skip to Main Content

It’s On My To Do List To Try Another Price Cut

A report from the Inlander in Washington. “A decade after the depths of the Great Recession, another potential housing crisis is brewing: State and federal governments have issued eviction moratoriums, preventing landlords from booting tenants who aren’t paying their rents. ‘We’ve had a number of landlords — with nonpayment of up to 10 months from some tenants — pursuing bankruptcy,’ says Steve Corker, president of the Landlord Association of the Inland Northwest.”

The Voice of OC in California. “Cities across Orange County are finding ways to handle the rapidly expanding business of short term rentals. ‘It was basically three days of continuous party,’ said one resident at a Costa Mesa City Council meeting. ‘The worst of everything was that after this nightmare was over, neighbors found used needles and used condoms on their front yards.'”

“Short term rental operator and Orange resident Dory Williams lost her job with an airline due to the pandemic, and since then has moved out of her home and operated it as a short term rental to meet her mortgage payments and pay for groceries. ‘Since March, I’ve been unable to find a job and fully rely on my rental,’ Williams said. ‘If rentals are banned, I don’t know what to do. I’d be forced to sell the house I worked so hard for.'”

From Bloomberg. “A hotel company that ran into trouble during the financial crisis is shaping up to be one of the biggest losers in the pandemic lodging bust, as property owners who delayed debt payments grapple with impatient lenders. Columbia Sussex Corp., the closely held Crestview Hills, Kentucky-based owner of 49 lodging properties, is in foreclosure on three hotels, and is prepared to surrender two others to lenders, loan documents compiled by Bloomberg show. At least 25 properties that the company has financed with loans packaged into commercial-mortgage backed securities are in special servicing or on servicer watch lists.”

“Columbia Sussex has lost hotels before. It bought 14 hotels from Blackstone Group Inc. in 2005, then surrendered them in 2010 after the private equity giant bought up debt on the properties. In many ways, the lodging industry’s current problems make past crises look tame by comparison. U.S. occupancy rates fell to 44% in 2020, well below the previous low of 55% in 2009, according to data provider STR.”

From in Massachusetts. “It wasn’t that long ago that Boston was the third-most expensive U.S. city for renters. That was last month. Boston has dropped to fifth as COVID-19 continues to take its toll on the market and landlord and renter incomes. Boston tied with Indianapolis for the largest month-over-month decrease in rent: six percent. Year over year, rents are down a whopping 19.2 percent. For two-bedroom apartments, they are down 13.8 percent.”

From Bisnow New York. “Boston Properties took an impairment charge last quarter because of a protracted lease-up and extra costs at the brand-new office building Dock 72, the company said Tuesday. The $60.5M non-cash impairment charge was declared on the real estate investment trust’s Q4 2020 earnings statement. Boston Properties said the slower-than-expected leasing was due to the coronavirus pandemic, which has thrown cold water across the entire city’s office leasing market. And the current fair value of the property has been lowered, resulting in a sizable loss.”

“The property opened in October 2019, with WeWork leasing 222K SF across half of the third through sixth floors and all of the seventh and eighth floors. At the time, WeWork’s much-hyped initial public offering was going south and was ultimately canned. The coworking behemoth has since taken another major hit as a result of the economic fallout of the global health crisis.”

The Atlanta Journal Constitution in Georgia. “Amid the coronavirus pandemic, not much good news has emerged. But there is a small silver lining for renters. In 2020, rent prices dropped, rather than increased in Atlanta. ‘This aggregates to a national trend that appears similar to previous winters but hides some new trends,’ Apartment List explained. ‘Most notably, the nation’s smaller, more-affordable markets have absorbed most of the summer’s rent rebound, while larger, more-expensive markets have been saddled with unrelenting price drops.'”

From CTV News in Canada. “If you were on the lookout for a Greater Toronto Area condo or apartment to rent or own late last year, new data from the region’s real estate board shows you might have had an edge in negotiations. The number of condos listed for sale or rent in the area in the fourth quarter of 2020 were up by double and sometimes triple digits from the year before, while prices were down. ‘I have a few clients right now where their properties are vacant because we just can’t even get tenants in them,’ said Davelle Morrison, a Toronto broker. ‘It’s on my to do list to try to get to take another price cut.'”

From The Express. “Property prices in England’s capital could be about to plummet as house prices in some of the city’s most sought-after locations begin to tumble. According to research by Astons, sold prices have fallen by ten percent since the start of the pandemic in some of London’s prime postcodes. For example, the W1J postcode in Mayfair and St James’s has seen prices drop by as much as 40 percent. That means some property prices have dropped from £4.9million to £2.9million.”

