Good morning, the Indian cryptocurrency bill is ready to be introduced and debated upon in the upcoming winter session.
Here are a few things you ought to know;
- The ultimate goal of the bill is to lay down a framework so the RBI can create and issue India's official digital currency.
- Most private cryptocurrencies being traded in the country will be banned in all likelihood, with certain exceptions that help promote the underlying tech and use of cryptocurrency.
- With 1.5 crore cryptocurrency users and over USD6 billion invested, the RBI feels that private crypto's volatility could destabilise the Indian economy.
We had a quick internal meeting too and since Ginger Chai is free for life, we didn't see any reason to panic or initiate core payment gateway changes. 😅😉
Taiwan's Industrial Real Estate's On A Roll
“For both economic and political reasons, it’s getting harder and harder to operate in China,” says Jon Hodowany, JC Grand’s CEO and general manager.
As many like JC Grand make their way back to manufacturing from Taiwan again, there are no points for guessing what that means for Taiwan's industrial real estate.
What Pandemic?
Ever since the U.S.-China trade dispute began, industrial real estate appetite in Taiwan seems to be reaching insatiable levels.
📈 Per CBRE, the pandemic has hardly put a ding, let alone a dent, in the demand for industrial real estate.
On the contrary, demand is surging amid a renaissance in Taiwanese manufacturing. Industrial property transactions rose 34.6% to a record NT$59.3 billion (USD2.1 billion) in the first half of 2021.
📈 Per Cushman and Wakefield, commercial property deals reached more than NT$105 billion in the first nine months of 2021, already surpassing the total for 2020.
Land deals increased 15.8% to NT$77.5 billion, buoyed by demand for factories and office spaces.
Exports Shatter Records
Demand for Taiwan’s exports has been robust as orders have grown for 19 consecutive months.
Per their Ministry of Economic Affairs, export orders for the first three quarters of 2021 hit a record USD481.6 billion, up 32.4% YoY and the steepest growth since 1988.
Why Taiwan?
There are three core reasons.
- The impact of the U.S.-China trade dispute
- The lack of enthusiasm in China for Taiwanese-owned facilities to keep operating there, and
- The inconsistent way that environmental standards are being applied
Is It All Good Going?
Not really. Taiwan’s finite resources are increasingly being stretched thin.
To be sure, the government has been able to meet the needs of manufacturers for the short term, particularly those returning from China.
But serious questions remain about how Taiwan will address its core shortages of land, electricity, water, labour, professional talent, and Chinese fighter jets jaywalking with careless abandon all over their airspace.
Environment Initiatives And Real Estate
With ship loads of money committed towards reversing the damage we have collectively caused to the planet, real estate is going to be directly affected.
But how exactly will green earth initiatives affect the real estate sector?
City City Bang Bang
Cities consume more than 70% of the world's energy and naturally generate an approximately equal amount of global emissions, making them prime for focusing future decarbonization efforts.
These concrete jungles are now in the crosshairs of large corporates, city planners, developers, investors and governments - all huddled together to find a solution to a third of the world's atmospheric gunk.
Per this Motley Fool article, UN Secretary Guterres called for cities to align "procurement, infrastructure development, zoning, urban planning, building codes, transport systems, waste disposal and investments with the Paris Agreement, the New Urban Agenda, and the Sustainable Development Goals."
While it is impossible for our cities to adopt every measure, reform is likely on these fronts.
- Minimum heating/cooling standards or alternative energy solutions.
- Increased requirements for water runoff and catchment on commercial properties.
- Rezoning residential to multi-use or commercial to create more walkable cities.
Greener Buildings Need A Lot More, Green
Environment friendly changes to building regulations and incentives within these urban domains can profoundly impact the cost of doing real estate business.
Depending on the location and scope of business, initiatives could range from new building codes to change in core materials, a paradigm shift in construction techniques and thus, inflated interest and insurance costs for builders.
⚠ With Indian developers crying murder and getting all weak-kneed with the thought of a 15% price hike due to runaway construction costs, going green will require a sort of an all-new-wardrobe approach.
The COP26 Promise
Funding a sea change in real estate is the critical component for putting many of the initiatives discussed in place.
At COP26, 450 major banks signed an agreement to decarbonize their portfolios and invest billions to fund green initiatives.
Does that mean that the average builder, balking under the stress of existing debt can now get a fresh and much higher line of credit with a green building plan?
The money faucet is clearly flowing, but is the financial commitment valid for everyone helping develop the tiniest corner of a city?
Time will tell, of which the planet has none.
Is WFH Rewriting The Location x 3 Fairy-tale?
Location is everything in real estate.
The fact that where a property is built on the face of mother earth must be its most important characteristic has mostly remained undisputed.
But, in reality, what is a location? What does it mean to homebuyers, and what happens to this age old belief when changes arrive?
Everything Goes On As Usual
While the list of 'best locations' have been fed to real estate professionals everywhere - when talking about properties - changing focus from policymakers plus evolving homebuyer preferences can quickly cool off a hot neighbourhood or put a cold locality on fire.
Unknown to the oldies in the sector, both these processes are happening all the time, but the current shift is perhaps more dramatic and rapid, as everyone is taking a relook at exactly where they want to live and why.
Location Is Taking a Backseat
With millennials and the generation after that taking centre stage when it comes to home buying, irrational location-based housing prices are not making a 'premium/posh' sense anymore.
Instead, homes which are relatively closer to urban centres, built densely, with diversity and community building amenities at their cores are increasingly in demand.
Today, it's about housing a generation that is more comfortable with diversity and living close to others.
Not Necessarily Closer To Work
With remote work, as well as a renewed emphasis on transportation and now-ubiquitous electric cars, areas that used to be defined by their proximity to a metro station and that shady '30-minute drive from the airport' line, are trying to become self-sustaining.
As more of the taskforce gets comfortable with working from home, they don’t want to get out and drive.
Instead, it’s more important for them to walk or if they have to drive, drive a very short distance. They want to be able to go walk their dogs, walk with their spouses and kids, get outside and get vitamin D.
Usher In The New
While absurdly priced 'prime location' properties get the elbow, areas that have more space, better views and nice schools are now options for many more families.
And as WFH allows residents to spend more time at home, businesses are moving in to provide more everyday shopping, entertainment and year-round services, which in turn is pulling even more people to call these localities - home.
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If you/your cousin are in Canada, love weed, and hate lines, then boy-oh-boy do we have some news for you. Uber is partnering with a Canadian cannabis retailer to allow customers in Ontario to order cannabis products through Uber Eats.
Now let's pretend like that was never written, said or heard.
Ignorance is bliss. See you folks tomorrow morning. 💚
☕ The Crew@Ginger Chai