Latest news with #propertycrisis
Daily Mail
4 days ago
- Business
- Daily Mail
Once‑desirable homes face 'worthless' future as insurance crisis deepens in blue state
A new cost-of-living crisis is deepening across America's progressive capital. In California, soaring climate risk and mounting insurance losses are converging into a property crisis experts warn could slash the value of millions of homes. Deep Sky, a Canadian carbon removal firm, published an analysis of the state's housing insurance market, which painted a dire picture. 'The highest risk areas of California have effectively become uninsurable and will soon become unaffordable,' the study, published in mid-June, concluded. 'Without significant policy intervention, these properties will eventually become worthless.' The warning comes just six months after destructive blazes ripped through Southern California, destroying over 18,000 structures and burning more than 57,000 acres. In January, the Palisades and Eaton fires became two of the most destructive blazes in state history. The impact on the insurance market, which was already under pressure, was immediate. In the first quarter of 2025, insurers posted a $1.1 billion net underwriting loss — a sharp reversal from the $9.4 billion gain they posted the same period a year before. Those numbers have hit some of the most wildfire-prone areas, where premiums have jumped by 42 percent since 2019, and more than 150,000 homes are now uninsured altogether as residents simply cannot afford coverage. But the state has a long way to fall before reaching worthlessness. Right now, the Golden State is America's most expensive housing market. Median home values in California are currently just over $780,000, according to Zillow. That's over $400,000 more than the US average. But, without a robust fire insurance market, policymakers and researchers are warning that the state is resting on shaky grounds. In May, Ricardo Lara, the state's insurance commissioner, approved a 17 percent rate hike for State Farm General, California's largest home insurance provider, to help pay for earlier destruction. 'The market is not going to fail under my leadership,' he told Politico after the decision. 'I have to make these hard decisions, even though it makes me the most unpopular person, and maybe nobody wants this position in the future.' California recently adjusted its climate regulations to allow for more home building across the state And California is by no means alone. Several other states that are prone to natural disasters have faced mounting home insurance issues. State Farm hiked home insurance rates in Illinois by 27.2 percent this month, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it is paying out far more in claims than it collects in premiums in the state which is prone to hailstorms. Florida, which saw a major inflow of residents in 2020, is seeing housing shoppers flee its hurricane-vulnerable coastlines that used to draw million-dollar buyers. In April, contracts to buy homes in the Miami, West Palm Beach and Fort Lauderdale regions fell dramatically from the year prior. Homes also lingered longer on the market. Pending sales fell 23 percent year-over-year in Miami, according to Redfin, which was the largest drop among the 50 most populous metro areas across the US. Meanwhile, some cash-strapped young homebuyers are skipping insurance altogether out of fear their homes will not pass inspection. 'Many homeowners are living on borrowed time and borrowed trust, we're seeing financial strain and home safety come head-to-head,' home insurance expert Kara Credle from Guardian Service previously told 'Homeownership is no longer the financial safe haven it used to be.'
CNA
6 days ago
- Business
- CNA
CNA Correspondent - China's Greater Bay Area: Thriving or Trying?
