Global Real Estate & Economic News from Propertyshowrooms.com

Western Cape house prices climb

Tue, 22 May 2012 00:00:00 GMT

The average price of buying a home in South Africa's Western Cape province increased in the first quarter of the year, compared to the same period in 2011.

SA Commercial Prop News reported on figures published by the Institute of Estate Agents of South Africa, which revealed the cost of purchasing a property in the region now stands at R 2,039,978 (£155,529). This is up from the R 1,938,267 average value recorded a year earlier.

Speaking to the publication, general manager of the Western Cape branch of the organisation Dianne Brock explained there are indications of an upturn in the South African real estate market.

"It has been noticed that South Africa lags the USA housing market by nine to 12 months - so the pick-up now being experienced there should be a positive sign for us," she commented.

Earlier this month, an increasing trend of foreigners purchasing homes in South Africa was highlighted, with the Western Cape named by Biz-Community as one of the destinations being targeted by British, French and German buyers.

Spain to calculate full property exposure

Mon, 21 May 2012 00:00:00 GMT

Spain's government will investigate the value of real estate loans compared with the current price of property.

Thursday (May 17th), independent valuers Blackrock and Oliver Wyman were appointed to look at the problem, which may be the cause of the nation's economic crisis, according to the Financial Times.

Blackrock and Oliver Wyman will provide an assessment of the book value of property loans compared with the cost of real estate in Spain within one month, the news provider revealed.

Three months following this, they will look at the banks on an individual basis and assess the loans they have given out.

Spain's economy is still in difficulty, and $2.5 billion (£1.58 billion) of medium-term government debt was auctioned.

Earlier this month, a ministry of economy and finance spokeswoman also recommended Spanish banks look for ways to raise more money so they are protected against property losses. The total distressed property fund is currently believed to be worth €35 billion (£28 billion).

Sales of Cyprus real estate fall again

Tue, 15 May 2012 00:00:00 GMT

Sales of real estate in Cyprus have steadily fallen for the past two years, with the dip forecast to adversely affect state revenues.

Land Registry figures show a total of 461 property purchase contracts were submitted during April 2012, down 15 per cent on April 2011's figure of 542, Cyprus Property News reports.

Sales on the island have been falling steadily over the past 22 months - with the exception of January 2011 - and Andreas Christodoulou, Land Registry director, said the dip will cause state revenues to drop by between 25 and 30 per cent.

Overseas buyers make up roughly a quarter of the Cyprus property market, as the April data shows 119 of the 461 contracts deposited were in favour of foreign purchasers. Domestic demand is hampered by broader economic uncertainty, the news source noted.

An end to the slump is unlikely to occur in the near future and spokesman for Cyprus’ Royal Institution of Chartered Surveyors Pavlos Loizou was recently quoted by the Cyprus Mail as saying falling property and rental prices will make it difficult to reverse the decline.

US real estate market 'is stabilising'

Mon, 14 May 2012 00:00:00 GMT

Stability is returning to the US real estate market as it continues to recover from the effects of the global economic downturn.

According to the March Home Price Index from CoreLogic, home prices nationwide - including distressed sales - fell 0.6 per cent on a year-on-year basis during March 2012.

This estimate is slightly lower than that of Clear Capital, which recently stated prices declined one per cent in the year to April.

However, the CoreLogic data shows prices were up by the same percentage when compared to February 2012 and buyers with an interest in property in the US are likely to see values increase in some parts of the country, president and chief executive of CoreLogic Anand Nallathambi said.

"This is true in Phoenix, New York and Washington, for example, which all reflect higher home price values than a year ago," he remarked.

Chief economist at the firm Mark Fleming explained improved balance between supply and demand is helping stabilise the market, adding unlike in previous years, this is happening "without the support of tax credits".

Spanish banks 'will have to raise more provisions for property losses'

Fri, 11 May 2012 00:00:00 GMT

Banks in Spain will need to raise more funds to protect themselves against potential property losses.

A spokeswoman for the ministry of economy and finance said new provisions regarding real estate in Spain will be introduced to ensure financial institutions are protected should their assets fail.

The representative did not provide any further information regarding the move, but it is believed the distressed property fund could total €35 billion (£28 billion)

Fresh concerns regarding the health of the Spanish banking sector have raised more worries over the eurozone financial crisis and shares in some of the country's biggest lenders, including Banco Santander, BBVA and Bankia have fallen

The government has taken control of Bankia in a bid to reassure the financial markets it is able to restore stability to the banking sector and chairman of the company Rodrigo Rato has stepped down from his position.

According to Reuters, the move gives the government a 45 per cent indirect stake in the bank.

Spain expected to bail out Bankia

Wed, 9 May 2012 00:00:00 GMT

The Spanish government is expected to announce a package of financial aid for one of the nation's largest banks - Bankia.

Between €7 billion (£5.6 billion) and €10 billion is likely to be ploughed into the firm to help bolster its balance sheet and cover future losses.

Bankia and its parent company BFA are the most exposed lenders to the Spanish property market, holding €31.7 billion of troubled real estate assets, according to Reuters.

Rodrigo Rato, chairman at Bankia, announced he would step down from his position ahead of the anticipated government bailout.

Last week, Luis de Guindos, Spain's economy minister, revealed proposals encouraging banks to transfer their bad property loans into holding companies run in conjunction with asset management firms would not be compulsory, Reuters reported.

A government announcement about Bankia's future is expected on Friday (May 11th), once a new chairman has been appointed at the organisation.

Jose Ignacio Goirigolzarri, the former president and chief operating officer at BBVA, has been tipped for the job, with Inigo Lecubbari, from the Abaco Financials Fund, telling Bloomberg "you couldn't ask for someone better qualified to lead a Spanish bank that's in trouble".

Cyprus property market 'struggling in current economy'

Mon, 7 May 2012 00:00:00 GMT

Board member of the Royal Institution for Chartered Surveyors (Rics) Cyprus Pavlos Loizou has said the economic situation in the country is impacting the real estate sector.

