25 February 2022
How will Australia's property markets be impacted by the return of overseas arrivals?
By business reporter: Gareth Hutchens
As Australia's borders reopen, the return of overseas arrivals and subsequent demand for housing is expected to be slow.
But a CoreLogic analyst says historical housing patterns show which segments of the property market could see changes in values as arrival numbers increase.
And we're seeing some developments already.
Overseas arrivals already increasing
In November, when travel restrictions were eased for fully vaccinated Australian citizens and permanent residents, it saw overseas arrivals and departures pick up noticeably.
At the start of this week, borders were also opened to double-vaccinated tourists and visa holders, with concessions being granted to skilled visa holders to encourage them to stay in Australia for longer.
Eliza Owen, head of research at CoreLogic, says the border reopenings will impact different segments of the property market in different ways.
Starting with the return of double-vaccinated tourists and visa holders, it will eventually see an increase in demand for short-term accommodation, she said.
And that would mean a lift in occupancy rates and revenue across the short-term accommodation rental market.
"This would benefit popular tourism destinations like Sydney, Melbourne and Brisbane, and regional locations such as Cairns and regional Tasmania," she said.
Net overseas migration and areas of settlement
Ms Owen said most new migrants in Australia experience a "tenure cycle", which begins with renting and shared accommodation and eventually shifts to home ownership over time.
She said the rental part of that market was the most negatively impacted by the border closures.
Around 45 per cent of overseas migrants settle in the same 10 geographic regions in Australia each year, which are located across Melbourne and Sydney.
Those 10 regions experienced sharp declines in rental values when borders were closed, she said.
However, a recovery in rental values has been underway in those regions since early 2021.
Inner-Melbourne and inner-Sydney are the only regions left, from that group, in which rents remain below where they were in March 2020.
"The bottoming out in rental values started well before international border restrictions lifted, with many of these markets seeing advertised rental stock below pre-pandemic levels," Ms Owen said.
"This may be because relatively affordable rents have started drawing rental demand domestically, while some investors may have sold, or held their investments off market, amid weak rental conditions."
Ms Owen said the return in overseas migration would benefit rental values in the Melbourne-Inner region the most.
But the decline in migration through the COVID period could also flow through to a lower demand in purchases of homes where overseas migrants would otherwise be further along in their tenure cycle.
"This could have implications for areas like Melbourne’s west and Sydney’s inner west [regions], where there have historically been high internal migration flows from the inner city to these places," she said.
Ms Owen said housing preferences for skilled migrants may change over time too.
"According to data from the Department of Home Affairs, 12.9 per cent of skilled visas granted in the second half of 2021 were for arrivals to Queensland, up from an average of 11.5 per cent in the three years to June 2019," she said.
Student visas and inner-city rentals
Ms Owen said there had been a relatively high portion of student visa entrants in recent months.
That's because student arrivals were prioritised to coincide with the February and March intake of Australian universities.
That would have an impact on rentals, particularly in areas close to universities, she said.
"Rental demand from this cohort of migrants is likely to be most concentrated across the inner-city precincts of the capital cities and within close proximity to academic hubs," she said.
Uncertainty about the speed of migration recovery
However, Ms Owen said there were still many factors creating uncertainty about the pace of the recovery in overseas arrivals, so conditions could keep changing.
"These factors include a blowout in visa processing times and policies of travellers’ home countries," she said.
She pointed out that the US Centers for Disease Control and Prevention currently recommended avoiding travel to Australia.
"Another factor is the time and cost associated with travel to Australia, which was cited as a deterrent to visiting Australia in a recent survey of British residents," she said.
"There is a lingering uncertainty around COVID-19, where variants of the disease have led to fluctuations in travel restrictions."
"This makes high-cost trips for tourists relatively risky," she added.
https://www.abc.net.au/news/2022-02-25/how-will-property-markets-be-impacted-by-the-border-reopening/100857216
As Australia's borders reopen, the return of overseas arrivals and subsequent demand for housing is expected to be slow.
But a CoreLogic analyst says historical housing patterns show which segments of the property market could see changes in values as arrival numbers increase.
And we're seeing some developments already.
Overseas arrivals already increasing
In November, when travel restrictions were eased for fully vaccinated Australian citizens and permanent residents, it saw overseas arrivals and departures pick up noticeably.
At the start of this week, borders were also opened to double-vaccinated tourists and visa holders, with concessions being granted to skilled visa holders to encourage them to stay in Australia for longer.
Eliza Owen, head of research at CoreLogic, says the border reopenings will impact different segments of the property market in different ways.
Starting with the return of double-vaccinated tourists and visa holders, it will eventually see an increase in demand for short-term accommodation, she said.
And that would mean a lift in occupancy rates and revenue across the short-term accommodation rental market.
"This would benefit popular tourism destinations like Sydney, Melbourne and Brisbane, and regional locations such as Cairns and regional Tasmania," she said.
Net overseas migration and areas of settlement
Ms Owen said most new migrants in Australia experience a "tenure cycle", which begins with renting and shared accommodation and eventually shifts to home ownership over time.
She said the rental part of that market was the most negatively impacted by the border closures.
Around 45 per cent of overseas migrants settle in the same 10 geographic regions in Australia each year, which are located across Melbourne and Sydney.
Those 10 regions experienced sharp declines in rental values when borders were closed, she said.
However, a recovery in rental values has been underway in those regions since early 2021.
Inner-Melbourne and inner-Sydney are the only regions left, from that group, in which rents remain below where they were in March 2020.
"The bottoming out in rental values started well before international border restrictions lifted, with many of these markets seeing advertised rental stock below pre-pandemic levels," Ms Owen said.
"This may be because relatively affordable rents have started drawing rental demand domestically, while some investors may have sold, or held their investments off market, amid weak rental conditions."
Ms Owen said the return in overseas migration would benefit rental values in the Melbourne-Inner region the most.
But the decline in migration through the COVID period could also flow through to a lower demand in purchases of homes where overseas migrants would otherwise be further along in their tenure cycle.
