Australia Tightens Foreign Property Ownership Rules

 Temporary residents need approval o buy property

April 24 (Bloomberg) -- Australia will tighten rules on foreign investment in real estate, and introduce penalties to enforce the changes, to ensure pressure isn’t placed on housing availability for local residents.

Temporary residents will require approval from the Foreign Investment Review Board to buy property, and will have to sell when leaving the country, Assistant Treasurer Nick Sherry said. It ensures “working families are not being priced out of their own family homes,” Prime Minister Kevin Rudd said in Canberra today, a transcript from his office shows.

Treasurer Wayne Swan eased restrictions on non-residents in late 2008, making it easier for foreigners to buy property without government approval. Surging house prices, which advanced more than 10 percent last year, were among reasons the Reserve Bank of Australia boosted the benchmark interest rate this month for the fifth time in six meetings.

“Foreign purchasers can play an important role in supporting the development of new rental properties,” Aaron Gadiel, chief executive of Urban Taskforce Australia, said in an e-mailed statement. “Given that our national housing undersupply is reaching 200,000 homes, we should welcome any investment by foreign residents or businesses in boosting our supply of newly built homes.”

The lack of housing supply is the underlying issue for housing affordability, Gadiel said. Urban Taskforce Australia is an industry group representing property developers and equity financiers.

‘Foreign Speculators’

“We want to make sure that foreign speculators are not going to force up prices for Australians seeking to buy their own home, buy their first home, and we think this is the right course of action,” said Rudd, who faces an election within a year.

Australia will back up the changes with compliance, monitoring and enforcement measures including civil penalties, Assistant Treasurer Sherry said in a statement today. These include compulsory sales of property purchased in breach of the new investment regime, Sherry said.

Temporary residents will be required to start construction on undeveloped land within two years of purchase or be forced to sell, he said. The tighter rules will also apply to people on student visas, Sherry said.

Overseas Buyers

Overseas buying may have contributed to rising house prices, Sherry told reporters in Melbourne today. The measures are precautionary and won’t have a “major impact” on the housing market in Australia, Sherry said.

David Airey, president of the Real Estate Institute of Australia, is among those blaming gains in home prices on an increase in investment from overseas buyers, particularly Chinese. The institute today supported stricter rules. Prices jumped 12.7 percent in the year through February, a March 31 report by real-estate monitoring company RP Data-Rismark showed.

Overseas purchasers accounted for about 0.62 percent of transactions by LJ Hooker in 2009, David Maher, business analyst at the real estate agency, said in a telephone interview on April 15.

‘Ridiculous Claims’

“Claims that overseas buyers are pricing people out of the market are ridiculous,” Maher said. “There’d have to be a mammoth increase in the level of overseas investment to have any real effect on affordability in the Australian market. The numbers don’t show that.”

An increase in housing through the release of more land, and measures to reduce the amount of money and time it takes to develop new projects, are required to ease prices, Charles Tarbey, local chairman of Century21 Real Estate, said April 6.

The average sales price of houses and apartments its agents sold between Jan. 1 and March 29 this year was A$407,228 ($378,000), an 18 percent increase from the same period in 2009, according to Century21 data.

--With assistance from Nichola Saminather in Sydney. Editors: Jim McDonald, Ravil Shirodkar

By Ben Sharples
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

China's Global Approval Ratings Are In

For the first time since the BBC started tracking global views in 2005, the United States' influence in the world is now more positive than negative on average. Fine. So where does China stand in the grand scheme of things?

As you might expect, it depends on who's spinning the data as well as who you ask.


China Daily unequivocally says that "China's image has seen an upswing after hitting a low last year," with 41% of nations polled seeing China as having a positive influence on the world. The survey, conducted by GlobeScan/PIPA among more than 29,000 adults, asked respondents to say whether they considered the influence of different countries in the world to be mostly positive or mostly negative.

The fun starts when you look at the details, with significant year-on-year shifts in views of China within different countries.

For example, China's image improved considerably in such countries as the Philippines. While in 2009 a majority (52%) took a negative view, this has dropped 21 points. Now a majority (55%) has a positive view (up 16 points).

Japan's attitude witnessed a remarkable change, with those holding a negative view dropping from 59% to 38%, while those holding a positive view soared from 8 to 18%.

Europe continues to be the region that is the most negative toward China, but negative views have softened in Portugal (now 54%, down from 62%), and France (64%, down from 70%). In addition, positive views have increased among Germans (now 20%, up from 11%), although a large majority (71%) remains negative.

The U.S.'s attitude toward China remains roughly unchanged, with 51% holding a negative view. The report, curiously, did not give a figure for those holding a positive view.

All told, China ranks 11th in the 28 countries or regions mentioned in the poll, behind Germany, Canada, the European Union, Japan, the United Kingdom, France, Brazil, the United States, South Africa and India.
You can read about poll methodology here.

