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%.
Saturday, 25 August 2012
Sunday, 19 August 2012
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.
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.
Sunday, 12 August 2012
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.
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.
Sunday, 5 August 2012
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.
Saturday, 28 July 2012
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.
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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.
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Saturday, 21 July 2012
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%.
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%.
Sunday, 15 July 2012
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.
Wednesday, 4 July 2012
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.
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.
Saturday, 30 June 2012
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.
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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.
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Saturday, 23 June 2012
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.
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.
Friday, 15 June 2012
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.
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.
Monday, 11 June 2012
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.
The Danish economy is relatively strong in comparison with other countries in Europe, and this should mean household debt levels decrease in the future.
Friday, 1 June 2012
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.
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.
Sunday, 27 May 2012
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.
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.
Sunday, 20 May 2012
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.
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.
Sunday, 13 May 2012
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.
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.
Monday, 7 May 2012
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.
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.
Sunday, 29 April 2012
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
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
Saturday, 21 April 2012
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.
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.
Saturday, 7 April 2012
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.
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