Research and Reports
Manhattan Property Sales Q4 2011
Honolulu Property Report Q4 2011
Manhattan Property Sales Q3 2011
Honolulu Property Report Oct 2011
Manhattan Property Sales Q2 2011
Manhattan Real Estate Q1 2011
Manhattan 4th Quarter 2010
Manhattan Rental Market 4th Quarter 2010
Hong Kong Property Report – 4th Quarter 2010
US No 1 For Foreign Investors
Manhattan 3rd Quarter 2010
S&P Case Shiller Home Price Indices – US July 2010
Manhattan Real Estate Q2 2010
US Economic Forecast June 2010
Standard & Poors Case Shiller US – March 2010
US Median Sales Price Q1 2010
US Home Prices Feb 2010
Manhattan Q1 2010 Sales Report
Manhattan Q1 2010 Rental Report
Case Schiller 2009 Q4
US Housing Charts
FHA House Price Index 2009
Research and reports from sources including Hong Kong property reports, Hong Kong real estate investors information, US Housing statistics, US property reports, US economic reports, New York city housing & property reports, Manhattan property reports, Los Angeles property information, Standard & Poors Case Shiller Home Price Index, National Association of Realtors, Hong Kong Estate Agents Authority, Hong Kong Real Estate Investors Association, South China Morning Post Property Section, New York Times Property, Square Foot Magazine Hong Kong, ONEILL Group Hong Kong, ONEILL Group LLC.
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Recent News
South China Morning Post | Concrete Advice
By Patrick W ONeill
January 18, 2012
International investment in the United States surged to over US$82 billion last year, and Chinese investments in that country doubled in the past three years, according to the National Association of Realtors. Chinese now represent the second-largest investor group in the US, and Hong Kong investors place the US as the top country of interest, according to surveys.
At a US property conference held last month in Hong Kong, experts discussed US property ownership including market trends, taxation, finance, immigration and investment structures. The following tips to buying in the US may help.
*Hire a buyer’s agent. Most US property deals involve separate agents representing the buyer and seller. Buyer’s agents co-ordinate all aspects of ownership including research, legal documents, finance, immigration issues and property management. Buyer’s agents earn a 1 per cent fee and many require exclusive agency agreements.
*Plan the tax structure. The US encourages international property ownership with numerous tax advantages, but advance planning is critical to avoid paying higher foreign corporate tax rates. The long-term capital gains tax rate for real estate is 15 per cent, which is applied to the net profit of property sold after one year. Some states apply additional capital gains taxes. States with no additional capital gains tax include Texas, Nevada, and Florida. For investors buying and selling multiple properties, a tax deferred exchange will defer all capital gains taxes.
*Buy freehold property. Unlike Hong Kong, most homes in the US are freehold. (All of Hong Kong is leasehold except for two parcels owned by the Anglican Church and the University of Hong Kong). Investors are encouraged to buy freehold to avoid the potential pitfalls of limited financing, land- lease-rent increases, and decreased resale values.
*Obtain pre-approved financing. Investors requiring financing should obtain a pre-approval letter as the first step in the buying process. The letter will be required for any initial purchase or reservation agreement. Financing options for international investors are expanding, with several Hong Kong lenders offering floating rates starting at 5 per cent with loan amounts up to 60 per cent. Private banking departments may provide floating rates under 3 per cent, while US lenders offer fixed-rate loans starting at 6 per cent.
*Set realistic expectations. Investors need to have realistic expectations, depending on the investment criteria and location. Markets offering value discounts over 50 per cent are in oversupplied secondary areas such as Las Vegas, Phoenix and Florida. Realistic discounts in first-tier gateway cities such as New York, Los Angeles and on Hawaii are closer to 20 per cent.
*Look at new developments for deals. New developments offer the best buyer incentives and price discounts. Developers with unsold inventory have more flexibility for incentives compared with second-hand sellers. Developers are currently offering steep discounts, prepaid common charges, and rental leaseback guarantees. In New York, new developments provide discounts of over 30 per cent and second-hand market discounts are close to 20 per cent. Rental guarantee leaseback programmes are rare in the US due to regulations, but several developments are offering the guarantees to international purchasers.
The current discounted prices, historically low interest rates, and oversupply will not last. Property values in the US peaked in 2006 and began a steep 30 per cent correction in late 2009 according to the Standard & Poor’s Case-Shiller Home Price Index. Prices have rebounded slightly in the past two years with an increase of 0.2 per cent in the most recent report. New York posted larger annual gains.
Investors who take action now will reap the rewards as the US markets rebound.
Patrick ONeill is the chief executive of ONEILL Group Hong Kong, which provides a brokerage service to buy US properties.
Chinese Investment in United States Skyrockets
US Property Conference in Hong Kong
International investment in the United States surged to over US$82 Billion in 2011 according
to the National Association of Realtors.
Chinese investment increased over 100% compared to three years ago and
represents the second largest international investor segment at nearly ten
percent. Hong Kong investors
overwhelmingly selected the US as the top country of interest followed by the
UK and Mainland China according to a previous Barclays Wealth report.