Speaking to the Cyprus Mail, he stated: "Property and rental prices continue to drop, mainly due to the unfavourable economic climate, the negative forecasts for the broader economy, the lack of sponsorship and the low performances [of real estate assets]."

Mr Loizou explained Cypriot commercial property yields need to improve and rents have to stabilise if investors are to be encouraged back to the country and he stressed until this happens, the market will remain in a "slump".

Meanwhile, Cyprus Property News revealed the rate of construction in the nation slowed in February, with 9.4 per cent fewer building permits issued this year than in the same month in 2011.

The figures from the Cyprus Statistical Service also showed the total value of construction projects in January and February fell to €261.2 million (£212.2 million), down from the €351.7 million recorded in the same period a year earlier.

US house prices 'continue to fall'

Tue, 1 May 2012 00:00:00 GMT

House prices in the US continued to fall in February, according to the Standard & Poor's (S&P)/Case-Shiller Home Price Indices.

There was an annual decline of 3.6 per cent for 10-city composites and 3.5 per cent for 20-city composites.

While this was an improvement on annual rates posted for January, nine metropolitan statistical areas - a geographical area with a relatively high population density - and both composites posted new cycle lows as of February 2012.

David Blitzer, chairman of the Index Committee at S&P Indices, said there were some contrasting results between real estate prices in US cities.

Atlanta posted its lowest recorded annual rate of -17.3 per cent, after seven months of declines. Meanwhile, Phoenix, which was badly hit during the economic crisis, posted its second consecutive month of year-on-year growth.

The National Association of Realtors reported last month that existing-home sales fell during February, but were still well above what they were a year ago. It stated transactions were up in the mid-west and south, while they had declined in the north-east and west of the US.

Spanish property 'remains popular among Brits'

Thu, 26 Apr 2012 00:00:00 GMT

Spain and France are the most popular locations for Britons who are looking to buy property abroad, according to a survey by currency company HiFX.

The study showed that, despite the current economic crisis in the eurozone, 35 per cent of people would be interested in owning a home in France, while 16 per cent opted for Spain, the Press Association reported.

Nearly three quarters of those surveyed said lifestyle was one of the most appealing aspects of living abroad, followed by the weather. 25 per cent of Britons also believe it is cheaper to own a property overseas.

Advisory firm R.R. de Acuna and Asociados recently predicted Spanish real estate values could fall by a further 12 to 14 per cent by the end of the year. HiFX director Mark Bodega said that Britons hope to take advantage of these depressed prices.

He stated: "The average property price in the country [Spain] is down almost 30 per cent since the market peaked in 2007, yet while there are discounts to be had, buyers need to pick carefully."

South African house prices 'on the wane'

Mon, 23 Apr 2012 00:00:00 GMT

Those seeking property in South Africa may find they can get it for less as a new survey has indicated house prices are falling.

Absa Group has revealed the average value of homes in the country's housing market for which it received mortgage finance applications dropped 6.1 per cent in the year to February 2012 (when figures are adjusted for inflation).

This trend was seen in relation to small, medium and large homes, suggesting buyers can find less expensive properties in all categories.

According to Absa, higher running costs and the general economic situation in South Africa are responsible for the falls.

These include national inflation at 6.3 per cent and lower economic growth, expected to be 2.7 per cent this year after reaching 3.1 per cent in 2011.

Buyers may look for cheaper homes now in the expectation that values will rise in the long term.

Last month, research by Lloyds TSB International indicated the average home in the country rose by an average of 10.1 per cent each year over the past decade.

France to be the country of choice for pensioners?

Fri, 20 Apr 2012 00:00:00 GMT

People whose retirement is not too far off may be increasingly considering buying property in France after the recent controversy over tax allowances for pensioners.

Chancellor George Osborne's Budget 'granny tax' announcement last month on personal allowances will see pensioners having their tax allowances frozen from 2013, bad news for those approaching their 60s.

French real estate expert and MD of The Villages Group Danny Silver suggested this could be a factor in persuading older people not to hold pensions in the UK.

"This so-called 'granny bashing' has generated a lot of controversy over the last month and it is likely that the bad feeling amongst UK pensioners could well spark British retirees to flock overseas," he remarked.

It may soon be cheaper to buy in France as the Global Property Guide report recently suggested the market in the country is slowing down.

The guide based this projection on figures from the National Association of Real Estate Agents in France, which showed growth in the final quarter of 2011 was substantially lower than in the three months to October.

US property prices 'set to rise'

Thu, 19 Apr 2012 00:00:00 GMT

The US property market has been tipped to see an upturn next year as the country's economy starts to get back on its feet.

Les Calvert, director at Property-Abroad.com, stated that at the moment there are many foreclosed bargains to be had, keeping prices down.

But he added: "Once that is absorbed, I think the US property market will definitely turn. We probably have seen the peak and it is just a case of now mopping up the saturation."

And Florida could be a very good place to go, Mr Calvert suggested, noting it is possible to get a mortgage for these properties in the UK.

Those looking to buy houses in the US may consider now a good time to get a bargain while they can.

Predictions of an upturn in the US property market have been backed by economists, with a Reuters poll on April 12th revealing the consensus is that the decline in values is close to ending and prices will rise in 2013.

Banesto profits hit by Spanish property losses

Mon, 16 Apr 2012 00:00:00 GMT

Banco Espanol de Credito SA (Banesto) - which is controlled by Santander - has announced profits fell sharply during the first quarter of this year.

The domestic financial institution has been hit particularly hard by the rules introduced by the Spanish government earlier in 2012 requiring all banks to increase their provisions against bad real estate loans.

Banesto's net profit dropped 88 per cent year-on-year to stand at €20.2 million (£16.7 million). The organisation revealed it has set aside €475 million to help cover its Spanish property assets, which is approximately half the amount required by the end of 2012.

