Global Housing Bubbles Deflating [Housing Tracker]

Aug. 12, 2008 6:33 AM ET
SA Editor Judy Weil profile picture
SA Editor Judy Weil

Global Home Prices

Japan's Tokyu Land Pledges US$4.5 Bln In Urban Renewal Projects. “Nikkei: With foreign funds winding down their property investments in Japan, Toky Land Corp. will go on the offensive by spending as much as ¥500 billion (US$4.55B) through fiscal 2010 on urban renewal projects… The Tokyo developer is setting its sights mainly on Tokyo's Shibuya, Chiyoda, Chuo and Minato wards as well as other big cities including Osaka and Nagoya, with plans to spend an unprecedented 450-500 billion yen on 12 projects over a three-year period.” (Trading Markets, Aug. 12)

Japanese Property Feels The Pinch. “Japan has had little to do with the US subprime mortgage debacle and has avoided a UK-style housing bubble, but the country's real estate sector is suffering a painful credit crunch. Teikoku Data Bank, a private research group: In the past few months, an increasing number of real estate companies have gone under. In July, 43 developers filed for bankruptcy, a year-on-year increase of 79%. The bankruptcies were largely triggered by a failure to access funds… Even in the relatively healthy commercial real estate market, sales are not closing.” (Financial Times, Aug. 12)

U.K. July House Prices Drop as Loan Squeeze Locks Out Buyers. “Royal Institution of Chartered Surveyors: U.K. house prices fell in July as the squeeze on credit locked out buyers and brought the property market to a “virtual standstill.'' The number of real-estate agents and surveyors saying prices dropped exceeded those reporting gains by 83.9 percentage points... The reading was 94.7 percentage points in April, the most since the series began in 1978. U.K. banks approved the fewest mortgages since at least 1999 in June and data yesterday showed that they haven't passed on most of the Bank of England's interest-rate cuts since December.” (Bloomberg, Aug. 12)

Property Woes

This article was written by

SA Editor Judy Weil profile picture
Judy Weil is a Seeking Alpha editor and an experienced journalist and translator. Judy covers the real estate and housing market for Seeking Alpha. She previously worked for Maariv Online and Ynet News.

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