China limits foreign investment in real estate, other key areas

China limits foreign investment in real estate, other key areas

China’s economic planning agency has issued restrictions on foreign investment in real estate and other industries, part of a range of measures aimed at righting imbalances in the economy.

A lengthy list of revised rules that take effect Dec. 1 imposes bans on foreign investment in some businesses such as golf courses, gambling, genetically modified crops, traditional teas, film production and weapons manufacturing, according to a document seen Thursday on the Web site of the National Development and Reform Commission.

Govt plans real estate industry shake-up [New Zealand]

Govt plans real estate industry shake-up [New Zealand]

A major shakeup of the real estate industry will see the creation of an independent watchdog with the power to impose stiff fines and ban “land sharks”.

The planned legislative changes, announced by Associate Justice Minister Clayton Cosgrove today, have been spurred by criticism of the current inhouse regulatory regime run by the Real Estate Institute of New Zealand (REINZ).

The institute has come under fire for weak penalties, unnecessary delays and an unwillingness to refer complaints to its more powerful licensing board.

Real Estate Industry Revamp Good For Kiwis [New Zealand]

Scoop: Real Estate Industry Revamp Good For Kiwis

New Zealand First’s housing spokesperson Pita Paraone has welcomed the real estate industry revamp which will offer better protection and compensation for consumers who are ripped off by real estate agents.

“For too long there has been insufficient redress for Kiwis who have suffered emotional and financial hardship when buying or selling a house has gone horribly wrong. Unethical real estate agents need to be held accountable,” said Mr Paraone.

“The fact that many people can no longer afford to buy a house means we must minimise the opportunity for real estate agents to contribute to this situation. Removing self regulation and establishing a new independent body to oversee the industry will help to restore Kiwis’ confidence and trust in real estate agents.

‘Current real estate prices are unsustainable’ [India]

‘Current real estate prices are unsustainable’

Trikona Capital, currently the single largest real estate fund dedicated to India, is planning to invest $10 billion in real estate and infrastructure sector over the next 10 years. Trikona has earlier raised close to $500 million in UK and has commitments worth $1.5 billion in over 14 projects in the country.

Aashish Kalra, managing director and co-founder of Trikona Capital, spoke to Tinesh Bhasin on the real estate industry and how the fund plans to invest in the current scenario.

Give us your views on Reserve Bank of India’s move to curb Foreign Direct Investment (FDI) in real estate.

We need FDI to increase supply of real estate properties. Debt has become expensive as interest costs have gone up. Real estate business in the country is at nascent stage. The sector has just started witnessing institutional investments and old monopolies are breaking down as companies are selling shares to public. Transparency is seeping in. We need foreign institutional money to help the sector reach maturity.

Real Estate Impacts Bank Profitability

Real Estate Impacts Bank Profitability

Real estate problems were part of the reason the earnings of Harrison-based First Federal Bank fell 82 percent in the third quarter.

The bank earned $301,000 in the quarter, compared to $1.7 million in the year-ago period.

The quarterly earnings suffered because the bank increased its loan loss provision because they are charging off more loans than they originally expected, said John Dominick, Arkansas Bankers Chair and professor of banking at the University of Arkansas.

The revenue losses were attributed to an $846,000 increase in loan loss provisions, giving the bank $1.33 million, which it set aside for losses in the quarter. The increase was needed to cover the escalating delinquent loan portfolio as the community bank has taken back more than $5 million of real estate since December 2006.

Real estate commissions on the rise

Real estate commissions on the rise

With the collapse of the sellers’ market, real estate agents are finding themselves in the driver’s seat when it comes to charging fees.

During the housing boom, home sellers were in the driver’s seat with real estate agents courting them – often at bargain commission rates. But now that the bubble has burst, the tables have turned.

In 1991, the average commission rate was 6.1 percent, according Steve Murray, of Real Trends, which tracks the brokerage industry. The rate inched down to 5.4 percent by 2001 and by the end of 2005, it stood at 5.02 percent.