Professional Documents
Culture Documents
2017
UNITED KINGDOM
The British people may have voted to leave the
European Union last June, but there are a
thousand different ways this could play out,
ranging from a hard to a soft exit. Prime Minister
POLITICAL
of the Lisbon Treaty by the end of March 2017,
which would officially start the exit process.
POPULISM
promised a clean break from the single European
market, but also indicated enthusiasm to work
with the EU on trade agreements and other
matters. May envisions a phased arrangement
requiring at least two years to complete and
including a Parliamentary vote on the final Brexit
THE IMPACT OF
POLITICAL POPULISM
ON U.S. AND EUROPEAN REAL ESTATE
806%
Bellingham, WA
1. [TAX POLICIES ] 502%
Urban, Honolulu, HI
Generally speaking, countries see foreign investment in real estate as a positive 458%
Kahului-Waluku-Lahana, HI
development and prefer to remove, rather than erect, barriers to ownership. However,
392%
when demand soars and prices are driven so high that local buyers can no longer afford Naples-Immokalee-Marco Island, FL
to live in their communities, the political winds may suddenly shift. 371%
El Centro, CA
Thats what happened in London in 2015, when the British government closed a loophole 346%
Los Angeles-Long Beach-Anaheim, CA
in its tax code requiring UK homeowners from overseas to pay a capital-gains tax when
346%
their property is sold. The move followed another decision to increase the stamp duty on Miami-Fort Lauderdale-West Palm Beach, FL
properties priced at or above 1 million. The initial effect of the tax changes appeared to 332%
be a slowing, rather than a reversal, of London housing price increases. Brownsville-Harlingen, TX
312%
El Paso, TX
Then last year, Vancouver took the surprising step of imposing a 15 percent surcharge
310%
on foreign buyers of Vancouver properties, where home prices were almost double Hinesville, GA
Canadas national average. In this case, the effect was immediate and dramatic. 307%
Yuma, AZ
In the first month of the new tax, participation by foreign nationals virtually dried up. 289%
Seattle-Tacoma-Bellevue, WA
Vancouver home sales fell 26 percent from a year earlier, while the average price of
280%
single family homes fell to the lowest price levels since September 2015. Cape Coral-Fort Myers, FL
266%
Where did these buyers go? Some shifted their sites to Toronto, while others explored Orlando-Kissimmee-Sandford, FL
options south of the border. The impact was clearly apparent in data compiled by 250%
McAllen-Edinburg-Mission, TX
realtor.com/international, where Bellingham, WA suddenly surged to the top of the list
of U.S. property searches conducted by international visitors to the site during October
242%
Lakeland-Winter Haven, FL
2016. (See International Traffic Propensity, right) 236%
Anchorage, AK
2
Venezuela tightly controls two legal exchange rates, but people and businesses regularly
turn to a black market when the government wont approve the purchase of dollars at legal rates.
Canalwill be fully capable of handling more cargo traffic since the completion of a
major expansion project in 2016.
The expansion doubled the waterways capacity by deepening both entrances, dredging
existing channels, adding a new Pacific access channel, as well as a third set of locks
(a lane for larger ships), allowing the passage of vessels up to 13,000/14,000 TEUs3
versus 5,000 TEUs for pre-expansion cargo ships.
4. [POLITICAL UPHEAVAL]
More than two years behind
schedule and one billion The Growth Whenever one country experiences political
dollars over budget, the of Container Ships unrest, there is always the risk of a domino
Panama Canal expansion effect spilling into neighboring countries or
opened during difficult across the global stage. At the start of 2017,
financial times for the shipping 1984 its Syrias President Assad who continues
American New York 4,600 teu
industry. Still, early anecdotal to preside over what is easily the worst of all
evidence suggests the expansion political situations.
is bringing more and bigger 1997
Susan Maersk 8,000+ teu
ships into the Gulf of Mexico The Syrian Civil War, which began in 2011,
and other east coast ports in now involves multiple military forces from
the U.S., only four of which can
currently handle vessels in the
2003 within and outside of the Middle East. It has
Anna Maersk 9,000+ teu displaced roughly 11 million people (half the
10,000+ TEU range (although countys population), creating a humanitarian
several ports are stepping up crisis for the refugees, a potential crisis for
efforts to upgrade their host countries, and a political crisis over
their facilities). 2006 how to resolve the situation. The rise of the
Emma Maersk 11,000+ teu
Islamic State both intensified and expanded
Wherever trade improves, the conflict, easily the most deadly war of the
there is a commensurate 21st century, into Iraq and beyond.
increase in foreign nationals
needing residences and 2012 Other political disputes, such as the
Marco Polo (CMA CGM) 16,000+ teu
facilities to support more impeachments of Brazils President Dilma
shipping activity. It remains Rousseff and South Koreas President Park
to be seen, however, whether Geun-hye, also bear watching. On the Korean
greater physical capacity for peninsula, in particular, experts express
imports/exports will be 2014/15 concern that destabilization of South Koreas
met with non-restrictive CSCL Globe/MSC Oscar 19,000+ teu
political system might invite North Korea to
trade policy decisions. Source: World Shipping Council engage in new military provocations.
3
TEU stands for Twenty-Foot Equivalent Unit, the standard measure of a shipping container thats
20 feet long and 8 feet tall.
GEO-POLITICAL DEVELOPMENTS
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