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Property guru push sales as prices dip #ศาสตร์เกษตรดินปุ๋ย

Published March 24, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30384665?utm_source=category&utm_medium=internal_referral

Property guru push sales as prices dip

Mar 23. 2020
“Due to the Covid-19 crisis, the prices of many housing units have come down. This is a good time to explore available choices and invest,” said Natchaanundh Chantranuwatana, founder and CEO of The Prop.

“Due to the Covid-19 crisis, the prices of many housing units have come down. This is a good time to explore available choices and invest,” said Natchaanundh Chantranuwatana, founder and CEO of The Prop.
By Kitchana Lersakvanitchakul
The Nation

Thailand has much more to offer to expatriates than hospitality and according to real-estate expert Natchaanundh Chantranuwatana, is “ the best place to raise kids”.

“Our country has many world-class international schools. And if you know where to settle, our society is really safe. Thai people are also very friendly and helpful,” said Natchaanundh, the founder and chief executive officer of The Props.

The Props has dealt with A-list customers, mostly expats, in offering quality condominiums, serviced apartments, and houses for rental/sales.

The Props has dealt with A-list customers, mostly expats, in offering quality condominiums, serviced apartments, and houses for rental/sales.

She added that medical services, including dental care, in Thailand were very good and affordable. Thai food was great, and it was usually easy to find nannies and house maids here,” she continued.

Located at the luxurious Emporium Tower, her firm has dealt with A-list customers, mostly expats, in offering quality condominiums, serviced apartments, and houses for rental/sales.

Speaking from her more than 15 years of experiences in the industry, Natchaanundh says the Covid-19 crisis offers good investment opportunities for those who have cash in hand.

“The prices of property have come down. So, this is a good time to explore available choices and invest,” she pointed out.

According to her, some property projects have already made interesting offers. For example, if buyers make a deposit, they will receive interest on the payment made.

“If investors prefer to wait for the situation to improve, property prices will be going up,” Natchaanundh said. She pointed out that condo prices in Bangkok have been rising. Over a decade ago, a condo unit located on the Sukhumvit Road in the suburban zone, was priced at between Bt40,000 and Bt50,000 per square metre. But today, a square metre in the same zone could fetch over Bt100,000.

The Props has a total solution to property investors, as it specialises in finding a tenant, preparing contracts, and concluding transactions. Importantly, the firm has complete understanding of Thai property laws and related procedures.

Natchaanundh said: “Chinese investors are interested in buying a hotel or a whole floor of condominiums. And we are catering to their needs”.

Natchaanundh said: “Chinese investors are interested in buying a hotel or a whole floor of condominiums. And we are catering to their needs”.

“Even if our buyers are foreigners who can’t fly to Thailand to seal the deal, they can appoint The Props as their representative and we will handle everything for them,” the female executive said.

Natchaanundh said her team was highly professional and fluent in English. Therefore, customers could get complete information, there would be no language barrier.

“We also have insightful information to share because we have had extensive experience,” she said.

She said investors could make a profit by simply making a down payment on a property, then re-sell it, if the unit is situated in a good location.

Investors could make a profit by simply making a down payment on a property at a good location, then resell it, she said

Investors could make a profit by simply making a down payment on a property at a good location, then resell it, she said

“And, if you buy a property for investment purposes, you should place an announcement for both rent and sale. This way, you can get rental fees while looking for a buyer,” she said.

Being an expert in the field, Natchaanundh has offered advice to not only her customers but also via training to real-estate agents and property owners. “We have already conducted two training courses and there will be more because we want to upgrade the Thai property sector,” she quipped, “If you are interested, you can follow updates on our social-media page”.

When asked how to deal with the Covid-19 impacts, Natchaanundh said her firm has been looking for new opportunities and new target groups. “While Singaporeans, Europeans and Hong Kong residents are not investing in Thai property at this time, we still have customers from China,” she said, “Chinese investors are interested in buying a hotel or a whole floor of condominiums. And we are catering to their needs”.