The Irish Independent. “The financial backer of Dublin’s two biggest commercial property projects is accelerating its exit from the capital after coming under financial pressure. Colony Capital has agreed to sell its stake in the Facebook and Salesforce European headquarters developments to an undisclosed international buyer. The company had bankrolled the two projects, which are being developed by Ronan Group Real Estate (RGRE), as part of its aggressive move into Irish commercial real estate after the financial crisis.”

“Last year, the US parent company began selling assets after one of its investment arms defaulted on a €3.2bn loan secured on a portfolio of hotels and nursing homes hit by the pandemic. Market sources said Colony is now winding down its European commercial real estate fund and will be looking to sell those properties, which include the Hive in Sandyford and Carrisbrook House and 23 Shelbourne Road in Ballsbridge.”

From Free Malaysia Today. “The property overhang in Malaysia has continued on an upward trend, with consultant firm Rahim & Co International expecting the market to remain challenging for the rest of the year. Its research director, Sulaiman Saheh, said 57,390 homes, serviced apartments and Soho (small office home office) units worth RM42.49 billion were left unsold as of the third quarter of last year. Sulaiman said housing affordability had also contributed to the overhang, as prices were relatively high compared to the average Malaysian annual household incomes.”

“Rahim & Co International executive chairman Abdul Rahim Abdul Rahman said property consultants have found it difficult to ‘close the gap between the property prices the buyers and sellers want,’which has been widened by the pandemic. Chief executive Siva Shanker pointed out that the vaccine was not a ‘silver bullet’ for the property market’s struggles, as the oversupply of residential units and office spaces had existed long before the pandemic. ‘These problems were not caused by the virus, so they will not be solved by the vaccine,’ he said, adding that office vacancies had fallen in the 70% bracket, the lowest in a long time.”

The Vietnam Express. “Rents for coworking office space in HCMC decreased 12 percent year-on-year last year due to the impacts of the Covid-19 pandemic, a report says. The occupancy rates of coworking office space in Grade A and B buildings last year plunged by 7 percentage points as its supply experienced the lowest growth since 2017 to 6 percent, according to a report by Savills Vietnam.”

“The gloomy outlook for the coworking space market, which boomed in the country between 2017 and 2019, has prompted investors to cancel expansion plans. ‘2020 was a challenging year for both traditional and shared office segments. The market has been seeing a number of tenants turn to lower-priced office buildings and shophouses to cut down on rental costs in order to maintain their business,’ said Vo Thi Khanh Trang, head of Savills Vietnam’s market research department.”

The South China Morning Post. “Hong Kong’s embattled serviced apartment operators are slashing rents, in some cases, by as much as half, and offering sweeteners to boost occupancy rates. ‘Whilst hotels can entice locals with attractive staycation packages, serviced apartments rely heavily on business travellers and corporate relocations – with those new to Hong Kong utilising them whilst searching for more permanent homes,’ said Will Robertson, executive director at Nest Property. ‘The serviced apartment industry, like many, has struggled as a result.'”

“L’hotel Causeway Bay Harbour View is offering serviced apartment units starting at HK$9,999 (US$1,290) per month. The flats, ranging from 301 to 344 sq ft, were priced at HK$12,000 a month before the offer. The units went for as much as HK$19,000 at their peak before the coronavirus outbreak sent the hotel and serviced apartment sector into a downward spiral. The offer comes with HK$1,200 dining credits and cleaning service twice a week.”

“The monthly rent for a three-bedroom suite at The Harbourview Place, Sun Hung Kai Properties’ luxury serviced apartments located in The Cullinan, was recently priced 41 per cent lower than in November 2018, according to Nest.”

From Nestegg in Australia. “According to Domain’s latest rental report, Sydney’s unit rents have tumbled to 2013 prices, dropping 5.1 per cent on the quarter and 7.8 per cent on the year to $470 in December. This marks the steepest quarterly and annual fall since Domain rental records began in 2004. Similarly, Melbourne suffered a 3 per cent quarterly decline and 7.6 per cent yearly decline to a five-year low of $388. Of all the capital cities, Melbourne units have recorded the deepest fall in asking rent since pre-pandemic March, down 9.8 per cent.”

“‘For the first time in five years, Melbourne is the third most affordable capital city to rent a unit, after Adelaide and Perth,’ Domain said. ‘A marked change considering Melbourne was the third most expensive city to rent a unit back in March. Inner-city apartments have been hardest hit with rents at a seven-year low, followed by the inner east and inner south hitting a four-year low.'”

“As for Sydney, Domain explained that unit rents have been hardest hit in the city and east and inner west, with rents at an eight-year low, while the lower north shore is the cheapest in nine years. ‘Annually, unit rents have been falling since mid-2018, but this trend has been accelerated by changes as a result of COVID-19.'”

