Good morning, city centres are the nerve centres of urban communities, serving as spaces of economic life, political power and cultural influence.
Across global cities, these socio-economic hubs exist as an efficient spatial solution to a host of socially determined needs for access. And, today we stand at an inflection point, hastened by the pandemic, as the internet gives us viable substitutes for many existing uses of city centre space.
Think metaverse and your need to ride that metro to reach a city centre may not sound mission critical anymore.
Experts now believe the future of urban transit will be largely determined by the new uses that emerge to fill the gap for this central real estate, as older use imperatives fall away.
🚵♀️🍎🥛
It's Mayday For Chinese Real Estate - Goldman Sachs
Analysts at Goldman Sachs already fear the worst. A probable Doomsday that is.
Here’s the BFD
1️⃣ 22 bond issuers in China (all tied to real estate) have either deferred their repayments with bond exchanges or defaulted on dollar bonds since the beginning of 2022.
2️⃣ Goldman Sachs fears a rise in property defaults to 31.6% (19% was the earlier figure).
3️⃣ With Chinese real estate tipping over, corporate default rates are anticipated at 15.5% too.
What’s happening (and could happen)
⚠ Real estate takes up a big chunk of the Chinese economy.
⚠ Realty giants like Evergrande are up to their penthouses in debt.
⚠ Goldman Sachs believes recovery is near-impossible until realty sales start bouncing back. They’re advocating more Government measures.
⚠ Sales have fallen due to stringent COVID restrictions and a host of other reasons. Daily property deals fell by 50% (YoY) this month.
⚠ Unemployment is still a problem.
Yes, Beijing is cutting mortgage rates and many local Governments are easing down payment rules. Yet, things could take time to even out, considering the earlier real estate policy where average mortgage rates outstripped average loan rates.
The future? Bleak for now although April seems to have been the harshest month for China's real estate market.
Is the worst over? Will the Government’s measures work? The only thing we can do is watch and hope the egg and tomato sector bounces back and spreads cheer again.
Wanted: Cargo Hub Partner For Noida Airport
The Noida International Airport (NIA) is seeking a partner to build a world-class cargo hub over 80 acres. The logistics and warehousing facility will come up at the site in Jewar, Greater Noida.
Yamuna International Airport Pvt Ltd released bids for an integrated cargo terminal and integrated warehousing and logistics zone in February. Fyi, YIAPL is a subsidiary of Flughafen Zurich.
NIA will be India’s biggest airport by September 2024. Connections are underway with the Yamuna and FNG Expressways.
📌 The Jewar Airport could become a multi-modal transport and logistics hub in 5-6 years. It could transform supply chains, meeting the needs of Haryana, Uttar Pradesh, Punjab, Rajasthan and more Northern hubs.
Throwback Thursday
Bonnie & Clyde Re-Run - Aussie Realty Scam
The rise of the Aussie scammers could well be a movie playing out in the country’s property market as you sip your morning cuppa.
How's that mate?
📎 An overheated realty market.
📎 Hackers on the prowl.
📎 Millions being scammed overnight.
📎 Rising prices are bringing more property settlement scams.
📎 Most victims are individual buyers or business owners.
How and why are they doing it
1️⃣ Impersonating agents/conveyancers, taking money for home deposits.
2️⃣ Bad cyber-security and bank verification slip-ups.
3️⃣ Huge increase in average transaction values, making everyone targets.
What it looks like
💀 ACCC Scamwatch reports at least two scams every week.
💀 14 scam reports in March, with 25 in total for 2022 so far.
💀 Losses of 186% at AUD1.8 million.
💀 NSW’s (costliest in Australia) housing market took first place in terms of money lost (AUD4.3 million) in the period of Jan 2021-March 2022.
💀 Scamsters are also snatching stamp duties intended for state revenue departments.
💀 Most belong to Nigeria and the U.S.
What you should do
✅ No transfer requests through email.
✅ Check account details and verify identity before sending large sums.
✅ Setup a two-factor email authentication.
✅ Payment info change request? Check with the organisation first.
Essentially, this market needs to cool-down, while banks down under need a good shake-up.
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Before we wrap up our little tete-a-tete for the day, here's a quick quiz.
What is shrink inflation ?
1️⃣ INR 10 Parle-G biscuits reduced to 110 gm from 140 gm.
2️⃣ INR 12 Maggi now up to INR 14 and 110 gm reduced to 70 gm.
3️⃣ INR 20 Vim bar weight reduced from 155 gm to 135 gm.
4️⃣ 800 sq. ft. carpet area apartment reduced to…. 👀😅
No…no. Have a great day. Usual time tomorrow. 💚
☕ The Crew@Ginger Chai