Clear Law Weekly Roundup: Your Commercial Edge in Focus

Every headline holds a lesson—let’s unlock it together. 📰⚖️

Today's Top 4 Headlines You Can't Miss!

Stay ahead of the game with the hottest stories shaping the business and legal world. 🚀 Here’s your fast track to this week’s must-know news:

🏠 Property
Londoners are increasingly moving abroad as the capital sees a shift in its housing dynamics. Amidst soaring living costs and challenging market conditions, builders are projected to complete the fewest new homes in a decade, exacerbating the housing shortage. This double-edged trend reflects a complex housing market reshaping London’s demographics.

🚗 Electric Vehicles
China is racing ahead in the EV revolution, with electric vehicle sales set to surpass traditional car sales years ahead of Western markets. This milestone showcases China’s aggressive push towards clean energy and could redefine global automotive trends.

🕶️ Smart Glasses
The competition in smart glasses is heating up! Meta plans to integrate displays into Ray-Bans, aiming to blend tech with fashion. As rivals push boundaries, the race to dominate this innovative market intensifies, signalling the future of wearable tech.

📉 Singapore Exchange Ltd
Singapore’s Stock Exchange hits a 20-year low in listed companies, marking a concerning trend for Southeast Asia’s financial hub. With fewer new listings and heightened global competition, SGX faces pressure to revitalize its appeal to businesses and investors.

Which headline sparks your curiosity? Dive in and stay commercially sharp!

Today's Detailed Report: Dive into the Key Insights 📊 

Number of Londoners moving out of the UK - Capital Falls to Lowest since 2013

London residents purchased 5.7% —or 57,000 —of the homes sold outside the capital this year, the lowest share since 2013 and nearly half the Covid-era peak in 2021 according to research by estate agent Hamptons.

Property prices have risen 26% in London over the past decade, compared to 39% elsewhere in the country, according to Hamptons, which analysed data from about 650 branches of fellow estate agents Countrywide.

In addition to higher property costs in other parts of the UK, Marc von Grundherr, director at estate agent Benham & Reeves, said a return to in-person working after the pandemic had kept Londoners in the capital.

Londoners Left smaller urban homes in 2020 in search of more space in the countryside.

The most popular locations for first-time buyers from London were commuter towns with good transport links. Just under half of all buyers in Brentwood in Essex were from London this year, up from 23% in 2019.

Property prices in parts of central London have fallen over the past decade, even though the capital remains by far the most expensive part of the country.

In relation to this….

UK’s listed builders are on track to build the fewest new homes in a decade

This is largely because the planning rules and high mortgage rates hold the market back despite the Labour government’s push to increase the housing supply.

The widespread housebuilding contraction poses a huge challenge for PM Sir Kier Stramer’s Labour government, which has launched sweeping planning reforms in an effort to boost the construction of new homes to the highest level in more than 50 years.

Labour’s planning reforms have been welcomed by the construction sector but shares in UK housebuilders have fallen by about fifth since its Budget in October, which raised fears of resurgent inflation and borrowing costs staying higher forever.

Impact on Law Firms

1. A shift in Real Estate Transaction Volume: A slowdown in homebuilding and reduced movement of Londoners out of the capital could reduce the number of transactions handled by property law practices. Commuter towns and other regions with increased demand might become focal points for real estate activity, requiring law firms to adapt their geographical focus. Law firms can assist with drafting contracts, conducting due diligence, and navigating legal complexities in property transactions.

2. Increased Regulatory Complexity: Labour’s planning reforms and existing stringent planning rules create more legal hurdles for developers, investors, and housebuilders. This increases the need for law firms specialising in planning and regulatory compliance. Law firms will provide expert guidance on Labour’s planning reforms, helping developers and investors understand the implications and secure permissions for new projects.

3. Litigation Risk: High mortgage rates and economic uncertainty may lead to disputes over property contracts, planning rejections, or insolvencies in the construction sector. Law firms will represent clients in disputes over property contracts, planning permissions, or project delays. They will also help homebuilders and developers navigate insolvency proceedings or assist creditors in recovering debts.

China’s EV sales set to overtake traditional cars years ahead of west

Electric vehicles are expected to outsell cars with internal combustion engines in China for the first time next year, a historic inflexion point that puts the world’s biggest car market years ahead of Western rivals.

China is set to smash international forecasts and Beijing’s official targets with domestic EV sales — including pure battery and plug-in hybrids, growing about 20% year on year to more than 12mn cars in 2025, according to the latest estimates supplied to the FT by four investment banks and research groups.

At the same time, sales of traditionally powered cars are expected to fall by more than 10% next year to less than 11mn, reflecting a nearly 30% plunge from 14.8mn in 2022.

Meanwhile, EV sales growth has slowed in Europe and the US, reflecting the legacy car industry’s slow embrace of new technology, uncertainty over government subsidies and rising protectionism against imports from China.

Impact on Law Firms

1. Increased Demand for Legal Expertise in EV and Battery Technology: The surge in EV sales in China will create opportunities for law firms to assist automakers, battery manufactures, and suppliers with intellectual property (IP), regulatory compliance, and contract drafting for supply chains. EV-related technologies like battery patents, renewable energy integration, and autonomous driving systems will require specialised legal advice.

2. Cross-border Trade and Investment: The growing disparity between China’s EV market and slower adoption in Europe and the US will intensify cross-border trade, raising the need for legal support in navigating tariffs, anti-dumping regulations, and import/export restrictions. Law firms will advise international clients on entering the Chinese EV market, including compliance with local laws, government subsidies, and environmental regulations.

