Inside Reuters' calculation of Australia's housing market ripple effects

For most Australian homeowners, the cost of the country's sharpest housing downturn in years has been the modest fall in property values since interest rates began rising in February.

• Reuters analyzed the ripple effects of Australia's housing market downturn on businesses dependent on property turnover.
• The analysis calculated the typical commercial spending associated with a home sale, including agent commissions, moving expenses, and purchases of furniture and appliances.
• The study excluded government entities and banks, focusing on the direct economic impact on service providers and retailers, and adjusted for owner-occupier vs. investor splits and the likelihood of specific expenses.

Topics: Asset types, Scalability, Market cycles macro sensitivity, Real assets, Market depth liquidity, Market volatility liquidity

Tags: #australianhousingmarket #propertyvalues #interestrates #housingdownturn #realestateagents #economicimpact #stampduty #medianhomeprice #owneroccupiers #investors

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China Races to Solve $148 Billion Property Threat as Leases End

China's real estate sector is facing a problem with expiring leases, with scores of office towers, shopping malls, and warehouses sitting on land with dwindling lease terms. Chinese officials are addressing the issue, with Shanghai and Guangzhou circulating guidelines on lease renewal, outlining the terms and costs of lease extensions. The moves may help bring clarity to the real estate market, giving investors confidence that their assets won't become worthless due to expiring leases, and potentially improving appraisal values, fundraising, and deals.

• China is addressing a significant threat in its real estate sector stemming from expiring land leases on commercial properties, which impacts over $148 billion in non-residential assets.
• Cities like Shanghai and Guangzhou are circulating guidelines for lease renewals, aiming to provide clarity on terms and costs to boost investor confidence and property values.
• The resolution of this issue is crucial for stabilizing the market, improving fundraising, and facilitating deals, with potential for a nationwide policy to standardize the process.

Topics: Asset types, Jurisdictions, Legal regulatory, Real assets, Emerging hubs, Enforcement actions litigation

Tags: #chinapropertymarket #expiringleases #landuserights #realestateinvestment #leaserenewal #regulatoryguidelines #propertyvalues #developerdebt #shanghai #guangzhou

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