Latest news with #pre-COVID-19
Sydney Morning Herald
5 hours ago
- Business
- Sydney Morning Herald
The type of housing cost that just soared 75 per cent in five years
The cost of land for housing development has skyrocketed by 75 per cent over the past five years, pushing homeownership further out of the hands of average potential buyers. The median development site cost has risen from $4.8 million in 2020, to $8.5 million this year, Ray White analysis of Real Capital Analytics data shows. It comes as construction costs remain elevated from their pre-COVID-19 levels, putting further pressure on affordability. Ray White Group chief economist Nerida Conisbee said it would take considerable time before building costs fell enough to make new housing genuinely affordable for average buyers. 'Land costs haven't come back down and what's happening is developers want to build, but they can't do it affordably,' Conisbee said. 'We're not seeing the crashes in the market we previously saw so we're in a kind of holding pattern.' In past economic downturns, rising interest rates would put pressure on some owners of development sites, forcing them into distressed sales at reduced prices. But this time was different, and Conisbee said many had built financial buffers while interest rates were at record lows, and developers have been in a better position to hold onto land. They were also entering into joint ventures when finances were squeezed. Changes to how lenders operated were also helping developers hold on to their assets, banks were holding off on forced sales for struggling developers, and were more likely to offer relief measures. It comes as the federal government aims to deliver 1.2 million homes in five years to address the housing affordability challenge.
The Age
5 hours ago
- Business
- The Age
The type of housing cost that just soared 75 per cent in five years
The cost of land for housing development has skyrocketed by 75 per cent over the past five years, pushing homeownership further out of the hands of average potential buyers. The median development site cost has risen from $4.8 million in 2020, to $8.5 million this year, Ray White analysis of Real Capital Analytics data shows. It comes as construction costs remain elevated from their pre-COVID-19 levels, putting further pressure on affordability. Ray White Group chief economist Nerida Conisbee said it would take considerable time before building costs fell enough to make new housing genuinely affordable for average buyers. 'Land costs haven't come back down and what's happening is developers want to build, but they can't do it affordably,' Conisbee said. 'We're not seeing the crashes in the market we previously saw so we're in a kind of holding pattern.' In past economic downturns, rising interest rates would put pressure on some owners of development sites, forcing them into distressed sales at reduced prices. But this time was different, and Conisbee said many had built financial buffers while interest rates were at record lows, and developers have been in a better position to hold onto land. They were also entering into joint ventures when finances were squeezed. Changes to how lenders operated were also helping developers hold on to their assets, banks were holding off on forced sales for struggling developers, and were more likely to offer relief measures. It comes as the federal government aims to deliver 1.2 million homes in five years to address the housing affordability challenge.
Business Wire
16 hours ago
- Business
- Business Wire
Tanzania Tourism Sees Dramatic Increase in Visitor Numbers and Revenues
DODOMA, Tanzania--(BUSINESS WIRE)--The Government of the Republic of Tanzania has announced significant progress in growing its tourism sector with international tourism volumes increasing by 132 per cent from 922,692 tourists in 2021 to 2,141,895 in 2024. This was complemented by even faster growth of 308 per cent in domestic tourism, from 788,933 in 2021 to 3,218,352 in 2024. The United Nations Tourism body, UN Tourism, has ranked Tanzania the fastest growing Africa destination in 2024, with a 48 per cent increase compared to the pre-COVID-19 period. Ethiopia had the second-fasted growth rate of 40 per cent, Morocco saw 35 per cent, Kenya 11 per cent, and Tunisia saw tourism growth of 9 per cent. Tanzania's Minister of Natural Resources and Tourism, Dr Pindi Chana, highlighted that growing tourism volumes and value was a flagship policy of Her Excellency, President Samia Suluhu Hassan, and that a goal to grow combined international and domestic tourism volumes to 5 million had already been exceeded. 'These results stem from the vision and commitment of our President, Dr Samia Suluhu Hassan, who championed promotional campaigns such as The Royal Tour and Amazing Tanzania,' Dr Chana explained. 'This progress has positioned Tanzania 9th globally and 3rd in Africa in tourism revenue growth compared to the pre-COVID-19 era,' she said. Tourism earnings have also witnessed a major jump, with revenues from international tourists increasing from $1.3 billion in 2021 to $3.9 billion in 2024—a growth rate of 200 percent. Domestic tourism revenues also rose from TZS11 billion in 2021 to TZS209 billion in 2024, reflecting a surge of over 350 per cent. The President of Tanzania, Dr Samia Suluhu Hassan, has personally championed tourism growth in Tanzania. From her decision to roll out mass Covid vaccinations in 2021, which reversed the previous government's policies and reopened Tanzania to international travel, to her participation in events like the World Travel and Tourism Council Global Summit, where she addressed the audience as a keynote speaker, President Samia Suluhu's government has made tourism growth a strategic investment priority. This investment has begun to generate global recognition for Tanzania as a tourist destination, with the country winning several awards at the prestigious World Travel Awards (WTA), including Africa's Leading Destination (2024) and World's Leading Safari Destination (2024). Serengeti National Park retained its title as the best safari destination globally for the sixth consecutive year since 2019. Mount Kilimanjaro was named Africa's Leading Tourist Attraction in 2024, while Serengeti was ranked the world's second-best safari destination by The Times of India. Tanzania National Parks Authority (TANAPA) also received international recognition for service quality from the European Society for Quality Research (ESQR), winning the award for the fifth time in a row (2020–2024), while the Tanzania Tourist Board was named Africa's Best Tourism Board. Additionally, Tanzania has been selected to host the African edition of the World Travel Awards in June 2025. Tanzania has achieved major progress in wildlife protection and management through anti-poaching operations, intensified patrols, and the adoption of modern technology. According to the International Union for Conservation of Nature (IUCN) and the Tanzania Wildlife Research Institute (TAWIRI), Tanzania leads in Africa and globally with around 17,000 lions, 225,000 buffaloes, and 24,000 leopards. The population of black rhinos rose from 163 in 2021 to 263 in 2025, a 61 per cent increase, while elephant poaching incidents dropped by nearly 90 percent.