‘Bully offers’ eclipse virus woes in Canada’s home market #ศาสตร์เกษตรดินปุ๋ย

Published March 20, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30384466?utm_source=category&utm_medium=internal_referral

‘Bully offers’ eclipse virus woes in Canada’s home market

Mar 20. 2020
By Syndication Washington Post, Bloomberg · Natalie Obiko Pearson, Jacqueline Thorpe, Sandrine Rastello · BUSINESS
A week into a pandemic that has forced a swath of Canada’s economy to shut down and wiped hundreds of billions of dollars off the nation’s stock market, a Vancouver mansion sold for C$150,000 ($105,000) over the asking price.

As the coronavirus upends the real estate business, along with everything else, the country’s indefatigable buyers are taking some pause – but, so far, not much.

John Pasalis’ firm was getting ready to list a C$1.1 million home in Toronto’s trendy Leslieville district next week but was preempted by two “bully” offers – those made ahead of the official selling date. A deal was struck before the property ever hit the market.

“Some of those buyers are seeing the slowdown as a way to compete without too many people,” said Pasalis, president of Realosophy Realty.

Before the virus landed in Canada, its three biggest markets — Toronto, Montreal and Vancouver — were gearing up for a sizzling house-hunting season this spring. That outlook has now dimmed.

Home resales are expected to fall in the coming weeks as the economy contracts. Agencies are canceling open houses, and a traditionally face-to-face industry is using virtual tours to get some deals done.

An extended drop in Canada’s housing market would be a major blow to an economy already reeling from the meltdown in oil prices. Prime Minister Justin Trudeau, the Bank of Canada and the country’s biggest commercial banks are pulling out all the stops to try and head off a serious recession.

The central bank has now cut interest rates a full percentage point to 0.75% in the past two weeks, spurring mortgage rates lower, and it may cut again. The banking regulator is loosening bank capital requirements to free up C$300 billion of lending capacity.

Meanwhile, Canada’s six biggest lenders, including Royal Bank of Canada, Bank of Montreal and Toronto-Dominion Bank, said they would consider six-month mortgage-payment deferrals for small businesses and individual borrowers impacted by the pandemic.

In the longer run, relentless demand means any pullback will likely be short-lived and prices should hold up, said Robert Hogue, senior economist at RBC.

“In all likelihood, this will be a temporary hit with a rebound taking place later this year once the covid-19 situation settles down – though the timing and magnitude of the rebound are highly uncertain at this point,” Hogue said in a research note this week.

Re/Max, one of the nation’s biggest brokerages, on Tuesday urged its 18,000 brokers across the country to cancel all open houses. In Vancouver, developers are closing sales centers and construction sites will be impacted as building activity is interrupted, according to Anne McMullin, president of the Urban Development Institute, an industry group.

But underpinning the market is the fastest pace population growth in 30 years, driven in large part by immigration, and the appeal of Canadian real estate to those with cash to deploy at uncertain times, including foreign buyers.

In Montreal, a New-York based buyer just made an offer on a property listed at more than C$2 million after a virtual visit, said Debby Doktorczyk, owner of Engel & Volkers Montreal, which counts 175 brokers.

Momentum helps. The housing market entered the spring selling season on a high, with sales across the country up 25% from February 2019. Toronto and Vancouver home resales surged about 44% from the same month a year ago, while Montreal’s were up about 23%.

The market was extremely strong – if not a bit “crazy” – before the pandemic, says Doktorczyck. Now, “instead of getting 15 offers for a property, we’re getting five,” she said, adding virtual visits are likely to become more common.

Even in Vancouver, which was only just emerging from its worst year in decades before the coronavirus, Royal LePage broker Adil Dinani says his shop is still doing 90% of the deals expected.

Dinani was up past midnight negotiating the sale of a C$2.3 million, six-bedroom home in an affluent suburb just outside Vancouver. The open house on Sunday had drawn 40 groups – some 85 eager buyers undeterred by the virus – who waited to enter one group at a time. The property drew seven offers, including the winner – an all-cash bid, almost C$150,000 above asking.

While open houses may be suspended, home buyers can still see homes by appointment, say agents. Meanwhile falling mortgage rates will act as a spur. Borrowers can now get a five-year variable mortgage at 2.1% and a three-year fixed at 1.99%, according to RateSpy.com.

“You know the saying – oxygen for any real estate market is low interest rates,” said Dinani at Royal LePage in Vancouver. “Well interest rates just got lower. There’s a lot more room to move in Canada. That prime rate can come down more, unlike the U.S. and other nations that are pretty much operating near zero.”

