Foreigners Snap Up $2bn in London Property in Christmas Week

Foreign investment in the London property market has been growing for 18 months, but never so fast as in the week before Christmas. In one week alone buyers from Asia, Africa and Europe bought £1.3 billion worth of skyscrapers, upmarket clothes shops and sprawling City office developments.

The surge of demand shows that London still retains its safe haven status even as the EU crisis worsens and there was talk of British isolation.

“Buyers are aware that now is a good time to come into the London market as many sellers are distressed or concerned about the impact of the eurozone crisis on future valuations,” said James Beckham, director of capital markets at Jones Lang LaSalle, the property services group.

The purchase of Tower 42 Nathan Kirsh, the South African property tycoon, from BlackRock and Hermes Real Estate, was the biggest and most noteworthy sale of the week. The tallest occupied skyscraper in the City and former headquarters of NatWest bank went for £282.5m.

The Malaysian government's investment arm Permodalan Nasional Bhd also made the noteworthy shortlist with its £350m office complex purchase. In its UK debut PNB snapped up the 460,000 square foot Silk Street Building just down the road from Tower 42.

It is not just prime office stock that has attracted overseas interest, however. A property investment vehicle backed by Ernesto Bertarelli, the Swiss-Italian pharmaceuticals billionaire, on Wednesday announced its first investment, acquiring a 186,000 sq ft mixed-used building in Mayfair in a deal rumoured to be worth more than £100m.

US Foreclosures Fall 14% in November as Lenders Freeze Evictions for Holidays

Just as the Germans and Brits played football on the battlefields across Europe on Christmas day, the US' banks are calling ceasefire on litigious battles as they suspend evictions and foreclosure proceedings for the holiday period.

According to real estate data collection agency RealtyTrac the widespread move brought a 14% decline in the number of foreclosures last month, with 224,394 properties receiving default notices last month. The number of foreclosures also declined on a monthly basis, with 1 in 579 households receiving foreclosure notices in November, compared to 1 in 563 in October.

The firm's chief executive James Saccacio said that the eviction moratorium is partially behind the numbers:

Despite the fall in filings the number of scheduled foreclosure auctions hit a nine-month high. Saccacio explained: "[The] first quarter typically is a better buying season, so you’ll see more of this inventory try to come to market.

"I expect 2012 to look similar to 2011 in volume if nothing changes with government intervention regulations."

With 1 in 175 homes receiving foreclosure notices in November, Nevada remains the worst affected state for the 59th consecutive month. California (one in 211) came second, while Arizona was third (one in 256).

Saccacio's prediction that 2012 volumes will be largely the same as 2011 has to be looked upon as disappointing and pessimistic. For America 2012 will be almost the 7th year of housing market collapse and still we are not to see any improvement? Optimists would say that the rapid rush of auctions in Q1 combined with the foreclosure moratorium will make a big space to clear a large chunk of foreclosure inventory in Q1, setting the way for the rest of the year. Time will tell who is right.

Russian Buyers Becoming Prolific in Overseas Property

During the boom Russians became prolific in the world of overseas property, particularly in Bulgaria, Ukraine and other coastal hotspots in the region, but also in Spain and the Med. They, like buyers from almost all nationalities became rare during the financial crisis, but according to many reports they are now becoming as prolific as ever.

According to aiGroup, who surveyed Russian investors at their three property shows between September and November, 71% of Russian investors are planning to complete a purchase in the next 3-6 months.

More than two thirds of Russian overseas property exhibition visitors are looking to complete a purchase in the next three to six months. Kim Waddoup, chief executive of the group said that exhibitors at his Moscow and St Petersburg property shows reported "stronger than ever interest in their properties".

The reports are confirmed by official data, which shows a surge in capital flight out of Russia into foreign assets and investments. According to central bank chairman Sergei Ignatyev has estimated $49.3 billion has left the country in the first nine months of the year, already outstripping 2010’s figure of £35.3 billion. $13 billion of capital left Russia in September alone…70% of the third-quarter total.

Turkey is a firm favourite among the new breed of investors according to other reports. International Residence surveyed 499 Russian investors at the Moscow International Investment Show in March this year, and found Turkey to be the third most popular country among those looking to buy. Spain and Bulgaria were first and second.