Yahoo
5 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Union Insurance Company Limited
HONG KONG, May 29, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Union Insurance Company Limited (Union) (Taiwan). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Union's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Union's balance sheet strength is supported by its risk-adjusted capitalisation, which remained at the strongest level in 2024, as measured by Best's Capital Adequacy Ratio (BCAR). The company's adjusted capital and surplus has recovered fully to pre-COVID-19 pandemic levels, driven by improved operating performance and profit retention. Union's investment portfolio has remained liquid and diversified, with the majority of assets invested in cash and domestic investment grade bonds. The company's comprehensive reinsurance programme is placed with a reinsurer panel of good credit quality. Union's risk-based capital ratio remains at a healthy level. Union reported favourable operating results in 2024, supported by positive underwriting and investment performance. The company's direct premiums written increased by 11.2% last year, mainly driven by expansion in commercial lines and non-motor personal lines. The voluntary motor segment recorded a slightly lower-than-average premium growth rate, as Union has been adjusting its underwriting strategy to improve profitability and explore new business opportunities. The overall loss experience remained stable, while the reinsurance programme was effective in partially mitigating net losses from several natural catastrophes in 2024. Union's net operating expense ratio has exhibited a downward trend over the past five years and reached a similar level as the industry average, based on AM Best's calculations. The company's investment yield (including capital gains and losses) remains competitive compared with its domestic peers, supported by the strong performance of its equity investments. Union is a medium-sized insurer in Taiwan's non-life market and ranked eighth in 2024, based on direct premiums written. Similar to other companies in the market, Union's underwriting portfolio is diversified moderately but slightly skewed toward motor insurance, with its other major business lines being the fire and accident segments. The company has maintained a diversified distribution channel mix, with major business contributors being car dealers, the direct channel and brokers. Negative rating actions could occur if there is a significant decline in Union's risk-adjusted capitalisation. Positive rating actions could occur if Union exhibits sustained improvements in operating performance over the intermediate term while maintaining its current balance sheet strength assessment level. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Madison Fan Financial Analyst +852 2827 3416 James Chan Director, Analytics +852 2827 3418 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 days ago
- Automotive
- Yahoo
Delinquencies are on the rise: Here's why and what to do if you get in trouble
Americans who are underwater on their car loans owe record amounts, and lenders are repossessing vehicles at a rate not seen since 2009. Those are symptoms, not the cause. And the most concerning symptom might be rising auto loan delinquency rates. They're at a 15-year high among borrowers who are 30, 60 or more days late on their payment, according to the latest data from TransUnion and an April MorningStar analysis. Plus, figures elsewhere confirm they're on the rise for every delinquency category, from one to three months or longer. As expected, bad credit borrowers see the worst of it: Nearly 6 percent of subprime auto loans are at least 60 days late, the highest figure since Fitch Ratings started its tracking in 1993. So, what's causing these unprecedented levels of delinquency, and what could restore order to the auto loan market? Really, this is one across-the-board trend: Delinquency is growing among borrowers of all credit scores, income levels and ages, and lenders of all types originate these delinquent loans. Yes, subprime borrowers — generally, consumers with credit scores of 600 or below — are the most likely to fall behind on car loan payments. However, TransUnion data draws concerning trend lines for borrowers with better credit, too. While mortgage delinquency rates are similar to pre-pandemic levels, auto loan delinquency transition rates remain elevated. High auto loan delinquency rates are broad-based across credit scores and income levels. Captive lenders, or automakers' in-house financing arms, generally attract higher-credit car buyers, sometimes with introductory APR offers. And yet, the delinquency rates on loans from this lender type remain stubbornly high as compared to pre-COVID-19 figures. Meanwhile, car buyers without good credit remain likelier than their peers to finance a used (or possibly new) vehicle purchase with a non-captive lender. So, it's unsurprising that delinquencies are rising fastest with this type of lender, and even eclipsing pre-pandemic levels. Just as borrowers with the lowest credit scores are more likely to become delinquent on debt, so too are borrowers with the lowest income levels. But even higher-earning groups are falling behind on their monthly dues at increasing rates. If we zero in on serious or late-stage delinquency — being more than three months tardy on a car loan payment — it's hard to dispute that borrowers of every age group are falling behind at increasing rates. Although borrowers in their 