3. Mergers and Acquisitions: Western automakers and investors seeking to collaborate with Chinese EV companies will need guidance on structuring deals, managing regulatory approvals, and protecting proprietor technology. Chinese EVE firms expanding globally will require assistance with acquisitions, joint ventures, and compliance with local laws in foreign markets.

Meta to add display to Ray-Bans as race over smart glasses intensifies

Meta plans to add a display to its Ray-Ban smart glasses as soon as next year, as the US tech giant accelerates its plans to build lightweight headsets that can usurp the smartphone as consumers’ main computing device.

The 1.5tn social media group is planning to add a screen inside the $300 sunglasses it makes and sells in partnership with eyewear group EssilorLuxottica.

The updated Ray-Bans could be released as early as the second half fo 2025, the people said. The small display would be likely to be used to show notifications or responses from Meta’s virtual assistant.

The move comes as Meta pushes further into wearable devices and what chief executives Mark Zuckerberg hopes will be the next computing platform, as rivals as Apple, Google and Snap also race to develop their own similar products.

Ray-Ban Meta glasses have become a surprise hit among consumers after the latest version was launched in September 2023. While the first version of a display would be likely to show simple text and images, it would represent a significant step towards converging the device with Zuckerberg’s longer-term vision of AR glasses that can display a virtual world transposed upon the real world.

Impact on Law Firms

1. Intellectual Property: The integration of new technologies, such as displays in smart glasses, will raise IP issues related to patents, trademarks, and trade secrets. Companies like Meta will need robust IP strategies to protect innovations and avoid infringing on competitors’ IP rights. Law firms will guide clients in securing patents for novel hardware and software features, ensuring protection in key jurisdictions, and managing disputes in the competitive wearable technology market.

2. Privacy and Data Protection: Smart glasses with displays could raise concerns about data collection, storage, and usage, particularly regarding live notifications and interactions with virtual assistants. Firms will help clients navigate global data protection regulations, such as the GDPR, CCPA, and others, advising on user consent protocols, transparent data policies, and mitigating risks of non-compliance.

3. Ethical and Social Implications: The broader societal impact of smart glasses, including issues like augmented reality’s effect on misinformation or public surveillance, may create reputational and legal risks. Firms will help clients incorporate ethical considerations into product design and marketing strategies, reducing risks of backlash and litigation.

Singapore Stock Exchange Hits 20-Year Low in Listings

The Singapore Exchange (SGX) has reached a 20-year low in number of listed companies, dropping to just 617 as of October 2024. This marks a significant decline from its peak of 782 in 2013, with only four companies going public this year.

Why the Decline?

Singapore-based companies are increasingly opting for overseas markets, particularly the US, where larger and more liquid stock exchanges provide greater opportunities. High-profile examples include fast-fashion giant Shein, considering a London IPO, and superapp Grab, which chose New York.

Meanwhile, the SGX struggles to compete despite its strong bond trading, derivatives, and real estate investment trust (REIT) markets.

Government Action

The Monetary Authority of Singapore (MAS) has launched a review of the equity market to attract more listings. Proposed measures include:

• Attracting fund managers to invest in the SGX

• Relaxing some disclosure rules and investor safeguards to encourage IPOs

Findings from the review are expected in August 2025.

A Tough Year Globally

Singapore is not alone in facing challenges. Stock exchanges worldwide, including London, are struggling to attract IPOs due to stiff competition from the US. Across Southeast Asia, IPO activity has hit its lowest in a decade.

• Singapore: Just $31mn raised from four IPOs.

• Malaysia: 46 IPOs, the highest in the region.

• Philippines: $197 raise from three IPOs, far surpassing Singapore.

Looking Ahead

Industry insiders are optimistic about a rebound in 2025, with several IPOs reportedly in the pipeline. However, scepticism remains, particularly over potential reforms to Singapore’s Central Provident Fund, which could unlock new investment pools for domestic stocks.

Will Singapore bounce back? The next year will be crucial.

Impact on Law Firms

1. Increased Demand for Dual Listings: Companies may explore dual listings to access more liquid markets like the US while maintaining a presence in Singapore or their home markets. This will require expert legal advice to navigate cross-border complexities. Lawyers can assess the pros and cons of various stock exchanges, factoring in liquidity, investor appetite, and regulatory frameworks, to guide clients in making strategic decisions.

2. Cross-border Transaction Work: The trend of delistings and overseas IPOs is expected to grow, driving demand for legal expertise in restructuring and navigating international securities regulations.

3. Shift Toward M&A and Private Capital: With IPO activity slowing, companies may turn to mergers and acquisitions or private funding as alternative growth strategies, increasing the need for transactional legal support. For clients unable to list or facing challenging IPO conditions, law firms can recommend private equity investments, debt financing, or SPAC mergers as viable options.

🎉 Last Weekly Report of 2024 – Let’s Keep the Streak Alive in 2025! 🚀

Enjoyed this read? Share the insight! 📩

Forward this email to a friend or colleague and help them stay commercially savvy. Together, let's make digesting commercial news easier and more engaging! 

New to Clear? Don’t Miss Out! 📬

Subscribe now to stay in the loop with the latest commercial insights and top headlines delivered straight to your inbox. Stay informed, stay ahead! 🌟

Thank you for reading😀