Worries over China's Property Market Overshadow Economic Prospects

Worries about a slowdown in China's property market are threatening to overshadow the country's economic prospects, according to the Organisation for Economic Cooperation and Development.

The report from the OECD stated that while the failure of small developers wouldn't pose a significant problem, this wouldn't be the case with larger developers who could put bank lending at risk. It identified a key risk as being an "overly quick liquidation of unsold property."

China is expected to see growth of 8.5% next year, even though exports will be affected by weakened demand and a decline in the nation's overall competitiveness.

According to the OECD the economy could be helped through government housing projects which would support the construction and moderate the effects of inflation, possibly allowing the government to cut interest rates from the middle of next year.

The vice premier of China, Li Keqiang has already announced the property market is entering a critical stage but feels restrictions on transactions should be maintained even though sales are declining. Latest figures show October sales fell by 25% compared to September and prices fell in 33 out of the 70 cities monitored.

The government has placed restrictions on mortgages and home purchases in around 40 cities and is also aiming to build 10 million affordable homes to boost supply. Some analysts are already predicting that falling property prices in cities such as Shanghai and Beijing could force the government to relinquish some of its hold on the property market. UBS is forecasting property prices will drop by between 10% and 15% in first tier cities in 2012 and by 5% to 10% in other cities.

US Births Hit an 11 Year Low, Affecting the Housing Market

  The birth rate in the US is at an 11 year low, and experts think decisions to delay having a family or forego having babies altogether may prolong recovery of the property market. The low birthrate will mean a lower rate of consumer spending on child related services and goods, and it's estimated the cost of having raising a child until the age of 17 is $226,920 with housing being one of the largest expenses.

Last year the number of registered births fell to 4 million which is the lowest level since 1999 as Americans worried about unemployment, falling house prices and low pay rises are lacking the confidence to plan for a new baby.

The US birthrate may not recover until 2013, and is likely to lead to slower economic growth. It’s being predicted that the employment rate will increase by 2.6% during the fourth quarter and that economic growth will be too weak in 2012 but to make much of an impact on the jobless rate.

Economists think the impact of a slowing birthrate could be huge as they point out households will choose to rent for longer periods of time, and there will be fewer people looking to move up the chain. Recently there have been signs of a pickup in the economy, and if this continues it could lessen the impact.

Consumer confidence improved in November and is at a four-month high, and retail sales increased by 0.5% last month. Claims for unemployment insurance have also dropped to their lowest level since April, which is a pretty good sign that the labour market may finally be recovering.

Hong Kong Property Market Sees Weaker Sentiment Last Month

The Hong Kong property market was a little weaker last month due to continuing problems in the Eurozone and in the global economy. In October potential homebuyers proved reluctant to commit to purchasing flats, and tighter lending conditions continue to make it more difficult to obtain mortgages.

These conditions resulted in home sales falling by 3.7% last month to reach their lowest level since February 2009. The luxury end of the market saw sales fall more steeply, as just 268 luxury homes worth more than HK$10 million were sold, a fall of 15.2% month on month.

Sellers also became more willing to listen to offers, with property being sold for an average of 10% less than the asking price. Prices of mass residential property fell by around 2% in October, but prices of luxury homes fell by just 0.5% as only homeowners short of cash were willing to sell at a discount.

Newly launched projects were received relatively well, as one developer saw 40 units sold within the first three hours of the launch.

The rental market was relatively quiet as this is the low season, and landlords were willing to negotiate on rents, with luxury rents falling by 1.9% compared to September.

Experts think the outlook for the Hong Kong property market will depend on the global economy, and the effects of the Eurozone prices have already begun to be felt as exports declined by 3% year-on-year in September, for the first time in two years. However they are predicting that any price corrections will be minimal unless the sovereign debt crisis in Europe worsens considerably.

2011 Likely to Be another Bad Year for New Homes in the US

At the start of the year there were hopes that 2011 would see the property market in the US turning around, but instead this year looks likely to be less than memorable for the construction industry.

The number of new single-family homes constructed this year is expected to be around 424,000, which is a reduction of 10% on last year and 5% on 2009 which was the worst year on record since 1959.

It was anticipated that this year would see the beginning of a slow turnaround for single family home building as this particular sector has seen heavy job losses during the last five years, but optimism has gradually faded as the economic situation failed to improve.