Ananda to issue debentures worth a total of Bt4 bn #ศาสตร์เกษตรดินปุ๋ย

Published March 17, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30384165?utm_source=category&utm_medium=internal_referral

Ananda to issue debentures worth a total of Bt4 bn

Mar 16. 2020
By THE NATION

Ananda Development Plc is preparing to issue two tranches of debentures — a two-year-six-month tenor with a coupon of 4 per cent per annum and three-year-six-month tenor with a coupon of 4.50 per annum.

The debentures will be offered to institutional and/or high-net-worth investors for a total amount of Bt2 billion, with a Bt2-billion greenshoe option.

Ananda expects seven more new condominium projects to be completed and transferred this year, compared to eight projects in 2019. The transferred amount of Bt22 billion, a 10 per cent increase from 2019, is as targeted.

Ananda chief financial officer Chaiyuth Chunnahacha said that the company was in the process of submitting the filing and draft prospectus for the issuance and offering of debentures to the Securities and Exchange Commission.

Ananda Development has appointed Krungthai Bank, Kasikornbank, CIMB Thai Bank, Globlex Securities and Asia Plus Securities as the arrangers. The subscription period is expected to be March 30 to April 1.

“The purpose of these debentures is to repay debentures that will become due in April and May this year. In the past, the company had regularly raised funds by issuing debentures and had always received the confidence of investors,” Chaiyuth said.

Ananda has a cash balance of more than Bt14.8 billion and the company maintains financial discipline by keeping net interest-bearing debt-to-equity level at 1.06 times, he said.

Ananda expects to complete the construction and transfer of seven condominium projects this year, compared to eight condominiums completed and transferred last year, he added.

This year the company is also launching a new condominium project; Ideo Pahol-SaphanKhwai which is close to the Saphan Khwai BTS Station.

The project, covering 5 rai (0.8 hectares) and offering 1,356 units, is worth more than Bt8.5 billion. The company has adjusted this project to be in line with current demands and the market situation, he said.

Ananda is also launching serviced-apartment projects in cooperation with the world-class international lodging firm, The Ascott Limited. Moreover, the construction of two serviced-apartment projects, Somerset Rama 9 and LYF Sukhumvit 8, is expected to be completed and operated this year, providing recurring income.

Investors interested in the debentures offered by Ananda Development can subscribe for a minimum amount of Bt100,000 and in multiples of Bt100,000.

Risland Thailand launches first of 4 projects in Asoke #ศาสตร์เกษตรดินปุ๋ย

Published March 6, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30383432?utm_source=category&utm_medium=internal_referral

Risland Thailand launches first of 4 projects in Asoke

Mar 05. 2020
By The Nation

Risland (Thailand), a leading international real estate group established in Hong Kong, has announced its 2020 business strategy “Think Global, Act Local” under the concept “Be the Change, Create the Future”.

The company emphasises  strong domestic financial status with Fitch Ratings at AA for year 2019. It is ready to launch four  new projects worth a total of more than  Bt20.9 billion, starting with the Bt-3.6 billion  ‘CLOUD Residences – SKV 23,’ a luxury condominium  in Asoke. It aims to penetrate the market gap of luxury condominium in inner Sukhumvit with affordable prices from Bt 5.99 million.

Paul Nie, Regional Sales & Marketing Director of  Risland (Thailand), said  the property market in 2020 faces many challenges such as  the global economic downturn undermined by the trade war which has affected many countries including Thailand, the baht which keeps getting stronger and the Covid-19 outbreak which aggravates the economic slowdown.  Risland has developed 15 property projects  in  the US, New Zealand, India, England, Vietnam, Indonesia and Thailand with a  combined value of around Bt100 billion.  In 2020, Risland aims for a  50-per cent  growth in revenue globally by applying the strategy, “Think Global, Act Local,” under the concept of “Be the Change, Create the Future”.

This year Risland (Thailand) plans to launch four  new projects worth a total of  more than Bt20.9 billion,  comprising two condominium projects and two mixed-use projects. It will focus on strategic locations with convenient transportation at  affordable prices to meet real demand. The company is also confident of its financial status which can support the business during unfavorable market sentiment for a long time  until the situation improves. The company was assigned AA rating for 2019 by Fitch Ratings,  which is the country’s highest credit rating in property segment. Risland (Thailand) launched two  projects; CLOUD Thonglor-Phetchaburi which is now over 50 per cent  sold and The LIVIN Phetkasem which has received  good response with Bt 700 million in booking for  the first phase worth Bt750 million. As a result, the company last year posted more than Bt4 billion  in sales from the 2 projects,  Nie siad.

