUNISTIC investors are pulling back from Asian property because they see more scope for picking up distressed assets in the United States and Europe. Hedge funds have stopped dabbling in property in the region, fund managers say. Although private equity firms will continue to develop property in India and […]
New rules ‘must keep sub-prime market open’
SPRINGFIELD (ILLINOIS) – LAWMAKERS must not be too heavy-handed as they react to the collapse of the United States sub-prime mortgage market and end up closing this source of credit forever, a senior Federal Reserve policymaker said yesterday. St Louis Fed president William Poole said the sub-prime market was now basically shut and might never […]
Citigroup to sell, close some US branches: WSJ
(NEW YORK) Citigroup has agreed to sell its network of retail banking branches in Amarillo, Texas, and plans to shutter other branches in the United States, the Wall Street Journal reported on its website on Wednesday.Citibank, its retail banking unit, has agreed to sell branches in Amarillo to local lender Happy State Bank for an […]
Existing home sales stay at just short of record low
Home foreclosures and rate of homes entering the process at record highs in Q4 (WASHINGTON) Industry data released yesterday show January pending US home sales were below analysts’ expectations and remained at the second-lowest reading on record. The National Association of Realtors said its seasonally adjusted index of pending sales for existing homes held at […]
Fed and Bush moving closer to mortgage rescue
Bernanke calls for more action by banks and the govt to help millions of home owners (WASHINGTON) However much they might oppose it on ideological grounds, the Bush administration and the Federal Reserve are inching closer towards a government rescue of distressed home owners and mortgage lenders. Fed chairman Ben Bernanke told a group of […]
Scams and schemes compound woes of US housing crisis
(CHICAGO) As the US housing meltdown forces hundreds of thousands of Americans from their homes, the extent to which fraud was a factor in the crisis is just coming to light.Products such as stated-income loans – known as ‘liar loans’ because no proof of income was needed – led to widespread misrepresentation by borrowers about […]
The slow unwinding of the US housing crisis
IT is becoming increasingly evident that the US housing crisis – the root cause of the US economic slowdown and the turmoil in the financial markets – is getting worse by the day. Any hopes for an economic recovery and a restoration of market stability will turn on how this crisis unfolds, and how it […]
US commercial property seen falling by 20%
But office properties should fare relatively well over the near term, say JPMorgan analysts (NEW YORK) The US commercial real estate market could decline by as much as 20 per cent over the next five to eight years as tighter credit squeezes business property but with less ferocity than it choked the housing market. ‘We […]
US housing woes: It’s the affordability, stupid!
GLOOM. Doom. Calamity. Home prices are tumbling. We’re bombarded by sombre reports. But wait. This is actually good news, because lower home prices are the only real solution to the housing collapse. The sooner prices fall, the better. The longer the adjustment takes, the longer the housing slump (weak sales, low construction, high numbers of […]
US regulators eye next trouble spots
(WASHINGTON) US regulators are watching credit cards and commercial construction loans for signs they may be the next trouble spots as strained financial markets constrain credit. The housing downturn, with its epicentre in the sub-prime mortgage market, remained atop the list of concerns. But banking regulators and Federal Reserve officials expressed concerns on Tuesday that […]
US regulators look for signs of credit crisis spreading
They are keeping a keen eye on credit card, home equity and building loans WASHINGTON – UNITED States regulators are watching credit card and commercial construction loans for signs that they may be the next trouble spots as strained financial markets constrain credit. The housing downturn, with its epicentre in the sub- prime mortgage market, […]
Banks hit by sub-prime may need more cash
Dubai fund chief says much more is needed to rescue Citigroup, others (DUBAI) Banks and securities firms led by Citigroup may need more money from Arab states as losses stemming from the collapse of the US sub-prime mortgage market increase, the head of Dubai International Capital said. Citigroup, the biggest US bank by assets, received […]