Eight years on, China's Greater Bay Area has boosted cross-border links and reshaped urban dynamics in regions like Hong Kong and Macau amid a property crisis and shifting demographic trends
Malay Mail
06-07-2025
- Malay Mail
Urban explorers find beauty in China's abandoned buildings amid property crisis
SHANGHAI, July 6 — Xu Pengcheng looks over his shoulder and, after confirming the coast is clear, helps his crew of urban adventurers climb through the broken window of an abandoned building. Long popular in the West, urban exploration, or 'urbex' for short, sees city-dwelling thrill-seekers explore dilapidated, closed-off buildings and areas—often skirting the law in the process. And it is growing in popularity in China, where a years-long property sector crisis has left many cities dotted with empty buildings. Xu, a 29-year-old tech worker from the eastern city of Qingdao, has amassed hundreds of thousands of followers for his photos of rundown schools and vacant cinemas. 'When people see these images, they find them incredibly fresh and fascinating,' he told AFP. 'The realisation that so many abandoned buildings exist—and that they can photograph so beautifully—naturally captures attention.' AFP joined Xu and his comrades at a deserted hotel in the outskirts of Shanghai for a unique photoshoot. From the outside, the hotel looked like a prefabricated medieval castle. Once inside, it was clear the property had been abandoned for years. Searching through the rooms for good spots for striking photos, Xu and his friends came across remnants of the hotel's past—a mahjong table, laundry sheets and piles of dinner plates. Props from past photoshoots were scattered on the floor and on one ballroom wall, 'Long Live Chairman Mao' was written in spray paint. China's recent property market downturn has left many abandoned large-scale projects ready ground for urban explorers. 'I don't think you would find sites like this in Europe,' long-time explorer Brin Connal told AFP as he walked around an empty, abandoned building. 'In China, there's a lot of these places which are unfinished.' Really special One such unfinished megaproject in Shanghai, the Pentagon Mall, has become such a hotspot that explorers leave messages for each other on the walls of its top floor. 'I think this is something really special about Chinese urban exploration,' said Sean, a Shanghai resident who did not want to give his real name. 'There's a very strong sense of community and it's very, very welcoming.' Situated in Shanghai's Pudong district, the project came close to completion in 2009 but investment fell through. The giant concrete building now sits mostly in disrepair—broken tiles litter the ground and a large faded map of the uncompleted mall is barely visible under a thick layer of dust. Some rooms still have signs of life, with mattresses from squatters, discarded takeout and cigarette boxes and even laundry hanging outside. 'In places like Shanghai, people always find a way to make use of these buildings, even if they're not completely built and completely usable,' said Sean's exploration partner Nov, who also asked to go by a pseudonym. Model Mao Yi poses on the ground for Xu Pengcheng (not pictured) as he takes pictures of her in a room inside an abandoned hotel in Shanghai. — AFP pic Way too dangerous Chinese social media companies are less enthusiastic. Looking up abandoned buildings on Instagram-like Xiaohongshu, users are met with a message warning 'there are risks in this area, please pay attention to safety and comply with local policies and regulations'. Connal, originally from Britain, told AFP he understood the restrictions. 'Some of them are way too dangerous, and some of these abandoned locations were getting overwhelmed with people,' he said. The hobby also takes place in a legal grey area. Many urban explorers go by a simple mantra—taking nothing from the places they visit and leaving nothing behind. But the act of trespassing can come with fines in China, just as it does in the West. Xu also acknowledged the risks that come with urban exploration—from angry security guards to errant circuitry. 'Firstly, you might face the risk of trespassing illegally. Secondly, private properties may have security guards or be completely sealed off,' he told AFP. 'These locations often involve hazards like no electricity or lighting, structural damage, and injuries from construction materials like exposed nails.' But model Mao Yi said the hobby offered a respite from the drudgery of big city living. 'Living in these sprawling metropolises of steel and concrete, we've grown familiar with the routines of daily life,' she told AFP. — AFP
Yahoo
06-07-2025
- Yahoo
China's abandoned buildings draw urban explorers despite risks