By Ray Kwong
Ray Kwong is a cross border business development geek and a Forbes contributing writer.

Source: http://newscri.be/link/1082961

Wealth of Britain's Richest Rises by 30%

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Rich list reveals record rise in wealth

Collective wealth of Britain's 1,000 richest people rose 30%, the biggest annual increase in list's 22-year history

Lakshmi Mittal topped the rich list for the sixth straight year. Photograph: Sebastien Pirlet/Reuters

April 25 (Bloomberg) -- The fortunes of the richest people in the U.K. rose at a record pace last year, with the 1,000 wealthiest experiencing a 30 percent increase in their net worth, according to the annual Sunday Times Rich List.

Lakshmi Mittal, the 59-year-old chief executive officer of ArcelorMittal, the world’s largest steelmaker, topped the list for the sixth straight year. His fortune doubled to 22.5 billion pounds ($34.6 billion) as the recovering economy bolstered orders from automakers and builders, according to the Rich List, published today.

Roman Abramovich, 43, the Russian-born billionaire, remained in second place after adding 400 million pounds to his net worth.

The cumulative wealth of the U.K.’s richest people rose to 333.5 billion pounds ($512.8 billion) during the year. The total fell short of the record 413 billion pounds reached in 2008, according to the rankings compiled each year by Philip Beresford. None of the top 10 lost money during the year, while the number of billionaires on the list rose 10 to 53.

The list has been compiled for the past 22 years and is based on identifiable wealth, including property, art, racehorses and shares in publicly-held companies. It excludes bank account balances.

The 30 percent increase in combined wealth in the last year is “easily the biggest annual rise” in the history of the list, Beresford said in an e-mailed statement.

The year before, the net worth of those on the list had plunged 37 percent, in the depths of the global financial crisis.



Joseph Lau, Duke of Westminster

The highest new entry was Joseph Lau, the 58-year-old chairman and CEO of Hong Kong-based Chinese Estates Holdings Ltd., who took the 12th spot. Lau, with a fortune calculated at 3.8 billion pounds, recently paid 33 million for a house in London’s Eaton Square.

The Duke of Westminster, the highest-placed British-born billionaire, remained in third place. His ancestral land holdings in central London are among the most expensive properties in the nation and helped boost his net worth by 4 percent.

It was the smallest gain seen among the wealthiest 10 people in the U.K. The Queen, 84, ranked 245 with a fortune of 290 million pounds.

New to the 10-top list were Alisher Usmanov, who made his money in steel and mines, Galen and George Weston, whose wealth from retailing was combined this year, and Indian-born Anil Agarwal, who had an increase of 583 percent in his fortune thanks to the skyrocketing price of his London-based mining group
Vedanta Resources Holdings Ltd.
 
ArcelorMittal
Falling from the top 10 were Hans Rausing and family, whose fortune is in packaging; Sammy and Eyal Ofer, and John Fredriksen in the shipping industry; Joe Lewis in investments; and Kirsten and Jorn Rausing in inheritance.


Mittal holds a 41 percent stake in Luxembourg-based ArcelorMittal, which he formed through the takeover of Arcelor SA by Mittal Steel Co. in 2006. The stock surged 89 percent in 2009 as it boosted output of the metal as the world economy recovered and automakers and builders increased orders.

The steel industry is recovering faster and stronger than expected, the World Steel Association said April 20. The group, whose members include nineteen of the world’s 20 top steelmakers, forecast that steel consumption will increase 10.7 percent this year.

European hot-rolled coil, a benchmark product used in cars and appliances, increased 41 percent in the first quarter as raw material prices surged, according to Metal Bulletin data.

Abramovich
Abramovich, owner of the Chelsea football club, accrued his wealth after the fall of the Soviet Union by building up Russia’s fifth-largest oil producer. His oil business, OAO Sibneft, was bought by OAO Gazprom in 2005 as then-President Vladimir Putin moved to return the country’s oil wealth into state hands.

The billionaire, once Russia’s richest man according to Forbes, has since bought into metal producers. Millhouse LLC, which manages his assets, has stakes in Evraz Group SA, Russia’s second-largest steelmaker, and Highland Gold Mining Ltd.

Britain’s 10 Largest Fortunes (in billions of pounds)

1. Lakshmi Mittal and Family       Steel          22.5
2. Roman Abramovich                Oil             7.4
3. The Duke of Westminster         Property        6.8
4. Ernesto and Kitty Bertarelli    Pharma          6.0
5. David and Simon Reuben          Property        5.5
6. Alisher Usmanov                 Steel, Mines    4.7
7. Galen and George Weston         Retail          4.5
8. Charlene, Michel de Carvalho    Inheritance     4.4
9. Philip Green and wife           Retailing       4.1
10. Anil Agarwal                   Mining          4.1

By Michelle Fay Cortez in London at mcortez@bloomberg.net