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Japan Real Estate Surges After Olympics Delay and other Top March Reads

Here are the Top 10 Global Property Reads for the month of March:

1. Japan Real Estate Surges After Olympics Delay

As real estate prices in Japan enjoyed a six-year recovery, the spectre of a post-Olympics real estate crash had loomed so large as to risk becoming a self-fulfilling prophecy. But with the Olympics now postponed to 2021 in an unprecedented move due to the novel coronavirus, the real estate party can continue. Business Times

2. Top-Tier Real Estate Sales Surge in Toronto, Vancouver and Montreal Reflects Solid Market Foundation as Canada Confronts Coronavirus

In light of COVID-19, sharp declines across all major indices has amplified consumer anxiety towards the financial market and increased interest in Canadian real estate. Strategies utilized by stock market-wary real estate consumers include allocating more funds towards a primary home purchase, investing in rental and vacation properties, and in the case of baby boomers and older adults, reinvesting in real estate following the sale of their primary home, rather than cashing out and investing the proceeds into tumultuous financial markets. Globe News Wire

3. As the coronavirus tears through financial markets, Chinese real estate bonds are holding the fort

While sales are falling and the rise in home prices slowing across Chinese cities, real estate debt remains resilient on the back of decisive government action to contain the spread of the coronavirus and policy support for developers. South China Morning Post

4. European real estate reels as lockdowns drag it to center of coronavirus storm

Investment in European property had already been disrupted by the cancellation of the industry's annual flagship conference and exhibition, MIPIM, due to concerns about the virus' spread. Goodbody's Lauder said he sees some positivity for the sector also in the scale of the action taken by central banks around the world in recent days. "They're pumping money into the economy," he said. "This will devalue paper assets [such as bonds]; hard assets [like property], in an increasingly lower-yielding environment, are likely to be outperforming once this is all over with." S&P Global

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5. The Coronavirus Could Have An Unintended Effect On Your Real Estate Portfolio

The decline in interest rates paired with the reduced cost of commodities raises an important question: could this very scary, humbling and devastating sickness cause an unexpected boost for the real estate market? Forbes

6. Covid-19 may amplify attractiveness of Singapore’s real estate market

“The rest of the world has witnessed how Singapore is tackling the Covid-19 outbreak,” says Ismail Gafoor, CEO of PropNex. “The conclusion is that if you are looking for a country where the government is transparent and is proactive in taking measures in any crisis – be it financial or health – Singapore looks attractive.” If anything, the Covid-19 pandemic has amplified interest in real estate, adds Gafoor. “When this health crisis clears, people from China and elsewhere in Asia will come in with a vengeance. But not in the short term.” EdgeProp

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7. New York real estate hit by coronavirus, market decline

“With nervousness about their decimated stock portfolios comes insecurity about real estate valuations,” Frigan said. “If buyers feel that values of real estate will further depreciate because of the virus and financial instability, they will postpone their decisions to buy.” CNBC

8. WeWork’s New Crisis: ‘Workplaces Will Never Be the Same After This’

It took only a few weeks and a global pandemic for that strategy to become a deterrent for customers and a major liability for a company that can’t afford further setbacks. The vast majority of WeWork offices remain open, though with far fewer people coming in than before. Offices that have shuttered only did so when explicitly ordered by authorities or after a confirmed case of a Covid-19 infection. Even then, locations are typically closed for an overnight cleaning and reopened the next day. Bloomberg

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