Lending by the Spanish bank also fell during the first three months of this year, declining by 8.3 per cent - a move designed to improve the organisation's capital ratio.

Fitch Ratings recently predicted all the major Spanish financial institutions will report lower earnings throughout 2012, largely as a result of the new provisions required for bad real estate loans.

In addition, smaller, domestic banks may post losses if they are unable to generate revenue from asset sales, the agency stated.

Spanish house prices slide in March

Thu, 12 Apr 2012 00:00:00 GMT

The value of residential real estate in Spain recorded its biggest year-on-year drop last month.

According to the latest index published by Tinsa, the cost of buying a home in the nation fell 11.5 per cent annually in March.

Properties in capitals and major cities took the biggest hit, sliding by 12.6 per cent in this timeframe, while metropolitan areas and the Balearic and Canary Islands held up best, with both regions experiencing annual declines of 9.8 per cent.

Since the Spanish housing market reached its peak in December 2007, real estate in the country has shed 28.6 per cent of its value.

Last month, Bloomberg reported on data published by Idealista, which revealed the cost of buying a home in the nation fell by 3.4 per cent in the first quarter of 2012, compared to the previous three-month period.

Co-founder of the firm Fernando Encinar said a lack of mortgage financing was helping push prices lower, adding "similar declines" are anticipated throughout the remainder of this year.

Bulgarian property market 'starting to pick up'

Wed, 11 Apr 2012 00:00:00 GMT

The real estate market in Bulgaria has begun to stabilise, with a rise in the number of transactions concluded recorded by local agents.

Figures released by property consultancy Yavlena revealed the volume of deals climbed by 22 per cent in 2011, compared to a year earlier, the Sofia Echo reported.

However, the organisation noted the majority of the sales were for agricultural land, with the number of purchases made with a mortgage climbing by just 4.2 per cent in the same period.

Yavlena also pointed out many people seeking a property in Bulgaria are keen to buy in the lower price bracket of €25,000 (£20,624) to €50,000, although there is little supply at this end of the market.

Meanwhile, data recently published by Bulgarian Properties indicated residential real estate values in Bulgaria are stabilising, with the firm recording positive month-on-month growth in Varna and Bankso in March.

The cost of buying a home in Sofia and Sunny Beach fell marginally in the same period, while the Bulgarian capital was the only location surveyed that posted an annual increase in property prices.

US property prices 'expected to climb'

Wed, 11 Apr 2012 00:00:00 GMT

Real estate in the US enjoyed mild gains in value over the financial quarter to March 2012, with the exception of the Midwest.

Clear Capital expects prices to continue along this path for the next few months, ending on a 1.2 per cent increase by the close of the year.

The group's Home Data Index Market Report suggests that US property markets are recovering from the annual winter slowdown earlier than is typical.

Dr Alex Villacorta, director of research and analytics at Clear Capital, explains, in the short term, house value strength is still being witnessed against a backdrop of increasing saturation among lender-owned assets.

"This is an indication of market stability and bodes well for the continued growth we're expecting over the rest of the year," he concludes.

Region by region, the west made a 0.1 per cent gain in prices over the three months to March, the north-east saw a 0.3 per cent increase and the south witnessed prices climbing by 0.6 per cent - with Florida, Texas and Virginia all performing particularly well.

According to the National Association of Realtors, pending home sales also remained higher in February 2012 than they were one year ago, despite dropping slightly compared to January.

Spanish house prices fall

Wed, 4 Apr 2012 00:00:00 GMT

Spanish house prices dropped by 6.9 per cent over the course of 2011, new figures show.

According to data gathered by The Economist, the value of property in Spain was 16.8 per cent below the peak it recorded in 2007 at the end of last year and the publication believes prices will drop further during 2012.

The ongoing eurozone crisis is likely to suppress real estate values all over Europe, the news provider asserted, stating: "Unemployment is rising across the continent and banks are under pressure to shore up balance sheets. Prices will struggle to rise in such conditions."

A report from the EU Commission released on April 2nd revealed unemployment in the region has hit its highest level in 15 years, with 24 per cent of Spaniards currently out of work.

Last month, founder of Idealista Fernando Encinar told Bloomberg that a lack of finance for property purchases is one of the major factors weighing down the Spanish real estate sector, adding that unless the situation improves, further price declines are likely in 2012.

Hobart has 'most affordable property of Australian regional capitals'

Wed, 28 Mar 2012 00:00:00 GMT

Hobart, in Tasmania, has been named as the most affordable regional capital in Australia for home purchasers.

Figures from RP Data revealed 41.2 per cent of the properties on sale in the city were marketed at less than AU$300,000 (£197,769). By contrast, Canberra is the most expensive location in which to buy Australian real estate, with just 8.8 per cent of sales coming in lower than this amount.

The organisation pointed out, as a general rule, house prices in the regions around the main state capital are more affordable, with at least a quarter of all property transactions coming in below the AU$300,000 mark.

Buyers keen to pick up a home for under this figure should be prepared to look at suburbs further outside the city centre, as well as consider apartments rather than houses, RP Data added.

Housing affordability was found to be one of the main areas of complaint for those living in Australia's state capitals, according to a recent survey conducted by the Property Council of Australia.

Just 34 per cent of those questioned believe enough affordable homes are being provided in their area.

Queensland housing market 'showing signs of recovery'

Fri, 23 Mar 2012 00:00:00 GMT

There are indications that the housing market in the Australian state of Queensland is beginning to improve.

According to data published by the Urban Development Institute of Australia (UDIA), a rise in the number of building approvals and an increase in the level of lending in the state have both been recorded in the first three months of 2012.

Duncan Maclaine, director of policy and economic research at the UDIA, added the volume of registrations of residential vacant lots has also started to climb.

However, he is cautious; pointing out Queensland is one of the poorest performing Australian property markets at present.

