Luxury Real Estate News 11/01

Is China following in Dubai’s footsteps?

The Chinese central bank surprised the markets last week by raising the interest rate slightly on its three-month bills from 1.3280% to 1.3684%. This is the first rate increase since August and signaled an effort by Beijing to reduce asset-price inflation after a record surge in credit. The news, sparking fears in markets that the central bank may hike benchmark interest rates, sent the Shanghai Composite Index down almost 2% in one day. Some Asian and European markets also felt the impact. Emerginvest

Forte to buy Shanghai property from Goldman?

Chinese property developer Shanghai Forte Land Co Ltd <2337.HK> is in talks to buy a high-end residential property in Shanghai from Goldman Sachs in a deal worth more than $200 million, two people familiar with the situation said. Foreign investors including Goldman, Morgan Stanley and Macquarie Group Ltd have been reducing their China property holdings during the past year, taking advantage of the country’s real estate market rebound as the global financial crisis weakened some western banks. ABC news

Luxury foreclosures and auctions are in Vogue – some forced, some not.

Cher’s Hawaiian home is up for auction – it will be auctioned on the 18th of this month. Unlike Nick Cage, this is not a forced auction and quite a proportion of sellers are turning to auctions as the traditional sales approach is failing in many cases.

Edward Abramson admits he has it good. At 66, he’s retired, owns several homes and spends his time doing volunteer work while his wife works as a ski instructor at a Colorado resort.

But Abramson took a brief detour from his life of leisure this week to take a stomach-turning risk: After his Vail penthouse floundered on the housing market, the former magazine publisher decided to cut ties with his real estate agent and approach an auctioneer instead. “We couldn’t sleep for two days” before the auction, he said. ABC

More laws in Dubai

Talk about “shutting the stable door after the hose has bolted.” Dubai is introducing even more laws – in this case, an attempt to regulate the real estate market by introducing a new “professional,” category for real estate agents, requiring a license.. Sadly – these will be for sale and I do not see this making one iota of difference – the amount of Dubai foreclosures is still rising and the laws are still untested.

Labour cards and residence visas issued to real estate brokers will now include their designation and henceforth not be categorised as “sales staff”.

Marwan bin Ghalita, Chief Executive Officer, Rera, said: “This is the first step towards a complete classification of real estate professions in Dubai.

“The practical objective is to make sure each real estate professional’s designation reflects what he does so buyers and sellers are clear that they are dealing with properly qualified, competent, licensed and registered professionals.” Zawya