Bernanke urges more action to fix housing slump
Vigorous response needed to reduce rising foreclosures, says Fed chief (WASHINGTON) Federal Reserve chairman Ben Bernanke called yesterday for additional action to prevent more distressed US homeowners from falling into foreclosure. ‘This situation calls for a vigorous response,’ Mr Bernanke said in a speech to a banking group in Florida. Even with some relief efforts […]
Bernanke urges banks to forgive part of mortgages
ORLANDO – FEDERAL Reserve chairman Ben Bernanke, battling the worst United States housing recession in a quarter century, has urged lenders to forgive portions of mortgages for more borrowers whose home values have declined. ‘Efforts by both government and private sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,’ […]
US housing crisis deters first-time buyers
US housing crisis deters first-time buyers Greater security seen in renting as home prices fall and foreclosures surge (BOSTON) For decades, buying a home was a key step on the path to financial security for the American middle class. Home owners could count on a fixed mortgage payment rather than rising rent, take advantage of […]
US existing home sales fall to lowest in a decade
US existing home sales fall to lowest in a decade Weakness in housing market continues as median prices drop 4.6% year-on-year WASHINGTON – SALES of existing United States homes fell to the lowest level in nearly a decade last month, while the median price for a home dropped for the fifth straight month. The National […]
Banking regulator sees more US mortgage defaults
WASHINGTON – Defaults are increasing among US homeowners with good, but not perfect, credit histories who obtained a non-traditional mortgage, a top US banking regulator said on Friday. More pain can be expected as both borrowers with poor credit, who hold sub-prime mortgages, and borrowers with good credit, who hold Alt-A mortgages, see their interest […]
Banks caught in sub-prime limbo
AFTER the excitement of the previous week during which the Straits Times Index (STI) enjoyed a 156-point bounce, this week was much more sombre as US recession fears reared its head while oil crossed US$100 per barrel. For the most part, trading exhibited the same two-tier pattern evident in previous weeks with large-cap blue chips […]
US commercial property prices slip 1.5% in Dec
(LOS ANGELES) Commercial real estate prices in the United States dropped 1.5 per cent in December, the second consecutive monthly decline, indicating that the market is at the start of a slump, Moody’s Investors Service Inc said. The 1.5 per cent fall measured by the Moody’s/REAL Commercial Property Price Indices is worse than the 0.2 […]
Weak US$ lures foreign buyers to US property
Florida is the most popular state, accounting for 26% of all transactions (MIAMI) Canadian retiree Sheldon Kovensky felt the lure that attracts so many foreign buyers to sunny Florida these days – falling prices for luxurious oceanfront condos that can be bought with weak US dollars. Mr Kovensky has been scouring south Florida from Miami […]
US homes market weakens while consumer prices rise
WASHINGTON – PERMITS to break new ground on US homes last month dipped 3 per cent to the lowest rate in more than 16 years while housing starts rose 0.8 per cent, showing signs of more struggles ahead for the homes market. Consumer prices in the United States also rose for a second straight month […]
Day of reckoning for banks hit by US mortgage crisis
WASHINGTON – IT IS D-Day for the world’s big banks as they finalise last year’s results and try to account for the full scale of the credit upheaval spawned by the United States sub-prime crisis that threatens to stall the global economy. Over the next two weeks, most major US banks will file annual reports […]
Global commercial property sales top US$1t mark
(LOS ANGELES) Global commercial real estate sales rose to US$1.04 trillion for the first time last year, driven by Blackstone Group LP’s purchase of Equity Office Properties Trust and land transactions in Asia. One third of the total was office space, with nearly 1.2 billion square feet of offices worth US$434 billion changing hands, New […]
CBRE Q4 earnings slide 2.1% on interest expenses
It also cites softer investment sales environment (NEW YORK) CB Richard Ellis Group Inc, the world’s largest commercial real-estate broker by market value, said fourth-quarter profit fell 2.1 per cent on higher interest expenses. Net income declined to US$122.4 million from US$125.1 million a year earlier, the Los Angeles-based company said on Tuesday in a […]