"The recovery also remains patchy, with strength building in the resource regions and Brisbane but weakness remaining in markets such as the Gold, Sunshine and Fraser Coasts," Mr Maclaine added.

Research published recently by Residex predicted house prices in Queensland as a whole will rise by 8.36 per cent over the next ten years, with values in Brisbane expected to climb by 8.21 per cent in the same timeframe.

South Africa posts 'significant' house price growth

Wed, 21 Mar 2012 00:00:00 GMT

Over the past decade, the cost of buying real estate in South Africa has risen by 161 per cent in real terms.

This is the finding of research conducted by Lloyds TSB International, which noted the nation's residential property market experienced the third-highest gains during this period. Only Russia and India saw the value of homes climb by more.

According to the financial institution, these figures equate to an average annual increase of 10.1 per cent.

However, in the past year, house prices in South Africa have slipped by 1.1 per cent, the firm added.

There are other indications that the country's residential property sector may be undergoing a period of decline, with Global Property Guide highlighting rising inflation as a factor causing real estate values to slip.

In an article earlier this month, the publication pointed out that, despite house prices increasing by 2.3 per cent in nominal terms over the course of 2011, they actually fell by 2.6 per cent in real terms. Consumer price index inflation stood at 6.3 per cent in January, which was cited as the main reason for the overall fall in values.

House prices climb in Turkey

Wed, 21 Mar 2012 00:00:00 GMT

The cost of buying residential real estate in Turkey increased during February, climbing by 0.78 per cent overall compared to January.

In its monthly property price index, REIDIN.com revealed Antalya experienced the biggest rises, with the value of existing homes up by 1.11 per cent. Adana and Izmir also recorded hikes of more than one per cent in February, while Istanbul saw house prices jump by 0.98 per cent.

Meanwhile, the REIDIN.com-GYODER new home price index found the value of such real estate was up by 0.6 per cent month-on-month in February. Since the same month in 2011, the cost of purchasing a new-build property has increased by 10.42 per cent.

Data published recently by Knight Frank also indicated Turkey's housing market is performing well. According to the firm, the value of homes in the country climbed by 7.7 per cent between the final quarter of 2011 and the same period a year earlier.

A quarterly rise of 2.4 per cent was recorded in between October and December, compared with the previous three-month period.

Holiday homes 'still considered a good investment'

Tue, 20 Mar 2012 00:00:00 GMT

Despite the economic difficulties in the eurozone, many people still consider owning a holiday home in Spain or elsewhere on the continent to be a "good investment".

This is the assertion of Liz Rowlinson, editor of A Place in the Sun magazine, who explained buying a property in Spain or another popular destination can often be a more attractive option than other kinds of investment.

"It just shows that in this climate you have to be very hard-nosed about returns and the bottom line with costs," she stated.

She acknowledged there is an increasing number of holiday homeowners who are considering selling up, after Home Away revealed 65 per cent of respondents to a survey it conducted are thinking about putting their overseas property on the market.

However, Ms Rowlinson pointed out it is not uncommon for second homeowners to look into selling their asset, adding this attitude is "symptomatic of the climate that we are in at the moment" due to the continuing economic problems in the eurozone.

Dubai property outperforms Abu Dhabi real estate

Fri, 16 Mar 2012 00:00:00 GMT

New figures showing the value of residential properties in Dubai and Abu Dhabi have revealed a growing disparity in prices between the two emirates.

According to REIDIN.com, the cost of buying a home in Dubai increased by 1.05 per cent in February, compared to the previous month.

However, the opposite was true in Abu Dhabi, where the value of residential real estate slid by 0.49 per cent in the same period.

Villas were the best-performing type of property in Dubai, experiencing monthly price growth of 1.54 per cent, while an annual rise of 16.49 per cent was recorded.

In Abu Dhabi, the villa market is also stronger than that for apartments, with the value of the former asset class climbing by 0.19 per cent in February and by 0.46 per cent year-on-year. These gains were offset overall by the 1.04 per cent decrease in apartment prices last month, with this type of home shedding nine per cent of its value since February 2011.

Earlier this month, the Dubai Land Department published data showing the volume of real estate transactions in the emirate increased by 84 per cent in the first two months of this year, compared to the same period in 2011.

Spanish real estate values decline

Thu, 15 Mar 2012 00:00:00 GMT

The price of buying residential real estate in Spain fell by 9.5 per cent in February, compared to the same month a year earlier.

According to the Tinsa General IMIE Index, properties in the country's major cities took the biggest hit, dropping by 11.5 per cent over the past 12 months.

Metropolitan areas didn't fare much better, with values sliding by 10.3 per cent in the same period. Real estate in the Balearic and Canary Islands, meanwhile, posted an 8.8 per cent decline.

Property values on Spain's Mediterranean coast saw a 9.5 per cent drop, while assets in other municipalities - which is any location that doesn't fit into one of the groups above - performed best, registering a 6.5 per cent fall in price.

Tinsa noted: "The deterioration of the macroeconomic environment with significant job losses, together with an increase in the spread on mortgage rates, are offsetting the positive effect of reinstated tax breaks on house purchases."

Managing director of Feltrim International Adam Cornwell recently highlighted the opportunities open to investors resulting from the reduction in value of Spain's property market. He pointed to assets in prime locations, such as homes near golf courses, as being among the best buys at present.

France 'a popular destination for retirees'

Wed, 14 Mar 2012 00:00:00 GMT

Brits are increasingly considering purchasing a property overseas when they retire due to the high living costs in the UK.

Managing director of The Villages Group Danny Silver cited figures from the National Association of Pensions Funds, which revealed around one-third of retirees would prefer to move abroad to locations such as France.

Mr Silver described the European nation as "the ultimate retirement destination" thanks to its culture, food and proximity to the UK.

"As more and more people in their third age see their living costs rise and their standard of living drop, it is hardly surprising that they are looking for better deals overseas," he asserted.