"This could have implications for areas like Melbourne’s west and Sydney’s inner west [regions], where there have historically been high internal migration flows from the inner city to these places," she said.
Ms Owen said housing preferences for skilled migrants may change over time too.
"According to data from the Department of Home Affairs, 12.9 per cent of skilled visas granted in the second half of 2021 were for arrivals to Queensland, up from an average of 11.5 per cent in the three years to June 2019," she said.
Student visas and inner-city rentals
Ms Owen said there had been a relatively high portion of student visa entrants in recent months.
That's because student arrivals were prioritised to coincide with the February and March intake of Australian universities.
That would have an impact on rentals, particularly in areas close to universities, she said.
"Rental demand from this cohort of migrants is likely to be most concentrated across the inner-city precincts of the capital cities and within close proximity to academic hubs," she said.
Uncertainty about the speed of migration recovery
However, Ms Owen said there were still many factors creating uncertainty about the pace of the recovery in overseas arrivals, so conditions could keep changing.
"These factors include a blowout in visa processing times and policies of travellers’ home countries," she said.
She pointed out that the US Centers for Disease Control and Prevention currently recommended avoiding travel to Australia.
"Another factor is the time and cost associated with travel to Australia, which was cited as a deterrent to visiting Australia in a recent survey of British residents," she said.
"There is a lingering uncertainty around COVID-19, where variants of the disease have led to fluctuations in travel restrictions."
"This makes high-cost trips for tourists relatively risky," she added.
https://www.abc.net.au/news/2022-02-25/how-will-property-markets-be-impacted-by-the-border-reopening/100857216
20 February 2022
'The wait is over': PM welcomes international tourists as borders reopen
By: Joe Attanasio
Prime Minister Scott Morrison has declared that the "wait is over" ahead of tomorrow's reopening of Australia's international borders.
Speaking at Melbourne Airport this morning, Mr Morrison defended the country's tight border restrictions over the past two years and said that because Australians "have done the hard yards" the country can now reopen to much needed tourism.
"We are very excited that from tomorrow international flights for visitors are able to return again," Mr Morrison said.
"They can come and we start building once again our very important tourism economy right across the country, from our biggest cities, where I am today, to our far north, Queensland, regional locations and all around the country.
"You've done the work, you've pushed through. You've persevered, and now we can start going forward together."
Tourists will once again be welcomed into the country tomorrow after two years of being shut out, with the initial 50 flights expected to touch down on Australian soil within the first 24 hours.
More than half of the 50 will land into Sydney's international airport, coming from countries like Singapore, Japan and the US.
With the influx of tourists, warnings have also been issued for a spike in influenza cases.
Authorities have reminded residents to make an appointment for the flu shot when it becomes available next month.
Travellers from all over the globe will now be eligible to visit Australia, however they must be double vaccinated before they fly.
"This is the exciting announcement the aviation sector has been waiting for," Australian Airports Association (AAA) Chief Executive James Goodwin said earlier this month.
"International travel is only at 15 per cent of pre-COVID levels so this is a positive step to help the recovery of the aviation and tourism sectors."
Mr Goodwin noted domestic routes would also get a vital boost from the return of international travellers.
"International tourists don't just visit one Australian city," he said.
"They fly from state to state to see all of what our nation has to offer so it is vital all domestic borders reopen and stay open."
https://www.9news.com.au/national/international-flights-to-resume-as-australian-border-restrictions-wind-back/dcf01ddf-99ea-4cf3-b99f-e39bbf8325f6
Prime Minister Scott Morrison has declared that the "wait is over" ahead of tomorrow's reopening of Australia's international borders.
Speaking at Melbourne Airport this morning, Mr Morrison defended the country's tight border restrictions over the past two years and said that because Australians "have done the hard yards" the country can now reopen to much needed tourism.
"We are very excited that from tomorrow international flights for visitors are able to return again," Mr Morrison said.
"They can come and we start building once again our very important tourism economy right across the country, from our biggest cities, where I am today, to our far north, Queensland, regional locations and all around the country.
"You've done the work, you've pushed through. You've persevered, and now we can start going forward together."
Tourists will once again be welcomed into the country tomorrow after two years of being shut out, with the initial 50 flights expected to touch down on Australian soil within the first 24 hours.
More than half of the 50 will land into Sydney's international airport, coming from countries like Singapore, Japan and the US.
With the influx of tourists, warnings have also been issued for a spike in influenza cases.
Authorities have reminded residents to make an appointment for the flu shot when it becomes available next month.
Travellers from all over the globe will now be eligible to visit Australia, however they must be double vaccinated before they fly.
"This is the exciting announcement the aviation sector has been waiting for," Australian Airports Association (AAA) Chief Executive James Goodwin said earlier this month.
"International travel is only at 15 per cent of pre-COVID levels so this is a positive step to help the recovery of the aviation and tourism sectors."
Mr Goodwin noted domestic routes would also get a vital boost from the return of international travellers.
"International tourists don't just visit one Australian city," he said.
"They fly from state to state to see all of what our nation has to offer so it is vital all domestic borders reopen and stay open."
https://www.9news.com.au/national/international-flights-to-resume-as-australian-border-restrictions-wind-back/dcf01ddf-99ea-4cf3-b99f-e39bbf8325f6
13 February 2022
From Europe to Neighbours RI Begins to Make Peace with Omicron
Writer: Thea Fathanah Arbar
Many Make Peace with Omicron, from Europe to Indonesia's Neighbours
Jakarta, CNBC Indonesia - Several countries in the world have begun to lift the Covid-19 restrictions to stem the Omicron variant. This step is carried out with case claims that have passed the peak and the vaccination rate, including booster, is quite high.
Most of these countries are in Europe. Easing, including not wearing masks outside, rules for gathering until normal hours for some sectors, have even been carried out since the end of January 2022.
The UK, Ireland, the Netherlands, Finland, Denmark, France, Norway, Italy and Sweden are the countries in Europe that have lifted the restrictions. However, this revocation was carried out when the spike in cases of Omicron infection was high in each country.
