Which home will sell for $100 million in 2014? 夏威夷房地产

Which home will sell for $100 million in 2014?

By: | CNBC Reporter and Editor
         

Source: Sotheby’s International Realty
The De Guigne Estate, Hillsborough, Calif.

At least a half dozen homes in America are priced at $100 million or more.

The question is which—if any—will actually sell for nine figures in 2014?

The $100 million sale seems to have become an annual rite of passage for the luxury real estate market since the end of the financial crisis, a number that seems to sum up both the rising wealth of the super rich and their growing appetite for trophy properties.

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In 2011, Yuri Milner bought a mansion in Los Altos Hills, Calif., for $100 million. In 2012, Stan Kroenke bought a $132.5 million Montana ranch. And this year, a mansion in Woodside, Calif., sold to an unnamed buyer for $117.5 million.

There is no shortage of homes officially listed for $100 million or more. And there are even more $100 million-plus “whisper listings”—homes that aren’t publicly on the market but are quietly seeking buyers at that price.

Yet most homes priced at $100 million or more end up selling at a fraction of that price. The Versace mansion in Miami, also known as Casa Casuarina, was on the market this year for $125 million. It sold at auction for $41.5 million. The Candy Spelling Estate in Bel-Air, Calif., was listed for $150 million, but sold to heiress Petra Eccelstone for $85 million.

Here are some of the candidates, and their likelihood to break the $100-million mark next year.

Copper Beech Farm, Greenwich, Conn. Asking Price: $140 million.
Copper Beech is a stunning piece of land, with 50 acres and 4,000 feet of water frontage, in one of America’s richest neighborhoods. But brokers say it’s mainly a development play, since the house is not all that spectacular. The question is whether a developer would be able to spend $100 million, build homes on the site and still make enough of a return.

Owlwood Estate in Holmby Hills, Calif. Unofficial Asking Price: $150 million.
California seems to be the land of $100 million sales recently, and this home could be a contender. It’s not officially listed, but brokers say the Tuscan estate, with 10 acres and a classic 12,000-square-foot mansion could well trade for nine figures.

The de Guigne Estate, Hillsborough, Calif. List Price: $100 million.
This 47-acre property has been owned by the same family—the de Guignes—for more than 150 years. The 16,000-square-foot home and grounds are just 20 minutes from San Francisco, making it ideal for a newly minted tech billionaire or foreign buyer interested in a foothold in the tech world.

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Steve Cohen Duplex, New York City. List Price is $115 million.
Embattled hedge fund billionaire Steve Cohen is selling this massive duplex at One Beacon Court in Manhattan. The apartment spans about 9,000 square feet with double-height windows and big views of the city. There are more and more sky-high duplexes coming on the market in the city, but brokers say Cohen’s pad is a solid contender for a nine-figure sale.

The Residence at River House, New York City. List Price $130 million.
River House is an unusual offering, to say the least. It’s a five story building that currently serves as a private club and would need a huge investment to turn into a new private residence. But it’s a colossal 62,000 square feet and has a riverfront garden and 62-foot indoor swimming pool. Probably only a Middle East royal or a Russian oligarch would consider the purchase.

Crespi Hicks Estate, Dallas. List Price $135 million.
Private equity chief Tom Hicks is asking $135 million for his 25-acre estate in Dallas. It’s a unique property, with more than 40,000 square feet of living space. But breaking the $100 million would be a big leap in the Dallas market.

—By CNBC’s Robert Frank. Follow him on Twitter @robtfrank.

 

Australia among top destinations for Chinese property investors

SYDNEY – Australia has become one of the most popular destinations for Chinese property investors, with nearly A$6 billion ($5.42 billion) invested by Chinese buyers in the local real estate market in the last financial year, local media reported on Monday.

 

 

Australia among top destinations for Chinese property investors

Chinese rushing for overseas properties 

 

Australia among top destinations for Chinese property investors

Top 10 trading partners of the Chinese mainland 

Chinese nationals are estimated by some financial institutions to be buying around 12 percent of the country’s new homes, according to the Australian Broadcasting Corporation (ABC).

The Australian Federal Parliament’s House Economics Committee is reviewing the foreign investment laws amid fears that the local property market prices are being pushed up by overseas investors.

Kelly O’Dwyer, who chairs the House Economics Committee, told the Radio National Breakfast on Monday that the inquiry into foreign investment rules would determine whether they are still achieving the purpose, which ensures that overseas money adds to Australia’s housing stock and does not push up prices for locals.