CLOUD Residences – SKV23 is a 43-storey high-rise condominium located in the heart of Asoke on Sukhumvit 23 and is the first project  this year. Located near both BTS Green Line and MRT Blue Line, the neighborhood is a lifestyle hub surrounded by offices, hospitals and leading educational institutions. Land price soars consecutively by approximately 8 per cent  per year while the take-up rate is 82 per cent.

The project comprises a total of 372 fully-fitted units designed in a modern style with a remarkable height as it will be the tallest building on Sukhumvit Soi 23. The interior design is made to give the feeling of hotel stay, with triple floating facilities as the highlight. This project occupies  1,400 square meters, featuring all-inclusive facilities such as swimming pool, jacuzzi, rest area surrounding the swimming pool, yoga room, sky lounge, co-working space, a meeting room and over 1,000 sqm of green area.

The first sales call is set for  March 20-21, 2020 at CLOUD Residences – SKV23 Sales office.

Sena Development targets ten new projects with solar rooftops #ศาสตร์เกษตรดินปุ๋ย

Published March 2, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30383161?utm_source=category&utm_medium=internal_referral

Sena Development targets ten new projects with solar rooftops

Mar 02. 2020
Kessara Thanyalakpark

Kessara Thanyalakpark
By THE NATION

Sena Development plans to install solar rooftops for ten new projects launching this year, company director Kessara Thanyalakpark said.

The projects consist of six condominiums and four horizontal projects worth Bt7.5 billion.

“Our solar rooftops will increase the use of green energy in our projects,” she said.

Seven Sena housing projects have previously participated in a programme called “Solar Move”, brought about by the Alternative Energy Institute of Thailand Foundation.

Under the programme, the property developer opened its 1,000 houses to people to learn about solar rooftops, besides inspiring them to realise the advantage of green energy.

“The programme aims to promote and educate people living in Bangkok and nearby provinces about solar energy,” she explained. “They are from 200 housing projects, or approximately 10,000 households.”

Sena has improved its solar-cell system to “Solar Scale-Up”, which allows people to increase or decrease the number of their solar cells in accordance with the number of electrical appliances in their houses.

AP (Thailand) goes for horizontal housing nationwide #ศาสตร์เกษตรดินปุ๋ย

Published February 28, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30383019?utm_source=category&utm_medium=internal_referral

AP (Thailand) goes for horizontal housing nationwide

Feb 28. 2020
By THE NATION

Property developer AP (Thailand) plans to launch more horizontal projects nationwide this year – homes rather than condo towers – because that’s where the steady growth is currently, Vittakarn Chandavimol, its head of corporate strategy, said on Friday (February 28).

“This is the first year we’re spreading our projects around Thailand,” he said. “We’ve started our first horizontal project in Nakhon Si Thammarat and will launch in the third quarter.”

The company is studying customer preferences in other provinces and aims to have projects in all regions to fit every pocketbook, he said.

“The purchasing power in the provinces is mainly among wealthy people, and the market isn’t as competitive as it is in Bangkok and the more populous provinces,” Vittakarn said.

“This expansion will be a chance for AP to study demand in each region. We’ll be looking at single houses, semi-detached and townhouses.”

He said AP will launch 37 projects in 2020, all but four being horizontals worth a combined Bt47.15 billion and the rest condominiums valued at Bt12.1 billion.

“We build six condos last year, but interest has since declined.”

Sales of new U.S. homes reach highest level since july 2007 #ศาสตร์เกษตรดินปุ๋ย

Published February 27, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30382915?utm_source=category&utm_medium=internal_referral

Sales of new U.S. homes reach highest level since july 2007

Feb 27. 2020
Homes under construction in Louisville, Ky., on Jan. 5, 2019. MUST CREDIT: Bloomberg photo by Luke Sharrett.

