Real Estate

Trends and updates on property markets, including residential and commercial sectors.

Real Estate
US homeowner costs rose in 2024 amid high mortgage rates
Monthly homeowner costs in the United States rose by 3.8% in 2024, as mortgage and insurance fees increased. The median monthly costs of owning a house rose from an inflation-adjusted US$1,960 in 2023 to $2,035 in 2024, according to the U.S. Census Bureau’s American Community Survey estimates. This includes mortgage and insurance payments, as well as other fees. “One way we measure housing affordability is based on how much households spend on selected costs such as mortgage payments, insurance, taxes, utilities, and various fees,” said Census Bureau economist Jacob Fabina. “In 2024, the median percentage of income householders with a mortgage spent on these costs was 21.4%, which points to an increased burden on homeowners.” Monthly owner costs rose by 3.0% from 2022 to 2023. The increase in 2024 was "primarily driven by higher mortgage costs and insurance fees”, the Census Bureau said. Homeowners with a mortgage in the District of Columbia and California reported the highest median monthly costs, at $3,181 and $3,001, respectively. According to the Census Bureau, 59.7% of owned homes in the U.S. required monthly mortgage payments last year. Around 25% of owned homes required a homeowners’ association or condo fee,
Real Estate
OpenAI's Sam Altman to sell Hawaii estate
OpenAI CEO Sam Altman’s luxury Hawaii estate has been listed for sale for US$49 million (A$65 million). The property is located on Hawaii Island’s western coast, and features 10 bedrooms in a 1164 square metre interior. Altman bought the estate for $43 million in 2021. “Located in one of Hawaii’s most prestigious settings, this estate embodies a blend of luxury and natural beauty. Expansive living spaces, lush outdoor areas, and sweeping views of Kailua Bay and the Pacific Ocean, create a refined island experience,” according to the property’s Sotheby’s listing. “The residences were designed by de Reus Architects, the interior design was artfully imagined by Philpotts Interiors. Recent updates were completed under the guidance of renowned designer Michael Kao.” The estate hosts a main residence, a guest house, and a beach bungalow across 8.82 hectares of land. It includes a helipad, tennis court, outdoor pool, fitness centre, and staff quarters. The property is legally owned by Big Surf LLC, which was previously registered to Altman’s San Francisco home and is linked to his venture capital funds. Altman’s net worth is $2 billion, according to Forbes. While he has said he owns no equity in OpenAI, he has invested
Real Estate
US mortgage demand rises as loan rates fall
Interest rates in the United States have hit their lowest level since last October as home loans surged last week. Mortgage Bankers Association data found that the 30-year fixed mortgage rate for conforming loan balances, US$806,000 or less, declined for a second week to 6.49% in the week ending 5 September. This sent signals to borrowers, who applied for 9% more mortgages than the previous week. “The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher,” MBA vice president and deputy chief economist Joel Kan said. “Purchase applications increased to the highest level since July and continued to run more than 20% ahead of last year’s pace.” The dip in interest rates caused applications to refinance a home loan to jump 12% for the week and 34% higher than the same week a year ago. The refinance share of mortgage activity increased to 48.8% of total applications from 46.9% the previous week. “The holiday-adjusted refinance index had its strongest week in a year and the average loan size for refinances also increased significantly, since borrowers with large loans are more sensitive to bigger rate moves,” Kan said.
Real Estate
US housing market reaches US$55.1tn in value
The United States housing market has hit a record US$55.1 trillion (A$83.23 trillion), according to a new report from Zillow. The findings from the real-estate marketplace platform saw that the market has risen 57% since 2020, reaching a value of $20 trillion in just five years. Not all the growth was equal, however, with some states massively outpacing others. New York led the charge with a one-year gain of $216 billion, New Jersey at $101 billion, Illinois $89 billion and finally Pennsylvania at $73 billion. Conversely, there were states that saw drastic declines, with Florida taking the biggest hit at $109 billion, California facing a loss of $106 billion and Texas down $32 billion. Nine metro areas also now record a housing market value of over $1 trillion. These areas, comprising nearly one-third of the U.S. housing wealth, were found to be New York, Los Angeles, San Francisco, Boston, Washington, D.C., Miami, Chicago, Seattle and San Diego.
Real Estate
Macquarie launches A$2.9bn land lease fund
Macquarie Group has entered Australia’s fast-growing land lease sector with an A$2.9 billion fund aimed at developing 5000 homes for downsizers over the next five to seven years, positioning global investors to tap into the nation’s housing shortage. The US$1.9 billion (A$2.9 billion) Macquarie Real Estate Partners fund has already secured more than 2000 lots across eight projects in south-east Queensland and New South Wales. On Tuesday, its newly established Millbray business commenced construction at its first community in Flagstone, south of Brisbane. James Kemp, Head of Real Estate Asia Pacific at Macquarie Asset Management, said: “MAM has extensive experience investing in the Australian living sector. We continue to have high conviction in this sector including in the sub-sector focused on the aging population. "Millbray is our latest investment in an Australian living platform and our eleventh investment in living platforms globally.” The Flagstone community will deliver 293 homes across 12 hectares and represents the fund’s first step into a market where listed rivals such as Stockland and Mirvac are also offering offshore institutions exposure to Australia’s housing shortage. Land lease communities are ga

