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.

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.

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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.

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.

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.

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.

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.

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.

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.

Russian Buyers Increasing in Overseas Property

A survey carried out across several major Russian overseas property exhibitions has found that almost 2 thirds of Russian investors are preparing to complete purchases in the next 6 months.

The results of 3 surveys carried out at major aiGroup property investment shows found that 71% of Russian investors are planning on completing their purchases in the next six months.

Kim Waddoup, chief executive of aiGroup also said that the exhibitors at all three shows had reported "stronger than ever interest in their properties".

Russians, once a massive force in overseas property had dropped off during the financial crisis, but are now coming back with a vengeance. The rush on overseas property is part of a wider trend of capital flight from Russia as those in the emerging market seek out safe zones for their cash.

Central Bank chairman Sergei Ignatyev has estimated $49.3 billion has left the country in the first nine months of the year, already outstripping 2010’s figure of £35.3 billion. $13 billion of capital left Russia in September alone…70% of the third-quarter total.

As far as buying overseas property goes, the Russians favourites have changed a little since the boom time. Russians were known for favouring destinations within a short-haul flight, and with a similar culture/background to their own, with Bulgaria and Ukraine being very popular, although Spain has long been the favourite.

According to a survey of 499 investors conducted by International Residence at the Moscow International Investment Show in March, Spain is still the favourite, followed by Bulgaria and Turkey is the newcomer in third place.

US Homebuyers Struggle to Find Their Dream Home

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

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

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

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

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

Oman Property Market Is Doing Well, Buoyed up by Economy

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

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

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

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

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

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

Israelis Protest over Rising Property Prices and Rents

Israelis have been protesting over rising property prices and rents since mid-July, and although the initial protest began in an upmarket section of Tel Aviv, it has now spread to Jerusalem, Haifa and Beersheba.

Property prices here have increased by around 40% during the last three years, and this is partly due to the fact that planning and construction here is extremely slow. Property prices increased by 13.7% between April 2010 and April 2011, which is around triple the rate of inflation, and in the Knight Frank Global House Price Index for the first quarter of this year, Israel was ranked fourth behind Hong Kong, India and Taiwan.

Rents have also increased substantially, and many Israelis are now complaining that Tel Aviv has become a city for the rich. Demand for housing has often exceeded supply in Israel, but the situation has become much worse over the last few years due to low interest rates and easier access to housing loans and mortgages.

The economy here is in pretty good shape and is expected to grow by around 4.8% this year, meaning that many more Israelis are looking to buy better homes. The property market here is somewhat unique, as 93% of the land is owned or managed by the government which dates back to the founding of the nation in 1948 and a policy designed to preserve the Jewish state. Most property sales here tend to be long-term leases, so the government has unusually high control over the way the land is used.

Builders have to negotiate large amounts of bureaucracy in order to gain construction permits, and this has constricted the supply of apartments, increasing the prices.

The Israeli Prime Minister Benjamin Netanyahu has promised to cut red tape, and has also pledged to build 50,000 new homes during the next 18 months, but the protesters are asking for rents to be regulated and property prices to be curbed.

Increased Interest from Wealthy Europeans Looking for Holiday Homes

Apparently more wealthy Europeans are looking for property overseas, especially those from the Netherlands, Norway and Germany. This is quite a change as previously the market has been dominated by Asian and Middle Eastern investors.

An international real estate search agency, Quintessentially Estates has seen an increase of 50% on searches compared to the same time last year. They feel that this increase in interest could be due to the low interest rates throughout the Eurozone, and the current turmoil on the stock markets which is causing many to turn to property as it has traditionally been seen as a safe haven, and is always good for the long-term investor.

One of the most popular countries for investors is France, which is always popular for second home buyers. However beleaguered Portugal, Greece and Italy are also proving popular, with investors hoping for a real bargain in spite of the risk that property prices here could fall in the near future. Brazil is also becoming more popular as its economy continues to thrive, and the Caribbean and Indian Ocean are also top of many people’s wish lists.

Although European buyers are increasing, American and British buyers are holding back, and this is probably due in no small part to their economic troubles and the weakness of their currency. British buyers are intending to look at property outside the Eurozone, while Americans are more likely to concentrate on their home markets where prices have declined by up to 50% in some states.