Homes under construction in Louisville, Ky., on Jan. 5, 2019. MUST CREDIT: Bloomberg photo by Luke Sharrett.
By Syndication The Washington Post, Bloomberg · Katia Dmitrieva

New-home sales in the U.S. jumped at the start of the year, reaching the strongest pace since mid-2007 on the heels of cheaper borrowing costs, favorable weather and a resilient labor market.

Single-family home sales rose 7.9% to a 764,000 annualized pace in January, exceeding the median estimate in a Bloomberg survey, while the December figure was revised higher, government data showed Wednesday. The median sales price jumped 14% from a year earlier to a record $348,200 as more expensive properties made up a larger share of purchases.

Mortgage rates near three-year lows, elevated consumer confidence and steady employment are energizing the real estate market. Stronger demand against a backdrop of lean inventories will probably power residential construction for a third straight quarter and contribute to economic growth as business investment remains tepid and concerns mount about the economic repercussions of the coronavirus.

The number of new homes sold for which construction hadn’t yet started increased to the best level since June, while the number sold and currently being built was the highest since 2007. Those figures indicate a robust pipeline for homebuilders.

Consumer confidence data from the Conference Board on Tuesday showed a jump in the share of respondents who said they intended to buy a new home within the next six months.

Purchases of new homes, which account for about 10% of the market, increased in three of four U.S. regions, led by the Midwest and West.

The supply of homes at the current sales rate declined to 5.1 months, the lowest since November 2017, from 5.5 months in the prior month.

Economists in Bloomberg’s survey projected an annualized pace of 718,000 new-home sales for January. Estimates ranged from 674,000 to 792,000.

The government’s data on new-home sales are volatile on a month-to-month basis. Changes in the seasonally adjusted data have a wide margin of error. There’s a 90% chance that the percentage change in January was between a 9.9% decline and a 25.7% increase, according to the U.S. Census Bureau.

Centara to enlarge global footprint with eight new properties this year. #ศาสตร์เกษตรดินปุ๋ย

Published February 27, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30382907?utm_source=category&utm_medium=internal_referral

Centara to enlarge global footprint with eight new properties this year.

Feb 26. 2020
By THE NATUON

Centara Hotels & Resorts, the leading hotel operator in Thailand , is accelerating its global expansion with plans to open new hotels and resorts in some of the world’s most dynamic destinations.

In 2020, Centara expects to open eight new properties, adding four countries to the company’s world map and enhancing its leadership position in Thailand.

This will increase the group’s worldwide inventory by almost 2,000 rooms and suites, in line with a strategic plan to make Centara a top 100 global hotel operator within five years.

As part of this expansion, Centara’s highly anticipated first resort of its new luxury brand will be unveiled at the end of 2020, following the refurbishment and repositioning of Centara Grand Beach Resort Samui.

This popular beachfront retreat closed temporarily in 2019 to facilitate an extensive upgrade. Its grand reopening in late 2020 will mark the launch of Centara’s sixth hotel brand, the name of which will be announced shortly.

Centra by Centara Cha Am Beach Resort Hua Hin is expected to open in April 2020.

Located on the pristine Cha-Am Beach, this 190-room and suite hotel will be surrounded by attractions, including theme parks, golf courses, retail outlets and a Royal palace.

COSI, Centara’s affordable lifestyle brand, will also drive Centara’s domestic growth in Thailand. After the recent addition of hotels in Pattaya and Koh Samui, this cutting-edge concept will enter another popular beach resort destination in Q4, with the launch of the 142-room COSI Krabi Ao Nang Beach.

Southeast Asia will be a major focus area for Centara in 2020. The company will plant its flag in two new countries this year; the 95-room Centara KMA Resort Inle Lake will become its first location in Myanmar in Q2, and the 162-room Centara Plumeria Resort Pakse will launch in Q4 to mark Centara’s introduction to Laos.

Moving forward, Centara will enter several exciting new destinations in both countries, including Luang Prabang, the UNESCO World Heritage-listed former capital of Laos and the country’s capital, Vientiane.

The Middle East is another key region, with several new hotels and resorts preparing to welcome their first guests this year.

In Qatar, The B Premiere Hotel, an 85-room property under the Centara Boutique Collection, will be introduced in Q2. Then in Q4, Centara will enter the UAE with the 607-key Centara Mirage Beach Resort Dubai – an outstanding family-friendly themed resort that will comprise 607 rooms and suites and a wealth of activities for all ages.

