Reserve Bank Cuts Interest Rates

Property experts are optimistic that the recent interest rate cut by the Reserve Bank will help boost the sagging real estate market. The RB official rate was slashed by 1.5 percent down to 5 percent, an unprecedented move. Banks quickly followed suit.

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Babcock & Brown to Unload Real Estate Holdings

Australian company Babcock & Brown is in the midst of making funding agreements with its financial institutions, hoping to find a solution to its current credit crisis.

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New Zealand Property Auction Bombs

Realtors in New Zealand had a grand plan to get home buyers excited about offerings currently on the market. The plan included holding a giant property auction to boost sales that had reached an all time low. The idea was good and nearly 300 potential investors showed up on the day. Unfortunately, few made bids. Read more

Thai Real Estate Companies Look Overseas

Thai real estate companies are looking overseas for the latest in investment opportunities due to the downturn in the global market. Recently, TCC Land struck a deal with the Rockford Indigo Hotel Group in Adelaide, Australia to acquire its Novotel Rockford Darling Harbour Hotel. The price tag was A$76mn (Bt1.6 billion). TCC Land is owned and operated by Charoen Sirivadhanabhakdi, often referred to as the “Whiskey King of Thailand” for his success as a top seller in the Mekong whiskey market. Read more

Australia’s Mirvac Watches Earnings Plunge

Mirvac, Australia’s top apartment development company, has publicly announced its struggles by halving its previously forecasted earnings. This was not a surprise considering that the property trust market has taken a nose dive from $120 billion to $56 billion within a single year. However, there is concern that if the values continue to fall, Mirvac may not be able to “make timely assets at acceptable prices.” The company may also be forced to breach certain loan covenants, an action that would cause the developer to fall into the junk bond category. Read more

Investors Retreat from Aussie Real Estate

A new report, Global Real Estate Capital, published by real estate company Jones Lang LaSalle shows that investors have made a monumental retreat from the Australian property market due to the “global credit crunch.”Jones Lang LaSalle showed that the current Australian real estate investment trusts (A-REITs) have shifted from a buyers’ to a sellers’ market. Part of the reason may be the skyrocketing cost of borrowing as well as declining capital values. Read more

New Data Promotes Australian Real Estate

ANZ Banking predicts a sharp increase in the rush for purchasing luxury residences. As of 2009/2010, ANZ estimates that the country will be short of approximately 200,000 residences, a vast difference from U.S. and European markets. As it stands right now, demand is much higher than supply. Read more