German Property Price Rises Expected to Decelerate

Property prices in Germany are expected to continue decelerating as the economy is slowing down. During the second quarter of this year the hedonic house price index fell by 2.65% compared to the previous quarter after showing a rise of 2.8% in the third quarter of 2011, of 2.7% in the fourth quarter, and of 3.9% during the first quarter of this year.

In June this year the average price of an apartment fell by 1.74%, while the average price of a new detached home dropped by 0.28%. However the average price of existing homes increased by 3.94%.

In the year ending June 2012, the overall house price index increased by 6.7%. The average price of an apartment was €149,700 in June, while the average price of a new detached home was €250,600, and the average price for existing homes was €192,950.

Over the last couple of years prices in Germany have increased modestly, with the house price index rising by 2.97% in 2010, and by 5.44% in 2011. The number of dwelling permits increased by 21.7% to reach 228,400 units in 2011, and completions rose by 14.6% to 183,000 units.

Last year the German economy expanded by 3%, after seeing GDP growth of 3.6% in 2010. However this year the IMF is predicting growth of just 0.6%, and the first-quarter of this year saw growth of just 0.5%. Last month Moody’s placed Germany on a negative sovereign credit outlook due to the burden the country faces in its efforts to keep the Eurozone together during the current debt crisis.

However rental yields are increasing and most Germans choose to live in rented accommodation rather than buy their own home. Around 55% choose to rent whereas owner occupation is currently somewhere around 42%.

New Zealand House Sales up 20% on Last Year

Latest figures from the Real Estate Institute of New Zealand show how sales rose in almost every region of the country in July 2012, increasing nearly 20% compared to a year ago. Their data shows there were 5,907 unconditional sales in July, an increase of 19.9% compared to the same month last year, but a fall of 3.7% compared to June.

In June the national median house price reached a high of $372,000, but July saw this price decline by $11,000 to reach $361,000. Just about every region recorded an increase in sales volumes compared to July 2011, with Taranaki registering the largest increase of 62.7%.

Much of the interest remains centred on Auckland and Christchurch. Auckland in particular has seen strong demand right throughout the winter, even though property prices aren't increasing substantially. The median price in Auckland has been at a high of $500,000 for three consecutive months, while the median price in Christchurch has increased to $354,300 due to continuing short supply.

According to estate agents these figures show a recovery rather than a boom in the housing market. They have pointed out the number of housing transactions in earlier years such as in July 2003, reached highs of more than 10,000, and that the easing of the national median house price shows buyers are still cautious.

According to government value, Quotable Value, national property prices rose by 2.2% during the three months to the end of July, and have increased by 4.6% during the past 12 months. Their figures show property prices are now just 0.8% of the market peak reached in 2007.

Property Prices in China Begin to Rise Again

The average price of housing in 70 cities in China increased in July for the second straight month leading to speculation that property prices have already bottomed out. However experts feel the government is unlikely to let prices rise to much, and will act to curb any return to speculative buying.

Data provider China Real Estate Index System surveyed real estate firms and property developers and found the average price of housing was $1,369 per square metre in July, an increase of 0.33% on June.

Analysts have also noticed some property showrooms have been very crowded during project launches, as an easing of property curbs seems to have resulted in increased sales numbers which in turn is driving up prices. Property prices rose in 70 cities, but fell in 30 cities compared to the previous month. The largest increases were seen in smaller cities, with Liaocheng and Wuhu city posting increases of 2.7% and 2.67% respectively.

These price increases haven't gone unnoticed by central government who is already warning local governments to tighten up the property curbs.

The news for August may be a little better for the government as it's typically quiet and prices could moderate. Overall experts still think there could be some downward pressure on prices, and that average prices will remain flat compared to the last few years.

The government still remains adamant over curbing investment demand and is doing its best to make sure that homes are for real use rather than just for investment. It predicted that inventory levels will peak during the fourth quarter and that this will keep prices from rising too quickly.

Latest Figures Show New Home Sales Increased in Australia

The latest figures for June show sales of new homes in Australia increased for the second month in a row, according to the Housing Industry Association. Their report showed an increase of 2.8% in June which is being attributed to a 15.7% increase in the sales of multi-units. In contrast the sales of detached homes grew by just 0.7% in June having declined by 2% in May. 

The chief economist for the HIA, Harley Dale, has pointed out that although these figures are encouraging sales in the multi-unit sector are still 36% below their 10 year average.

During the last quarter the sales of detached homes fell by 1.1%, and were 24.5% lower than the same quarter last year. Sales volumes for detached homes are currently around 35% below the 10 year averages.

Lower interest rates may help the housing market to some extent, but this impact is likely to be minimal. Experts believe more investment and reform from the governments, and especially the federal government, is key in helping to boost the housing sector.

Seasonally adjusted figures for June show the number of new detached house sales rose by 2% in New South Wales, by 4.4% in South Australia and by 23.5% in Western Australia. However sales of detached houses fell by 11% in Queensland and by 9.6% in Victoria. Seasonally adjusted figures for the June quarter show sales of detached homes fell by 6.2% in New South Wales, by 21.1% in Queensland and by 8.3% in South Australia. However Victoria sales increased by 9.8% due to first-time buyers making the most of the state boost before it ended.

American Housing Market Turns Again

It was fun to get swept up in the reports that the US housing market had bottomed, and indeed that is what mounting evidence seemed to suggest. However, the latest round of data has really knocked the stuffing out of any hopes that we are in recovery.