A report by global financial services firm Credit Suisse predicted that by 2020, about 18 percent new Sydney homes would be bought by Chinese buyers while in Melbourne new home market, Chinese buyer would grow to 14 percent.

Up to A$44 billion ($39.7 billion) of property investment is expected from Chinese investors in the seven years to 2020, the report says.

 

 

Australia among top destinations for Chinese property investors

 

Australia among top destinations for Chinese property investors

CHINA – Curbs take steam out of property investment

By Zheng Yangpeng

China’s real estate investment growth slowed sharply in the first half of this year, dragging down the overall economy, as the central government pledges to maintain its curbs on the property market.

Real estate investment grew 16.6 percent in the first six months of this year, compared to 32.9 percent in the same period last year, the National Bureau of Statistics said on Friday.

This is also significantly lower than the year-on-year growth of 20.4 percent in fixed-asset investment, triggering concern that flagging real estate investment will further hamper the government’s efforts to ramp up economic growth. Vigorous real estate investment was previously the driving force of the economy.

China’s economy grew by 7.6 percent in the second quarter from a year earlier, the slowest pace since the first quarter of 2009, the bureau said.

Upon the release of the data, regulators seemed well aware of the negative effect of lackluster real estate investment on the economy.

“The slowdown in China’s economy is due to the exacerbation of the external economic environment, the continuation of property control policies and weakening domestic demand,” said bureau spokesman Sheng Laiyun.

But Sheng stressed that the strict controls on the property market will not be relaxed.

“Though the curbs on the property market will affect the economy in the short term, they will be conducive in the long run to the wellbeing of the macro economy, especially in preventing a real estate bubble,” Sheng said.

 A day earlier, a major regulator of China’s land supply, the Ministry of Land and Resources, vowed to “resolutely” curb abnormal fluctuations in the real estate market.

The ministry said that the high land transfer prices that have reemerged in some areas in recent weeks did not alter the overall gloomy market situation.

It said that, in the first half of the year, land supplies dropped compared to a year earlier, and growth in land prices has also declined.

The drop in land supply was accompanied by the slowing pace of developers’ land purchases, which fell 19.9 percent year-on-year in the first half, compared to a fall of 18.7 percent in the first five months of the year, said the bureau.

The bureau also said that newly started property construction fell by 16.3 percent in June from a year earlier, deepening from a fall of 4.6 percent in May.

Some industry observers attributed the slowdown in land purchases and newly started property construction — signs of developers’ dampened enthusiasm — to the central government’s strict property policies in place since last year.

The curbs restrict the number of homes each family can buy, requiring families buying a second home to pay a larger down payment and higher mortgage rates.

“The decline in newly started property floor space demonstrated the difficulty of developers’ business and their gloomy market outlook. It made them cautious about buying land and delayed construction,” said Yang Hongxu, deputy director of the Shanghai-based E-house China Research and Development Institute.

Yang warned that the curbs may result in a short supply of houses next year, thus pushing prices up again.

Sales, prices pick up

But some economists noticed that despite the overall sluggish market, house sales and prices had already picked up in June, especially in major cities.

Data from the bureau showed that the decline in house sales in the second quarter is already losing momentum.

Nationally, house sales in the first half of this year dropped 10 percent year-on-year, compared to the 13.6 percent decline in the first quarter.

In June, China’s property sales revenues increased 6.9 percent, snapping a seven-month losing streak.

House prices have rebounded in major cities in the past month. The property research institute China Index Academy reported that, in 10 major cities, house prices, calculated according to land transfer fees, surged 43.9 percent from the first quarter to reach 2,904 yuan ($455) per square meter.

In comparison, the average house price in 100 cities was 1,474 yuan per sq m, up 18.6 percent year-on-year.

Qu Hongbin, HSBC’s chief economist for China, estimated that the warming up of housing turnover in the past two months may have significantly eased developers’ liquidity pressures.

Analysts believed the two interest rate cuts in June and early July had also reduced developers’ lending costs.

“The property market now poses a dilemma for policymakers. On the one hand, further curbs may jeopardize the overall economy and affect developers, which may cut the housing supply and thus push up prices. On the other hand, loosening curbs may frustrate the public, who are not yet satisfied with the effect of the curbs,” Yang said.

However, the mainstream outlook is that the curbs will remain in place over the next half of the year, while the central government will ramp up efforts to encourage developers to build more affordable homes.

These moves are expected to prop up real estate investment while satisfying genuine demand.

Yang said the central government would urge local governments to beef up land supplies for affordable homes, but he cast doubt on the enthusiasm of local governments and developers for this endeavor.