Not only in Europe, countries in Asia also plan to follow the existing 'trend'. The easing of Covid-19 was carried out by at least two of Indonesia's neighbours, namely Malaysia and the Philippines.
In Malaysia, the government will prepare a scheme for tourist arrivals without quarantine starting March 1. This was conveyed directly by the National Recovery Council (NRC) earlier this week.
Meanwhile, the Philippines has also opened its doors to foreign tourists since Thursday. This is an attempt to save the economy, tourism and industry after almost two years.
Foreign travelers from 157 countries on a visa-free arrangement with the Philippines can enter the country. However, they must be fully vaccinated against Covid-19 and tested negative for coronavirus.
Meanwhile, the World Health Organization (WHO) called for easing measures to be carried out slowly and carefully. Moreover, the fact is, in many countries, there are still many individuals who have not received the vaccine and are vulnerable.
"We urge caution as many countries have not yet passed the Omicron peak. Many countries have low vaccination coverage rates with highly susceptible individuals in their populations," WHO Technical Lead Maria Van Kerkhove said in an online briefing last week.
"So now is not the time to relax everything at once. We always urge, always be very careful, in implementing interventions and withdrawing those interventions slowly, step by step. Because this virus is quite dynamic."
https://www.cnbcindonesia.com/news/20220212154345-4-314930/dari-eropa-hingga-tetangga-ri-mulai-berdamai-dengan-omicron
Many Make Peace with Omicron, from Europe to Indonesia's Neighbours
Jakarta, CNBC Indonesia - Several countries in the world have begun to lift the Covid-19 restrictions to stem the Omicron variant. This step is carried out with case claims that have passed the peak and the vaccination rate, including booster, is quite high.
Most of these countries are in Europe. Easing, including not wearing masks outside, rules for gathering until normal hours for some sectors, have even been carried out since the end of January 2022.
The UK, Ireland, the Netherlands, Finland, Denmark, France, Norway, Italy and Sweden are the countries in Europe that have lifted the restrictions. However, this revocation was carried out when the spike in cases of Omicron infection was high in each country.
Not only in Europe, countries in Asia also plan to follow the existing 'trend'. The easing of Covid-19 was carried out by at least two of Indonesia's neighbours, namely Malaysia and the Philippines.
In Malaysia, the government will prepare a scheme for tourist arrivals without quarantine starting March 1. This was conveyed directly by the National Recovery Council (NRC) earlier this week.
Meanwhile, the Philippines has also opened its doors to foreign tourists since Thursday. This is an attempt to save the economy, tourism and industry after almost two years.
Foreign travelers from 157 countries on a visa-free arrangement with the Philippines can enter the country. However, they must be fully vaccinated against Covid-19 and tested negative for coronavirus.
Meanwhile, the World Health Organization (WHO) called for easing measures to be carried out slowly and carefully. Moreover, the fact is, in many countries, there are still many individuals who have not received the vaccine and are vulnerable.
"We urge caution as many countries have not yet passed the Omicron peak. Many countries have low vaccination coverage rates with highly susceptible individuals in their populations," WHO Technical Lead Maria Van Kerkhove said in an online briefing last week.
"So now is not the time to relax everything at once. We always urge, always be very careful, in implementing interventions and withdrawing those interventions slowly, step by step. Because this virus is quite dynamic."
https://www.cnbcindonesia.com/news/20220212154345-4-314930/dari-eropa-hingga-tetangga-ri-mulai-berdamai-dengan-omicron
07 February 2022
International COVID-19 border closures to end, full reopening by February 21
By political reporter Georgia Hitch
Almost two years after the government closed Australia to the world, the international border is set to reopen to those who are fully vaccinated.
Prime Minister Scott Morrison said after new medical advice, the new border rules would come into place on February 21.
"The condition is you must be double vaccinated to come to Australia," he said.
"That's the rule. Everyone is expected to abide by it."
The news will be welcomed by tourism bodies, which have been crying out for movement on the border closure that has hampered some businesses.
Home Affairs Minister Karen Andrews said unvaccinated travellers would still need to apply for a travel exemption to come to Australia and have to undergo hotel quarantine if they were granted permission to enter the country.
Mr Morrison said the government's definition was that people need to have a full course of a vaccine, which in most cases is two doses but for some international vaccines is only one, to be considered vaccinated.
For example, the Johnson and Johnson vaccine — which is approved for use in Australia — involves only one dose.
The expert panel on vaccines, ATAGI, has flagged though that it is considering whether to still use the term "fully vaccinated" or instead move to "up to date with vaccinations" like is used with childhood vaccines.
If the definition is changed, it could mean that booster shots are included when considering if someone is "up to date" or not.
Mr Morrison made it clear, with a reference to the recent Novak Djokovic saga, that even if people had the correct visa to enter Australia, if they were not fully vaccinated — or had an exemption — they would not be allowed to enter.
"I think events earlier in the year should have sent a very clear message to everyone around the world that (that) is the requirement to enter into Australia," he said.
Qantas chief executive Alan Joyce said the announcement meant Australia was "finally back open for business".
"This is fantastic news for our people and our customers," he said.
"There are a lot tourism operators in city centres and the regions that have been doing it really tough over the past couple of years and this will see more tourists come to their town, spend money and get local economies going again.
"We will be looking at our schedules to see if we can restart flights from more international destinations sooner or add capacity to those routes we are already flying. We have the flexibility to ramp up flights in response to demand."
There are around 660,000 people working in the tourism industry in Australia.
The government shut the international border to everyone except Australian citizens and residents in March 2020 amid what was then the emerging coronavirus pandemic.
It was an unprecedented step up from the travel bans that had been in place for anyone from China, Iran, Italy and South Korea in an attempt to slow the spread of COVID-19 in Australia.
The government has slowly begun to reopen to certain countries and people, first with the New Zealand travel bubble and most recently allowing tourists from Japan and South Korea, along with some visa holders, back into Australia.
https://www.abc.net.au/news/2022-02-07/international-covid-borders-to-reopen-scott-morrison/100810580
Almost two years after the government closed Australia to the world, the international border is set to reopen to those who are fully vaccinated.