The Commerce Department found that new build home sales fell sharply in June. According to the report signed contracts to buy new homes fell 8.4% from the previous month, according to the U.S. Commerce Department, although they are still up 15% from a year ago. Sales levels are now at their lowest since January.

Sales of existing homes slipped 5.4% in June to an annual rate of 4.37 million units and are down 2.6% in the second quarter (4.537 million units). Combined sales of new and existing homes fell 0.4% to an annualized rate of 4.9 million homes, following three consecutive quarterly gains.

Meanwhile the rental market remained positive, with the residential rental vacancy rate falling to 8.6 per cent from 8.8 per cent in the January-March period, the commerce department said on Friday. The second-quarter reading was the lowest since 2002.

It can still be hoped that the strength in the rental market will lead to recovery in the wider market, especially as builders break more ground on multi-family housing projects. On that note, the home ownership rate edged up to 65.5 per cent in the second quarter, from 65.4 per cent in the previous quarter, the commerce department said.

Of course, the strong rental market continues to be good news for foreign investors in the US property market, and foreign investors needn't particularly care about a recovery in the wider market as long as their properties are earning good rents. That said, if the recent run of positivity wasn't the recovery then one wonder when is the US market going to recover. However, June's data could yet come to be seen as a blip on the upward trajectory of recovery – time will tell.

View property for sale in America

Mumbai Property Market Grinds to a Halt

According to the latest Knight Frank report, the property market in Mumbai is seeing low levels of activity. There are fewer apartments and homes being put on the market as sellers wait for conditions to improve. Buyers are also being put off by increases in building costs, and some of the better neighbourhoods are seeing vacancy rates as high as 48%.

Between 2011 and 2012 just 45,000 apartments were sold in Mumbai's metropolitan region which is well below the market average of 80,000 units a year. There is a current inventory of 80,000 flats, but many buyers are choosing to wait and see believing prices will drop in the near future.

Since the peak of the market in 2007 sales have dropped by more than 60%, and by 35% from 2011. Normally this decline in sales would have brought about a price correction, but this hasn't happened as a delay in approvals has ensured the market equilibrium is maintained. The fall in the number of units launched has offset the impact of prices.

So far this year just 55,000 flats have been launched which is a decline of many 40% compared to the 92,000 units launched in 2011. Developers are choosing to actively delayed project launches, and to sell current inventory before launching any fresh product to help ease any downward pressure on prices. Many developers simply cannot afford to cut prices as the costs of land, raw materials and labour have risen substantially, eating into current operating margins of 30% to 35%.

Foreign Investors Losing Love for Singapore, or Maybe their Bottle

Singapore is seeing fewer foreign investors, and this is at least partially due to the stamp duty recently imposed on overseas buyers. Developers who are willing to absorb at least part of the stamp duty are continuing to see sales. 

The increase in stamp duty was one of several measures imposed by the Singapore government in order to curb sales to foreign investors as there work concerns that housing was becoming too expensive for residents. By the time these measures were in place the international sales market had already quietened down due to the global economic situation, and the introduction of additional taxes has only cooled the market down further.

During the first quarter of this year property values in Singapore fell for the first time in three years, according to data from the government. Property prices at the higher end of the market fell by 0.9% compared to the previous quarter. 

Prices are expected to continue to decline for the rest of this year due to the number of properties currently on the market. Although these price declines are minimal, they are in considerable contrast with the price increases seen over the past few years, as Singapore has seen the largest price gains in the world. 

Between the fourth quarter of 2006 and the fourth quarter of 2011, property prices in Singapore have risen by 50.5%. The only areas to see larger price increases are China, Hong Kong and Israel. In 2007 the price increase for Singapore was an incredible 33%. Singapore is desirable as it is seen as being a relatively transparent market, especially in comparison with other Asian cities. The percentage of foreign buyers increased from 11% in 2005 to 17% in 2011.

Draft Mortgage Law Approved in Saudi Arabia

A draft mortgage law has just been approved in Saudi Arabia, and will allow mortgages to be sold in the kingdom. It is hoped this will help address one of the most critical issues in the Saudi Arabia which is the shortage of housing.

Saudi Arabia is a country of 27 million people, and the majority are under the age of 30. There is a huge lack of affordable housing, and limited finance options to help young people get onto the housing ladder. This new law should help bridge that gap, and will also boost revenue to banks. According to Jones Lang Lasalle, demand could be for between 150,000 and 200,000 units a year, but it's thought the banks are well equipped to cope with this level of demand.

The law has been a long time coming, as it has had to deal with a number of sensitive issues such as how to deal with the homeowner if they default on their mortgage. These types of issues have to be dealt with in an Islamic sharia compliant manner.

Apparently the draft of the new law includes various measures to ensure the safety of the financial system, while making sure the transaction is fair. Some home loans do already exist in Saudi Arabia, and payments are deducted from salaries as soon as they enter bank accounts.

However this is the first time a product can be secured against the property, allowing the borrower to benefit from owning such an asset. According to the Saudi Arabian Monetary Agency, the regulation of the new mortgage sector will be undertaken by the central bank in Saudi Arabia.

Demand for Homes in US Rises More Than Expected in May

The demand for new homes in the United States increased more than expected in May, and mortgage rates have dropped, helping boost the residential property market. This is just as well as other parts of the economy are cooling. Purchases for May reached an annual rate of 369,000, which is the highest since April 2010 and is 7.6% more than the previous month.

