Zameen.com News Section

Zameen.com Wins Best Pakistan Property Portal Award

Monday, October 01, 2007 03:59:03 PM

Zameen.com is proud to be the winner of the Best Pakistan Property Portal Award at CNBC International property awards 2007. Zameen.com has also been nominated for the Best International Property Portal Award.

The International Property Awards aim to distinguish the highest levels of achievement in a range of property-related fields. These awards are truly global, with entrants allowed from any country. Award categories encompass estate agents, property developers, architects, interior designers and many other areas of the property trade.

There are specific and stringent judgment criteria in place to ensure that only the deserving companies receive this prestigious award. The highest scoring company gets eligible for a five star award providing it has scored above 75 per cent of the total score. The second and third placed companies get eligible for four star awards provided they have scored above 60 per cent of the total score.

Zameen.com stands amongst the highest scoring companies and has scored above 75 per cent. As a result zameen.com has received the five star award of Best Pakistan Property Portal and has also been nominated for the International award.

Finding a property in Pakistan online has never been so easy since the launch of Zameen.com. The operational structure of Zameen.com has been designed meticulously by keeping in the view the diversified needs of property investors, tenants, sellers, buyers and agents alike. The dedicated staff of 34 people is continuously screening properties added by members and agents to make sure property listings are legitimate. Zameen.com Team has put extra efforts to improve the operations of Zameen.com by adding more features for members and agents in the last four months and that hard work has paid off now in the form of an accolade of Best Pakistan Property Portal and nomination for the Best International Property Award. Nomination amongst the top property portals of the world for the Best International Property Portal Award is in itself a great achievement for Zameen.com.

Aesthetically pleasing and intuitive interfaces, easy navigation, quick contact and response mechanism and easy to search properties with standard and advanced search features are hallmarks of Zameen.com and testimonials to the award of Best Pakistan Property Portal.

Partners of International Property Award:
The New York Times
Daily Mail (UK)
CNBC
LYCOS
Travelex
The Sydney Morning Herald
National Association of Realtors

New home sales hit 12-year low

Friday, December 28, 2007 12:00:00 AM

NEW YORK (CNNMoney.com) -- Sales of new homes have plunged even more than expected to their lowest level in more than 12 years, leaving the market glutted with unsold homes and pointing to more trouble ahead for the battered housing market.

New home sales tumbled 9 percent in November to a seasonally adjusted annual rate of 647,000, according to a Census Bureau report Friday.

That was the worst showing since April 1995, when the pace of sales was 621,000, and is much worse than the 715,000 sales pace forecast by economists surveyed by Briefing.com.

The sales pace is down more than a third from year-ago levels. Furthermore, the decline is widespread nationwide, ranging from a 28 percent drop in the Northeast to a 38 percent plunge in the Midwest.

The weak sales pace still probably overstates demand for new homes since it counts a home as sold when a contract is signed, even though in many cases a contract is cancelled before a sale is closed. In fact, most major builders have reported sharp increases in cancelled orders in recent months because buyers have struggled to arrange financing or sell their existing homes.

While the median sales price of $239,100 in November represented a 4.2% jump from October, that previous reading was the lowest in more than two years. The new price reading is still off 0.4 percent from year-earlier levels and off 8.9 percent from the record high price of $262,600 hit in March before the full impact of the meltdown in subprime mortgages was felt.

Michael Larson, a real estate analyst with independent research firm Weiss Research, said the report understates price weaknesses because it does not account for the incentives like picking up buyers\' closing costs builders are using to spur sales.

\"You see the builders are still struggling to get the business right,\" said Larson. \"They\'re cut back on production; now they\'ve got to get that pricing right to get the buyers to move.\"

The glut of new homes on the market rose to a 9.3-month supply, as the number of completed homes for sale reached a record 193,000 at the end of the reporting period. Builders now typically have to wait 6.2 months to sell a completed home, the longest wait since July 1993.

While new home sales make up only a fraction of the overall real estate market, this report is closely watched as a more leading indicator of market strength than the report on existing home sales, which is due out Monday from the National Association of Realtors. The existing home sales report tracks existing home sales when they are closed, typically a month or two after a sales contract is signed.