Prime Minister Scott Morrison said after new medical advice, the new border rules would come into place on February 21.
"The condition is you must be double vaccinated to come to Australia," he said.
"That's the rule. Everyone is expected to abide by it."
The news will be welcomed by tourism bodies, which have been crying out for movement on the border closure that has hampered some businesses.
Home Affairs Minister Karen Andrews said unvaccinated travellers would still need to apply for a travel exemption to come to Australia and have to undergo hotel quarantine if they were granted permission to enter the country.
Mr Morrison said the government's definition was that people need to have a full course of a vaccine, which in most cases is two doses but for some international vaccines is only one, to be considered vaccinated.
For example, the Johnson and Johnson vaccine — which is approved for use in Australia — involves only one dose.
The expert panel on vaccines, ATAGI, has flagged though that it is considering whether to still use the term "fully vaccinated" or instead move to "up to date with vaccinations" like is used with childhood vaccines.
If the definition is changed, it could mean that booster shots are included when considering if someone is "up to date" or not.
Mr Morrison made it clear, with a reference to the recent Novak Djokovic saga, that even if people had the correct visa to enter Australia, if they were not fully vaccinated — or had an exemption — they would not be allowed to enter.
"I think events earlier in the year should have sent a very clear message to everyone around the world that (that) is the requirement to enter into Australia," he said.
Qantas chief executive Alan Joyce said the announcement meant Australia was "finally back open for business".
"This is fantastic news for our people and our customers," he said.
"There are a lot tourism operators in city centres and the regions that have been doing it really tough over the past couple of years and this will see more tourists come to their town, spend money and get local economies going again.
"We will be looking at our schedules to see if we can restart flights from more international destinations sooner or add capacity to those routes we are already flying. We have the flexibility to ramp up flights in response to demand."
There are around 660,000 people working in the tourism industry in Australia.
The government shut the international border to everyone except Australian citizens and residents in March 2020 amid what was then the emerging coronavirus pandemic.
It was an unprecedented step up from the travel bans that had been in place for anyone from China, Iran, Italy and South Korea in an attempt to slow the spread of COVID-19 in Australia.
The government has slowly begun to reopen to certain countries and people, first with the New Zealand travel bubble and most recently allowing tourists from Japan and South Korea, along with some visa holders, back into Australia.
https://www.abc.net.au/news/2022-02-07/international-covid-borders-to-reopen-scott-morrison/100810580
02 February 2022
Real Estate Metaverse Floods Of Interest, Is It Safe To Invest?
Writer: Ferry Sandi, CNBC Indonesia
Jakarta, CNBC Indonesia - Real estate sales in the metaverse reached US$ 500 million or equivalent to Rp. 7.17 trillion (exchange rate of Rp. 14,350/US$) last year and could double this year, according to data from investors and analytics firms.
MetaMetric Solutions said real estate sales across the four major metaverse platforms reached US1 million in 2021. Meanwhile sales in January this year had reached US million (Rp 1.22 trillion), the metaverse data provider said. With this rate, this year's sales are projected to reach nearly US$ 1 billion (Rp 14.35 trillion) this year.
The recent spike in sales was fueled by Facebook's announcement late last October that it was changing the company's name to Meta to focus on the metaverse. In November or right after the rebranding, real estate sales on the metaverse jumped nearly ninefold, to 3 million, according to data from MetaMetric. Sales growth has faded since then, but total January sales will still be more than 10 times their January 2021 level.
A report from BrandEssence Market Research found that the metaverse real estate market is expected to grow at a compound annual growth rate (CAGR) of 31% per year from 2022 to 2028.
"There's a big risk, but the potential payoff is huge," said Janine Yorio, CEO of Republic Realm, a metaverse real estate investor and advisory firm.
Developers 'big four' dominate
Republic Realm paid a record .3 million for land on the largest metaverse real estate platform, Sandbox. The company is developing 100 islands, called Fantasy Islands, with their own villas and associated boat and jet ski markets. Ninety islands sold in the first day for US,000 each and several are now listed for resale for over US0,000.
For investors, the big question is how to assign value and risk to assets that are artificially scarce and whose futures are still empty.
More than a dozen platforms are now selling real estate in the metaverse, with new ones popping up almost every week. So far, real estate sales are concentrated in the "Big Four" - Sandbox, Decentraland, Cryptovoxels and Somnium.
There are a total of 268,645 fields across the four platforms, all of varying sizes.
Sandbox dominates the market, holding 62% of combined land across four platforms and three-quarters of all land sales by 2022, according to a report from Republic Realm. The sandbox has 166,464 fields, each measuring 96 meters by 96 meters, and each sold in Ether which cost the equivalent of US$ 12,700 in December.
Decentraland has 90,600 fields, which measure 16 meters by 16 meters, and are sold in Ether which costs the equivalent of US$ 14,440 each.
A rush of companies, big brands, and investors flooded the new artificial land, hoping to become a new digital city like Manhattan or Monaco. Yorio says the value of land in the metaverse will be determined by what the owner does with the property - such as designing popular attractions, museums or features - rather than location.
"You can teleport anywhere so location doesn't really matter," he said.
Yet other investors say that just like in the real world, location in the metaverse is everything in real estate. Prices for plots of land near the virtual world of Snoop Dogg's planned partnership in the Sandbox are at a premium, along with plots of land near the Atari development.
Andrew Kiguel, CEO of Toronto-based Tokens.com, recently raised million to invest in metaverse real estate, nearly all of which has been earmarked for buying land and hiring staff. The company recently spent .4 million on land in the Decentraland fashion district, where it plans to host fashion events and retail stores.
Kiguel said he would announce deals with two North American clothing brands in which he leases space on his property to develop a storefront or experience. Kiguel says there are real commercial opportunities in the land of the metaverse – renting space and hosting events for companies looking to advertise to a younger digital audience. He says he has been in talks with accounting firms, investment banks, podcasters and mutual funds to build a presence in the metaverse.
Tokens.com purchased 12 waterfront properties on Somnium which they said would increase in value because of their rarity and visual appeal, Kiguel said.