The number of houses on the market is steadily reducing. It's likely that the reduced cost of borrowing will help boost buyers' confidence. The Federal Reserve recently extended a program designed to keep long-term interest rates low with the aim of reducing unemployment and preventing a global slowdown from stalling the property market.

The median sales price has increased by 5.6% compared to the same month last year to reach $234,500, and prices have increased since February which is the best performance in five years. Purchases rose by 37% in the North East, and by 13% in the South, but demand dropped by 3.5% in the West, and by 11% in the Midwest.

Last month there were 145,000 newly constructed houses on the market, up slightly from the record low of 144,000 recorded for March and April. The supply of new homes on the market dropped to 4.7 months, which is the lowest since October 2005. Due to growing demand builders broke ground on 516,000 single-family homes in May, up 3.2% from April. Although economists are optimistic about the latest news, they still caution that there is a long way to go before the market returns to anything sort of normality.

View American property for sale

Canadian Residential Property Sales Declined in May

Canadian residential property sales declined last month, and were
down by 3.1% compared to April, according to data from the Canadian
Real Estate Association. This is the first monthly decline since the
beginning of the year, but activity levels were still slightly above
the five and 10 year averages for May, showing the housing market is
still in reasonable shape.

The average price for a house sold last month was $375,605. This
is a 0.3% decline compared to May 2011, and although the national
average has remained pretty flat since last spring, sales prices have
increased in seven out of ten local Canadian markets.

Toronto is still Canada's most active housing market, and property
is selling quickly, but sales and average prices are also up in
Calgary compared to May last year. In comparison the rest of the
market in Canada has seen only modest growth, and market conditions
remain balanced. The number of newly listed homes has changed little
during the past three months, and listings were up just 0.3% compared
to April.

The number of new listings for the month was static in 49 markets,
and eased in 52 markets. The new listing to national sales ratio,
which is a measure of market balance, was 53.4% in May, slightly down
from April when the reading was 55.3%. National inventory levels were
at 5.9 months at the end of May, which is a slight increase on
April's 5.7 months. Experts consider housing supply and demand in
Canada to the balanced.

Property in South-East Asia Set to Boom

According to Jones Lang LaSalle, the property markets in Southeast Asia could begin to boom. The firm believes there are several factors which will influence the markets, including growing affluence and urbanisation in these countries, which will result in an increased demand for housing as well as commercial property and infrastructure.

In addition this should lead to increased tourism both from within the region and outside, and it's expected there will be considerable demand for property in developing countries such as Laos and Myanmar. here should also be an increased demand for hospitals and clinics, as more these affluent societies begin to focus on improving health.

Education is another sector expected to see increased demand, as there will be an additional need for schools and colleges as well as the associated housing and infrastructure.

However Jones Lang Lasalle has pointed out changes will need to be made to land ownership laws in order to encourage investment. This means there will be a need for increased transparency and professionalism within the property sector. At the moment there are a number of differences between the countries regarding foreign property ownership, and these need to be managed more efficiently in order for opportunities to be maximised.

Economies such as Laos and Cambodia have only recently opened up, and although there are numerous business opportunities investors need to feel confident about conducting transactions in such countries. If these difficulties can be ironed out then the property market can develop more quickly, and more money can be invested into countries in South-East Asia.

Danish Property Market Could Get Worse Before It Gets Better

The property market in Denmark could get worse, as property values are dropping, the jobs market is growing, and private levels of debt are high. House prices in Denmark have declined by 25% since their peak in 2007, and the government has predicted prices will fall by a further 5.5% this year.

In March, property values fell by an annual rate of 8.6%, according to Statistics Denmark, so at least the decline is slowing. Unemployment is being predicted to rise to 7.6% this year, up from 7.4% last year according to the Organisation for Economic Corporation and Development.

According to Moody's, this combination of factors has left many households vulnerable. It estimated private debt levels reached 142% of GDP at the end of 2010. This rate is twice the European Union average of 79%.

Moody's has downgraded nine Danish financial institutions, and the financial crisis has claimed five banks since 2011. In spite of this Denmark is still one of only 12 nations to hold its triple A rating, and has emerged as something of a safe haven due to its fiscal discipline.

Denmark has a current account surplus, and last month the government cut the budget deficit target to 3.8% this year, and 1.7% for 2013. In comparison the average deficit in the European Union is 3.6% for 2012, and 3.3% for 2013.

Although Denmark is being seen as a safe haven, Moody's is cautioning investors against assuming it's immune from the debt crisis in Europe. It points out that although Denmark still has its own currency the Danish banks and economy is exposed.

The Danish economy is relatively strong in comparison with other countries in Europe, and this should mean household debt levels decrease in the future.

Peruvian Property Market Continues to Perform Strongly

The property market in Peru has been performing strongly for a couple of years, and this is largely due to strong economic growth in the country. In 2010 GDP grew by 8.8%, while in 2011 it grew by 6.9%.

According to figures from Peru Tinsa, the average price of homes sold in the Lima metropolitan area increased by 19.9% last year to reach $99,449. Residential sales increased by 52.2% in 2011 compared to 2010, and there was a 31.57% increase in the area sold.

All the indications are that the property market will continue to perform strongly this year due to lower mortgage rates, the strong economy, and improved public investment. Most of the new developments are concentrating on higher end property, but the best-selling homes in Lima are priced between $30,000 and $50,000.

