Streetwise Property Alert 29th October 2013

Another surge of interest in Brazil! Details are coming out in the next 24 hours. The availability at the 21 November seminar is becoming rather limited – if you want to come, especially with a partner, do reply asap please.

Turkey – Ever Popular

According to Knight Frank, Turkey remains a hotspot property market – property values rose 12.2 per cent in the year to the end of Q2 2013.

Foreign investment in property is expected to top $5bn in 2013.  According to Tolga Han of Projebeyaz International, major GCC investors are driving the market.

‘With the majority of mainland Europe facing difficulties, Gulf investors are actively redirecting sovereign wealth funds, investment funds and private equity funds into Turkish real estate, which offers a great investment proposition and high capital growth. This is further boosted by the close proximity to many Middle Eastern countries such as Saudi Arabia, Kuwait, Qatar and the UAE, offering an opportunity for purchases of second homes outside of the MENA region.’

‘“Recent reports estimate that following the regulation of reciprocity that passed in 2012, between 10,000 and 12,000 housing units will be sold to foreigners valued at $2.5-3 billion during the initial years and $4-5 billion annually for later years.’ Those of you who registered for Istanbul feedback, by the by, should have received this from Malcolm over the weekend. Email back if you missed it.

Greece – Bottom Fishing Time?

Whenever a market falls, there are investors who take a closer look, reckoning that there is money to be made if they can buy at the bottom as, they believe, prices have only one way to go from there – upwards.

And so Greece, which has seen price falls of 11.5 per cent between Q2 2012 and Q2 2013 (Knight Frank figures), is the latest target for these investors.

The holiday home market seems to be attracting the most attention off the back of news that tourism numbers are on the rise. It’s being said that next year will see a record 18 million visitors to Greece; TUI, the travel group, is expected to bring in two million visitors, up 300,000 on this year. At present, peak to trough property price falls are said to exceed 30 per cent; food for thought. Would you like a four-page report?

Down Under Update

’We have a small, but hardcore, group of members who want regular updates from the Australian property market; we can provide those courtesy of Nick with occasional comments for the general membership.

Recently, it’s being reported that ‘capital city house prices are up 1.6 per cent in September, according to the latest RP Data-Riskmark figures.’

There is talk of overheating. RP Data-Rismark’s index tracks median house prices across the major cities; the index is up 5.5 per cent on one year ago. The most recent 1.6 per cent rise is attributed to Sydney and Melbourne. Sydney prices were up 2.5 per cent from August and 8.0 per cent from one year ago. Melbourne figures for the same periods are 2.4 per cent and 5.4 per cent respectively.

Tim Lawless at RP Data says, ‘Sydney’s price growth is extraordinary.

We haven’t seen market conditions this strong since April 2009 for Sydney and May 2010 for Melbourne. Maintaining such a rate of growth is unlikely. The current rate is starting to erode yield for investors.

Any debate about unsustainable growth in housing markets should be very much focused on Sydney and Melbourne. Most other capital city housing markets are in fact showing only a modest growth trend.’ More to come on these cities soon.

All for now. We should have Peter’s currencies review for you tomorrow.

Email back for that.

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