However, others say metaverse land is just the latest iteration of a crypto ponzi scheme, luring unwitting investors into projects that may ultimately prove worthless. While real land has natural rarity - so the old adage of old ownership is not the same as virtual land which is so easy to code. There is no limit to the number of new metaverse platforms that can be launched. Even large existing platforms can create more land, as Sandbox did when it decided to increase the size of its plots.
"Metaverse land sales are generally pyramid schemes and have been going on for more than 20 years," said Edward Castronova, professor of media at Indiana University. "Metaverse is El Dorado for internet startups. They chased him into the woods and died."
While older investors may scoff at the land of the metaverse, Kiguel said, younger consumers and investors alike can see the appeal right away.
"The problem a lot of people have is that there's a generation that has a hard time associating values with things that are digital, that you can't hold onto and that don't hold weight," says Kiguel. "Young people don't mind. Like NFT, blockchain technology allows things to be digital, irreplaceable and rare. You can hold them, store them, display them and sell them."
https://www.cnbcindonesia.com/market/20220202003816-17-312127/real-estate-metaverse-banjir-peminat-aman-buat-investasi/1
Jakarta, CNBC Indonesia - Real estate sales in the metaverse reached US$ 500 million or equivalent to Rp. 7.17 trillion (exchange rate of Rp. 14,350/US$) last year and could double this year, according to data from investors and analytics firms.
MetaMetric Solutions said real estate sales across the four major metaverse platforms reached US1 million in 2021. Meanwhile sales in January this year had reached US million (Rp 1.22 trillion), the metaverse data provider said. With this rate, this year's sales are projected to reach nearly US$ 1 billion (Rp 14.35 trillion) this year.
The recent spike in sales was fueled by Facebook's announcement late last October that it was changing the company's name to Meta to focus on the metaverse. In November or right after the rebranding, real estate sales on the metaverse jumped nearly ninefold, to 3 million, according to data from MetaMetric. Sales growth has faded since then, but total January sales will still be more than 10 times their January 2021 level.
A report from BrandEssence Market Research found that the metaverse real estate market is expected to grow at a compound annual growth rate (CAGR) of 31% per year from 2022 to 2028.
"There's a big risk, but the potential payoff is huge," said Janine Yorio, CEO of Republic Realm, a metaverse real estate investor and advisory firm.
Developers 'big four' dominate
Republic Realm paid a record .3 million for land on the largest metaverse real estate platform, Sandbox. The company is developing 100 islands, called Fantasy Islands, with their own villas and associated boat and jet ski markets. Ninety islands sold in the first day for US,000 each and several are now listed for resale for over US0,000.
For investors, the big question is how to assign value and risk to assets that are artificially scarce and whose futures are still empty.
More than a dozen platforms are now selling real estate in the metaverse, with new ones popping up almost every week. So far, real estate sales are concentrated in the "Big Four" - Sandbox, Decentraland, Cryptovoxels and Somnium.
There are a total of 268,645 fields across the four platforms, all of varying sizes.
Sandbox dominates the market, holding 62% of combined land across four platforms and three-quarters of all land sales by 2022, according to a report from Republic Realm. The sandbox has 166,464 fields, each measuring 96 meters by 96 meters, and each sold in Ether which cost the equivalent of US$ 12,700 in December.
Decentraland has 90,600 fields, which measure 16 meters by 16 meters, and are sold in Ether which costs the equivalent of US$ 14,440 each.
A rush of companies, big brands, and investors flooded the new artificial land, hoping to become a new digital city like Manhattan or Monaco. Yorio says the value of land in the metaverse will be determined by what the owner does with the property - such as designing popular attractions, museums or features - rather than location.
"You can teleport anywhere so location doesn't really matter," he said.
Yet other investors say that just like in the real world, location in the metaverse is everything in real estate. Prices for plots of land near the virtual world of Snoop Dogg's planned partnership in the Sandbox are at a premium, along with plots of land near the Atari development.
Andrew Kiguel, CEO of Toronto-based Tokens.com, recently raised million to invest in metaverse real estate, nearly all of which has been earmarked for buying land and hiring staff. The company recently spent .4 million on land in the Decentraland fashion district, where it plans to host fashion events and retail stores.
Kiguel said he would announce deals with two North American clothing brands in which he leases space on his property to develop a storefront or experience. Kiguel says there are real commercial opportunities in the land of the metaverse – renting space and hosting events for companies looking to advertise to a younger digital audience. He says he has been in talks with accounting firms, investment banks, podcasters and mutual funds to build a presence in the metaverse.
Tokens.com purchased 12 waterfront properties on Somnium which they said would increase in value because of their rarity and visual appeal, Kiguel said.
However, others say metaverse land is just the latest iteration of a crypto ponzi scheme, luring unwitting investors into projects that may ultimately prove worthless. While real land has natural rarity - so the old adage of old ownership is not the same as virtual land which is so easy to code. There is no limit to the number of new metaverse platforms that can be launched. Even large existing platforms can create more land, as Sandbox did when it decided to increase the size of its plots.
"Metaverse land sales are generally pyramid schemes and have been going on for more than 20 years," said Edward Castronova, professor of media at Indiana University. "Metaverse is El Dorado for internet startups. They chased him into the woods and died."
While older investors may scoff at the land of the metaverse, Kiguel said, younger consumers and investors alike can see the appeal right away.
"The problem a lot of people have is that there's a generation that has a hard time associating values with things that are digital, that you can't hold onto and that don't hold weight," says Kiguel. "Young people don't mind. Like NFT, blockchain technology allows things to be digital, irreplaceable and rare. You can hold them, store them, display them and sell them."
https://www.cnbcindonesia.com/market/20220202003816-17-312127/real-estate-metaverse-banjir-peminat-aman-buat-investasi/1
24 January 2022
Indonesia announces safe travel corridor for visitors from Singapore to enter Batam and Bintan
Writer: Kiki Siregar
JAKARTA: Indonesia is opening a safe travel corridor allowing people from Singapore to travel to Batam and Bintan, said Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday (Jan 24).