By January this year Peru had seen 29 consecutive months of economic expansion, as GDP was up 5.38% compared to the same period last year, and is predicted to grow by 5.7% this year. Much of this increase is due to the strength of the Chinese economy, as the demand for raw materials such as copper is huge.

Peru has made sure that its export market remains competitive, as the Central Reserve Bank of Peru has intervened to make sure the currency doesn't appreciate too much. Last year saw the inauguration of Ollanta Humala, as the 94th president of Peru, and though there were initial concerns as to how he would lead the country, it seems as if he is following the same democratic and highly successful path as the Brazilian president. This means he is dedicated towards modernising the economy while maintaining a strong social commitment.

Property Prices in the Ukraine Rise Unexpectedly

Property prices in Kiev, the capital of the Ukraine rose unexpectedly during the year ending April 2012, but experts are doubtful as to whether this increase is sustainable, especially as the economy is slowing down. During the last year the average price of an apartment in Kiev increased by 28.9%, but is still 30% less than the peak of the housing boom in 2008.

In November last year property prices rose by 25.7% year-on-year which was something of a surprise as they had declined for nearly 3 years. However prices declined during the following months. The housing boom in the Ukraine took place between 2005 and 2008, and was mainly due to strong economic growth and interest from foreign buyers.

The boom was encouraged by the President, and as a result property prices increased by more than 1000% between the second quarter of 2000 and the second quarter of 2008. Between 2000 and 2007, GDP grew by an average of 8% annually.

Most of the properties bought by foreign buyers were purchased by Canadians, Kiwis, British, Emiratis and Cypriots, as well as some Americans. Properties were also brought by wealthy Ukrainians, and the average price rose to well above anything that could be afforded by the average resident. In late 2008 this foreign demand dropped off sharply due to the global crisis.

Domestic demand also decreased as Ukraine's main export is steel, and the need for this commodity collapsed. As a result GDP contracted by 15% in 2009. Since then the economy has expanded by 4.1% in 2010, and 5.2% last year. The Ukraine is quite an attractive proposition, as the economy is in relatively good shape, and the cost of buying a property is low. Ukraine also has the advantage of having good rental yields, and the laws are in favour of landlords.

Property Investors Becoming Increasingly Interested in Italy

According to a recent report, property investors are becoming increasingly interested in purchasing homes in Italy, and the current climate is especially good for British investors due to the strength of the pound against the euro.

Last year Umbria and Tuscany were especially popular amongst international buyers, and the regions saw increased activity. Most of the buyers were from the Eurozone, from Luxembourg, Belgium and the Netherlands. This year is likely to see something of a reversal due to the decline in the Euro.

During the last year or so the number of buyers looking for property in Italy has increased substantially, although prices of luxury homes in Tuscany and Umbria dropped by nearly 5% which is thought to be due to the weak global economy, and the Eurozone debt crisis.

Most international buyers are interested in luxury properties priced between €5 million and €15 million, as well as those at the lower end of the market price between €500,000 and €1.5 million. New properties coming onto the market are being priced accurately which is increasing buyer confidence, as well as helping to promote these areas as being some of the best residential property markets in Europe.

Tuscany and Umbria have traditionally always been popular amongst the British, and property in Umbria tends to be slightly cheaper than Tuscany. However Chianti is becoming increasingly popular as it is a picturesque rural area. Other areas attracting interest include Florence and Val d’Orca. Property prices in Italy are expected to remain largely stable this year, and there's no chance of a property glut as new developments are tightly regulated so demand will be higher than supply.

Hong Kong Property Market Looks As If It's Cooling

It looks as if the Hong Kong property market is cooling, as the government recently sold land for less than the estimated value, in spite of it being in one of the most exclusive areas in the city. The 42,000 ft.² of land is situated near Repulse Bay Road, and was sold for HK$1.67 billion, although estimates had expected the land to be sold for HK$1.68 billion.

It's likely low-rise apartments will be built on the site, and could cost about HK$44,000 a square foot during the next couple of years, while new units in the area currently cost between HK$35,000 and HK$40,000. Repulse Bay is one of the most exclusive areas in the city, and is home to some of the richest inhabitants. It was developed around the site of the Repulse Bay hotel which was built in the 20s and demolished in the 80s, and which featured in several famous films.

In July Leung Chun-ying is due to take over as the leader of Hong Kong, and has already pledged to increase the housing supply in a city where property is among the most expensive in the world. Since the beginning of 2009, property prices have increased by more than 78% which is due to a lack of supply and low mortgage rates.

During the first quarter of this year, prices of luxury homes fell by 2.2% due to mortgage restrictions imposed by the government on properties costing more than HK$10 million reducing demand. Property in Hong Kong is around 55% more costly than London.

Residential Property Sales Accelerating in New Zealand

The rate of residential property sales in New Zealand has been accelerating over the last four consecutive quarters, as during the second quarter of last year, sales increased by 7%. By the following quarter this had increased to 18%, and during the final quarter of last year property sales grew by 22%.

This rate of growth has continued into the first quarter of 2012, with sales growing by 29%. This last quarter’s sales growth equates to 3,969 more properties being sold during this period, compared to the same period last year, or 44 properties per day.
This rate of growth hasn’t been matched by the pace of listings, as these have grown by just 10% during the first quarter of this year. This lag in listings is quite common and is being seen all around the country, and it’s not unusual for it to take up to six months to catch up.