Economists surveyed by Briefing.com forecast that existing home sales edged up to a 5 million annual sales rate in November from October\'s 4.97 million, which was the weakest sales reading of existing homes on record despite the largest drop in prices. How they got housing wrong

The downturn in new home sales has hammered the results of the nation\'s leading home builders. Many of them have been forced to take large charges to writedown the value of their holdings.

A month ago Lennar (LEN, Fortune 500), the No. 1 home builder by revenue, reported that it was selling 11,000 properties to the real estate arm of Wall Street firm Morgan Stanley (MS, Fortune 500) for only 40 percent of their previously stated value.

The charges taken by many builders have caused many builders to report larger-than-expected losses. D.R. Horton (DHI, Fortune 500), the No. 3 builder, reported a smaller-than-expected loss in late November, but that followed a quarter with a loss that was much wider than forecast.

Hovnanian Enterprises (HOV, Fortune 500), the nation\'s No. 6 builder by revenue, posted a full-year loss this month and said the market remains very challenging, prompting credit rating agency Moody\'s to say it was reviewing whether to downgrade its debt further into junk-bond status. Builders\' chief: We built too many homes

In October, Moody\'s downgraded the debt of Lennar, No. 2 builder Centex (CTX, Fortune 500) and No. 4 Pulte Homes (PHM, Fortune 500) to junk bond status.

Earlier this month, luxury home builder Toll Brothers (TOL, Fortune 500) posted its first loss in 22 years as a public company.

The 6 key drivers of property prices

Wednesday, January 02, 2008 12:00:00 AM

Learning to know what precedes property price increases can be challenging for any investor. What do the statistics really mean? Do they represent the factors that change prices in the property market? How do we use these primary sources?

There are some well-recognised factors that drive the market. Seasoned investors should stay informed about two main economic conditions and four current situations where demand and affordability interact to create opportunities.

1. Supply and demand Population change is the key driver of demand. When an area becomes popular more people want to live there. Given there are fewer dwellings than interested parties, prices increase. Conversely, when the population declines and there are more dwellings than people, prices decline. The Australian Bureau of Statistics (ABS) publishes figures on population growth after each five-yearly Census. Generally trends in population growth don\'t change rapidly.

The other driver is availability of land. Natural geography limits this, while in other areas such as the ski fields it\'s limited by National Parks.

Things that do change population growth rapidly - and provide investors with opportunity - are changes in immigration quotas, changes in infrastructure making areas more or less attractive and accessible to live in, and changes to employment such as the booming resources industry.

2. Affordability and availability of money Affordability is the relationship between housing prices, interest rates and wages.

It\'s the cost to the owner or investor to retain and enjoy a property. When prices, interest rates and wages reach a ceiling in a particular area, residents often realise they can have a better lifestyle elsewhere. A good example of this has been the rapid migration of Sydney homeowners moving into the Brisbane and Gold Coast regions. This, in turn, has raised prices significantly in Brisbane to the point where the median price is almost on par with Melbourne.

3. The resources boom The current boom in natural resources being mined, harvested and extracted to fund international infrastructure - especially in China and India - has increased the demand for skilled and semi-skilled workers.

Unlike some other industries, the mining industry pays most of its workers high salaries and demand for these workers is driving salaries even higher. These workers are then seeking to improve their lifestyle by buying bigger and better homes, or maybe an investment property or two. In Perth, Darwin, parts of Queensland and other mining areas there are whole suburbs, towns and cities of people with the ability to afford more.

4. Infrastructure Infrastructure is always a major driver for price growth when it increases the attractiveness and amenities of an area.

The benefits of infrastructure are generally recognised after the changes. Here are a few examples:

North-west Sydney, NSW - the opening of the M2 and M7 freeways made the north-west of Sydney more accessible and attractive and resulted in increased property prices and rental return.

Airlie Beach, Queensland - the impending addition of a multimillion-dollar marina and additional infrastructure to cater for tourism has caused property prices to increase by over 25% in the last year.

Gladstone, Queensland - the introduction of a new aluminium smelter is providing new jobs, and a strong economy is another major driver.

