ecember 20, 2005 - are still down 80 percent from
Successive interest rate the peaks of 1990, but are
increases by the Fed have starting to make a come back.
left everyone wondering what is With interest rates at record
going to happen next with Real lows and Japan's economy showing
Estate. Will the boom continue or growth for four straight years,
is this the beginning of a commercial property prices have
gradual slow down? actually increased this year for
the first time in 15 years.
As Jim Jubak, writing in Jubak's
Journal, points out, the effect As a sign of their confidence in
of steady increases will have a the Japanese economy, American
much broader impact than just on International Group Inc., the
those who have adjustable-rate world's largest insurer, has
mortgages or are locked in begun negotiations for the
because of bad credit ratings. He purchase of a $3.4 billion office
reports that many large mortgage tower in downtown Tokyo.
companies are now selling off
riskier holdings to third and **Builder Confidence Declines
fourth parties -- parties Slightly in US**
prepared to put their faith in
the ever upward march of prices. Builders of single-family homes
But as Jubak says, "It's never a across the US showed slightly
good sign when the folks that decreased confidence in the
know an asset best are selling." market going into December.
According to a recent survey of
**Commercial Real Estate Prices members, the National Association
in Japan Show Increase** of Home Builders/Wells Fargo
Housing market Index (HMI) showed
Tokyo's commercial land prices a slight decline from November.
Stronach, is being accused of
The December index was down from misusing the assets of MI
61 to 57, with anything above 50 Developments, a publicly-traded
indicating "good" sales company that acts as the real
conditions. Ratings are based on estate wing of Magna
total traffic, resistance to International.
current pricing, interest rate
concerns and several other According to lawyers for
factors. While December's number Greenlight Capital, Inc., a 10%
is still above 50, it is at its owner of MI Developments,
lowest point since April, 2003. Stronach used "oppressive
The national average was brought conduct" to direct the resources
down by a 33 reported for the of MI Developments towards
Midwest. propping up another of his
companies, Magna Entertainment
**Magna owner misused influence Corp. This third company runs
according to minor shareholder** several racetracks across North
America.
The founder of Magna
International Inc, Frank
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