20s are more than two times likelier than seniors to become delinquent, you can see the trend lines ticking upward across every generation, according to the New York Fed's quarterly May 2025 report on household debt and credit. The experts we interviewed and the research we're highlighting point to four factors: Average loan amount (Q4 2020) Average loan amount (Q4 2024) Why it hurts New cars: $36,246 Used cars: $22,444 New: $42,023Used: $26,135 Your dollar doesn't go as far at the dealership, car lot or for a private-party transaction. If you go back to 2017… automakers started trimming the cars priced under $25,000 from their lineup, and increasing the number of cars they built with a $60,000 price tag or higher, and they all made the same decision at the same time to essentially say, the way the market was going, 'we're aiming at higher-income, better-credit buyers.' If every [manufacturer] does that, there's just this huge proportion of the market that's underserved. And for inexpensive cars, a lot of people were forced into buying something more expensive than they would have wanted because the inexpensive car doesn't really exist anymore. Average APR (Q4 2020) Average APR (Q4 2024) Why it hurts New: 8.5 percentUsed: 4.3 percent New: 11.8 percentUsed: 6.5 percent You owe more in interest to your lender, monthly and overall. The recent rise in delinquencies over the past four quarters, despite relatively healthy labor markets, is an early sign that certain consumers are under stress from higher cost of living and elevated interest rates on floating consumer debt such as credit cards. Monthly dues Since the end of 2019, average dues are up 30-plus percent, while inflation is up about 23 percent, according to TransUnion. Obviously, if the last time you bought a car was five years ago, your monthly payment was $450, $500, and now it's $740. So, that has had a spillover effect into increased delinquency. One way to think about it: The affordability crisis for car buyers is a delinquency crisis for car owners. After all, your vehicle's cost (see prices, above) is just one line item in your budget. Even after you drive off the lot, inflation can still empty your wallet. In fact, the latest inflation statistics show that gas prices are about 20 percent higher than they were before the pandemic. In addition, other car maintenance costs include: Increased cost vs. 2024 Increased cost vs. 2020 Insurance 6.4 percent 55.3 percent Auto repairs 7.6 percent 56.8 percent As Cox Automotive chief economist Jonathan Smoke reminds us, your income probably hasn't kept pace with the inflation of these car-ownership costs. 'Many [borrowers] had taken out loans when vehicle prices, both new and used, were at their absolute peak in 2022 and 2023,' Smoke says. 'Then inflation took off, and for the better part of almost two and a half years, inflation w[as] producing a negative income situation, meaning [that] while incomes were going up — at a good clip by historical standards — unfortunately, inflation was even higher.' Learn more: 3 auto loan industry experts discuss the ups and downs to come As Smoke says, the way out of a continued rise in auto loan delinquency 'is to see the consumer's financial position improving.' And that very well could happen. If the impending trade war doesn't come to fruition, if tariffs turn out to be more bluster than substance, and if the labor market remains stable (at least for the employed), your income should outpace diminishing inflation. But that might not mean much if you're already on the edge of delinquency. 'When you have a large amount of negative equity, your options, when you run into a financial challenge, are more limited,' Smoke says. 'It's harder for the lender to find a way to work with you on the loan, and you don't have great alternatives to sell the vehicle and trade down to something smaller if you owe more than the vehicle is worth.' With that said, consider these tips: Stay in contact with your lender. If you feel you may be at risk of missing monthly payments, contact your lender as soon as possible. Most lenders would prefer to avoid repossessing your vehicle, so keep track of financial documents and maintain lines of communication. Request loan modification. Modifying your loan to get a lower car payment can help your lender avoid repossession-related expenses. You may be able to defer a few payments or shift your term to better fit your budget. However, not all lenders offer auto loan hardship programs. Work to pay off the loan. Catching up on payments may help you avoid repossession. This can be one of the most challenging approaches, but if there's room in your budget, it can dramatically help. Sell the car. If you can't afford your monthly payment, selling your vehicle is another way to exit your loan. Ensure that you aren't upside-down on your loan before choosing this route. If you owe more than your vehicle is worth, trading it in is also unlikely to be an option. Consider refinancing. Changing your loan to get a better rate or term can lower your monthly payment. But if you have missed many payments or are in default, you won't likely qualify for refinancing. Surrender your car. You can choose to surrender your vehicle — known as voluntary repossession — if you can no longer pay. Unfortunately, it'll still negatively impact your credit. However, if you've maintained open communication with your lender, it might be more willing to write a goodwill letter that can minimize harm to your credit. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