Mt Hotham, Victoria - the re-development of the Mt Hotham Village and the concomitant limited land release will increase prices.

5. Sea change The population shift towards waterside living has pushed prices up in all capital cities and many coastal regions.

This trend is continuing and has resulted in waterside investors obtaining greater returns.

6. Ageing population Over the next 5-10 years most Baby Boomers are expected to retire from the workforce and look to move to the seaside in order to improve their lifestyle. They will also need income and many have responded in surveys that they intend to buy investment properties.

This may include consideration of commercial property investment as they can use their super scheme to invest; it\'s easier to manage than residential property and has greater returns.

Put a number of these drivers together and you have an extremely good understanding of what\'s going to drive price growth. Having identified these areas, careful homework may reveal good cash-flow returns as well.

Interest rate hike has no lasting impact on property markets

Thursday, January 10, 2008 12:00:00 AM

The Reserve Bank of Australia (RBA) has lifted the official cash rate by 25 basis points to 6.75% - an 11 year high following the strong inflation numbers in September. The widely anticipated rate hike will hit those who those repaying home loans as well as renters.

Craig James, chief economist with CommSec says the rate hike will further delay recovery in home construction, keeping the rental market super-tight and putting upward pressure on rents.

\"Today\'s rate hike will have the biggest impact on the housing market. Recovery in the construction sector will be postponed yet again with a pick-up now unlikely until mid 2008 at the earliest. And not only will home borrowers need to find more dollars for the fortnightly or monthly repayment, rents are also likely to rise due to the lack of new apartments on the market.\"

However, residential Managing Director of Colliers International Grant Dearlove believes Australia\'s real estate market is unlikely to experience a downturn as a result of the rate rise. He says that traditionally, a rise in interest rates leads to a reduction in sales volumes in the short term but it would not have a lasting impact on the overall residential property market.

\"The residential property market has too much momentum for it to be arrested by a quarter of a per cent interest rate rise,\" says Dearlove. \"However, it is expected that there will be a slow down in sales volumes while people assess their personal positions. \"The sales activity normally slows for about one to two months before picking back up again.\"

Dearlove said historically, some of the biggest property price hikes have occurred when interest rates were at their highest.

\"My advice would be to check your finances, see what you can afford,\" he said. \"Don\'t think if you buy -- the value of your assets will go backwards -- the economy in Australia is too strong for rate increases to have a negative impact,\" he says.

James agrees that for those who are still struggling to gain a foothold on the property ladder, there may be a silver lining. \"Those people that have no mortgage may actually stand to benefit from the latest rate hike as it will push up returns on bank and money market investments,\" says James.

He also noted that while repayments on the average home loan have gone up by around $50 a week over the last three years as a result of rate hikes, the average after-tax wage has increased by $130 a week during the same period. \"Plenty of people will feel worse off after today\'s rate hike, but clearly the move needs to be kept in perspective,\" he says.

Home ownership in record plunge

Tuesday, January 29, 2008 12:00:00 AM

NEW YORK (CNNMoney.com) -- The housing and mortgage meltdown caused the biggest one-year drop in the rate of homeownership on record, according to government figures released Tuesday.

The decline, while expected, is yet another indication of the housing market\'s sudden and dramatic turn.

The Census Bureau report showed that home owners accounted for 67.8% of occupied homes in the fourth quarter, down 1.1 points from a year earlier. It\'s the largest year-over-year drop recorded in the report.

\"It\'s an incredible story,\" said Dean Baker, co-director of the Center for Economic and Policy Research. \"We\'re back to where we were in 2002, which is before the subprime nuttiness and run-up in prices. And it\'s not clear how much farther we\'re going to fall.\"

The ownership rate was well below the 68.2% ownership rate in the third quarter of 2007. Homeownership rates, which have been tracked since 1965, hit a record high of 69.2% in the second and fourth quarters of 2004. Foreclosures leap 75 percent

A record 2.18 million homes sat vacant and available for sale in the fourth quarter, according to the report, up from 2.07 million in the third quarter and the 2.1 million a year earlier. The fourth-quarter reading on vacant homes for sale matched the previous record set in the first three months of 2007.