The Knight Frank Global House Price Index published earlier this month revealed that France's residential real estate market is holding up relatively well in comparison to its eurozone counterparts.

French property values climbed by 4.3 per cent over the course of 2011, indicating the sector has greater stability than other popular European retirement destinations, such as Spain and Portugal.

Parisian properties 'most expensive to rent'

Tue, 13 Mar 2012 00:00:00 GMT

Paris has been named as the most expensive city in the world for those seeking rental accommodation.

According to figures published by Savills, Paris is now marginally ahead of London in terms of how much it costs to rent a property, while it is also the third most expensive location in which to purchase a home.

Yolande Barnes, head of the firm's residential research division, highlighted "strong occupier demand" and "relatively low capital values" as the two main reasons why investors are attracted to the French real estate market.

The average yield for rental properties in Paris currently stands at around 4.5 per cent, which is lower than the return achieved on assets in New York, Moscow, London and Sydney.

A recent CB Richard Ellis survey revealed the French capital is also the location of choice for commercial property investors, with the city attracting more funds in the second half of 2011 than its nearest rival London.

US house prices 'stable'

Mon, 12 Mar 2012 00:00:00 GMT

The value of properties in the US was broadly stable during February, with very little change recorded quarter-on-quarter.

This is the finding of the latest Clear Capital Home Data Index for the nation, which revealed the market overall has shed less than two per cent of its value year-on-year.

In the north-east and south of the country, house prices dropped by less than one per cent in the 12 months to February, however, the west and mid-west regions did not fare so well, experiencing annual declines of 3.2 per cent and 4.3 per cent respectively.

Director of research and analytics at the organisation Dr Alex Villacorta highlighted the potential impact real estate-owned (REO) properties could have on the US housing market. These are homes that have been returned to the bank after failing to sell at a foreclosure auction.

He stated a settlement between the state attorneys general and mortgage servicers may have a significant effect on the country's residential real estate sector, noting the outcome of this "could dramatically change the flow of REO properties moving through the foreclosure process and significantly impact values in the near future".

Meanwhile, the latest data published by CoreLogic revealed US house prices were down 3.1 per cent between the January and the same month in 2011, while a monthly decline of one per cent was also recorded.

Brazil sees significant house price growth

Fri, 9 Mar 2012 00:00:00 GMT

The value of homes in Brazil climbed significantly over the course of 2011.

According to the Knight Frank Global House Price Index, the cost of buying a residential property in Brazil increased by 26.3 per cent between the final quarter of 2010 and the same period a year later.

The country also recorded a 4.2 per cent quarterly rise in the final three months of 2011, putting it well ahead of the other 51 nations surveyed.

At the bottom of the table is Ireland, which has experienced a 17 per cent decline in the price of homes year-on-year, making the difference between the best and worst-performing destinations 43 per cent.

Knight Frank suggested Brazil's real estate market is doing so well thanks to "strong population growth, rising household wealth and an expanding mortgage market".

Last month, Global Property Guide published data which also highlighted Brazil as one of the world's top-performing property sectors.

In its survey, the country came second to India, which experienced a nominal annual rise in real estate values of 35.77 per cent in the final quarter of 2011, compared to Brazil's 27.82 per cent jump. These figures focused on Delhi and Sao Paulo respectively.

South African house prices 'fall in real terms'

Wed, 7 Mar 2012 00:00:00 GMT

The value of residential property in South Africa declined in real terms over the course of 2011.

Global Property Guide explained that, despite the nation's house prices climbing by 2.3 per cent in nominal terms last year, they actually slid by 2.6 per cent in real terms.

According to the publication, this is largely down to rising inflation, which stood at 6.3 per cent for consumer prices in January 2012.

It added that, given the increase in inflation, predictions of house price rises in 2012 of between two and three per cent by the country's Absa bank may be optimistic.

Among the issues affecting South Africa's housing market are the nation's economic recovery, rising supply of properties with lower demand and a reduction in the level of investment in infrastructure projects.

Samuel Seeff, of Seeff Property Services, told the news provider the real estate sector has not ground to a halt.

"The [property] market is moving slowly and prices are under pressure, but there is still activity," he stated.

House prices in Spain fall

Wed, 29 Feb 2012 00:00:00 GMT

The value of residential property in Spain slid in the final quarter of 2011, according to new research.

Global Property Guide has published its worldwide housing market statistics for the final quarter of last year, revealing real estate in Spain saw 2.86 per cent wiped off its value in the last three months of 2011, compared to the period between July and September.

Meanwhile, the annual figures showed property prices in Spain fell by 9.27 per cent between the fourth quarter of 2011 and the same timeframe in 2010.

Only Athens in Greece, Warsaw in Poland and Ireland saw greater annual declines in residential real estate prices over the course of last year.

Last week, one property expert advised investors to consider the merits of purchasing distressed property in Spain.

Director of International Property Success Jon Ainge explained banks are more willing to lend on this kind of asset, as they want to reduce their exposure to the country's real estate sector.

US housing market 'making positive progress'

Wed, 29 Feb 2012 00:00:00 GMT

There are growing indications that the US residential real estate sector is beginning to recover.

According to director at Mayfair International Realty Annette Reeve, many investors in the US are "fed up of sitting on their hands" and are therefore keen to make property purchases.

She added "people's money is favouring bricks and mortar", citing the low interest rate, concerns over the performance of the stock market and the general feeling that house prices in the country have reached the bottom as factors contributing to the growing interest in real estate.

Ms Reeve pointed out many commentators believe the nation's housing market could see property values climb higher by the end of the year, due to a decline in inventory.

Last week, the National Association of Realtors revealed existing home sales in the US were up 4.3 per cent in January compared to December, making them 0.7 per cent higher than the same month a year earlier.

South Africa budget 'will boost property sector'

Mon, 27 Feb 2012 00:00:00 GMT

The latest budget to be unveiled by South Africa's finance minister Pravin Gordhan has been described by some commentators as a boost to the country's real estate market.

