Five property stories making global headlines this week:
Cap goes on Czech mortgages
The Czech central bank is to cap the value of mortgages banks can offer at nine times a borrower’s annual net income, the Financial Times reported. The move, which takes effect from October 1, is aimed at preventing a lending spiral. This is the first time the bank has imposed such a cap, which follows surging property prices in the Czech Republic fuelled by a strong economy, rock-bottom interest rates and record-low unemployment.
Riyadh prices set to ride metro upgrade
Demand for residential property in Saudi Arabia’s capital is expected to rise on the back of the new $23bn Riyadh Metro. The National covered a report by estate agents Knight Frank, which suggested the 176km network — due to start running next year — could boost real estate values in neighbourhoods that benefit from improved connections.
Airbnb ‘puzzled’ at Japan’s letting clampdown
The Nikkei Asian Review, the FT’s sister publication, revealed that Airbnb was “puzzled” by the Japanese government’s decision to ask it to cancel existing reservations for premises yet to be registered under the country’s new home-sharing law. The rules, which came into effect on June 15, require Airbnb hosts to be licensed by the government and limits home-sharing to 180 days a year.
Big Apple goes greener
New York is getting greener, revealed The New York Times, as new parks, such as Domino Park in Williamsburg, Brooklyn, are springing up across the city. Many of these parks — popular with property buyers — are the result of new apartment blocks but, in a break from previous residents-only courtyards, the spaces are open to all.
Trump spots North Korean condo opportunity
Meanwhile, US President Donald Trump has told North Korean leader Kim Jong Un to think of the future of his country from a “real estate perspective”. Speaking at a press conference following their recent summit in Singapore, Trump said North Korea had “great beaches”, reported USA Today. He added: “You see that whenever they are exploding their cannons into the ocean. I said, boy, look at that view — wouldn’t that make a great condo?”
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