The report shows that 2.8% of homes not in the rental market now sit vacant, matching the record high, also from last year\'s first quarter. That\'s nearly twice the rate of vacant homes that were on the market during the first quarter or 2001, just as the economy was heading into its last recession.

\"For some perspective sake, this measure never topped 1.9% until the housing bubble started deflating,\" said Mike Larson, a real estate analyst with Weiss Research.

Dream turns into nightmare: The report shows that the ability of home ownership is slipping away for many Americans who had taken the plunge and bought homes during the housing boom of 2003 to 2005. The accelerating decline in ownership rates is a stark contrast to the relatively steady rise over the previous 20 years.

\"The vast majority of those switching from ownership to renting are foreclosures or those forced to sell because they can\'t make the payment,\" said Baker. \"What\'s really striking is we should have seen a rise of ownership because of the demographics, with all the baby boomers entering their peak home ownership years. Instead, we\'re seeing it fall quite a bit.\"

But the subprime mortgage crisis of 2007, which cut off financing to many who had previously been able to use riskier loans to buy a house, and the rising foreclosure rates are just the latest blow to home ownership.

The real estate boom that preceded the mortgage meltdown had produced its own problem, as rising prices reduced affordability for many homeowners and locked out many who wanted to buy a home. Now the reports of falling prices are scaring many potential buyers even in markets where homes are becoming more affordable.

The glut of vacant homes and the falling rates of ownership are signs of the evaporation of demand for home sales, which in turn has hammered housing values, particularly in neighborhoods with multiple homes sitting empty.

Flood of bad news: The report comes the same day that RealtyTrac, an online seller of foreclosure properties, reported that total foreclosure filings grew 75% in 2007 and S&P Case/Shiller, which tracks home values in the nation\'s largest markets, posted the biggest price decline on record for its November reading.

The downturn has also hit home builders particularly hard. Hollywood, Fla.-based home builder Tousa (TOUS) filed for bankruptcy protection Tuesday.

And builders have been stuck with a record inventory of 195,000 completed homes at the end of December, according to a separate Census Bureau report Monday. That report also indicated that new home sales posted the biggest annual drop on record last year.

Lennar (LEN, Fortune 500), the nation\'s largest builder by revenue, reported a company record $1.25 billion fourth-quarter loss on Thursday, as it was hit by lower prices, weak volume and hefty charges to write down land values. At the end of its most recent quarter, Lennar agreed to dump 11,000 properties to the real estate arm of Morgan Stanley (MS, Fortune 500) for only 40 percent of their previously estimated value.

Other top builders, including KB Home (KBH, Fortune 500) Centex (CTX, Fortune 500), D.R. Horton (DHI, Fortune 500) Pulte Homes (PHM, Fortune 500) and Hovnanian Enterprises (HOV, Fortune 500), are all expected to post losses through much of 2008.

The sharp decline in home building, coupled with the reduced ability of many American consumers to tap into home equity lines of credit to support their spending has significantly increased the risk that the broader U.S. economy will topple over into a recession this year, if it hasn\'t done so already.

Real estate investment trust rules notified

Friday, February 01, 2008 12:00:00 AM

ISLAMABAD, Feb 1: The Securities and Exchange Commission of Pakistan (SECP) on Friday notified the Real Estate Investment Trust (REIT) Regulations 2008.

The REIT rules will provide an opportunity to the general public to pool funds for investment in the real estate sector.

The REIT regulations in Pakistan are introduced in a trust structure where the property itself will be vested in the name of the trustee and the REIT Management Company (RMC) will manage the real estate on behalf of the unit holders.

The RMC will have a minimum of 20 per cent stake in the scheme and will receive a management fee for managing the real estate.

People will be allowed to invest through units of the REIT scheme, which will be listed on stock exchanges.

According to the REIT regulations, two types of REIT schemes are envisaged in Pakistan developmental and rental. One scheme is allowed to carryout only one project at a time.

In a developmental scheme, RMC will construct a project and sell the property afterwards and the sales proceeds will be distributed among the unit holders.

In the rental REIT, RMC will buy a portfolio of properties and rent it out. The unit holders will receive returns through annual dividends out of the rental income.

REITs have been provided with a tax exemption, if 90 per cent of the income is being distributed among the unit holders.