This Post Has 64 Comments
  1. ‘the W1J postcode in Mayfair and St James’s has seen prices drop by as much as 40 percent. That means some property prices have dropped from £4.9million to £2.9million’

    Is that a lot?

  2. ‘the oversupply of residential units and office spaces had existed long before the pandemic’

    5 or 6 years before Siva.

  3. ‘‘For the first time in five years, Melbourne is the third most affordable capital city to rent a unit, after Adelaide and Perth’

    Cheaper than Perth. How the mighty have fallen.

    ‘‘The worst of everything was that after this nightmare was over, neighbors found used needles and used condoms on their front yards’

    What a klassy bunch.

    1. ‘‘The worst of everything was that after this nightmare was over, neighbors found used needles and used condoms on their front yards’

      The price of vibrancy

  4. ‘We’ve had a number of landlords — with nonpayment of up to 10 months from some tenants — pursuing bankruptcy’

    But UHS say you can always sell?

    1. Wenatchee is a central-hub city that serves a vast rural area primarily with sophisticated health care, but also has a full ILS feeder airport featuring large 80-seat turbo prop STOL aircraft, major warehouse outlets, etc., but a huge chasm exists between real wages and housing costs.

  5. Robinhood is blocking the purchase of Gamestop shares.

    Remember in autumn 2008 when the exchanges blocked the shorting of financial stocks? I do.

    These globalists pigs are above the law.

    1. Oh, get with the program. Gamestonk is so-o-o-o January 26. 🙄 They’ve moved on to First Majestic Silver (AG).

      Blood’s in the water now. How long can the big boyz play whack-a-mole with the 99%?

      1. Aaaannnnd…. AG has just been blocked from trading. Not even 60 minutes in. There’s a lawsuit in here somewhere.

        1. Maybe the tribescum that have destroyed every aspect of our society will require those who trade in the stock market to have been vaccinated with a special concoction that prevents them from posting memes harmful to the government.

          Isnt that where all this madness is heading, a convergence of all the absurdities?

          1. Isnt that where all this madness is heading, a convergence of all the absurdities?

            Peak Clown World

    2. They can do whatever they want. Remember reading about the Hunt brothers and how they wanted to corner silver? Rules got changed to cancel that.

        1. Fauxahontus and Comrade Pelosi, feeling the rage from Reddit Mob investors who just got played, are bloviating about having the SEC look into market manipulation. Of course the crony capitalist Republicrat duopoly and the captured, complicit SEC are all part and parcel of the oligarchy’s rigged game, so their so-faux expressions of concern won’t deflect any of the waves of hatred the screwed-over Reddit investor muppets will be feeling for the corrupt status quo.

  6. Could the nazi like lockdown have anything to do with this? Basically you can’t leave your flat except to go buy food with massive fines if caught.

    What is the point of even living in a big city?

    “Property prices in England’s capital could be about to plummet as house prices in some of the city’s most sought-after locations begin to tumble.”

    1. The relatives live in distant and podunky Cornwall. They are also locked down. The UK has everyone locked up, and it’s had no effect on the infection rate.

      Keep in mind, this is what Biden wants to do here.

    2. Compared to parts of Europe and Australia and New Zealand, the US lockdown has been somewhat mild from what I’ve read.

      Gun ownership might have something to do with that.

  7. Using the Medical Cartel to control people , steal a election, and loot the taxes by a fake covid 19 scam, with questionable vaccines is a crime of epic proportions. Trump was elected to take away the Commie Medical mandate , so the Medical Cartel came back with a vengeance.
    They own the media so the public is subjected to these fake medical scams and looting of the tax coffers.
    They don’t have to answer to anything because they own the media. They can’t even show you proof under a microscope that these people are dying of covid 19.
    It’s a scam, and because it’s invisible, and they don’t even have to prove the cause of death, using fake tests, they are getting away with these crimes.

        1. “You get what you pay for…”

          …or don’t read the fine print on. If it’s in the T&Cs, buyer beware. If not, or if it’s just flat out illegal, ruh roh Robinhood.

    1. Evidently Robin Hood has some back-room deal with Citadel, a big investor. Citadel helps Robin Hood with trades… and evidently Citadel owns Melvin Capital, the fund that had a big short in GME. Sounds like somebody at Robin Hood got a nastygram. (source, comments at Marketwatch.)

      Too late, the cat’s out of the bag. Everyone to Ted Cruz to AOC are commenting on this, all in favor of the little guy.

      1. I thought it was curious, in an amusing way, how Cramer on CNBC would mention wallstreetbets with some reverence. There was a strange venn overlap of that all. Now we see how frightened Wall Street is of the power of the pen. All it takes is a crowd.

        1. WallStreetBets got booted off of Discord yesterday (I don’t use Discord) because of “hate speech” i.e. speech that globalists don’t like.