Chairman of Sotheby's International Realty in South Africa Lew Geffen highlighted the new housing subsidy scheme as one proposal that will have a quick impact on the sector.

"This will give the lower end of the market much-needed impetus and no doubt have a positive knock-on effect," he asserted.

Mr Geffen also praised the level of finance set aside for new infrastructure projects, noting it will create new jobs, as well as benefit the country as a whole.

Property economist professor Francois Viruly told Business Live spending on infrastructure will have a significant positive effect on South African real estate, stating this type of expenditure does more than simply support housing development, adding it also "plays a critical role in creating development and investment opportunities in cities and rural areas".

Improving market conditions boost US home sales

Mon, 27 Feb 2012 00:00:00 GMT

The number of house purchases in the US increased in January, while the inventory of properties on the market continued to fall.

Figures published by the National Association of Realtors (NAR) revealed there was a 4.3 per cent rise in the volume of residential real estate transactions in January, compared to December.

In addition, housing inventory dropped by 0.4 per cent on a month-on-month basis.

Lawrence Yun, NAR chief economist, stated: "The uptrend in home sales is in line with all of the underlying fundamentals - pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents."

President of the organisation Moe Veissi reiterated this sentiment, adding he is "cautiously optimistic" that the US residential property market will continue to improve over the course of this year.

The recently released RE/MAX National Housing Report unveiled similar findings to the data published by NAR.

Chief executive officer of the firm Margaret Kelly was also positive about the US housing market in 2012, noting there is the possibility of price appreciation provided inventory levels do not rise and the level of sales remains constant or increases.

Property transactions in Dubai rise

Tue, 21 Feb 2012 00:00:00 GMT

An increase in the number of real estate transactions completed in Dubai in 2011 has been recorded.

Figures published by the Real Estate Regulatory Authority (RERA) of Dubai revealed 20 per cent more sales were concluded last year than in 2010, Global Property Guide reported.

According to the organisation, these deals were worth a collective 48 billion UAE dirhams (£8.2 billion).

Chief executive officer of RERA Marwan bin Ghalaita commented: "We can expect 2012 to show the same increase or stay at the same level. We are marketing the real estate environment as transparent and secure."

Investors with property in Dubai may also be encouraged by statistics recently published by REIDIN.com.

The latest residential property price index for the emirate showed such assets increased in value by 1.21 per cent in January 2012 compared to December 2011.

Meanwhile, the cost of renting a home in Dubai also climbed by 0.87 per cent in the same period.

Spanish property prices 'continue to fall'

Fri, 17 Feb 2012 00:00:00 GMT

The latest figures published by Tinsa in its General IMIE Index revealed the value of property in Spain continued to slide in January.

According to the organisation, the cost of buying a home in the nation fell by an average of 6.6 per cent year-on-year, although there were disparities between different regions.

Capitals and major cities registered the biggest decline - hitting 8.7 per cent - closely followed by the Mediterranean coast, where real estate shed 8.1 per cent of its value.

Meanwhile, the Balearic and Canary Islands' property markets held up best, with assets here selling for 3.1 per cent less than they did at the beginning of 2011.

Across the country, property prices now stand exactly 25 per cent lower than they did at their high point in December 2007.

However, there are indications the market is beginning to improve, with sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard recently highlighting the uptick in investment from overseas buyers.

He cited data from the Bank of Spain, which revealed there was a 19.1 per cent increase in the amount of money ploughed into the country's property sector by international investors in the third quarter of 2011, compared to the same period in 2010.

Real estate transactions rise in Estonia

Thu, 16 Feb 2012 00:00:00 GMT

There was an increase in the volume of property sales completed in Estonia during 2011.

According to figures published by Statistics Estonia, the number of transactions in the country's real estate market climbed by three per cent compared to 2010.

Meanwhile, the average value of a residential property in Estonia was up by one-fifth in the same period and now stands at €47,528 (£39,808).

The organisation pointed out real estate assets located in the northern regions of the nation experienced the biggest price rises, jumping by 32 per cent during 2011.

In central Estonia, the cost of buying a home was up by 14 per cent, while increases of eight per cent and one per cent were recorded for the north-eastern and western areas of the country respectively.

The Knight Frank Global House Price Index for the third quarter of 2011 revealed the value of residential property in the nation rose by 14.3 per cent compared to the same period in 2010, while a quarterly hike of three per cent was also experienced.

Boost to foreign investment in Spanish property

Tue, 14 Feb 2012 00:00:00 GMT

Rising levels of foreign investment have been recorded in the Spanish real estate market.

Marc Pritchard, sales and marketing manager of Taylor Wimpey de Espana, cited figures from the Bank of Spain, which showed the amount of money entering the sector from overseas buyers grew by 19.1 per cent in the third quarter of 2011, compared to the same period in 2010.

He stated this is an indication that the Spanish property market is beginning to improve, noting this momentum has carried over into the start of 2012.

Many purchasers have come from Germany and the Nordic nations so far this year, Mr Pritchard pointed out, but he doesn't think it will be long until Brits return to the market in force, largely thanks to the exchange rate between sterling and the euro.

"As Spanish property seems more affordable in the eyes of British buyers there now seems to be a slow but sure increase in the demand for villas and apartments along Costa shorelines," he asserted.

Earlier this month, operations director at Conti Clare Nessling told Mortgage Introducer those considering purchasing a home in Spain will find mortgage availability in the nation is "surprisingly good".

Will Cyprus property prices fall further?

Fri, 10 Feb 2012 00:00:00 GMT

Property prices in Cyprus are expected to slide further over the course of 2012, a new survey has predicted.

An online poll carried out by Cyprus Property News revealed 70 per cent of respondents anticipate the value of real estate in the country will fall this year, with just 11 per cent predicting a rise.

The remaining 19 per cent of those who were questioned believe Cyprus property prices will remain unchanged.