The REIT will initially be allowed in Islamabad, Rawalpindi, Karachi, Lahore, Peshawar and Quetta.

According to the regulations, REIT funds should have a minimum size of Rs5 billion.

Started in 1960s in the United States, REIT schemes are now available in 15 countries worldwide. Pakistan is the first country in the emerging markets to introduce REIT, said a SECP spokesman.

Strong 2008 tipped for most markets

Tuesday, February 12, 2008 12:00:00 AM

The institutes 2008 Real Estate Market Outlook says 2007 was a vintage year for homeowners, with prices climbing in most parts of Australia. Investors also benefited from improving yields thanks to tight rental markets, the report notes.

On the other hand, would-be homebuyers and those who have overcapitalised found 2007 a difficult year given access and affordability issues and rising interest rates.

The report from the Real Estate Institute of Australia (REIA) suggests a mixed outlook for 2008.

\"In 2008, the main challenges facing the residential real estate market will be low home loan affordability, the possibility of more interest rate rises, the ongoing fallout from the US subprime problems and an extremely tight rental market driving rents up,\" the report says.

\"Balancing this are positive signals for the market, including the resources boom continuing to drive prosperity in some states and solid consumer and business confidence.

\"These factors will also contribute to ongoing strong demand and increasing returns for investors in the office and retail property markets.\"

The weighted average median other dwelling price was $350,059, up 8.9 per cent on a year before.

\"The REIA expects price rises to continue in 2008 in all states except New South Wales, where the market is more subdued, and WA, where prices are settling after a period of large increases, the report says.

\"Well-located property close to employment opportunities and infrastructure will continue to perform well.\"

The report says the factors driving prices higher include:

* population growth; * demand for newer and more environmentally sustainable housing in areas close to employment and essential services * a shortfall in the supply of new dwellings; and * the transfer of infrastructure costs into the prices of new homes, therefore also pushing up prices of established homes.

Investors confident of price climbs

Tuesday, February 12, 2008 12:00:00 AM

Seventy per cent of property investors believe prices will increase in their market during 2008, a survey has found.

The result represents a big leap in confidence compared to the past three results from mortgage broker Smartlines annual survey of homeowners and investors.

The latest survey found 70 per cent of investors were largely confident residential prices would increase in their state over the next 12 months, while 26 per cent expected prices to remain steady and 5 per cent anticipated a decline.

In the previous three surveys, the proportion of investors expecting an increase in prices was 46 per cent, 18 per cent and 17 per cent.

Smartline managing director Chris Acret says that although investors are confident of price rises, only 34 per cent planned to buy a residential investment property in the next 12 months.

\"While investors are upbeat about the residential property market, there is still an undercurrent of caution brought about by the series of interest rate increases in 2007, as well as the change in federal leadership,\" Acret says.

\"It will be interesting to see if investors faith in property prices overrides their sense of caution and translates to increased market activity in 2008.\"

Although 90 per cent of respondents said they expected another interest rates rise in 2008, just 4 per cent said increases during 2007 had heavily affected them.

CDA beautifying its home forgetting problems of Islamabadites

Tuesday, February 19, 2008 04:45:55 PM

ISLAMABAD: Keeping aloof from problems confronting the Islamabadites, the Capital Development Authority (CDA) continues to spend hefty amounts for renovation of its offices.

With residents coming across variety of problems like poor air quality, industrial emissions, proper waste disposal, traffic snarls, parking problems and encroachments, the Authority would be spending Rs. 165 million on renovation of its offices.

Residents of the federal capital have expressed concern on this approach of the Authority, saying, though the Authority tried to do its bit, but the problems still persist in certain areas.

The residents cited double standard being observed by the Authority in maintenance of the sectors with low-cost areas and industrial areas of I-9 and I-10 given least preference as compared to posh sectors.

According to official statistics, there is shortage of about 45,000 housing units in the federal capital, but any concrete steps to overcome the problem, is still a far cry.

Hammad Akhtar, a retired government officer said there are thousands of low grade employees who are still yearning to have their residences in the federal capital since years and the Authority failed to fulfill its words of providing shelter to the low salaried class.

