Housematix » Kevin Brass

Solid Report for Trump Project in Panama

Kevin Brass — Mon, 07 Sep 2009 14:44:18 +0000

The Trump Ocean Club, the bellwether project under construction on the bay in Panama City, is still hitting its financial and construction targets, the developers told bondholders last week. Newland International Properties sold 23 units in the first half of the year, bringing the total sold to 832 of the 1,004 condominium and hotel units, according to the report, which can be found on the Panama Investor Blog.

While there have been accounts of steep discounts and stagnant sales in other Panama City towers, the Trump project is discounting units an average of only about 13 percent, Newland told investors. The average price for a two-bedroom unit is about $683,000 or $4,452 per square meter.

Like many projects that carry the Trump name, Newland is simply licensing The Donald’s brand. Widely believed to be the most expensive of the many new towers sprouting in Panama City, the Trump Ocean Club’s progress has been closely watched, amid concern the Panama City market is over heated.

Last year the Fitch Ratings service downgraded the project, due to “the significant deterioration in global real estate markets and an increase in liquidity risks associated with the timely payment of principal and interest on the notes.” Some analysts feared that some buyers would simply walk away from their deposits, but Newland reported only eight defaults. (Buyers are required to pay 30 percent during construction and 70 percent upon completion.)

The tower remains on schedule to open in August 2010, the developers say.

In U.K., Talk of ‘Sporadic and Shaky’ Recovery

Kevin Brass — Thu, 03 Sep 2009 16:07:52 +0000

As wishy-washy forecasts go, it doesn’t get much more wishy-washy than the Council of Mortgage Lenders prediction for activity in the U.K. Activity increased 26 percent from June to July, the highest level in nine months, according to the industry association’s latest report. But the CML wasn’t exactly popping corks. Lending activity in July was the lowest since 2001, down £11 billion from the July average of £27 billion (and nowhere near the £35 billion of 2007, the golden year of the frenzy).

“A further significant pick-up is unlikely with so many obstacles in place,” CML economist Paul Samter said in a statement. “As a result, we anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge.”

Not exactly words to whip up a market tornado. When Bank of England statistics released a few days later revealed a similar upward trend, CML’s Samter was quick to reiterate the council’s caution, noting the group sees “volatility” and down months ahead, “as the recovery is likely to be sporadic and shaky at first.”

The current move may be fueled primarily by high-end deals, Andrew Montlake of mortgage brokers Coreco told the Telegraph:

“This sector of the market tends to start moving first before slowly trickling down to the rest of the market as lenders are happier to lend to what they see as quality applicants with higher incomes and sizeable deposits.”

But he added: “There is still a big squeeze in terms of availability and competitive mortgage rates in the wider market despite buyer demand being strong.”

No Bargains on the French Riviera

Kevin Brass — Mon, 31 Aug 2009 23:56:49 +0000

Villa Shamballa

The French Riviera may be one of the few markets where nobody really cares about the global economic showdown. Sure, there may be fewer Russian oligarchs wandering the docks, but a château overlooking the Mediterranean will always be priced the way it is priced, and that’s just the way it is and the way it will always be. If you can’t afford it, there’s always Spain, the locals are happy to point out.

Case in point is a modern villa on a hillside less than 1 mile from Monaco, which recently hit the market with a hefty price tag of 38.5 million euro.

On one-hand, the price for “Villa Shamballa” seems a bit steep, even for the Riviera. Sure, the estate covers 3,400 square meters and features 10 bedrooms, two pools, a guest house and the requisite “wine cave,” as detailed on the estate’s Web site. But that price range can buy a Versailles-style grand castle or a private island.

Nevertheless, this is the Riviera, so a potential buyer must consider the pedigree as much as the square footage. The house was built by retired real estate developer Jean-Claude Rahn and his wife Ursula Neuerberg, a member of the family behind German cigarette manufacturer Haus Neuerburg. Houseguests have included Prince Albert and Claudia Schiffer, according to a spokesman for the estate. (The ability to say “Claudia Schiffer slept here,” alone should add a few euro to the price.)

Beyond Claudia’s aura, the main draw is undoubtedly the location—a picturesque hillside covered with luxury estates, offering a 180 degree view of the Mediterranean. You can’t put a price on the Riviera, any agent will tell you. The villa is not far from Villa Leopolda, the Lily Safra estate which reportedly attracted a 500 million euro bid from a Russian oligarch last year.

The much-discussed price drew skeptical snickers from many in the industry. But it’s the French Riviera, so anything is possible.

‘Green’ Songdo City Moving Ahead

Kevin Brass — Thu, 27 Aug 2009 01:17:59 +0000

Unlike many grandly-announced ambitious eco-cities, Songdo in South Korea is actually happening. The first phase of the 1,500-acre complex west of Seoul opened earlier this month, promising, among other things, to set a new standard for green cities in Asia.

Based primarily on New Urbanism concepts, Songdo is implementing a wide array of eco-friendly designs on a massive scale. The list of features includes:

-A commitment to leave 40 percent of the site as open space, including a 100-acre park styled after New York’s Central Park.

- A 25-km network of bicycle lanes.

- Charging stations for electric vehicles integrated into parking garage designs

- A centralized pneumatic waste collection system for wet and dry waste, eliminating the need for trash trucks.

- And, in what will certainly be a controversial stance, smoking is banned in public areas and office buildings.

Find the full list of features here.

Inside the Trump Tower in NYC

Kevin Brass — Mon, 17 Aug 2009 03:41:54 +0000

Luxist offers a glimpse at what $14.9 million buys in the Trump Tower on Fifth Ave. in New York City. The 48th floor duplex with 4 bedrooms and 4.5 baths offers floor-to-ceiling windows with panoramic views of the city. And the master bedroom is “designed so that the bed is positioned perfectly so that Central Park views are the first thing you see in the morning for a very master-of-all-you-survey feeling.” So it has that going for it.

But the listing really pushes the SmartHome features, which include “customizable color touch screens with wall, remote and desktop controls” in each room, plus invisible speakers, iPod docking stations and a programmable lighting system. And there’s also “his and hers baths with Kohler steam showers with a six-head jet system thermostatically controlled by Kohler’s DTV panels both inside and outside of the shower.”

Dubai Faces Sea of Empty Units

Kevin Brass — Fri, 14 Aug 2009 14:41:19 +0000

Somehow this is not a big surprise: Dubai, the poster child for the boom years, is facing a surplus of 31,000 homes by the end of the year, according to a new JP Morgan report.

You don’t need a fancy economic degree to figure out the reasons for the sea of empty homes. “Modest economic forecast and negative population growth estimates” are blamed for the surplus. In other words, the flow of overseas buyers has dried up for all those new, ground-breaking, one-of-a-kind developments.

If anything, the 31,000 number sounds light, considering the drop in demand. And that means, if Dubai is a true open market, prices should continue to fall, as well.

The latest report from Colliers International (available here) found prices dropped 48 percent from the second quarter of 2008.