Property Alert 23rd September 2014

Meant to ask; have you read this month’s international property
newsletter? If not, email back and we will send it to you. Meantime,
some overseas property news and views…

Brazil Heads-Up!

Good to see that RICS, The Royal Institution of Chartered Surveyors, is
to become more active in Brazil. ‘It is only natural that stakeholders
from abroad who want to invest in the country need valuations carried
out in accordance with international standards. When an investor is
purchasing portfolios across the world, they need to use a common
language.’

‘Whenever RICS opens an office in a new country, there is some give and
take, what the organisation can give to the country and vice versa. The
professional bodies understand that we are here to contribute. RICS has
relationships with the Brazilian Institute of Valuations and Building
Inspections (Ibape), the Brazilian Association of Facilities (Abrafac),
and the São Paulo State Housing Syndicate. More to come; meantime, do
let us have feedback on your Brazil investments.

Canada – Beware Averages

We always warn members not to set too much store to averages; they
rarely reflect what’s happening in regional and local markets. Canada
is a good example of a market which, like the UK and London, is skewed
prices-wise by city figures.

According to the latest index from the Canadian Real Estate Association
(CREA) sales and prices in Canada continue rising. Sales rose by some
2.0 in August compared with July and are up 5.3 per cent year-on-year.
Prices-wise, the national average price of a home in August was
$398,618, and that’s a rise of 5.3 per cent over the year.

‘Sales picked up in some of Canada’s most active and expensive real
estate markets which fuelled another national increase. Even so, the
national increase in sales does not reflect local trends in many
markets across Canada. Listings and sales this spring were deferred due
to unseasonably harsh weather, which subsequently supported activity
once the delayed spring home buying season got into gear. This trend
was reinforced by a decline in mortgage interest rates.’

‘The boost from deferred sales is still expected to prove transitory.
While national activity has yet to cool, sales were down from the
previous month in the majority of Canada’s local markets, which may be
early evidence that the transitory boost is fading. That said, low
interest rates will continue to support housing affordability and sales
activity.’

Spain – More Positives

The Estadística Registral Inmobiliaria reports that property prices in
Spain are up 0.97 per cent year-on-year in the second quarter of 2014
and rose 1.53 per cent from the first quarter. Andalusia, 15,583,
Catalonia, 11,980, Comunidad Valenciana, 11,591, and Madrid, 10,522,
saw the most sales.

‘The home purchases by foreigners has become one of the main drivers of
the Spanish property market. They are attracted by our good living
conditions and the great opportunities offered by the sector, as
housing has devalued by 41 per cent from the highs reached in 2008.
This percentage rises to 53 per cent in many areas of the Spanish
coast, the main attraction of foreigners who want to buy homes in our
country.

‘British and French nationalities are still leading the ranking of
purchases by foreigners, but those who spend more money on the coast
are Russian citizens, followed by the Germans. Most of the purchases
were made in Alicante, Málaga, Santa Cruz de Tenerife, Islas and
Girona. Russians and British buyers favour the Alicante coast, but
there housing preferences are different.’ More to come.

All for now, see you again soon.

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