New York City posted a 165% increase in investment this year surpassing London as the
number one city for commercial investment according to the third quarter report
released by Cushman & Wakefield. Investment in the residential sector has also
jumped with New York agents reporting a surge in investors from Asia. “There has been a noticeable increase in investors
from Hong Kong, Taiwan, Singapore and China,” says Amy Williamson, Vice
President of Prodigy Network. The Trump
SOHO in Manhattan reports over 20 recent sales to purchasers from the
region. “Properties like Trump SOHO
appeal to international purchasers because they can use the property when in
Manhattan and then rent it out the rest of the time. It is the perfect combination of use and
investment.”
In addition to New York, international investors are sweeping up deals across the US.
“Chinese investors are interested in the gateway cities,” says Consulina Wong,
Director of Asia for the ONEILL Group Hong Kong a firm specializing in helping
Asia investors buy properties in the United States. “The US is not a homogeneous
marketplace. Each city offers varying
degrees of capital appreciation and rental yield opportunities. New York is very different from Los
Angeles. Honolulu is very different from
Las Vegas. The commonalities are historically
low financing rates, strong rental yields and great price values.”
Hawaii is another area experiencing the surge of investment from Asia. The Trump International Hotel and Tower in Waikiki
was completed last year and is over 85% sold.
“Buyers from Asia have accounted for over half of the US$600 Million in
sales at the Trump Tower Waikiki with many of the recent sales to Chinese,”
says Sean Combs, Asia Pacific Sales Director for the Trump Waikiki
development. “The combination of luxury
lifestyle, hotel services, and the option to have the property managed and
rented while they are away are very appealing to this particular buyer segment. This winter we have focused our outreach to
buyers in Shanghai and Hong Kong.”
Property values in the US peaked in 2006 and began a steep 30% correction bottoming out
in late 2009 according to the S & P Case-Shiller Home Price Index. Prices rebounded in 2010 and have been oscillating
on a level track with an increase of 0.2% in the most recent report. The report further states that cities like
New York posted larger annual gains while others like Miami and Los Angeles experienced
no change in the annual returns.
For investors interested in US properties, check out the US Property Conference which
launches this month in Hong Kong. The
bi-annual conference provides a platform for investors throughout Asia to
better understand the ownership opportunities available in the United
States. The event is coordinated by the
ONEILL Group Hong Kong a firm specializing in US properties for international
investors.
The highlight of the conference is the investor seminar scheduled for the 13th
of December. The seminar gathers experts
in the fields of market analysis, taxation, legal, immigration and finance. “The seminar provides investors the knowledge
and tools to take advantage of the opportunities happening right now,” says Wong.
For more information about the conference, seminars and private meetings contact the
ONEILL Group Hong Kong at [email protected] or call Ms Wong 3103 1008.
www.ogrouphk.com
Hong Kong Hosts US Properties Conference December 8-18
The annual US Property Conference launches next month in Hong Kong. The bi-annual conference provides a platform
for investors throughout Asia to better understand the ownership opportunities
available in the US markets and features experts in the fields of market
analysis, taxation, legal, immigration and finance. The event is coordinated by
the ONEILL Group Hong Kong a firm specializing in US properties for
international investors.
The highlight of the conference is the investor seminar scheduled for the 13th of
December. “The seminar gathers experts
to discuss the US markets and the details of ownership in the US. This year we have representatives from the
Trump Hotel Collection’s New York and Waikiki properties who will provide
detailed analysis on those sub-markets,” says Consulina Wong Director of Asia
for the ONEILL Group Hong Kong.
International investment in the United States surged to over US$82 Billion in 2011 according
to the National Association of Realtors.
Chinese investors are the second largest group accounting for almost 10%
of all foreign investment in the US representing a 100% increase compared to
2007. “Buyers from Asia have accounted
for over half of the US$600 Million in sales at the Trump Tower Waikiki with
many of the recent sales to Chinese,” says Sean Combs, Asia Pacific Sales Director
for the Trump Waikiki development. “The
combination of luxury lifestyle, hotel services, and the option to have the
property managed and rented while they are away are very appealing to this
particular buyer segment.”
New York City remains one of the top cities for Hong Kong investors. “Hong Kong and New York share a long history
and very deep ties through the finance and trade industries,” says Amy
Williamson Vice President of Prodigy at the Trump SOHO. “Hong Kong investors are among the most
savvy and sophisticated in the world and the Trump SOHO seems to be a perfect
fit with over twenty of the recent sales from our investor groups in Asia.”
The US Property Conference runs from 8 December through the 18th. The 13th December seminar is open
to qualified investors but seating is very limited. “The investor seminar fills up quickly but we
have a series of smaller breakout events before and after to accommodate the overflow
demand and to focus on specific investor needs.
We have been organizing this conference for several years and with the
surging demand, I think this will be the best one,” says Wong.
For more information about the conference, seminars and private meetings contact the
ONEILL Group Hong Kong at [email protected] or call 3103 1008.
www.ogrouphk.com