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 Contract Cancellations Increase, but Sales Figures Are up

Sales figures for residential property in the US are up, in spite of contract cancellations increasing substantially. Latest data from the National Association of Realtors shows sales of single family homes, townhomes, condominiums and co-op's increased by 1.4% in October to 4.97 million, compared to 4.9 billion in September. Year-on-year sales have increased by 3.5% compared to 4.38 million homes sold in the year ending October 2010.

These figures would be even better had sales not being negatively affected by this increase in contract cancellations. These are due to various factors including failed mortgage applications, loss of employment and bad home inspections. Cancellations rose by an incredible 33% in October compared to 18% in September.

Although the sales figures are slowly rising, Lawrence Yun, chief economist at the NAR thinks the market is still operating at a lower level than desired in spite of improving factors which include rising rents, increased affordability and the creation of new jobs, and feels many people who want to buy new homes are having their plans thwarted.

At the moment there are 3.33 million homes on the market, and stock levels are falling steadily with October showing a 2.2% fall leaving an eight month supply. The market reached its peak in July 2008 when they were 4.58 million homes on the market.

Some areas are also seeing a shortage of foreclosures, especially in lower priced homes where multiple bidding on desirable property is becoming more commonplace. This has prompted realtors to ask for foreclosures to come on the market at a faster rate because they have buyers ready to purchase, and giving credit to investors would help absorb inventory at a faster rate.

Find out more about Foreclosure property in Florida

Britons Account for 29% of International Sales in Turkey

The latest Turkish Land Registry Office data shows Britons now account for an incredible 29% of foreigners purchasing property in the country, with the Germans accounting for 23% and Greeks accounting for 9% of international buyers. According to experts most of these buyers will use their own national currency in which to invest in property, and apparently this isn't always the wisest choice.

Certain areas of the country attract certain groups of buyers, as property around Alanya and Antalya is a popular with Northern Europeans, and as such is often priced in euros, while other areas which tend to be dominated by the British such as Altinkum are often priced in sterling.

This is down to agents pricing property in a currency which is more likely to hold its value on the global stage rather than local currency. From the overseas buyer’s point of view, it is easier to purchase property priced in their local currency rather than having to worry about converting it into Turkish lira, but this may not be the best way forward.

Overseas buyers can often just as easily make an offer in Turkish lira, and may discover that using a currency exchange specialist could ultimately cost them less than paying in their own local currency.

Currency exchanges often have extremely competitive rates for people transferring large amounts of currency, beating the banks by a considerable margin, so while it's possible to bargain down the price of property it is worth bearing in mind that you may also be able to negotiate paying in a more favourable currency.

View Find out more about Istanbul property

Spanish Property Prices Are Still Falling, but the Costas Are Perennially Popular

Property prices in Spain are still declining, but the Costas have always been popular with international buyers and prices in these regions are seeing lower price falls.

According to Tinsa, who is one of Spain's leading appraisal companies, prices have fallen most in regional capitals, and have declined by an average of 8.1% to the year ending in October.

Prices in metropolitan areas have declined by 7.5%. However prices on the Mediterranean coast have fallen by 6.9%, while the Canary Islands and the Balearic Islands have seen price declines of just 3.4%. Property prices have fallen by 30% on the coast and by 20.5% in the islands.

Data from the Department of Housing paints a slightly different picture as it shows property prices fell by an average of 5.6% to the year ending in the third quarter.

This data shows prices having fallen by 9.1% in Costa Dorada, by 8.5% in Madrid and by 8.3% in Murcia. Prices increased in Tenerife and Extremadura by 1.7% and 1% respectively, but data from the Department of Housing is usually regarded as being pretty unreliable.

However the declining prices are attracting overseas buyers, with Russians proving to be the most ardent purchasers followed by the Scandinavians, Dutch and Belgian buyers. One of the most popular regions is Murcia due to the new Paramount theme park, the new international airport at Corvera and the prospect of the AVE train network extension.

Work on the new theme park is due to begin in March next year, and the new international airport will see a number of scheduled services next spring. Work on the train network extension is also expected to begin next spring as the European commission has deemed the link to be a priority, and as such it will receive financial backing.

Moscow Rated As Top City for Property Investment

London has lost its number one place as being the most attractive European city for property investment, according to the latest annual European Regional Economic Growth Index report from LaSalle investment. Apparently Moscow now has greater potential.

Even so the report believes that medium-term demand for European property will remain high in major cities that have high levels of wealth such as London, Munich and Paris, but London has fallen to second place due to poor GDP growth and employment growth, while global financial concerns have also impacted the city.

In spite of this London still has a far higher wealth and better business environment that Moscow and is generally a dynamic and mature market. Next year's Olympic Games is predicted to further boost its popularity, creating more jobs and continuing the regeneration in the area.

All in all the outlook for Northern European countries is still considered to be strong, and emerging Eastern European markets are also predicted to do relatively well over the next few years. The picture isn't so rosy for southern European countries that are already deeply in debt.

Moscow rose from 10th place to second place in last year's annual report, before rising to the top spot this year, but LaSalle still thinks many foreign businesses will be deterred from investing due to the negative business environment.

Munich was again rated number three just ahead of Paris due to its good business environment scores and higher growth levels. Germany is also notable for having the most number of cities in the top 20 which is due to its economic strength.

Australia's House Prices Fall for the Third Straight Quarter

Property prices in Australia have fallen for three straight quarters due to increased borrowing costs, but there are signs this decline could be bottoming out as September marked the smallest price decline in seven months. Homes in capital cities fell by just 0.2% while regional home values increased by 0.1%, and experts think the trend of downward prices may be reversing.

House prices in capital cities have decreased by 4.2% this year while apartment prices have fallen by 1.4%, with Brisbane proving to be the worst performer so far this year, although all the signs are that it could be the first to see prices recover as home values increased by 0.4% in September.

Adelaide did even better with prices up by 0.5%, while more resilient markets such as the Sydney and Canberra saw the largest price declines with prices down by 0.6% and 0.5% respectively.

Economists are also hopeful that interest rates will be gradually reduced which could help to revive the first-time buyers' market, although most are predicting a recovery will come by the middle of next year. Another hopeful sign for the housing market is the fact that auction clearance rates are stable and there are less signs of discounting. Financing is also becoming easier.

The decline in house prices in Australia is certainly good news for all the Brits wanting to move to the country, as apparently the Overseas Guides Company has seen a 160% increase in the last quarter. Australia is seen as being particularly attractive as there is a skills shortage so certain professionals will find getting visas to live and work a relatively straightforward process.

Foreign Buyers in Singapore Increase by 16%

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

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

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

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

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

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