Here we are again at the end of the week with some overseas property news and views….
Had a read through the Knight Frank Global House Price Index last night to check what’s happening where. Headline points? ‘Dubai topped the annual rankings, but prices rose by only 3.4 per cent in the first quarter. Croatia, Cyprus and Greece were the weakest-performing housing markets in the 12 months to March 2014. The US, Australia and Iceland now sit alongside several emerging markets in the top ten rankings for annual price growth. Fourteen countries recorded a decline in house prices year-on-year, 12 of these were in Europe.
‘For the first time since 2008 no single country tracked by the Global House Price Index has recorded an annual price fall in excess of 10 per cent. The bottom ten rankings reads like a geographical tour of Eastern and Southern Europe. House prices here, while still in decline, are now falling at a slower rate, even in the weakest housing markets such as Croatia, Cyprus and Greece. Singapore and Japan are the only non-European countries in the bottom 14 rankings. Cooling measures and tighter mortgage lending conditions have halted price growth in Singapore, whilst in Japan abenomics has yet to push house price growth into positive territory.’
‘We expect to see the index’s performance strengthen again in the second quarter. All eyes will remain on central banks, in particular the Federal Reserve, the Bank of England and the European Central Bank. The issue is not when interest rates rise but the speed and extent to which they do.
We are at work on a BRIC report – Brazil, Russia, India and China – and note that a new study by Standard & Poor’s suggests that prices in China in 2013 rose some 11.5 per cent with some ‘top tier cities rising over 20 per cent in price last year’. However, the market seeks to have turned with year-on-year residential property sales to end Q1 2014 down 10 per cent compared to growth of 26.6 per cent over the same period last year. Even so, S&P states, ‘Property sales volume will rise 10 per cent in 2014 with stronger sales growth in the second half of the year due to price cuts from developers seeking to meet sales targets. Compressed margins will become a structural trend as tougher operating conditions prove most difficult for smaller developers.’ More to follow.
An interesting article in OPP Connect draws our attention to the changing face of resorts in Spain. Let’s quote a little, ‘Costa Blanca estate agent Tony Barnes says that last year it sold more properties to non-European Union buyers, including those from China and Russia, than Spanish nationals and European expats. Wealthy Chinese and Russian buyers snapped up properties under the Spanish government’s ‘Golden Visa’ scheme offering residence with property worth more than €500,000.
‘While it is good to see movement in the property market, I have been concerned about the changing face of the popular resorts on the coast. For example, the Chinese have bought several properties on an urbanisation located just outside the town of Javea, and although they are typically purchased by an older person with a business-like aspect, within no time many occupants arrive. In some circumstances, it appears as though dozens of Chinese are sharing a property with only two or three bedrooms. Rubbish accumulates in the gardens, and there appears to be nobody taking responsibility for the upkeep of the properties, which lowers the tone of the urbanisation.’ Um, I think I will restrict my comments here to simply saying that buyers looking for a ‘home from home’ when buying overseas should do some careful research before progressing any purchase to ensure that the locality matches their personality and expectations.
All for now, see you soon!