US banks raise standards on commercial property loans: Fed
(NEW YORK) The Federal Reserve said it became tougher for US companies and consumers to get loans in the past three months, particularly to buy real estate. Most lenders anticipate more delinquencies and losses this year, assuming ‘economic activity progresses in line with consensus forecasts’, according to the central bank’s quarterly survey of senior loan […]
US DATA: Dec home sales fall, cap biggest yearly slump
Purchases fall 2.2% to an annual rate of 4.89m; 1st fall in prices in 40 years (WASHINGTON) Sales of existing homes in the US fell more than forecast in December, capping the biggest yearly slump in more than a generation. Purchases fell 2.2 per cent to an annual rate of 4.89 million, the National Association […]
US home owner sues agent amid property woes
Case could be first of many as finger-pointing escalates; any player in the crisis may be sued CARLSBAD (CALIFORNIA) – MS MARTY Ummel feels she paid too much for her house. So do millions of other Americans who bought their homes at the peak of the housing boom. What makes Ms Ummel different is that […]
Next wave of US housing woes could come from the rich
At risk are owners who bought too many homes or borrowed too much against them HINSDALE (ILLINOIS) – A HOUSE in the wealthy Chicago suburb of Hinsdale, Illinois, is far beyond the reach of most Americans. Unfortunately, Hinsdale may also now be too expensive even for some of the people who already live there. ‘There […]
Merrill in hunt for more capital as losses set to hit US$15b
It’s wooing investors in US, Asia, Mid-East to shore up finances (NEW YORK) Merrill Lynch is expected to suffer US$15 billion in losses stemming from soured mortgage investments, almost double its original estimate, prompting the firm to raise additional capital from an outside investor. The largest US brokerage firm is expected to disclose the huge […]
LATEST US DATA: Existing home sales down 2.6% in Nov
Stringent lending practices, prospects that prices will keep falling deter buyers (ATLANTA) The number of Americans signing contracts to buy previously owned homes fell more than forecast in November, signalling further deterioration in housing. The National Association of Realtors’ index of pending home sales decreased 2.6 per cent to 87.6, following a revised 3.7 per […]
US state probes broker’s role in sub-prime losses
BOSTON – MASSACHUSETTS said last Friday that it launched an investigation to determine Merrill Lynch’s role in investments linked to sub-prime mortgages made by the city of Springfield that have fallen in value. Merrill was subpoenaed by Massachusetts regulators after the value of collateralised debt obligations (CDOs) the United States brokerage firm sold to Springfield […]
Seattle on edge as housing gloom looms
Economists expect city to be caught in national slump (SEATTLE) It’s the kind of house that a year or two ago would have been snapped up in days: a refurbished rambler in a woodsy residential neighbourhood minutes from downtown. The asking price: US$559,000. But after seven weeks, Kristen and Al Dittmaier have not received a single […]
Lust for big homes in US recalls dotcom bubble
DOWN the block from my home, workmen are finishing a new house. It replaces a small bungalow that had measured about 1,500 square feet. The new home has a covered front porch, two fireplaces and a finished basement. It comes in at just under 5,700 sq ft. What is it with Americans and their homes? […]
NY hotel boom to ease room shortage
But mid-market room rates of US$200-300 still too high for some (NEW YORK) While planning her vacation to New York, Lisa Werness was so horrified by the prices in Manhattan that she chose cheaper lodging in Brooklyn – where she got a room rate of just US$400 a night. ‘Don’t remind me. I’m trying to […]
Greenspan favours govt bailout for home owners
ATLANTA – FORMER United States Federal Reserve chairman Alan Greenspan says he favours using US government money to bail out mortgage borrowers who risk losing their homes because they cannot make payments. Mr Greenspan, speaking on ABC’s This Week programme aired last Sunday, said cash bailouts, while creating a larger budget deficit, had the advantage […]
US sub-prime bailouts help stocks but STI runs into headwinds
