Weekly News (August 29, 2018)

1. Chinese Insurance Co, AnBang Group is selling Waldorf Astoria Hotel

Chinese Investors are selling properties and leaving Manhattan.
AnBang Group purchased Waldorf Astoria Hotel at $1.95B in 2014.
China Government is controlling US Dollar and Investment in US after Trade war began.
Package deal for 16 Hotels in US on the marketà Middle Eastern buyers are interested.
Chinese sold total $$1.29B’s properties and purchased total $126.2M’s properties in 2nd Qt in 2018.
Chinese EB-5 Investment reduced to $10M from $400M level/ Chinese buyers disappears and native Jews and middle eastern buyers emerged for luxury condo open house.
According to Elliman, Manhattan condo sales volume reduced and price also is decreased.
2nd Qt, Avg new condo sales price is $2.67M which is down by 19% from last year.
Construction materials(Iron, Aluminum) prices going up due to Trade War → 25% Up
Construction cost going up → Difficult time for builders
According to “Trade Partnership”, Due to increased Iron price Up, 30,000 jobs will be lost in manufacturing sector → GDP growth will slow down → more painful economy.

2. 5 Story Apartment in Manhattan sold at $6.075M

3. New Rental Complex will be in Bushwick, Brooklyn

4. New Jersey towns are opposing Marijuana use

The State is favoring to use Marijuana use legally, but many towns say NO.
As of 8/23, 30 towns decided to ban selling Marijuana in their towns.( Carlstadt, East Rutherford, Garfield, Hasbrouck Heights, Lodi, Mahwah, Woodcliff Lakes, Wyckoff)
Only 4 towns say YES: Asbury Park, Atlantic City, Jersey City, Trenton
Only 26% of Republican side is favoring / 66% of Democrat side is favoring
State is preparing about 100 dispensaries for Medical Marihuana → Helpful for patients

5. ADM(American Dream Meadowland) is on right track in East Rutherford, NJ

Man power will be double I coming months → will open next Spring.
1600 workers now → will become 3000 in this Fall → Begin on the build-outs for some 450 retailers and restaurants spaces.
When fully open, 16,200 jobs at the center / 7000 jobs in surrounding cities → jobs will create $1.2B in wages.
1000 rooms hotel, Convention center, Dream Works Water Park (North America’s biggest water park), Indoor Ski and Snow park, Performing Arts Theater, Aquarium, Hockey link, Kidzania children’s play, Legoland Discovery Center, etc

55% Entertainment / 45% Retail stores
The developer, Triple Five owns largest mall and entertainment complex in North America → Mall of America in Minnesota and the West Edmonton Mall in Alberta, and they are building AD project o Miami.
Retails: Saks, Saks Off Fifth, Aritza, Banana Republic, Century 21,Gap,Hermes, Lululemon, MAC, Microsoft, Pink, Uniqlo, Victoria’s Secret, Zara.,etc

6. RE foreclosure is increasing → RE crisis is coming back again??

Foreclosure in July → Increased to 30,187( 1% Up from last year)
First time increase in 3 years.
LA is Up by 20%/ Miami is Up by 29% → 44%(96 cities) out of 219 cities is increased
New Jersey is highest foreclosure rate in US → 1 out 723 houses are under foreclosure (US Average → 1 out 2068 houses)

According to Atom Data Solution, Slow easing mortgage regulation for many years → increase risk / Big scale laid off and natural disaster( Hurricane Uma, Harvey)

7. New Hew home sales decreased for consecutive 2 months

According to Commerce Dept, existing home sales decreased for 4 months / New homes sales decreased for 2 months.
In July, new home sale: 627,000(yearly rate) → 7% Down from last month(638,000)
In June, new home sale : 654,000 → decreased from May.
In July, median price went up by 6% to $328,700 in US.
Mortgage rate is decreased for 3 consecutive weeks (4.59%–>4.53%–>4.51%)

8. “Zillow” reported many houses are lowering listing prices

1 out of 7 house(14%) lowered listing price.
In Seattle, 12% lowered the listing price by 3.1%. In Chicago, 1 out of 5 houses lowered price by 2.7%.
Among Big 35 cities, about 50% shows slow pace of price increase, mainly for luxury houses.
Potential buying power cannot match high price → Buyers need to pay attention: less house sales → may induce house price down

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