Finally, Centara will accelerate the implementation of its companywide Sustainability Plan in 2020, which includes the elimination of single-use plastic products, such as straws, bags, bottles and food containers, the reduction of food waste, and the expansion of its support for local farmers, rural communities and small-scale sustainable producers.

Condo projects near universities prove a success #ศาสตร์เกษตรดินปุ๋ย

Published February 22, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30382637?utm_source=category&utm_medium=internal_referral

Condo projects near universities prove a success

Feb 22. 2020
By THE NATION

Condominium projects located near universities are bucking the trend of negative economic sentiment caused by the Covid-19 crisis, the current drought and the decline in exports.

Pruksa Real Estate Value chief executive officer Piya Prayong said that the condo projects launched near universities were successful.

He cited the example of Pruksa’s “Plum 89” project, situated near Rangsit University, Bangkok University, and Thammasat University’s Rangsit campus.

“Almost 2,000 units of these condominium units have been sold, especially as the unit price is inexpensive, or lower than Bt1 million,” he added.

He said there were investors buying at least 10 to 20 condo rooms, with the aim of renting them out to students at Bt7,000 to Bt10,000 per month.

“The room rates are not expensive for parents, and presently the rooms are full of students,” he added.

The CEO also said that the rooms of another Pruksa condo project, located near Srinakharinwirot University, have been sold to investors who aim to rent them out as well.

Meanwhile, LPN Development’s managing director, Opas Sripayak, said that more than 7,000 units of his company’s “Lumpini Township Rangsit-Khlong 1” have been sold out, and ownership was expected to be transferred at the end of this year.

The condo project, like Plum 89, are also located in the Rangsit area.

U.S. home-building permits rise to highest since 2007 #ศาสตร์เกษตรดินปุ๋ย

Published February 20, 2020 by SoClaimon

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30382440?utm_source=category&utm_medium=internal_referral

U.S. home-building permits rise to highest since 2007

Feb 19. 2020
A sold sign is displayed outside a new home at the Toll Brothers Inc. Bowes Creek Country Club community in Elgin, Ill, on Jan. 23, 2020. MUST CREDIT: Bloomberg photo by Daniel Acker.

A sold sign is displayed outside a new home at the Toll Brothers Inc. Bowes Creek Country Club community in Elgin, Ill, on Jan. 23, 2020. MUST CREDIT: Bloomberg photo by Daniel Acker.
By  Bloomberg · Reade Pickert · BUSINESS, US-GLOBAL-MARKETS

U.S. new-home construction remained robust in January and applications to build jumped to the highest level since 2007 as low mortgage rates and a solid labor market continued to fuel housing demand.

Residential starts slipped 3.6% to a 1.57 million annualized rate, still the second-fastest pace of the expansion, after an upwardly revised 1.63 million pace in the prior month, according to government figures released Wednesday. January starts exceeded the median estimate in a Bloomberg survey of economists. Permits, a proxy for future construction, advanced 9.2% to a 1.55 million rate, the highest since March 2007.

While the pace of construction eased in January, the figures suggest the housing market remains a bright spot for the U.S. economy amid sluggish business investment. When paired with continued strength in housing permits, current and planned construction should help mitigate a lean supply of housing.

Mild weather likely played a role in both the December and January readings as warmer temperatures supported construction in months that typically slow homebuilding in areas like the Northeast.

Single-family starts declined 5.9% to a 1.01 million pace, though permits climbed to a 987,000 rate that was also the highest since 2007.

Starts of multifamily homes, a category that tends to be volatile and includes apartment buildings and condominiums, edged up 0.7% to the highest level since 1986. Permits surged 14.6% to a 564,000 pace.

Private data released Tuesday showed sentiment among homebuilders eased slightly in February, but held near a two- decade high, as gauges of sales and prospective buyer traffic cooled. Recent figures from the University of Michigan showed home-buying attitudes in February advanced to the highest level since 2017.

By region, new-home construction fell in the South and Midwest. Starts increased in the Northeast to the highest since June 2015 and climbed in the West the best level since the end of 2006.

The report, produced jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, has a wide margin of error, with a 90% chance that the headline figure was between a 16.9% drop and a 9.7% increase.

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