Real Estate

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

Real Estate
Sotheby’s sells NYC HQ to Weill Cornell for US$510m
Sotheby’s has reportedly sold its New York City headquarters to Weill Cornell Medicine in a US$510 million (A$771.7 million) deal, marking a major real estate shift for the auction house. The building at 1334 York Avenue on Manhattan’s Upper East Side, one block from the East River, has been home to Sotheby’s since 1980. As part of the agreement, Sotheby’s will lease back space in the 10-floor tower while relocating its core operations to the Breuer building at 945 Madison Avenue, the former home of the Whitney Museum of American Art. In a statement cited by Bloomberg, Sotheby’s said the transaction would allow it to “further reduce debt and invest even more fully in our core business, including renovating our leased office space at York”. The auction house added that the new arrangement would provide a “best-in-class front of house, back of house and staff working environment … all at a lower net annual cost”. Jones Lang LaSalle’s David Giancola, Geoff Goldstein and Steve Klein represented Weill Cornell, while CBRE’s Doug Middleton and Mary Ann Tighe advised Sotheby’s. Weill Cornell confirmed the purchase, noting that the deal provided them with a real estate asset for “materially the same net cost as leasing”.
Real Estate
Cotality: Home prices log fastest monthly rise since 2023
Australian home values climbed at their fastest pace in almost a year in September, with record-low listings and firm demand combining to push prices higher across the capital cities. According to Cotality’s Home Value Index (HVI), national dwelling values rose 0.8% last month, the strongest monthly increase since October 2023. Prices in the capital cities lifted 0.9%, led by Darwin with a 1.7% gain, Perth at 1.6% and Brisbane at 1.2%. Sydney, the country’s largest market, rose 0.8%. On a quarterly basis, the national HVI advanced 2.2%, up from 1.5% in the June quarter and double the 1.1% rise recorded in the March quarter. In dollar terms, the September quarter rise added about $18,215 to the median dwelling value. Growth was broad-based across value tiers, though momentum has shifted from the lower end of the market to the middle amid improved borrowing capacity as interest rates fall. The Reserve Bank of Australia has cut rates three times this year and is expected to deliver two more reductions by May 2026, further supporting housing demand. Tight supply remains a key driver. Cotality reported that advertised stock levels are below average across all capital cities. Over the four weeks to 28 Septembe
Real Estate
Australian dwelling approvals extend declines in August
Australia’s housing and accommodation crisis did not improve in August, with total dwelling approvals falling for a second successive month, according to the Australian Bureau of Statistics (ABS). Australia's national statistical agency said the seasonally-adjusted 6.0% fall in dwelling approvals to 14,744 was the result of falls of 8.1% to 5,408 for private sector dwellings excluding houses and 2.6% for 9,027 for private sector houses. “The fall in private sector houses in August was driven by the two largest states, Victoria and New South Wales, which were down 8.3% and 6.2%, respectively,” the ABS head of construction statistics Daniel Rossi said in a media release. In contrast, Queensland rose 2.9% and Western Australia rose 1.7%. This followed a 10% seasonally adjusted fall in dwelling approvals in July, which was mainly the result of a 25.8% drop in private dwellings excluding houses. Despite this, total building approvals across Australia rose 8.6% to $17.09 billion as a 3.1% drop in residential building 3.1% to $9.17 billion (US$6.06 billion) was more than offset by a 26.1% leap in the value of non-residential building to $7.92 billion in August. The fall in residential building approvals was comprised of
Real Estate
US pending home sales rise in August
Sales of previously owned homes in the United States improved solidly in August, with lower interest rates pulling buyers back into the market. According to the National Association of Realtors (NAR) Pending Home Sales Report, pending home sales increased by 4% from the month prior and 3.8% year-over-year. There were gains in the Midwest (8.7%), South (3.1%) and West (5%) month-over-month, while they decreased in the Northeast by 11%. Year-over-year, there were increases across all regions. The Realtors Confidence Index survey for August also found that 19% of NAR members expect an increase in buyer traffic in the next three months, up from 16% last month and unchanged from a year ago. At the same time, 19% expect an increase in seller traffic, which is down from 21% last month and up from 18% the same time last year. NAR chief economist Lawrence Yun said lower mortgage rates are enabling more home buyers to go under contract. "In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions,” Yun said. This comes as the rate on the popular 30-year mortgage rate is at an 11-month low. At the same time, the labour market is weakening with job
Real Estate
Mitsubishi Estate commits UK800m to develop London site
Property developer Mitsubishi Estate will invest UK£800 million (A$1.64 billion) into a new creative industries hub in the United Kingdom, as Japanese investors shift towards the UK. Mitsubishi Estate will develop a former ITV Studio site on London’s Southbank into 600,000 square feet of commercial and cultural spaces, according to the UK government. “Mitsubishi Estate has been investing in London since 1985, and today’s milestone reflects our long-term confidence in the city and in the enduring partnership between Japan and the U.K.,” said the company’s senior executive officer Masanori Iwase. The site will add 4,000 new jobs, the UK government said. It will include new offices, cultural venues, galleries, and presentation spaces. “This huge new investment is a huge vote of confidence in the UK as well as a major boost for our thriving creative industries, which we’re determined to make the best in the world as part of our modern Industrial Strategy and decade of national renewal,” said U.K. Minister for Investment Jason Stockwood. The investment comes as Mitsubishi Estate rethinks its allocations in the U.S., with Iwase saying Japanese investors are shifting towards Europe amid an uncertain U.S. market. About 51%

