01457 833083
Ring Back Request
Quick Property Search

Powerful search engine updated daily!

Alternative Investments
Alternative Investments
SIPP Aproved Pension Products
SIPP Aproved Pension Products
100% Finance
100% Finance
Viewing Trips
Viewing Trip
Call Back Request
Call Back Request

 

Welcome to Semseo News and Headlines

 

Article

Article by: Sam Orgill info@proactpartnership.com Published: 13/11/2008

ProACT Overseas Property, specialist in Cyprus and Bulgaria Sales, Re-sales, Off-plan, Rental and management. Through our ProACT Living Abroad pages we offer a wide range of informationa advice to people living, working, retiring or investing abroad.

ProACT Living Abroad News

GLOBAL PROPERTY PRICES FALL

ProACT Overseas Property, specialist in Cyprus and Bulgaria Sales, Re-sales, Off-plan, Rental and management. Through our ProACT Living Abroad pages we offer a wide range of informationa advice to people living, working, retiring or investing abroad. This article looks at Overseas Property Price Falls

The Global house price growth continues to slow down according to the latest Q2 2008 House Price Index released today by international real estate consultancy Knight Frank.

It found that price inflation across the world’s key markets dropped to 4.8% from 6.1% in the first three months of this year, however there are exceptions to the general decline in almost every corner of the world.

Bulgaria once again tops the list, with price growth of 32.2% in the first three months of the year according to Knight Frank, closely followed by Slovakia, in second place with 31.2%.

Despite these, and other, strong performances recorded by Russia, Cyprus, Colombia and Singapore, prices are now falling in almost half the markets listed in the index, a considerable contrast to a year ago, when double-figure house price inflation was seen in over a third of the markets covered. The economies of central and south-eastern Europe appear to be the strongest performers, while northern Europe (including the Baltic States), together with the United States, are suffering the most.

“The rapidly depreciating housing markets of the Baltic States – led by Latvia, where prices fell by 24.1% over the past year, demonstrate that rising inflation and mortgage costs are real risks for the emerging economies of Europe, particularly those that have seen high levels of investment activity over recent years,” said Nick Barnes, head of international research, at Knight Frank. “However, housing markets in countries such as Spain, Denmark, the UK and Ireland are all being severely challenged by the global credit squeeze.”

Europe

Bulgaria is once again the best performing location in the Knight Frank Global House Price Index. Its current annual growth of 32.2% is only slightly lower than the 33.7% recorded in the first quarter.

Price growth in Russia has picked up speed over the past quarter and now stands at 26.5%, compared to 21.7% during the first quarter of the year. Growth was highest in the Republic of Khaksiya (88.2%), whereas prices fell by 8.2% in the Chechen Republic. Growth in St Petersburg (41.5%) and Moscow (18.2%) was also strong, driven, as elsewhere, by rising wages and the increasing importance of the country’s natural resources.

Rising tourist and second home demand continues to push prices upwards in both Croatia (5.8%) and Cyprus (12.9%). There are signs that the latter market is beginning to plateau, but locations such as

Limassol are still attracting buyers and seeing steep price rises.

Latvia continues to report the highest house price falls in the Knight Frank Global House Price Index, with values now 24.1% lower than a year ago. However, along with Estonia (-16%), the rate of decline is beginning to moderate. Both countries are experiencing high inflation and mortgage rates combined with a slowing economy and pessimism over the outlook for property prices. Prices in nearby Lithuania are now showing negative growth of 9.9%, and its situation is rapidly becoming comparable to its neighbours.

Denmark appears to be suffering most of all the Western European economies, with annual price falls now amounting to 9.6%, according to the Knight Frank Global House Price Index. The Danish market peaked in the third quarter of 2006, and the slowdown began earlier here than elsewhere.

Prices in Germany show an annual fall of 2.5%, down from 4.4% at the same time last year, and the rate of price falls is declining on a quarterly basis. There is less demand for owner-occupied property in Germany than in many other European countries and there is no shortage of supply.

The well-publicised problems in Spain have not yet fed into house price statistics, and the Knight Frank Global House Price index reports a rise of 2.4%. So far, price falls have been concentrated in the coastal resorts and among new developments in the larger cities, and the changing climate here has not yet influenced the figure listed in the index. Spain looks likely to fall into recession later this year, and house sales fell steeply during June. The number of sales dropped by 34.3% in May and 29.6% in June, suggesting that wider price falls could be imminent.

Asia Pacific

Prices in Singapore fell by 2.0% during a quarter in which its economy shrank by 6.6%, bringing

annual growth to 16.3%, down from 29.9% three months ago. Rising inflation will further reduce purchasing power, and could lead to further price falls. Hong Kong is now the most rapidly appreciating property market in the region, with annual growth amounting to 25.1%. Economic growth remains strong but is expected to ease over the next year.

In China, property prices rose by 1.1% during the quarter, meaning that annual growth in the country is now 9.2%, compared to 7.1% at the same point last year. The rate of increase has slowed slightly, which can be attributed to the government clamping down on mortgage lending, in an attempt to prevent over investment and excessive construction activity.

Indonesia is experiencing a cooling housing market, with prices rising by just 0.9% over the quarter and Australia has experienced a downturn in house price growth over the past quarter, with values dropping by 0.8%. Annual growth has now dropped to 9.0%, from 13.8% during the first quarter of the year.

The Americas

Prices continue to fall in the United States. Values fell by 3.3% during the second quarter of 2008, contributing to an annual decline of 16.8%, the second largest fall in the Knight Frank Global House Price Index. However, prices are still rising in some states, including Oklahoma (4.9%). States such as California and Florida have witnessed falls of more than 12%. There are signs of recovery in cities such as Denver, Boston, Charlotte and Dallas, although according to some measures prices fell by over a quarter over the last year in Las Vegas, Miami, Phoenix and Los Angeles. Continuing problems with accessing finance and the ongoing crisis in the ‘sub-prime’ sector continue to dog the market.

Canada saw prices grow by 1.8% during the second quarter of 2008. Prices are now 4.8% higher than a year ago. There are signs, however, that the market is beginning to weaken. Prices in Calgary and Edmonton dropped by 8% and 5% respecti

 

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=176

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=176

Please contact the author at info@proactpartnership.com for more information.

 

@MEMBER OF PROJECT HONEY POT
Spam Harvester Protection Network
provided by Unspam