This comes despite a host of measures introduced by the Cypriot government in a bid to boost the island's real estate market, the publication pointed out.

Among the changes that have recently been put in place are a six-month suspension of property transfer fees on the first sale of a home and reductions in value-added tax for first-time buyers who are permanent residents in Cyprus.

Last month, the news provider reported on a presentation by lead consultant with Leaf Research Pavlos Loizou, who also predicted a further decline in real estate values in Cyprus, although he did state his belief that the market is approaching its lowest point.

US house prices 'broadly stable in Q4'

Thu, 9 Feb 2012 00:00:00 GMT

House prices in the US were relatively stable in the final quarter of 2011, with the Midwest region experiencing the biggest declines.

Data published by Clear Capital revealed, on average, the value of residential property in the US fell by 1.6 per cent in the three months from October to December, compared with the previous quarter.

In three out of the four regions, this figure stood at between 0.9 per cent and 0.6 per cent, however, in the Midwest, the decline hit four per cent in this period.

Dr Alex Villacorta, director of research and analytics at the firm, explained the Midwest pushed average prices lower, but he was optimistic things could improve.

"The lower priced segments of several specific markets are bucking the trend and seeing appreciation, suggesting that recoveries could be occurring from the bottom up," he stated.

According to the most recent research published by CoreLogic, distressed sales are the driving force behind price depreciation in US property markets.

Figures for December 2011 revealed US residential real estate values fell by 4.7 per cent year-on-year. However, when distressed sales were taken out of the picture, this decline was only 0.9 per cent.

US house price decrease in 2011

Tue, 7 Feb 2012 00:00:00 GMT

Figures for the full year to December 2011 have revealed the value of residential property in the US fell by 4.7 per cent, compared to 2010.

However, CoreLogic noted in its December House Price Index that, excluding distressed sales, the cost of buying a home in the nation only fell by 0.9 per cent.

Mark Fleming, chief economist at the firm, commented: "While overall prices declined by almost five per cent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices."

There are some states where the value of residential real estate climbed last year, even when distressed assets were taken into account.

Montana experienced the biggest increase at 4.4 per cent, while Vermont, South Dakota, Nebraska and New York also saw property values climb by between 1.7 and four per cent.

Research published by the National Association of Realtors in January revealed pending home sales in the US fell by 3.5 per cent in December, compared to the previous month, but that they still remain 5.6 per cent higher than at the same time in 2010.

Spanish banks 'must up provisions' for bad property loans

Mon, 6 Feb 2012 00:00:00 GMT

Financial institutions in Spain have been told they need to find an additional €50 billion (£41.5 billion) to cover a higher proportion of the bad real estate loans and foreclosed properties on their books.

The banks will also have to increase their provisions against Spanish real estate losses to between 35 and 80 per cent, depending on the asset class or type of loan in question, the government announced.

A deadline of the end of December 2012 has been set by the country's politicians for the changes, however, financial organisations that choose to merge will be given additional time to raise the funds.

Speaking at a news conference about the reforms, economy minister Luis de Guindos commented: "The aim is for housing to come on to the market and for Spanish banks, by being cleaner, stronger and more transparent, to be able to extend credit, which is something that's not happening at the moment," Bloomberg reported.

Banco Santander recently announced it had made provisions of €1.8 billion to cover its anticipated losses on its property portfolio.

Chief executive of the firm Alfredo Saenz told AFP the business had taken the measures - which significantly lowered the bank's 2011 profits - in anticipation of legislation to this effect being announced by the government.

Australian house prices fall

Fri, 3 Feb 2012 00:00:00 GMT

The value of homes in Australia dropped by 4.8 per cent in the final quarter of 2011, compared to the same three-month period in 2010.

Data collected by the Australian Bureau of Statistics examining the performance of the real estate markets in the country's eight state capitals revealed Brisbane's property prices took the biggest hit, falling by 6.7 per cent annually.

Meanwhile, Canberra held up the best, recording a decline of just 2.6 per cent, while Sydney put in a similar performance with a 2.7 per cent slide.

The quarterly figures released by the organisation indicate that in certain markets, Australian property prices may be making a recovery.

Perth, Canberra and Hobart all posted increases in real estate values in the final three months of 2011 of 0.5 per cent, 0.7 per cent and 0.8 per cent respectively.

Last month, the Housing Industry Association (HIA) published mortgage figures for November 2011, which pointed towards a "modest revival" in the established lending market.

Dr Harley Dale, HIA chief economist, explained lending for purchases of existing homes have now risen in five out of the previous six months.

Spanish real estate assets hit Santander profits

Thu, 2 Feb 2012 00:00:00 GMT

Banco Santander, the largest lender in Spain, has revealed its net profits in the final quarter of 2011 fell by 98 per cent, coming in at €47 million (£39 million).

This is compared to profits of €2.1 billion recorded in the same three-month period in 2010.

One of the reasons given by the company for its poor performance is its exposure to toxic Spanish property assets.

The financial institution has set aside €1.8 billion to cover losses on repossessed dwellings in the south European nation at 50 per cent of their book value.

Alfredo Saenz, Santander chief executive, told AFP the bank is taking a "conservative" approach to the economy. He added the firm wants to be "a step ahead" of the anticipated legislation in Spain that will require such organisations to recognise the extent of their bad real estate loans.

Last month, Bloomberg reported on a statement made by Spanish economy minister Luis de Guindos to state broadcaster TVE, where he predicted the price of buying a home in Spain will fall as banks release their real estate portfolios on to the market.

Spanish property prices 'will fall as banks sell assets'

Fri, 27 Jan 2012 00:00:00 GMT

When Spanish financial institutions begin to sell-off their real estate portfolios, the price of buying a home in the nation is likely to fall.

This is the assertion of economy minister Luis de Guindos, who told state broadcaster TVE many residential properties held by the country's banks are not going to market because they are not being valued correctly, Bloomberg reported.

