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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (63501)	5/10/2010 6:31:57 AM
From: elmatador	Read Replies (1) \| Respond to of 217764

Brazilian real estate: buoyant market or bubble? May 4, 2010 8:01pmby Jonathan Wheatley \| Share Here’s a nice colour piece from the website of Globo, the Rio-based news organisation. It’s about an air stewardess who bought a flat in São Paulo’s fashionable Jardins neighbourhood “on the drawings” in 2008 for R$205,000 and sold it when she got the keys this month for R$355,000. The piece also gives us some snapshots of how property prices are rising across the country: 100 per cent over the past five years in São Paulo; 100 per cent in two years in Rio; 50 per cent in two years in Brasília; 60 per cent over the past year in Recife, and so on. A property bubble in Brazil? It’s about time there was one. Wages and prices have been rising by rather more than is comfortable. Consumer confidence is strongly on the up – while business confidence has slipped. Late on Monday night came news of a R$2.3bn all-stock takeover of Agre by PDG Realty, creating one of the biggest real estate companies in Brazil. This is a fast-moving market. PDG snapped up Agre just eight months after Agre itself merged with Abyara and Klabin Segall, two other home builders. PDG Realty is big in the fast-growing low-income sector but had less exposure to the middle market or to Brazil’s relatively poor but quickly developing northeast. Agre will give it that exposure. It also puts it in a position to vie for market leadership with Cyrela, until now Brazil’s biggest property developer. The way Brazil’s property market is going, home builders will need all the heft they can get. The new PDG Realty plans to offer homes worth R$6.5bn to R$7.5bn this year. The finance is there. Caixa Econômica Federal, the government-controlled savings bank, lent R$45bn to homebuyers in 2009 – R$25bn more than in 2008 and R$20bn more than its own projections at the start of last year. Now, do we call that a buoyant market or a bubble? Tags: property, real estate 2 comments

To: TobagoJack who wrote (63501)	5/10/2010 6:32:16 AM
From: Rolla Coasta	Read Replies (1) \| Respond to of 217764

Think of US/Japan/Vietnam/Pacific Islanders/Europe pact versus a single China .. China has no option but to close its door again and conduct orderly implosion. Once again, chaos underneath is Mao's best friend.