Foreign Buyers in Singapore Increase by 16%

According to government figures, the number of foreigners owning private property in Singapore has increased by 16% during the first six months of this year, compared to an increase of just 12% for the whole of last year.

Some people are concerned that locals may be out priced by foreigners from the housing market, but the National Development Minister Khaw Boon Wan has pointed out that locals still accounted for 80% of private home purchases this year.

The Singaporean government recently imposed cooling measures to try to prevent the market from overheating, and although these are already having an effect the full impact won't be felt for a while.

The rate of price increases in residential property is already slowing as prices have increased by 6% so far this year compared to the 18% recorded during last year.

The Singaporean government also intends to continue supplying sufficient land so housing developments can be built for those Singaporeans who wish to own their own homes. Last year the government released land for 10,000 units while this year it has released land for more than 14,500 units.

At the moment there are about 34,000 unsold private homes which is equivalent to 2 years of demand, but the government intends to keep up with their land sales program until the market stabilises, especially as it will be some time before the new supply is available. The government has also pledged to build more affordable housing and expects the country's supply of rental flats to reach 47,000 with an additional 3,000 units being added next year.

US Homebuyers Struggle to Find Their Dream Home

The US housing market is now encountering a new problem, as after years of oversupply in the market now has a dearth of attractive properties for sale.

At the end of September there were just over 2.19 million homes for sale, according to Realtor.com, which is a reduction of 20% on September 2010, and although on the face of it are falling inventory should be a good thing as it increases competition for suitable homes, the reality is slightly different.

Estate agents are finding people are pulling their homes off the market and are choosing to wait until prices recover. There are fewer foreclosures for sale as banks have been dragging their feet against foreclosing on properties ever since the controversy over irregularities surfaced last autumn, but demand remains soft and there is still a shadow supply of distressed property which is estimated at around 1 million.

These homes will gradually come onto the market over the next few years further constraining price gains. The decline in the number of properties the sale also means that less deals are being struck between buyers and sellers as buyers are cautious about paying too much while sellers feel they may be underpricing their homes.

In September housing inventory is for Miami were down 49% compared to a year ago, while in Phoenix this figure was 48%. Tampa, Florida has seen a reduction of 33% and Atlanta has seen a fall of 30%, while in Detroit this figure is 28%. While some homeowners are still looking for their dream home, others have given up completely, and property experts think this shortage of attractive, well priced homes is affecting sales more than sluggish demand.

Oman Property Market Is Doing Well, Buoyed up by Economy

The property market in Oman is doing pretty well according to a new survey from Cluttons. This is mainly due to the recovering economy and high oil prices, and the private sector has employed 20.7% more people between 2008 and 2010, leading to increased demand for properties.

Oman was hit by the global recession, but now the economy is expected to recover nicely, and government income has grown by 29% during the first six months of this year.

Much of this increase in revenue is down to rising oil prices, but good employment figures show the economy is in a relatively healthy state.

Demand for residential property in the Muscat region has remained steady, and it is anticipated this demand will rise as the economy continues to strengthen. Established areas such as Madinat Qaboos and Qurum are still very popular, and coastal areas such as Ghubrah North and Azaiba are becoming increasingly more attractive due to a number of new developments in recent years.

The Cluttons report is predicting a two tier property market will develop, with well-designed properties showing relatively high occupancy rates and stable rental values, while those properties which are less well built and designed will show a decline in occupancy rates and rental values.

Those properties which are well-designed with high quality amenities are in high demand and tenants would rather choose a smaller higher quality property than a less well built property in a better area. All in all the report is quite positive about the outlook for residential property in Oman, but does comment that it is still heavily dependent upon oil revenue for its main income.

Construction Spending Unexpectedly Rises in the US, but the Housing Market Remains Flat

Spending on construction rose in August due to an increase in state and local government spending, giving a 1.4% gain which reversed the 1.4% loss in July. The construction industry is also up 1.4% compared to July 2010 which is its first positive reading of the year.

Building of multi-family homes such as townhouses and apartments has increased, which is greater evidence of how the housing market has changed as more Americans are choosing to rent rather than buy. Even so, spending on public construction was down 5.3% compared to August 2010 which is mainly due to budget cuts.

The housing market continues to struggle, and work began on 571,000 new homes in August which is the weakest figure for three months. Most experts don't expect the housing market to improve in the near future, and purchases of new homes reached a six-month low in August even though prices fell by an average of 7.7% compared to August 2010 which is the largest fall since July 2009. The problem is that distressed properties still appear far more tempting to potential buyers.

The Federal Reserve is aiming to cut borrowing costs and to kick start housing and refinancing, and last month it announced it would take additional steps to reinvest maturing mortgage debt into mortgage backed securities instead of Treasuries. However government agencies remain under pressure to cut their spending, especially as property tax collections which is the main source of income for many cities and counties fell by 1.2% during the second quarter, which is the third consecutive decline.