Nationally house prices have continued to fall, and were down by an average of 4% in August compared to August last year, according to the Standard & Poor Case Shiller index, and fear of falling prices has kept buyers away.

This year has also seen the formation of fewer new households, with levels at just a third of those seen in 2007 to 2009. Consumer confidence has plunged with people becoming more uncertain about investments.

Many experts think the number of single family home sales will increase next year, with 2013 seeing an even bigger jump, but some are questioning the need to build extra homes as the US already has an oversupply. The latest data from the Federal Reserve Board shows banks continuing to ease lending standards on all types of loans apart from those secured on real estate.

Increasing Numbers of Hong Kong Homeowners Are Falling into Negative Equity

Increasing numbers of Hong Kong homeowners are falling into negative equity, with the estimated number of mortgages underwater rising to 1,653 at the end of the third quarter compared to just 48 three months earlier, with loans worth $528 million.

This increase provides clear evidence that prices in Hong Kong are declining, and experts expect them to fall even further, especially with the risk of a global economic slowdown. The number of home transactions has fallen for 9 straight months, and prices declined by 3% between June and August. There are grim predictions that property prices may fall by as much as 30% by 2013, and the number of loans in negative equity is now at its highest level since the second quarter of 2009. However it's nowhere near as bad as the peak of 106,000 which was reached at the end of June 2003 at the end of the six-year slump which saw property prices decline by up to two thirds.

During the past year the government has implemented a number of cooling measures in response to the public outcry over price increases of up to 70% since early 2009. It has raised the minimum deposit required on some mortgage loans and has increased land sales in an effort to ease the shortage of new apartments which has partially been caused by an increase in buyers from other parts of China. Mortgage rates have also increased five times since March. While falling into negative equity is obviously bad news for these homeowners, it is good news for others who may find property prices finally becoming within reach.

Dubai's Property Market Recovery Slowed by Global Worries and European Sovereign Debt Crisis

Dubai's property market is still looking at tough times ahead, as its recovery is being slowed down by worries over the global recovery and the European sovereign debt crisis. Property prices have already fallen by an average of 60% from their peak, and it is now estimated they will fall a further 10%. The problem is that even though sales volumes are improving, and some sectors are seeing slight increases in prices, the market is still blighted by oversupply and lack of investor interest.

Most experts see no signs of a recovery this year, although over a third expects things to improve slightly next year, while two thirds expect an improvement by 2013. It's estimated that the property market in Dubai is oversupplied by around 25%, and the property price crash here is expected to be more than double that seen in the US.

Things aren't much better in Abu Dhabi which had initially fared much better during the economic downturn but is now facing its own oversupply of homes, as around 11,000 homes are expected to enter the market by the end of next quarter, according to a report by Jones Lang LaSalle. This is expected to cause prices to fall by another 14%, which would be 60% from their peak values. It is expected that the markets in both Dubai and Abu Dhabi will continue to adjust over the short term due to difficulties in financing mortgages and increased home supplies. This is also expected to affect rents as rental costs are predicted to drop by 8% in Dubai this year and by 5% in 2012. Rents in Abu Dhabi are expected to fall by 14% this year and by 10% next year.

Russia's Property Market Still to Make a Comeback

The property market in Russia underwent a huge boom between 2000 and 2007, and prices increased by around 436%, but property prices began to weaken towards the end of 2008 and to decline during the second quarter of 2009. House prices are still declining, even though the rate is slowing.

Although prices of resale apartments increased by 3.79% to the year ending the second quarter of 2011, when adjusted for inflation prices actually declined by 5.25%. In Moscow resale apartment prices fell by 5.38% after being adjusted for inflation, but in St Petersburg prices fell by a massive 15.23% after being adjusted for inflation.

Part of the problem is that the ruble has depreciated significantly against the US dollar, and was down from RUB23.36 in July 2008 to RUB35.82 in February 2009. This massive fall meant those who had already committed to buy or rent property had to raise around 50% more cash, putting pressure on the housing market which contributed to its crash in 2009.

By July 2010 the exchange rate had recovered somewhat and stood at around RUB30.76 to 1 US dollar, and according to the IMF the ruble is undervalued by up to 21% against the dollar and by 15% against the euro, and is expected to recover over the next few months to a year.