While sales may be increasing, so are prices, and New Zealand is one of the most expensive places in the world to buy property, when income is taken into account. The Demographia International Housing Affordability Survey found the average property in Auckland cost 6.4 times the average annual salary in the city, compared to 6.2 in New York, and 5.7 in Los Angeles.

The problem isn’t just confined to Auckland, as property prices in Christchurch are 6.3 times the average income, while in Dunedin prices are 5.2 times the average income, and are 5.1 times the average income in Wellington. This unaffordability is reflected in the fact that less than 30% of those aged 40 or under own or partially own the property in which they live.

Now is a Great Time to Buy Property in France

According to French estate agencies, now is the perfect time to by
property in the country. Prices have fallen by as much as 40% in some
areas and are now at very realistic levels. Property prices have
stabilised over the last few months, and the lower end of the market
is especially buoyant. This makes it an excellent time to buy holiday
homes, or even permanent homes for those looking to relocate as there
are still plenty of bargains around.

A budget of €100,000 is sufficient to buy a perfectly habitable
two-bedroom bungalow in Brittany, while properties that need a
complete renovation can be picked up for as little as €30,000.
Brittany is the perfect location for a holiday home, as it is very
accessible for short breaks, and enjoys a stunning coastline.

At the moment estate agents have a substantial number of
properties for sale, right across France. While certain areas such as
Provence are always popular, they are not always so quick to access
for short breaks, as that easy commute can involve several hours
drive after getting off the ferry. This can quickly become expensive
and time consuming, and can mean that holiday property is only used
for a few weeks a year.

British interest in French property has been steadily increasing
over the past few months, and some estate agents are forecasting
prices could rise by several percentage points this year. It’s also
become easier to get financing from French banks, as they are still
willing to lend on second homes and investment properties.

View France property for sale

Sales of Family Homes in London are Recovering

According to the latest quarterly report from Winkworth estate agents, sales of family houses in London are undergoing something of a revival, as sales appraisal figures increased by 7% year on year during the first quarter of 2012, and more homeowners are becoming interested in testing the market. The number of new sales instructions increased 20% year-on-year during the first quarter of 2012 compared to last year, and the number of new buyers registering at Winkworth offices increased by 12% in the first quarter compared to the same period in 2011.

The average asking price has declined slightly due to an increased number of properties for sale, and the average asking price for a greater London home is now £625,888. The luxury end of the market has been affected by measures recently announced during the budget, and the ending of the stamp duty holiday is expected to affect first-time buyers. 

There's also a growing shortage of attractive mortgage deals, but in spite of this the market for family homes is showing increasing signs of revival. Most people looking for a house in this category already own a property and have at least 20% equity, but simply need more space for a growing family. It’s estimated prices will remain stable in this sector, and the number of transactions will increase by around 5% to 10% this year.

However there are signs that the rental market within Greater London may have peaked, and there were around a third more properties available to rent during the first quarter of 2012 compared to the same period in 2011. At the moment average rental prices are £2,721 a month, but a decline in demand may put downward pressure on rental values during the coming months.

Foreclosure Figures Fall in the US

Foreclosure figures in the United States have declined slightly, and this trend is expected to continue as the spring season picks up pace. According to figures from CoreLogic, there were 65,000 completed foreclosures in February compared to 66,000 in February last year, and 71,000 in January 2012.

Since the financial crisis began in September 2008 there have been around 3.4 million completed foreclosures, with 862,000 completed in the 12 months up to February. Around 1.4 million homes were in foreclosure in February this year, compared to 1.5 million in February last year.

This equates to around 3.4% of all homes that still have a mortgage. The number of borrowers in foreclosure fell by 115,000 in February compared to February 2011, which is a decline of 7.6%.

With sales of previously owned homes up in February, and with the beginning of the spring buying season, estate agents expect the inventory to decline further.

During February more than 60 markets in the US saw foreclosure rates decrease compared to a year earlier. The combination of new jobs growth and continued low interest rates show the housing market is finally improving.

During the last 12 months those states with the highest numbers of completed foreclosures include Californian with 154,000, Florida with 87,000, Michigan with 64,000, Arizona with 63,000, and Texas with 58,000. Between them they accounted for 49.4% of all completed foreclosures within the United States.

The states with the highest foreclosure rates include Florida with 12%, New Jersey at 6.6%, Illinois at 5.4%, Nevada and 5%, and New York at 4.9%. Those states with the lowest foreclosure rates include Wyoming, North Dakota, Nebraska, Montana, and Alaska. Montana had highest foreclosure rate at just 1.4% while all the others were 1% or lower.

British Virgin Islands Feel Little Impact from the Global Economic Crisis

The British Virgin Islands have seen little impact on property prices from the global economic crisis as prices of luxury property have remained largely unchanged in recent years and are expected to continue to hold up well.

This is partially due to the nature of the market, as the British Virgin Islands consists of around 50 islands and islets, and due to strict planning regulations, there is a distinct lack of high-density development.

Around 60% of luxury homes are bought by European buyers, and there are also a considerable number of US buyers. During the latter half of 2011, some owners of luxury property revised their selling prices downwards, resulting in renewed interest from purchasers.

The British Virgin Islands is relatively well insulated against fluctuations in the market as most of the purchases are lifestyle driven, and the small size of the market has helped to keep prices high.