Speaking in a virtual press conference, Mr Hartarto said the Indonesian government decided to establish the travel bubble since the COVID-19 cases in Batam and Bintan are now under control.
“The government is pushing for a travel bubble between Batam, Bintan and Singapore to encourage tourism activities in Batam, Bintan,” said Mr Hartarto.
He added that the entry points will be Nongsapura ferry terminal in Batam and Bandar Bentan Telani ferry terminal in Bintan.
“The requirements for travellers are they must be vaccinated twice, and have a negative PCR test taken within three days (prior to travel),” said Mr Hartarto.
Travellers must also have insurance worth S,000 and use the Indonesian COVID-19 tracing programmes PeduliLindungi and Blue Pass.
At the same press conference, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said that the travel bubble will be evaluated every week. “If we think it is good, we continue. If not, we stop," he said.
The two Indonesian ministers did not elaborate on the quarantine and other testing requirements of the safe travel corridor. They also did not specify when will this travel bubble start.
Without tourists from Singapore, Bintan's resorts get creative to make ends meet amid COVID-19.
At that time, Singapore’s Transport Minister S Iswaran said that the VTL with Indonesia would be unilateral for the moment since the latter had remained closed to general travel.
“We hope that Indonesia will likewise soon reopen its borders to travellers from Singapore,” he said then.
On Nov 16, a statement by the Indonesian foreign ministry wrote that both foreign ministers “agreed to continue discussions on VTL arrangements bilaterally (reciprocally)”.
The next Singapore-Indonesia Leaders’ Retreat will be held in Bintan on Tuesday.
https://www.channelnewsasia.com/asia/indonesia-singapore-travel-bubble-batam-bintan-2455481
JAKARTA: Indonesia is opening a safe travel corridor allowing people from Singapore to travel to Batam and Bintan, said Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday (Jan 24).
Speaking in a virtual press conference, Mr Hartarto said the Indonesian government decided to establish the travel bubble since the COVID-19 cases in Batam and Bintan are now under control.
“The government is pushing for a travel bubble between Batam, Bintan and Singapore to encourage tourism activities in Batam, Bintan,” said Mr Hartarto.
He added that the entry points will be Nongsapura ferry terminal in Batam and Bandar Bentan Telani ferry terminal in Bintan.
“The requirements for travellers are they must be vaccinated twice, and have a negative PCR test taken within three days (prior to travel),” said Mr Hartarto.
Travellers must also have insurance worth S,000 and use the Indonesian COVID-19 tracing programmes PeduliLindungi and Blue Pass.
At the same press conference, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said that the travel bubble will be evaluated every week. “If we think it is good, we continue. If not, we stop," he said.
The two Indonesian ministers did not elaborate on the quarantine and other testing requirements of the safe travel corridor. They also did not specify when will this travel bubble start.
Without tourists from Singapore, Bintan's resorts get creative to make ends meet amid COVID-19.
At that time, Singapore’s Transport Minister S Iswaran said that the VTL with Indonesia would be unilateral for the moment since the latter had remained closed to general travel.
“We hope that Indonesia will likewise soon reopen its borders to travellers from Singapore,” he said then.
On Nov 16, a statement by the Indonesian foreign ministry wrote that both foreign ministers “agreed to continue discussions on VTL arrangements bilaterally (reciprocally)”.
The next Singapore-Indonesia Leaders’ Retreat will be held in Bintan on Tuesday.
https://www.channelnewsasia.com/asia/indonesia-singapore-travel-bubble-batam-bintan-2455481
18 January 2022
Legitimate! Indonesia has a new capital city called Nusantara
Writer: Editorial Team, CNBC Indonesia
Jakarta, CNBC Indonesia - The Plenary Session of the House of Representatives (DPR) has officially approved the Draft Law (RUU) for the State Capital (IKN) to become a law. The capital of moving to Kalimantan has finally become a reality.
"Does the bill regarding the capital city of this country, all members agree," asked the Chairperson of the Session, Puan Maharani at the DPR Building, Tuesday (18/1/2022)
"Agreed," replied the members present.
The previous IKN Bill meeting began with a special committee meeting with experts ranging from public experts to spatial planning. Then followed by a committee meeting to discuss four things.
The first is related to the status of the IKN, whether it is an authority or a special local government. Second, regarding IKN financing, which is requested so as not to burden the APBN.
Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono, and Minister of Defense Prabowo while reviewing the IKN road section (Lukas - Presidential Secretariat Press Bureau) Photo: Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono, and Minister of Defense Prabowo while reviewing the IKN road section (Lukas - Biro Presidential Secretariat Press)
Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono and Minister of Defense Prabowo while reviewing the IKN section of the road (Lukas - Press Bureau of the Presidential Secretariat)
Third, regarding the master plan or master plan for IKN development. Where the special committee of the DPR hopes that IKN development will not become a stalled project.
Fourth is land. For this cluster, it is requested not to cause problems with the community around IKN, so the Ministry of ATR/BPN must coordinate and go to the field.
The four points of discussion were approved by all members of the special committee of the DPR, DPD and also the government. With some notes from the special committee members and also the DPD RI.
"Thus, we submit the IKN Panja report so that it can be continued in the discussion of decision making at level I in the working meeting at the Special Committee for the IKN Bill," said Deputy Chair of the IKN Panja Saan Mustopa who attended the meeting until dawn this morning.
IKN is not really a new thing. This discourse was taken seriously by Jokowi in 2019, in the annual session of the DPR/MPR. Jokowi said that the capital city would move to East Kalimantan with all the reasons he felt were urgent.
After that, the government began to draft the IKN Bill. The period is quite long. In addition to the very complex discussion, in 2020 Indonesia will be faced with the COVID-19 pandemic. So that all attention cannot be diverted from Covid-19.
However, believe it or not, now moving the capital city is no longer a dream, but a real reality. After the passage of the bill, the government will gradually build a new capital city in North Kalimantan until 2024.
https://www.cnbcindonesia.com/news/20220118133427-4-308348/sah-indonesia-punya-ibu-kota-negara-baru-bernama-nusantara
Jakarta, CNBC Indonesia - The Plenary Session of the House of Representatives (DPR) has officially approved the Draft Law (RUU) for the State Capital (IKN) to become a law. The capital of moving to Kalimantan has finally become a reality.