Private ownership of property has been allowed by citizens and foreigners since 2001 and since 2006 in Moscow, but Moscow has the dubious distinction of being amongst the world's most expensive cities for expatriates to live in.

Spanish Property Prices and Sales Are Finally Increasing

According to statistics from Kyero.com, which is Spain's largest English language property website, asking prices for property in the country has increased to €266,100 during the third quarter of 2011, and it looks as if there may be a shortage of quality properties in popular regions.

The country has experienced a tourism boom, and some hotels have seen 100% occupancy during the summer months, and this has led to increased interest from second home owners looking to rent out their property for at least part of the year.

Property professionals throughout Spain have seen an increase in enquiries and inspection trips, and certain areas such as Costa Blanca, Costa Calida, Alicante and Murcia are seeing respectable price increases.

Prices in Alicante began rising at the end of last year, with the average asking price of €220,000 in December rising to €231,000 in September. The region has enjoyed substantial investment into its infrastructure, and a second airport terminal was recently opened which should help attract more visitors, especially as prices are still below the national average.

Between April and June, Alicante saw its biggest ever number of sales to foreign buyers, but Malaga still took top place. It has been nominated as a candidate for the 2016 European Capital of Culture, and if it wins this will further boost tourism numbers and property sales.

The island of Mallorca still remains popular with visitors, and the average asking price is €416,300, which is the third highest average in Spain. The Spanish government has reduced VAT on new property until the end of the year, and this is also encouraging buyers to purchase now as it can save an average of €8000 on a €200,000 home.

US Shadow Homes Inventory Looks Set to Keep Prices Low

Hundreds of thousands of homes are either in foreclosure or have been repossessed by the banks, but have not yet come on the open market. There are already more homes for sale than people want to, or are able to buy, and with an estimated 1.6 million homes in the country's shadow inventory property prices are likely to remain depressed for years.

The states of Ohio, Georgia, Illinois, Florida and California have the largest shadow inventory is according to Realty Trac, which is a firm that tracks foreclosures and delinquent properties throughout the country.

Property prices in Ohio are down right across the state, and none of the areas seems able to maintain more than one month growth in prices, and it's not just affecting states with large shadow inventories, as Iowa had been largely unaffected by the boom and bust of the housing market, but is now beginning to see the negative effects of shadow inventory.

It can often take as long as a year before the banks get a foreclosure property on the market, and the likelihood is once it does sell it will be for a greatly reduced price.

According to Realty Trac, California has nearly 270,000 homes in its shadow inventory, while Ohio has nearly 70,000 homes. Apparently there are a couple of factors which are slowing down the resale of such properties, as legislators imposed a moratorium on foreclosures in 2009 as well as other delays, and lenders are increasingly seeking to keep homeowners in their property.

The value of the nation's shadow inventory has been estimated at $405 billion, and it's thought it will take at least four years to clear.

Sales of New Homes in the US Reach a Six-Month Low

Sales of new homes in the US have reached a six-month low, as even the largest price drops in two years failed to entice buyers away from distressed properties.

Sales fell by 2.3% to an annual rate of 295,000, and the median price dropped by 7.7% compared to August 2010. Developers are fighting limited access to credit and rising unemployment figures in addition to low foreclosure prices, and it seems likely that the building industry will not see a recovery in the short term.

The median sales price declined from $226,600 in August 2010 to $209,100 in August 2011, and purchases fell in three out of four US regions, with the North East registering a 14% drop. Sales in the Midwest rose by 8.2%. The supply of homes also increased to 6.6 months, up from 6.5 months in July.

In contrast sales of previously owned homes increased by 7.7% in August to reach a five-month high of 5.03 million annually, although the median price dropped by 5.1% compared to August 2010. Nearly a third of the properties were bought for cash while another third were made up of foreclosures and short sales.

Last week the Federal Reserve announced additional measures to increase growth and stimulate the property market, as it has been instrumental in every economic recovery since 1982 barring the current one. New housing starts fell to their lowest annual rate in three months in August, and the property market is still likely to be constrained by the current economic outlook and continuing weakness in the labour markets.