Most of the residents are wealthy, and it's a rarity for anyone to be forced to sell. As such most are prepared to wait for more favourable conditions before putting their homes on the market. Compared to neighbouring islands, where high-density residential resorts have struggled to sell during the past four years, the British Virgin Islands have suffered only slight price falls.

The islands attract high net worth individuals as they have a reputation as being a low tax jurisdiction, and residents aren't liable for death duties, capital gains, corporation, income, or wealth taxes. As always, waterfront property is the most attractive, and homes with private moorings are particularly sought after.

Japan's Property Market Set for a Boost from Echo Boomers

The property market in Japan is set to be boosted by so-called echo boomers, who are the children of baby boomers, many of whom are taking out their very first mortgages. It's the ideal time to do so as mortgage rates are nearly at a three-year low, and it is estimated around 15% of the population, or 19.1 million people are aged between 35 to 39, or 40 to 44. When these two groups are combined they give a population size that is double the post-war baby boom generation.

The boost to the economy can't come too soon, as the housing market accounts for around 15% of Japan's GDP, and the country is still struggling to recover from last year's earthquake. Unemployment is rising, as some companies are posting worse than expected results. Japanese buyers have some of the lowest financing costs in the world, as the Bank of Japan has held rates at near zero for the past 17 years.

Japan's housing starts rose 2.6% last year to reach 834,117 units and this has boosted mortgage sales for the first time since 2007. Mortgage sales increased 44% to reach ¥2.61 trillion last year, after the government introduced fixed rate mortgages.

New housing starts reached their third highest level in Japanese history in 1987 when baby boomers first became old enough to buy their homes. Homebuyers aged between 35 and their mid-40s represent a 44% share of the market, and the Japanese really are a nation of homeowners, as around 86% own their own home.

New Zealand Government Introduces New Bill to Ban Foreign Companies from Buying Rural Land

The New Zealand government is looking at introducing a new bill into Parliament which would prevent foreign companies from buying up rural land, and is due to controversy over Chinese companies trying to purchase lucrative dairy farms on the North Island.

The Chinese company, Shanghai Pengxin had put in a bid to purchase 16 dairy farms in Crafar on the North Island, and this bid had already received approval from the government before being overturned in the High Court. The bid was overturned as the High Court felt any potential benefits must be measured against an alternative buyer.

Labour leader David Shearer wants the law to be changed so governments reject any foreign bids to purchase New Zealand farms unless the bid would result in more exports, and more new jobs being formed than from a New Zealand bid.

Such a law would mean most bids to buy New Zealand land would be turned down, and only those implementing new technologies or introducing new products would be allowed. Although the government already has the power to turn down sales of farms to overseas buyers the Labour leader doesn't think it is being properly implemented, and that most sales result in profits flowing out of the country.

Selling farms to overseas buyers is also likely to raise the price out of reach of native farmers which would be very detrimental to the country.

At the moment any decision by the Overseas Investment Office to sell property to foreigners has to be approved by two government ministers who are able to decide which factors are relevant to the sale. If the new bill is made law it will be much stricter.

New Report Finds Nearly One Quarter of US Homes Are in Negative Equity

A new report from CoreLogic says that 22.8%, or 11.1 million homes in the US were in negative equity by the end of the fourth quarter last year. This is an increase on the third quarter when 22.1%, or 10.7 million homes were in negative equity. Another 2.5 million homeowners had less than 5% equity during the fourth quarter, which is known as near negative equity.

This means the total percentage of homes in negative or near negative equity was 27.8% during the fourth quarter, up from 27.1% in the third quarter of 2011. The total debt for these properties in negative or near negative equity rose from $2.7 trillion in the third quarter to reach $2.8 trillion by the end of the fourth quarter.

The report found that Nevada had the highest percentage of homeowners in negative equity, with 61% of all mortgage properties falling into this category. The second worst state was Arizona with 48% of properties in negative equity, followed by Florida with 44%, Michigan with 35%, and Georgia with 33%.

When combined these five states have an average negative equity percentage of 44.3%, while the combined average of the remaining states is just 15.3%. The majority of homes in negative equity are at the lower end of the market and are valued at less than $200,000. Although these figures are affected by seasonal declines, it's expected this situation will take quite some time to improve. If the economic recovery falters it could mean an increase in the number of foreclosures.

Property Prices in the East End Have Increased by £800 a Month since July 2005

In July 2005 London was awarded the Olympic Games, and now with just five months ago Lloyds TSB has revealed that house prices in the area around the main site have increased by around 30% since London's successful bid.

The average home cost £268,884 last November which is an increase of £62,739 since July 2005, equating to a very nice average monthly rise of £815. In comparison homes in England and Wales have risen by 25% during the same period, which equates to a monthly increase of £611.

Prices in eight out of the 14 postal districts closest to the Olympic Park have increased by at least 20% since July 2005, with Dalston and Homerton seeing the fastest price growth as each have recorded average increases of around 55% for that time period. Shoreditch came a close second with properties increasing by an average of 47% while in comparison Stratford which is the closest to Olympic construction activity has seen prices increased by just 13%, to reach an average of £227,893.

Prices in London have increased by an average of 5.4% during the last 12 months, and just two of the postal districts closest to the Olympic sites have exceeded this increase. Prices in Dalston increased by 10.3%, while prices in Clapton rose by 7.1%, but prices in Bethnal Green fell by an average of 5.2%. In spite of the massive increases seen over the last few years the typical house price in postal areas closest to the Olympic sites is still 22% below the London average of £342,551.