IT HAS been bailout week as far as stock markets were concerned but judging by the performance of the past two days, scepticism abounds. First, it was Fed officials dropping blatant hints about cutting interest rates at their Dec 11 meeting, then came the Bush administration’s mortgage-freeze offer to ease the sub-prime pressure. It looks […]
Bush’s mortgage plan draws mixed reactions
No relief for those who can’t keep up teaser rate payments (WASHINGTON) President Bush’s plan to slow the mortgage meltdown could help hundreds of thousands of people from losing their homes, but many others would get no relief – and the plan’s effect on the broader economy remains a topic of sharp debate. Under the […]
US house prices to slide 30% before crisis is over: Moody’s
(NEW YORK) Housing markets from Punta Gorda, Florida, to Stockton, California, will crash and suffer price drops of more than 30 per cent before the housing crisis is over, a report from Moody’s Economy.com said yesterday. On a national level, the housing market recession will continue through early 2009, said the report, coauthored by Mark […]
US mortgage relief package could avert 1m foreclosures
(WASHINGTON) A mortgage relief package hammered out by the US administration and major lenders could help more than one million homeowners avert foreclosure in the next two years, a White House official said yesterday. The official said the plan, to be formally announced later in the day, would involve refinancings or freezing of interest rates […]
US housing slump could last up till early 2009
NEW YORK – HOUSING markets from Punta Gorda in Florida to Stockton in California will crash and suffer price drops of more than 30 per cent before the housing crisis is over, a report from Moody’s Economy.com said yesterday. The United States housing recession will continue up till early 2009, said the report, co-authored by […]
Biggest drop in US home prices in 25 years
Freddie Mac index falls by 1.3% on tighter lending and turbulent markets NEW YORK – HOME prices in the United States dropped the most in a quarter-century over the three months to end-September on an annualised basis as inventories, restrictive lending and a credit crunch yanked support from the market, a Freddie Mac index showed […]
Fallout from sub-prime mess hits Florida public fund
(NEW YORK) Local governments and school districts in Florida scrambled on Monday to assess the damage to their investment portfolios from subprime mortgage loans, as the credit crisis reached into pockets of the investment world previously thought to be out of harm’s way. Florida last Thursday froze withdrawals from its Local Government Investment Pool, a […]
US mortgage industry fleshes out rate-freeze scheme
Plan may offer relief of up to 7 years for some sub-prime loans (WASHINGTON) Mortgage industry executives worked on Saturday to hammer out details of a homeowner rescue plan that would freeze interest rates on some US sub-prime mortgages for up to seven years, but questions remained over how to avoid investor lawsuits and other legal […]
Asia may take a hit in ‘Act Two’ of sub-prime crisis
Stanchart S-E Asia chief says turmoil will hit export-driven regional economies A TOP banker just posted to Singapore has warned that ‘it’s only the end of the beginning’ of the global credit crisis. The world is still reeling from US$50 billion (S$72.3 billion) in losses linked to sub-prime home loans in the United States, Standard […]
Grim US housing outlook in 2008
(CHICAGO) US homebuilders said the housing market probably will weaken in 2008 as foreclosures rise and banks tighten lending standards. Demand has deteriorated in many markets, limiting the prospect of a rebound in new home sales, chief executive officers for D R Horton Inc and Beazer Homes USA Inc. said on Tuesday at a JPMorgan […]
US commercial real estate set to take a hit
Traders see bond defaults rising to the highest level since Great Depression (LONDON) In the bond market, commercial property investors are about as creditworthy as US homeowners with sub-prime mortgages. ‘Commercial real estate is a full-blown bubble that feels very much at a bursting point,’ said Christian Stracke, an analyst in London at CreditSights Inc, […]
US existing home sales fall to 8-year low
WASHINGTON – SALES of previously owned United States homes fell last month to the lowest level in at least eight years as loan restrictions and the prospect of further price declines deterred buyers. Purchases dropped 1.2 per cent, more than forecast, to an annual rate of 4.97 million, the lowest since record keeping began in […]
