Propcy Fans! There are so many real estate news out there – and so little time! We picked up the most interesting ones, so sit back, and take a break.
These were the 5 Must-Read Real Estate Articles of The Past Week:
Compass’ recent financing round with a $1B price valuation, only four years after launch, is proof that things are changing in real estate and specifically for real estate agents and their clients. It may be hard to conceptualize, especially for millennial homebuyers, but 15 years ago, the real estate market was a different beast, information-wise.
The Blackstone Group agreed to pay $1.5 billion for a logistic center portfolio, betting on the continued strength of e-commerce. The properties, totaling 12 million square feet, are primarily on the West Coast. California-based investment firm Irvine Realty is the seller. Investors have doubled down on logistic centers in recent years amid the rise of e-commerce, which needs these centers to store goods and bring them to consumers.
The way Donald J. Trump tells it, his first solo project as a real estate developer, the conversion of a faded railroad hotel on 42nd Street into the sleek, 30-story Grand Hyatt, was a triumph from the very beginning. The hotel, Mr. Trump bragged in “Trump: The Art of the Deal,” his 1987 best seller, “was a hit from the first day. Gross operating profits now exceed $30 million a year.” But that book, and numerous interviews over the years, make little mention of a crucial factor in getting the hotel built: an extraordinary 40-year tax break that has cost New York City $360 million to date in forgiven, or uncollected, taxes, with four years still to run, on a property that cost only $120 million to build in 1980.
For San Francisco Bay Area residents long accustomed to skyrocketing rents and real estate prices, there’s some relief on the horizon. According to Trulia Chief Economist Ralph McLaughlin, San Francisco Bay Area rents and real estate prices are cooling off, down from 15%-17% growth year-over-year to 5%-6% — a trend McLaughlin expects to continue for at least the next two to three years. That’s due to an overall increase in the number of homes and apartments on the market, which keeps prices from rising. The Dallas, Texas-based housing research firm Axiometrics estimates 12,300 new rental units will glut the Bay Area cities of San Francisco, Oakland and San Jose this year, up from nearly 7,000 units in 2015 and 6,700 units in 2014.
By via New Straits Times
KUALA LUMPUR: Global real estate consultancy Knight Frank has rated Malaysia as offering the best value for money for real estate investors in the world, and the highest yields and least volatility in the market across the Asia-Pacific region. Knight Frank LLP’s 2017 Global Cities report, which analysed real estate markets across 30 countries, favourably cited Malaysia, where a prime office building of over 390,000 sq ft could be purchased for just US$100 million.
Did you like these articles? What were your favorite articles this week?