The most affordable homes can be found in Plaistow where the average house costs £188,760, which is 45% below the average London price. In contrast homes in Dalston cost £359,436, and it is the most expensive site closest to the Olympics.

South Korea's Housing Market Is Bouncing Back

South Korea's housing market experienced something of a revival last year with housing starts and sales figures increasing substantially. Property prices rose by 6.86% during 2011, and the number of housing construction permits increased by 42.2% to 549,594 permits. Apartment building sales rose by 41.8% to reach 285,000 units.

However last year South Korea's economic growth rate slowed to just 3.6% from 6.16% in 2010, and the Bank of Korea is forecasting GDP growth of 3.7% this year. In 2006 South Korea's housing market was at the height of a price boom, and property prices in Seoul increased by nearly 20%. This prompted the government to take action and they imposed controls on housing loans and increased capital gains tax on speculative areas. The following year saw prices slow down, increasing by just 5.4% in Seoul and nationally by 3.1%.

In 2008 property prices in Seoul rose by 5%, while prices rose by 3.1% nationally. In 2009 the property market was affected by a combination of the collapse of the Lehman Bros and government curbs, and property transactions dropped by 35.8% year-on-year to September 2010, and this slowdown caused severe problems within the construction industry. The government began its plan to revive the property market in 2009 by purchasing $1.79 billion of unsold new property, and another $2.68 billion worth of land from construction firms, enabling them to repay their debts. In the summer of 2010 the government began easing property lending restrictions, and this measure has proved to be effective. Last year mortgage loans rose by 8.27% year-on-year.

Florida Remains Most Popular Destination for Online Searches

Florida is still the most searched for destination by international property buyers looking to purchase in the US. According to residential property site Point2. Florida retained its top spot in the last quarter of 2011 for the second consecutive quarter.

Point2 found that Florida accounted for 31.04% of all international searches in the last quarter of 2011, losing just 2% to other states. Arizona is still the second most popular destination, and it saw the number of searches increase from 15.15% in the third quarter to 19.44% in the fourth quarter. Nevada remained in third place, although its share of the traffic increased only slightly to 8.61% from 8.22%.

It's not all good news as apparently international traffic to the top 10 states decreased significantly from 31.59% in the fourth quarter of 2010 to just 23.41% in the fourth quarter of 2011. This is a clear sign that the global recession is far from over, and buyers from China are proving more reticent to purchase property.

Most of the buyers come from Canada, as Canadian buyers accounted for a whopping 93.58% of searches for Arizona property, 78.28% for Hawaiian property and 74.11% of those searching for homes in Michigan. Buyers from Great Britain and Mexico were second and third highest respectively for the fourth quarter.

The most popular city for overseas buyers was Las Vegas as it accounted for 14.53% of all traffic during quarter four. The city of Mesa in Arizona was the second most popular city, while Orlando in Florida was in third place. However a list of the top 20 cities shows seven cities were in Florida.

View repossessed properties in Florida

Condo Prices in Japan Have Fallen Sharply

Condo prices in Japan have fallen sharply since last year's earthquake with the average price of new condominiums in Tokyo falling by 7.2% to the year ending November 2011. However the prices of detached homes increased by 2.4% during the same period, and demand for homes has also moved from waterfront locations to safer, inland areas.

This is hardly surprising as last March the case of Japan was struck by a 9.0 magnitude earthquake, followed by a devastating tsunami which triggered a radiation leak in a power plant. Not surprisingly those who were able to leave the country afterwards chose to do so, with luxury sector of the rental market in Tokyo being particularly affected.

The financial damage caused by the earthquake was US$300 billion, but this huge cost has been exacerbated by the fact that the economy contracted by 0.4% last year, and Japan now has a large trade deficit which looks set to increase.

Japan is also trying to recover from a property bubble in the late 80s as between 1970 and 1980 land prices increased by 200%, and by 238.5% in the major cities. During the 80s prices increased by 103% nationally and by 272.2% in the major cities. The subsequent crash meant the banks ended up with loans of almost US$1 trillion.

However nowadays the country's financial system is in extremely good shape and interest rates are virtually zero. In spite of this there is little demand for loans and the ratio of home loans to GDP is just 24.5% which is substantially lower than in other developed countries, but there are signs that the housing market is beginning to recover, especially as investment has increased due to earthquake rebuilding with the number of bankruptcies within the property sector declining.

Myanmar Becoming More Attractive to the West

Until recently Mayanmar was a somewhat faded Southeast Asian country that saw very few Westerners. This former British colony was ruled for 50 years by a military junta and had a very poor human rights and democracy record which saw sanctions imposed by Western governments.

It is now ruled by President Thein Sein, a retired junta general who since coming to office 10 months ago as a civilian leader has imposed an economic and political reform, the speed of which has amazed observers. Last year saw a groundbreaking visit by US secretary of state Hillary Clinton, and William Hague visited in January.

This has raised the profile of Myanmar, especially as sanctions will soon be lifted, and businessmen are quickly seeing the potential of the country. It has a considerable number of natural resources including precious gems, gas, oil and timber, and the former capital city of Yangon is seeing something of a property boom.

High-end hotels in the city have been fully booked during recent months and there is a shortage of office space as well as the type of housing expected by Western executives. Villas which were available to rent for just a few thousand dollars a year ago are now costing up to $50,000.