Real Estate
US existing home sales stall as supply tightens
Sales of existing homes in the United States stalled in August as higher mortgage rates and shrinking supply weighed on the market, according to the National Association of Realtors (NAR). Transactions came in at an annualised pace of 4 million units, seasonally adjusted, representing a 0.2% decline from the previous month but 1.8% higher than August 2024. Sales were strongest in the Midwest, while the Northeast recorded the weakest activity. "Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory," said Lawrence Yun, NAR’s chief economist. "However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months." Because the data is based on closings, the August figures largely reflect contracts signed in June and July, when mortgage rates were about 50 basis points higher than they are today. Rates began easing sharply in September, which is not yet reflected in the report. The performance of the market varied sharply across price categories. Homes priced above US$1 million saw sales rise 8% from a year earlier, the strongest segment. At the opposite end, properties below $100,000 posted a drop of more
Real Estate
US new home sales soar to 3yr high in August
New home sales in August soared 20% compared with July, reaching their highest level since January 2022, according to the United States Census. This also marks the largest one-month gain since August 2022 and was well above economists' forecasts. Analysts said the rise was propelled by price discounts and other sales incentives from builders, who are grappling with an oversupply of newly-built homes for sale. A separate survey from the National Association of Home Builders found that 39% of builders reported cutting prices in September, up from 37% in August and the highest percentage in the post-COVID period. Despite these cuts, the median price of a new home sold in August still rose 1.9% year-over-year to US$413,500. New homes also only account for around 14% of U.S. home sales. The figures are based on people shopping and signing deals in August, when the average 30-year fixed mortgage was higher than it is today. In August, the rate started at 6.62% and didn’t move much during the month, according to Mortgage News Daily. Interest rates have since begun a sharp decline in September, when they fell to a three-year low of 6.13% the day before the Federal Reserve cut its lending rate, causing it to move hi
Real Estate
US mortgage rates to fall below 6% in 2026: Fannie Mae
United States mortgage rates are set to fall below 6% by the end of 2026, Fannie Mae projected in its September Economic and Housing Outlook. Fannie Mae expects mortgage rates at the end of 2025 will be 6.4%, dropping to 5.9% at the end of 2026. This is a downward revision from its August forecast of 6.5% in 2025 and 6.1% in 2026. “We project single-family mortgage originations to rise to US$1.85 trillion and $2.32 trillion, respectively, for 2025 and 2026,” according to Fannie Mae. Its prior forecast was $1.85 trillion for 2025 and $2.26 trillion for 2026. U.S. mortgage rates have been falling since mid-July, ahead of the Federal Reserve announcing it would cut interest rates by 0.25% last week. The 30-year fixed mortgage rate average fell from 6.35% to 6.26% in the week to 18 September. This is the lowest 30-year fixed mortgage rate since October. The share of mortgage applications that were refinances climbed to almost 60% last week, according to Freddie Mac, which is the highest percentage in more than three years. The National Association of Realtors similarly predicted this month that mortgage rates will be in the mid-6% range in 2025, and potentially decline to 6% in 2026. Total U.S. home sales in 2025
Real Estate
Compass to buy competitor Anywhere Real Estate
Brokerage Compass is set to become the largest real estate firm after buying Anywhere Real Estate in a deal valued at US$4.2 billion (A$6.37 billion). The transaction is expected to add over $1 billion in revenue to Compass’ topline from Anywhere’s established franchise, title and relocation. According to the companies, the combined company is estimated to have an enterprise value of around $10 billion. Anywhere CEO and president Ryan Schiender said the merger will increase their international footprint and build a better real estate experience. "We have a unique opportunity to utilise the incredible breadth of talent across our companies, especially our world-class agents and franchisees, to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience,” Schnieder said. Compass will pay $13.01 per share to Anywhere stockholders, representing a premium of 84%. According to Compass, the merger will expand its presence to every major U.S. city and 120 countries, with a combined workforce of 340,000 real estate professionals globally. “By bringing together two of the best companies in our industry, while preserving the unique independence of Anywhere's l