He added when they are put up for sale at their true worth "we'll find that the price of housing in Spain will fall more, there'll be an adjustment and it will be more available for a lot more people," the news agency quoted Mr de Guindos as saying.

The publication cited data from the Bank of Spain, which shows financial organisations in the country hold around €176 billion (£147 billion) of "troubled" Spanish real estate assets on their books.

According to the most recent figures published by Tinsa, the value of property in Spain fell by 8.1 per cent over the course of 2011.

Capitals and major cities experienced the biggest decline in prices, sliding by 9.1 per cent between December last year and the same month in 2010.

South Africa property prices up

Tue, 24 Jan 2012 00:00:00 GMT

The value of homes in South Africa climbed in December compared to a year earlier, it has been revealed.

Figures from the latest oobarometer - a measure of the performance of the South African property market by mortgage originator ooba - showed house prices increased by 6.2 per cent year-on-year last month.

A rise of 3.6 per cent was also recorded between November and December in 2011, the firm noted.

However, chief executive officer of the organisation Saul Geffen does not expect there to be significant increases in house prices this year.

"With the interest rate anticipated to remain low in 2012, and with property prices remaining depressed, the current market represents a favourable environment for buyers," he stated.

Earlier this month, home loan strategist for First National Bank John Loos predicted the residential real estate sector in South Africa would remain flat over the next 12 months.

He cited "strong supply relative to demand and a mediocre economic performance" as the main factors that are likely to hold the market back.

Luxury home prices fall in French Riviera

Wed, 18 Jan 2012 00:00:00 GMT

The value of luxury properties in the French Riviera fell in 2011, according to one estate agency specialising in the region.

EstateNetFrance revealed that the average price of real estate in the French Riviera and Monaco dropped by 5.06 per cent over the past 12 months, however, the rate of sales increased.

The agency recorded a 16.29 per cent jump in the number of transactions completed during 2011, with the firm noting the region is considered a "secure, long-term investment", which has helped drive interest in property here.

On average, a luxury home in the French Riviera or Monaco now costs €2,117,349 (£1,754,580), with the majority of high-end real estate assets on the market in the €1 million to €3 million price range.

According to the most recent Global House Price Index published by Knight Frank, France is one of the European nations to see the value of its residential property rise in 2011.

In the firm's latest table, the country saw real estate prices climb by 6.7 per cent between the third quarter of 2011 and the same period in 2010.

"Slow recovery" predicted for US housing market

Fri, 13 Jan 2012 00:00:00 GMT

The US housing market is likely to continue on a "slow recovery" during 2012, it has been asserted.

According to the year-end RE/MAX agents survey, many professionals working in the industry are confident of an improvement over the next 12 months.

US real estate values are broadly expected to remain stable, or increase, with agents in the southern US most upbeat about the prospect of price rises.

The volume of residential real estate transactions is also expected to climb by 29.3 per cent in 2012, following a 10.7 per cent increase in 2011.

RE/MAX chief executive officer Margaret Kelly commented: "A sense that home prices and sales are improving indicates that the housing market is positioned for a gradual recovery in 2012."

Moe Veissi, president of the National Association of Realtors, recently stressed the importance of stabilising the country's residential property market.

He claimed "a strong housing market recovery" is vital if the US economy is to improve over the coming months and years.

South African property market 'slowing down'

Wed, 11 Jan 2012 00:00:00 GMT

The value of real estate in South Africa is likely to fall by three per cent in real terms over the course of 2012, it has been predicted.

John Loos, household and property sector strategist at First National Bank (FNB), made the assertion after the FNB House Price Index revealed a "flattening out" of the residential market during 2011.

He explained the three per cent decline is based on consumer price inflation averaging at five per cent over the coming 12 months.

Mr Loos added forecasts of lower global economic growth than previously anticipated, as well as the expectation of only minimal interest rate cuts in South Africa in 2012, have weighed heavily on sentiment in the housing market.

In an interview with The New Age, property analyst at Absa Jacques du Toit agreed that the South African real estate sector will experience a difficult year.

He noted many consumers have been struggling with inflation, which will in turn have an impact on the property market.

New home sales in Australia rise

Tue, 10 Jan 2012 00:00:00 GMT

A new report has revealed the number of new homes sold in Australia climbed in November 2011, compared to the previous month.

The research conducted by the Housing Industry Association (HIA) and Jeld-Wen found the number of new-build properties bought in Australia during this period increased by 6.8 per cent.

Dr Harley Dale, HIA chief economist, explained interest rate cuts announced by the Reserve Bank of Australia (RBA) have helped boost Australia's real estate sector.

In November, the RBA reduced its interest rate by 0.25 percentage points, bringing it to 4.5 per cent. This was followed by a further 0.25 basis point cut in December, with the country's rate now standing at 4.25 per cent.

Dr Dale described the HIA-Jeld-Wen findings as "healthier but not unexpected", however, he cautioned that the nation's real estate market is not in the clear yet.

He added there is "a long way to go to restore new home sales volumes to acceptable levels," noting that the number of such transactions is currently "running at least 20 per cent below what you could conservatively call healthy".

South Africa property market 'to improve in 2012'

Mon, 9 Jan 2012 00:00:00 GMT

The property market in South Africa could be set for positive growth this year, an expert has said.

Speaking to property24, managing director of Anne Porter Knight Frank Lanice Steward said she had already seen increased interest in South African real estate from those attending events at show houses compared with 2011.

"The attendances at show houses are three or four times higher than the first half of last year," she remarked, adding that agreed sale prices are now matching up more with list prices, another indicator that the market is beginning to get back on an even keel.

Chairman of property real estate firm RE/MAX's Southern Africa division, Peter Gilmour, commented last year that the country is unlikely to see lows or highs in 2012 in terms of its property market, which he expects to continue along its current steady course.

South African bond originator ooba also recently highlighted that property prices in the nation showed year-on-year growth in November 2011 for the first time since August of the same year.