Xu Pengcheng looks over his shoulder and, after confirming the coast is clear, helps his crew of urban adventurers climb through the broken window of an abandoned building. Long popular in the West, urban exploration, or "urbex" for short, sees city-dwelling thrill-seekers explore dilapidated, closed-off buildings and areas -- often skirting the law in the process. And it is growing in popularity in China, where a years-long property sector crisis has left many cities dotted with empty buildings. Xu, a 29-year-old tech worker from the eastern city of Qingdao, has amassed hundreds of thousands of followers for his photos of rundown schools and vacant cinemas. "When people see these images, they find them incredibly fresh and fascinating," he told AFP. "The realisation that so many abandoned buildings exist -- and that they can photograph so beautifully -- naturally captures attention." AFP joined Xu and his comrades at a deserted hotel in the outskirts of Shanghai for a unique photoshoot. From the outside, the hotel looked like a prefabricated medieval castle. Once inside, it was clear the property had been abandoned for years. Searching through the rooms for good spots for striking photos, Xu and his friends came across remnants of the hotel's past -- a mahjong table, laundry sheets and piles of dinner plates. Props from past photoshoots were scattered on the floor and on one ballroom wall, "Long Live Chairman Mao" was written in spray paint. China's recent property market downturn has left many abandoned large-scale projects ready ground for urban explorers. "I don't think you would find sites like this in Europe," long-time explorer Brin Connal told AFP as he walked around an empty, abandoned building. "In China, there's a lot of these places which are unfinished." - 'Really special' - One such unfinished megaproject in Shanghai, the Pentagon Mall, has become such a hotspot that explorers leave messages for each other on the walls of its top floor. "I think this is something really special about Chinese urban exploration," said Sean, a Shanghai resident who did not want to give his real name. "There's a very strong sense of community and it's very, very welcoming." Situated in Shanghai's Pudong district, the project came close to completion in 2009 but investment fell through. The giant concrete building now sits mostly in disrepair -- broken tiles litter the ground and a large faded map of the uncompleted mall is barely visible under a thick layer of dust. Some rooms still have signs of life, with mattresses from squatters, discarded takeout and cigarette boxes and even laundry hanging outside. "In places like Shanghai, people always find a way to make use of these buildings, even if they're not completely built and completely usable," said Sean's exploration partner Nov, who also asked to go by a pseudonym. - 'Way too dangerous' - Chinese social media companies are less enthusiastic. Looking up abandoned buildings on Instagram-like Xiaohongshu, users are met with a message warning "there are risks in this area, please pay attention to safety and comply with local policies and regulations". Connal, originally from Britain, told AFP he understood the restrictions. "Some of them are way too dangerous, and some of these abandoned locations were getting overwhelmed with people," he said. The hobby also takes place in a legal grey area. Many urban explorers go by a simple mantra -- taking nothing from the places they visit and leaving nothing behind. But the act of trespassing can come with fines in China, just as it does in the West. Xu also acknowledged the risks that come with urban exploration -- from angry security guards to errant circuitry. "Firstly, you might face the risk of trespassing illegally. Secondly, private properties may have security guards or be completely sealed off," he told AFP. "These locations often involve hazards like no electricity or lighting, structural damage, and injuries from construction materials like exposed nails." But model Mao Yi said the hobby offered a respite from the drudgery of big city living. "Living in these sprawling metropolises of steel and concrete, we've grown familiar with the routines of daily life," she told AFP. acc/oho/je/dhw/rsc
Bloomberg
30-06-2025
- Business
- Bloomberg
The High-Stakes Talks Behind New World's Mega Loan Deal
When property industry veteran Echo Huang took over New World on Nov. 29, becoming the Hong Kong company's third chief executive in as many months, she had an unenviable task. New World's share price had lost over 80% in five years. It had just booked its first annual loss in two decades. Debt maturities were looming, and a property slump in both Hong Kong and mainland China was holding back asset sales. Over the following months, the real estate giant was locked in high-stakes, monthslong negotiations over a record $11 billion refinancing. Read the story of how New World fought to avoid an imminent crisis — one that could have dwarfed the failure of China Evergrande Group, considering the relative size of Hong Kong's economy. Nobody wanted to be the banker who tipped the financial center's fragile property market into crisis. In another sign of how the multi-year property crisis in China has increasingly pressured Hong Kong developers, real-estate firm Emperor's shares fell the most this year Monday before paring some losses, after it reported overdue bank loans and said it's talking to banks on a restructuring plan. Property prices in the city have dropped around 30% over the past four years, and are now around a nine-year low, as banks tighten credit lines.