"Does the bill regarding the capital city of this country, all members agree," asked the Chairperson of the Session, Puan Maharani at the DPR Building, Tuesday (18/1/2022)
"Agreed," replied the members present.
The previous IKN Bill meeting began with a special committee meeting with experts ranging from public experts to spatial planning. Then followed by a committee meeting to discuss four things.
The first is related to the status of the IKN, whether it is an authority or a special local government. Second, regarding IKN financing, which is requested so as not to burden the APBN.
Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono, and Minister of Defense Prabowo while reviewing the IKN road section (Lukas - Presidential Secretariat Press Bureau) Photo: Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono, and Minister of Defense Prabowo while reviewing the IKN road section (Lukas - Biro Presidential Secretariat Press)
Indonesian President Jokowi accompanied by Minister of PUPR Basuki Hadimuljono and Minister of Defense Prabowo while reviewing the IKN section of the road (Lukas - Press Bureau of the Presidential Secretariat)
Third, regarding the master plan or master plan for IKN development. Where the special committee of the DPR hopes that IKN development will not become a stalled project.
Fourth is land. For this cluster, it is requested not to cause problems with the community around IKN, so the Ministry of ATR/BPN must coordinate and go to the field.
The four points of discussion were approved by all members of the special committee of the DPR, DPD and also the government. With some notes from the special committee members and also the DPD RI.
"Thus, we submit the IKN Panja report so that it can be continued in the discussion of decision making at level I in the working meeting at the Special Committee for the IKN Bill," said Deputy Chair of the IKN Panja Saan Mustopa who attended the meeting until dawn this morning.
IKN is not really a new thing. This discourse was taken seriously by Jokowi in 2019, in the annual session of the DPR/MPR. Jokowi said that the capital city would move to East Kalimantan with all the reasons he felt were urgent.
After that, the government began to draft the IKN Bill. The period is quite long. In addition to the very complex discussion, in 2020 Indonesia will be faced with the COVID-19 pandemic. So that all attention cannot be diverted from Covid-19.
However, believe it or not, now moving the capital city is no longer a dream, but a real reality. After the passage of the bill, the government will gradually build a new capital city in North Kalimantan until 2024.
https://www.cnbcindonesia.com/news/20220118133427-4-308348/sah-indonesia-punya-ibu-kota-negara-baru-bernama-nusantara
10 January 2022
Retail property outlook: Can malls woo digital shoppers with experiences they can't find online?
Writer: Chor Khieng Yuit
The COVID-19 shakeup is only the latest in a series of challenges faced by Singapore’s retail property sector. Money Mind looks at what it will take to attract shoppers back to the malls.
Writer: Chor Khieng Yuit
SINGAPORE: Avid shopper Kelly Chiew has not been to a bricks-and-mortar mall in two years.
The 28-year-old buys everything online – from everyday consumer goods to big ticket items including S,000 worth of renovation items.
Kelly is not alone. More shoppers are going online - and this has accelerated during the COVID-19 pandemic.
According to data from the Urban Redevelopment Authority (URA), retail property prices have been on a general downtrend since the first quarter of 2016.
On the e-commerce end, the proportion of online spend has tripled in the past three years.
This lower footfall is pressuring rentals. Retail rents started falling at the beginning of 2020 and have been declining for seven straight quarters, according to URA data.
Despite this, Cushman & Wakefield’s Wong Xian Yang believes that a retail recovery could come in 2022.
“What will support rents further is a limited supply of new retail space," said Mr Wong, who is Cushman & Wakefield’s head of research in Singapore.
"New retail supply will only come in at about half a million sq ft per annum over the next few years. This compares to about 1 million sq ft from 2016 to 2019. Retail rents could recover by about 1 to 2 per cent, with suburban malls taking the lead.”
SUBURBAN AND CITY FRINGE MALLS
Suburban and city fringe malls have been more resilient during this current downturn.
URA data showed that median rentals for this region have decreased around 12 per cent since the fourth quarter of 2019, compared to a 16 per cent decline for malls in the Orchard area, and a 14 per cent decline for CBD malls.
At the same time, the vacancy rate at suburban retail spaces is also lower than that at the Orchard and downtown core areas.
"Suburban vacancy rates, they are at their lowest in about five years, at about 4.8 per cent as of the third quarter of 2021. This compares to about 8.1 per cent for islandwide vacancy. I mean, to give you some additional context, Orchard, and downtown core vacancy rates remain relatively high at about over 11 per cent as of third quarter of 2021," said Mr Wong.
The drivers are in place for suburban malls to continue to grow.
Once seen as just neighbourhood centres, they have transformed into destination shopping areas with luxury and international brands, said Mr Wong.
The continued adoption of remote working will also support footfall in suburban commercial areas.
However, Mr Wong said Orchard Road remains Singapore’s prime shopping destination, with large international brands still seeing it as the preferred location for their flagship outlets.
https://www.channelnewsasia.com/business/money-mind-retail-property-shopping-malls-consumers-online-2424566?cid=internal_sharetool_androidphone_02022022_cna
The COVID-19 shakeup is only the latest in a series of challenges faced by Singapore’s retail property sector. Money Mind looks at what it will take to attract shoppers back to the malls.
Writer: Chor Khieng Yuit
SINGAPORE: Avid shopper Kelly Chiew has not been to a bricks-and-mortar mall in two years.
The 28-year-old buys everything online – from everyday consumer goods to big ticket items including S,000 worth of renovation items.
Kelly is not alone. More shoppers are going online - and this has accelerated during the COVID-19 pandemic.
According to data from the Urban Redevelopment Authority (URA), retail property prices have been on a general downtrend since the first quarter of 2016.
On the e-commerce end, the proportion of online spend has tripled in the past three years.
This lower footfall is pressuring rentals. Retail rents started falling at the beginning of 2020 and have been declining for seven straight quarters, according to URA data.
