Five stories making global property headlines:
Chinese reined in on overseas investment
Chinese buyers are spending less on property in London, New York and Sydney as capital control regulations at home reduce the amount of money they are allowed to send abroad. The South China Morning Post reported that political factors, including Brexit in the UK and the US-China trade war, have also dented buyers’ enthusiasm for investing overseas. Mainland Chinese investment in the US dropped 93 per cent to $81m year on year in the first half of 2018, while interest in Sydney as an investment destination fell 0.7 per cent in the third quarter.
UK lender offers mortgage of six times income
A new mortgage product in the UK lets certain workers borrow up to six times their income, compared with the typical maximum income multiple of 4 to 4.5. The Guardian reported that Darlington Building Society’s Professionals Mortgage is targeted at people in specific sectors, including accountants, doctors, engineers and solicitors, who are members of an industry body.
US house price slowdown
House prices in the US are growing at their slowest pace in nearly two years. The FT covered the latest S&P Corelogic Case-Shiller report, which found prices were up 5.5 per cent in September year on year, compared with a 5.7 per cent rise in the year to August. Commentators say the recent rise in mortgage rates, in tandem with the Federal Reserve’s interest rate increases, is one factor contributing to the weaker housing market.
Kenya housing demand remains flat
There is subdued demand for property in Kenya because of oversupply in the wider housing market. The East African reported that prices fell 0.41 per cent in the third quarter of 2018, according to the Kenya Bankers Association House Price Index, with buyers’ preferences shifting from apartments to maisonettes and bungalows.
Amazon triggers record for Queens neighbourhood
Amazon’s presence is already being felt in New York’s Long Island City. Days after the online retailer announced it had chosen the Queens neighbourhood as the location for one of its second headquarters, one of the area’s most expensive condos went for a record price. According to Bloomberg, a cash buyer paid more than the $2.998m being asked for the two-bedroom unit in the View waterfront complex.
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