Real Estate
Home of the US Open to be revamped before 2027
Home of the United States Open tennis championship, Arthur Ashe Stadium is set to undergo “major surgery” by architect Rossetti and structural engineer WSP. The New York stadium is set to undergo a US$800 million renovation by 2027, without any interruption to the 2025 or 2026 U.S. Open. “This project enables us to maintain the greatest stage in tennis—Arthur Ashe Stadium—which was constructed more than 25 years ago, and modernise it in a way that will set it up for the next 25 years,” CEO and executive director of UTSA, Lew Sherr, said. “It also provides us the opportunity to give the players that compete in that stadium an unparalleled space that will enable them to perform at their best and enjoy a higher level of luxury and comfort while they are off the court.” The new renovations will include a new grand entrance, a 40% increase to the promenade-level concourse, modernised conourses, increased restroom access, more elevators and escalators, and new club and restaurant areas. A 300,000 square foot Player Performance building will also be added to the campus and the stadium’s lower level will be increased from 3,000 to 5,000 seats, while the upper bowl will be “partially demolished for new luxury suites. Acco
Real Estate
Australian housing affordability nears record lows
A new report found that Australian housing affordability remains near record lows in data dating back to 1995, despite a lower mortgage rate. Research published by the REA Group and the Commonwealth Bank analysing the situation for first home buyers found that a surge in mortgage rates between 2022 and 2023 pushed housing affordability to the lowest level for households of all incomes. "This is especially true for first home buyers, as they are typically younger than existing home owners, earlier in their careers, and earn lower incomes,” the report said. Prospective home buyers between the ages of 25 to 39, earning A$129,000 annually, could only afford the mortgage on 17% of homes sold last year, according to the report, the lowest level since 1995. In comparison, existing owners with a mortgage could afford 33%. REA Group senior economist Angus Moore said saving for the first deposit was the greatest challenge, as well as low affordability and tough mortgage serviceability. However, Moore said there were more first homebuyers in the past year than in the 2010s. "Despite these conditions, first home buyers are finding ways to enter the market," Moore said. "Many also seek homes in more affordable areas or
Real Estate
Norway wealth fund buys 95% stake in New York building
Norway’s US$2 trillion sovereign wealth fund said it bought a 95% stake in an office property located along New York City’s Avenue of the Americas. The fund, the largest of its kind in the world, is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian population. It said it will be investing US$542.6 million in an office property at 1177 Avenue of the Americas, also known as Sixth Avenue. A Beacon Capital Partners unit will be buying the remaining 5% of the building on behalf of investors, according to the Norwegian fund. The deal values the property at US$571.1 million and is expected to be completed in the third quarter of this year. NBIM and Beacon Capitol Partners will be buying the building from California State Teachers’ Retirement System and Silverstein Properties, who currently own it under a joint venture. NBIM was set up in the 1990s to invest in excess revenues from Norway’s oil and gas industry and the country’s sovereign wealth and is valued at more than 19.8 trillion Norwegian kroner or US$1.98 trillion. The fund's main investments are in global equities; however, 1.9% are in real estate. This includes more than a dozen properties in New York, with holdings in prime M
Real Estate
NAB: Spring optimism lifts Australian housing market
Australia’s housing market is showing renewed momentum as Spring approaches, with buyer confidence reaching a 12-month high, according to NAB’s Residential Property Survey. The NAB Residential Property Index, which tracks market sentiment*, rose to +44 in the June quarter, its strongest reading in a year. The increase is attributed to recent interest rate cuts and expectations of further easing. The upswing in sentiment was most pronounced in Victoria, where the index jumped from +16 to +36 points, while the ACT turned positive at +30 points after two quarters of decline. Overall housing market confidence climbed 11 points to 62, marking its highest level since last year. NAB Home Lending Executive Denton Pugh said: “Spring is traditionally the busiest time of year for property sales, and this year is shaping up to be no exception,” Mr Pugh said. “With recent rate cuts and confidence returning, we’re seeing more Australians, especially first home buyers, taking steps towards buying a home. “It’s encouraging to see optimism returning – Victoria and the ACT are standouts when it comes to buyer confidence right now, but we expect other states to follow.” First home buyers now make up 34% of prospective buyers, the h