Despite this, Cushman & Wakefield’s Wong Xian Yang believes that a retail recovery could come in 2022.
“What will support rents further is a limited supply of new retail space," said Mr Wong, who is Cushman & Wakefield’s head of research in Singapore.
"New retail supply will only come in at about half a million sq ft per annum over the next few years. This compares to about 1 million sq ft from 2016 to 2019. Retail rents could recover by about 1 to 2 per cent, with suburban malls taking the lead.”
SUBURBAN AND CITY FRINGE MALLS
Suburban and city fringe malls have been more resilient during this current downturn.
URA data showed that median rentals for this region have decreased around 12 per cent since the fourth quarter of 2019, compared to a 16 per cent decline for malls in the Orchard area, and a 14 per cent decline for CBD malls.
At the same time, the vacancy rate at suburban retail spaces is also lower than that at the Orchard and downtown core areas.
"Suburban vacancy rates, they are at their lowest in about five years, at about 4.8 per cent as of the third quarter of 2021. This compares to about 8.1 per cent for islandwide vacancy. I mean, to give you some additional context, Orchard, and downtown core vacancy rates remain relatively high at about over 11 per cent as of third quarter of 2021," said Mr Wong.
The drivers are in place for suburban malls to continue to grow.
Once seen as just neighbourhood centres, they have transformed into destination shopping areas with luxury and international brands, said Mr Wong.
The continued adoption of remote working will also support footfall in suburban commercial areas.
However, Mr Wong said Orchard Road remains Singapore’s prime shopping destination, with large international brands still seeing it as the preferred location for their flagship outlets.
https://www.channelnewsasia.com/business/money-mind-retail-property-shopping-malls-consumers-online-2424566?cid=internal_sharetool_androidphone_02022022_cna
04 January 2022
Australian property prices surged 22pc last year, its biggest jump since the 1980s
Writer: Samuel Yang
Record low interest rates have driven Australian housing prices up 22 per cent last year — its sharpest rise in three decades.
The nation's median property price has risen for a 15th straight month. It comes after another 1 per cent gain in December, according to the latest figures from CoreLogic.
But prices have been rising at a slower pace each month, as property became increasingly unaffordable for first-home buyers.
Last month, Australia's median price rose by 1 per cent to 9,803.
Sydney had a small increase, by 0.3 per cent, while prices in Melbourne fell by 0.1 per cent in December.
"A surge in freshly advertised listings through December has been a key factor in taking some heat out of the Melbourne and Sydney housing markets," CoreLogic's research director Tim Lawless said.
Prices in Australia's two most expensive capitals were also affected by "demand headwinds caused by significant affordability constraints and negative interstate migration," he added.
While the pace of capital gains has been easing in Sydney, Melbourne and Perth, prices in other capital cities have lifted sharply.
Prices in Brisbane and Adelaide went up by 2.9 per and 2.6 per cent in December, showing a two-speed market emerging across capital cities.
For the second year in a row, prices in regional areas went up at a much faster rate, compared to the capital cities.
Since March 2020, housing values across regional Australia were up 32 per cent, compared to a 20 per cent lift in values seen across the combined capitals.
However, AMP chief economist Shane Oliver said "storm clouds are gathering for the property boom".
"We expect a further slowing in national home price gains ahead of a peak and then price falls from later this year and in 2023," he said in a note.
Mr Oliver added that reflected poor affordability, rising mortgage rates and higher interest rate buffers in Australia.
"It's unclear what impact the latest COVID wave, driven by the Omicron variant, will have on the property market. It will likely reduce buyer confidence, but it could also dampen listings," he said.
"The 25-year bull market in capital city property prices is likely to come under pressure in the years ahead, as the 30-year decline in mortgage rates is now likely over.
"The collapse in immigration over the last two years may help remove the chronic undersupply of Australian housing, and the work-from-home phenomenon may take pressure off capital city prices."
https://www.abc.net.au/news/2022-01-04/australia-house-prices-corelogic-data-december-2021/100737080
Record low interest rates have driven Australian housing prices up 22 per cent last year — its sharpest rise in three decades.
The nation's median property price has risen for a 15th straight month. It comes after another 1 per cent gain in December, according to the latest figures from CoreLogic.
But prices have been rising at a slower pace each month, as property became increasingly unaffordable for first-home buyers.
Last month, Australia's median price rose by 1 per cent to 9,803.
Sydney had a small increase, by 0.3 per cent, while prices in Melbourne fell by 0.1 per cent in December.
"A surge in freshly advertised listings through December has been a key factor in taking some heat out of the Melbourne and Sydney housing markets," CoreLogic's research director Tim Lawless said.
Prices in Australia's two most expensive capitals were also affected by "demand headwinds caused by significant affordability constraints and negative interstate migration," he added.
While the pace of capital gains has been easing in Sydney, Melbourne and Perth, prices in other capital cities have lifted sharply.
Prices in Brisbane and Adelaide went up by 2.9 per and 2.6 per cent in December, showing a two-speed market emerging across capital cities.
For the second year in a row, prices in regional areas went up at a much faster rate, compared to the capital cities.
Since March 2020, housing values across regional Australia were up 32 per cent, compared to a 20 per cent lift in values seen across the combined capitals.
However, AMP chief economist Shane Oliver said "storm clouds are gathering for the property boom".
"We expect a further slowing in national home price gains ahead of a peak and then price falls from later this year and in 2023," he said in a note.
Mr Oliver added that reflected poor affordability, rising mortgage rates and higher interest rate buffers in Australia.
"It's unclear what impact the latest COVID wave, driven by the Omicron variant, will have on the property market. It will likely reduce buyer confidence, but it could also dampen listings," he said.
"The 25-year bull market in capital city property prices is likely to come under pressure in the years ahead, as the 30-year decline in mortgage rates is now likely over.
"The collapse in immigration over the last two years may help remove the chronic undersupply of Australian housing, and the work-from-home phenomenon may take pressure off capital city prices."
https://www.abc.net.au/news/2022-01-04/australia-house-prices-corelogic-data-december-2021/100737080