International standard office blocks have seen prices increase from $25 per square metre to $50 per square metre in just 12 months, with even a small office now costing $3,000 a month to rent.

Companies are keen to rent office space in order to conduct market research before sanctions are lifted, and rents are expected to increase by another 30% during the first six months of this year. Yangon is not the only city to see price rises, as the old royal capital of Mandalay have seen huge increases during the last few years, mainly driven by an influx of Chinese money.

Australian Banks Warned by IMF to Stash Cash

The main four Australian banks have been warned by the International Monetary Fund to make sure they have sufficient cash reserves to cover any potential downturn in the housing market.

The IMF is worried that the Australian housing market may be overheated and that prices in cities are artificially inflated due to a number of wealthy overseas property investors from China entering the market.

Around 80% of the mortgage market is shared between just four domestic banks which are Westpac, NAB, ANZ and the Commonwealth Bank.

According to the IMF report, combining any corporate losses due to the global financial crisis with possible mortgage defaults could put too much pressure on Australian banks.

The situation isn't helped by economists at ANZ, who are already predicting government cuts will shave around a half percentage point off economic growth for the next four years.

US analyst Jordan Wirsz has already warned that house prices in Australia could slip by as much as 60%, although most would think that is quite an extreme prediction, and the latest report from Australian Property Monitors may yet prove it to be wrong.

After five consecutive quarterly falls, property prices have risen nationally for the first time since September 2010. Melbourne saw the greatest house price growth with prices rising by 1.1%, while in Sydney property prices remained the same. Melbourne is now ranked as one of the world's most costly cities in which to buy property, and is more expensive than London, New York and Los Angeles.

December Sales of Singaporean Private Homes Hit Lowest Level for Two Years

Figures for December sales of privately owned homes in Singapore fell to their lowest level for two years after new government taxes came into effect. Just 632 units were sold in December, and total sales for 2011 show a fall of 24%.

Experts are not surprised as this result is exactly as they predicted, with potential homebuyers remaining cautious about committing to a purchase as there are fears that property prices could fall.

The Singaporean government has been trying to regain control over property prices since 2009 when it banned interest only loans for certain housing projects, and prevented developers from absorbing interest payments on homes still under construction.

In spite of this property prices still increased by 0.2% during the fourth quarter, although this is the smallest gain for two and a half years.

Additional taxes have also been introduced for foreigners buying property, and this is likely to cause a further drop in demand as foreigners account for 36% of prime property transactions. Foreigners and corporate entities will now have to find an additional 10% for stamp duty.

There is an additional 3% for permanent residents buying a second home, or for citizens purchasing their third residential property. Earlier on last year the government imposed stamp duty of 1% on the first S$180,000 of the property price, with 2% being payable on the next S$180,000 and 3% being payable on the remainder. During the fourth quarter demand for prime property fell with sales down by 44% compared to the previous quarter.

Interest Rate Cut Boosts Australian Property Sales

Australia recently saw its first interest rate cut in two and a half years, and this has had a positive effect on the sales of new homes which have increased by 6.8% from October to November. Sales of detached properties increased by 9.8% which was mainly due to more properties being sold in New South Wales and Victoria.

However the picture isn't quite so rosy for multiunit sales which fell by 17%. Experts have played down the increase saying it is only to be expected as two months earlier sales of detached homes fell to an 11 year low which was partly due to speculation about a rate cut, and although this latest news is welcome sales volumes are currently at least 20% below levels required for a healthy market.

They point out that a sustained government stimulus is needed to bring about a strong recovery within the homebuilding market. In November sales of detached homes increased in four out of the five main and states and were up by 22.8% in New South Wales, by 11.6% in Victoria, by 5.7% in Western Australia and by 4.7% in Queensland.

In South Australia sales fell by 11.3%. It is however a great time for anyone wishing to build a new home as the building market is very competitive with a good availability of skilled trades combined with lower interest rates creating favourable conditions. Some economists are even predicting further interest rate falls as early as next month in an effort to boost retail sales and lift consumer sentiment.

Property Prices of Miami Condos Increase for the Fourth Consecutive Month

Figures from the Miami Association of Realtors show prices of condos have increased for the fourth consecutive month, and overall residential property sales look set to have ended the year on a high.

Sales of previously owned single family homes rose by 11% in November in the Miami metropolitan area when compared to the same month in 2010, while sales of previously owned condominiums increased by 2%.

The median price of a condominium now stands at $125,000, an increase of 18% when compared to the same time a year ago. The median price of a single family home has remained steady at $171,300.

In Miami Dade County the average price for a single family home rose by 8.2% to $324,846 in November 2011 compared to $300,369 in November 2010. However the increase for the average sale price of condominiums is even more impressive having risen by 21.5% to $226,151 in November 2011 compared to $193,486 in November 2010.

The chairman of the board of Miami Association of Realtors, Jack Levine feels these figures reflect the strengthening property market in spite of continued restrictions on mortgages.

Sales to overseas buyers still account for a considerable percentage of all transactions, as do cash sales. Some 79% of condominiums bought by overseas buyers were purchased with cash as were 41% of single family homes. As the excess housing inventory is being absorbed the effect of short sales and foreclosures on sales prices are decreasing as the market gradually becomes more balanced and healthy. In Miami Dade County the inventory of residential listings has decreased by 40% during the last 12 months from 24,278 to just 14,461 active listings.