Zameer Abbasi, a real estate agent in sector G-9 said the Authority could not develop any residential sector for last several years and the people are forced to bear sky rocketing housing rentals in the twin cities.

He said the development of residential sectors including I-15, I-14, I-16, D-12 and E-12 is on hold for last several years with still no signs of starting development activities in the near future.

A CDA official, who did not want to be named, said what to talk of new residential units, the civic body even does not pay due attention to the maintenance of the existing housing units in sectors G-7 and G-9, abode to thousands of government officials.

Recently a CDA-hired contractor M/s Pelican Engineering completed the renovation of first block of the secretariat that incurred Rs 37.7 million.

The features of the renovation project are; arrangements for proper record keeping, record security, renovation of floors, ceilings, walls, elevation of parking and creation of reception area.

When contacted, the CDA Spokesperson said, modernization and reorganization of CDA is aimed at delivering services effectively and efficiently to the citizens of the Capital.

It would also improve the physical environment of all CDA employees, irrespective of their grades, the Spokesperson said.

With the rising population and traffic mess in the Capital, the Authority have to tighten its belts for a bumpy ride ahead as multiple issues are going to confront the Capital residents. Meanwhile the commuters demanded of the Authority carrying out patch-work on Islamabad Highway from Karal Chowk upto Faizabad Interchange which is breaking up rapidly due to ever increasing load and non maintenance.

TOTAL launches its 3rd store in Bangalore at Sarjapur Road

Wednesday, February 20, 2008 12:00:00 AM

Bangalore: TOTAL hypermarket & mall, a retail venture of the Jubilant Group, today announced the launch of its 3rd TOTAL store in Bangalore at Sarjapur Road, next to the Springfields apartment. TOTAL has been expanding at a rapid pace and this is the third store to be launched in Bangalore within a time span of 15 months. The earlier two TOTAL stores are operational at Mysore Road and Madiwala.

TOTAL Sarjapur Road sprawls across 2, 40,000 sq ft of space. An investment of Rs. 2500 per square feet has gone into the property. It provides for a 500-car parking facility. Each floor is connected with travelators that make access easy for both young and old.

The first and second floors offer a hypermarket that carries more than 80,000 different products from more than 1,500 different brands, under different categories of products such as apparel, consumer durables & IT products, furniture & home furnishings, fresh fruits & vegetables, fish & meat & poultry, Garma Garam serving fresh Indian food and Baker\'s Factory TOTALs popular in-house bakery.For quick and easy shopping the hypermarket has 30 billing counters.

The ground floor is occupied by a plethora of brands under food, fashion, technology & healthcare segments, such as Cafe Coffee Day, Planet Fashion, Wills Lifestyle, John Players, Woodlands, Reebok, Adidas, Proline, Home & Apparels, Books & Beyond, Hotspot, Reid & Taylor, PDA Cafe, Wizz, Lilliput, & Spykar. Also slated to open in few days are Manipal Cure & Care, Manipal Pharmacy, Leena Mogre\'s Fitness Centre and many more brand outlets.

Announcing the opening of the new hypermarket and mall, Mr. Dinesh Malpani, CEO Jubilant Retail, stated, We are glad to announce the launch of our third store in the city, in line with our long term plan of being a leading retailer in the region. TOTAL has become a store of choice of discerning customers in Bangalore. He added that, TOTAL offers the best variety and value across product segments & services. You name it, we have it and we are looking forward to customers coming in and garnering a feeling of a days outing along with shopping.

About TOTAL

TOTAL hypermarket & mall is the retail venture of the Jubilant Group. Launched in November 2006, TOTAL has three stores in Bangalore, at Madiwala, Mysore Road and now at Sarjapur Road. The hypermarket offers the best variety and value on products such as Apparel & footwear, Consumer electronics & IT products, Fresh Fruits & Vegetables, Fresh Fish, Meat & Poultry, Staples & Groceries, Bakers Factory - Fresh Bakery, Garma Garam - Fresh Home Made Food , FMCG - Processed Foods & Non Foods, Furniture, Home furnishings etc. Each TOTAL store has a brand mall which offers shoppers a wide variety of brands to choose from.