          I’m expecting them to get booted off of Reddit soon. Fortunately there’s already a dot win website set up to take its place.

      2. Pretty clever play to clean out the shorts . Like Vegas though once you start winning you get kicked out of the casino.

        1. though once you start winning you get kicked out of the casino

          I have heard that when that happens you are told that you know the game better than they do, as you are shown the door.

    2. I think what you’ll probably end up finding with this Robinhood nonsense is that they weren’t even executing the trades that their clients wanted. Instead, they were probably betting against their own clients, like a bookie who never takes the tickets to the sportsbook.

      When their short bets went bad they started to suffer liquidity issues and closed down all the trades because the writing was on the wall that they could face insolvency as there was no end in sight to the short squeeze. Now they’re drawing down their credit lines with JP Morgan and Goldman. It’s fraud squared.

  8. Good lets see how long it lasts .

    “Colorado has some of the toughest laws to prevent profiteering on water in the West, anchored in a nearly 160-year-old state water law that requires users to put their rights to beneficial use. That definition has expanded from irrigation and home taps to include snowmaking, protecting wildlife and even kayaking in a whitewater park. Beneficial use does not include making money. “

    1. Good lets see how long it lasts .

      If Wall St. gets its way (and it usually does) water will become utterly unaffordable in the west.

        1. It’s the retard narrative “We’re running out of land!”

          And it’s deliberate.

          Remember…. the fed loses control(not that they have much) and dies when prices fall.

        2. My understanding is that, in the west, water rights aren’t attached automatically to the land. They can be bought and sold. My little burg purchased a lot of water rights from Agilent (formerly Hewlett Packard).

          Gates could have bought the water rights without buying land. And for all we know he has been doing that as well.

        3. “The farmland allows Gates to procure and to control large amounts of water rights.”

          I used to post quite a bit on this subject.

          Listen to the first 55 seconds of this video and look at what is happening right now.

          Rosa Koire. UN Agenda 2030 exposed

          •May 30, 2019

          1. 1:20 in the video: “It’s about moving populations into the city centers, concentration city centers, and clearing them out of the rural areas.”

            …Where we will all own nothing and be happy, I imagine.
            Meanwhile, the food supply will be controlled by family dynasties, with illegal serf laborers working the farms. Party like it’s 1199.

          2. Where we will all own nothing and be happy

            Owning nothing is still far more than being in debt. You don’t need much if it means freedom.

          3. dependent on the government

            I don’t quite think so. If the government went away, I might have to work for food, but I wouldn’t owe anyone anything at that point.

          4. I wouldn’t owe anyone anything at that point

            You would owe them your obedience. And I don’t expect the Davos crowd to be benign rulers.

  9. Even after the “statement of correction” the claim is still backed up as true butaccording to the “fact checkers”…

    Our rating: False

    Fact check: Claim of Chinese investment in Dominion Voting Systems confuses UBS subsidiaries

    Chelsey Cox, USA TODAY
    Updated Sat, January 23, 2021, 10:05 AM

    The claim: China invested $400 million in Dominion Voting Systems

    Chinese counterpart — UBS Securities Co. Ltd. — a fact Lawrence acknowledged in a statement of correction after The Associated Press fact-checked the claim.

    “Things have evolved and some of the criticism is legitimate. For instance, it is correct to point out that the securities sold by Staple Street Capital went to UBS Securities Co., LLC. This is UBS’ New York affiliate, not the UBS Securities Co., Ltd. that is openly affiliated with the Chinese communist, and which we incorrectly cited as the purchaser,” the correction states.

    Our rating: False
    A claim stating China invested $400 million in Dominion Voting Systems is FALSE, based on our research. The source of the claim, which is unclear, confused New York-based UBS Securities Co. LLC with Beijing-based UBS Securities Co. Ltd. Further, the U.S.-based bank brokered an exchange of securities between institutional investors and private equity firm Staple Street Capital III L.P., but it did not invest in the company.

    1. Dominion’s Ties to UBS, China

      Penny Zhou
      Dec 11, 2020

      The New York-based subsidiary of Swiss bank UBS sent $400 million to Dominion’s parent company Staple Street Capital III, L.P. on Oct. 8, 2020.

      The subsidiary is closely linked to UBS’s Beijing-based joint venture. There, current and former board members are tied to Chinese communist military and intelligence agencies. In New York, three out of four UBS board members are Chinese. Some board members serve the company in New York and Beijing at the same time.

      The Chinese regime owns 49 percent of the UBS in Beijing. In an unusual move, Beijing’s UBS changed 12 of 14 board members right after the U.S. 2020 election. NTD’s analysts believe UBS may be trying to cover up its ties to the regime. The company had never done any large-scale turnover until this time.

Comments are closed.