New Zealand Farm Property Is Selling Well

Sales of New Zealand farm property are at their highest level for nearly 2 years, and according to the latest report from the Real Estate Institute of New Zealand, this trend is likely to continue. A total of 1,003 farms were sold in the year ending August 2011, and this is the first time since October 2009 that more than 1,000 farms have been sold annually.

Although this figure is only slightly above 1,000, the Institute thinks it indicates an underlying trend due to farmer returns remaining good, while commodity prices are expected to hold or increase as the season gets underway.

A total of 265 farms were sold in the three months up to August, which is an increase of 38% on the same period last year, but is a 12% reduction compared to the end of July.

Sales of dairy farms are quite low which is seasonal, even though there is good demand for high-quality grazing, and in general most farm types are seeing sustained interest, and all but one region has recorded an increase in sales compared to August last year.

The median price per hectare has declined from $16,968 in August 2010 to $15,148 for August 2011, but experts expect the prices to remain reasonably constant and sales to increase.

The number of lifestyle properties sold in August decreased compared to May, but is still well above last year's figures as 1,304 properties were sold during the three months ending in August, up from 1,066 during the same period in 2010. The median price declined from $453,000 to $444,000.

Rising Prices in Bangkok Increase Demand for the Suburbs

Property prices in Bangkok are increasing rapidly, and now that the sky-train has been extended to the East and West sides of the city, many foreigners are choosing to escape the city and are looking towards less crowded areas in the suburbs.

Many are choosing to buy middle and lower priced homes outside the city in suburbs such as Thon Buri and Bang Na. The attractions of these two suburbs include the fact that Thon Buri has relatively few high-rise buildings, while in Bang Na there are several good international schools.

The suburbs of Bangkok are undergoing something of a population boom, as the number of residents has increased by more than 30% during the last decade. In spite of this massive increase the population density is still an incredible 800% lower than the inner-city, and according to the National Statistics Office this equates to 1,086 people per square kilometre, compared to 8,780 people per square kilometre.

The top two districts for population expansion are Bang Bua Thong and Bang Yai, where the population increased by 85% and 107% respectively which is largely due to the government’s plan for extending the MRT Purple Line.

It's expected that the property market in Bangkok will continue to remain hot, as the city is likely to become a hub within south-east Asia. The number of foreign tourists visiting the country grew from 15.93 million arrivals in 2010 to 11.17 million during the first six months of this year. This number is expected to increase to over 30 million tourists annually once the Asean Economic Community is formed in 2015.

Property Prices in Malta Fall for Second Consecutive Quarter

According to an index compiled by the Central Bank of Malta, property prices in the country have declined for their second consecutive quarter, falling by 2.6% in the three months to March. The prices of advertised property have also dropped by 2.6% year-on-year during the first quarter of this year compared to an annual rate of 2% during the previous quarter.

Apparently this fall was largely due to lower asking prices for terraced houses and for properties which are classified as being "other" properties, which includes houses of character, villas and townhouses.

Prices of terraced houses have fallen for three consecutive quarters, declining by 6.1% year-on-year, while prices for properties considered to be in the "other" category have declined by 12.8%.

However prices of apartments which account for almost three fifths of properties surveyed, increased by 1% compared to a year ago. The number of properties advertised for sale during the first quarter of 2011 decreased by 9.9% compare to a year earlier.

Although this news may seem gloomy, the Central Bank is still predicting economic growth to be 2.5% this year, compared to 3.2% last year when the economy rebounded strongly.

Investment spending was also strong in 2010, and is predicted to grow by 10.2% this year, with much of it being due to government investment in infrastructure and non-dwelling private investment.

Exports are predicted to grow by 5.5% this year, and all this positive news is expected to ease unemployment rates. Unemployment is predicted to decline to 6.4% this year which is pretty respectable.

Overseas Investors Increasingly Interested in Memphis Property

According to one estate agent in Memphis, Tennessee, the city has seen a raft of overseas property buyers looking for cheaper investment opportunities, and the company feels this is down to the government's willingness to help foreign businesses. The government of Memphis and its civic leaders has been working over the last couple of years to improve the image of Memphis, emphasising that it is a world class city. It looks as if their efforts have been paying off, and a number of foreign-based companies have recently announced their intention to relocate facilities to Memphis.

Memphis is increasing its appeal to investors from Canada, Europe, Asia and Australasia, and the local estate agency admits it was caught unawares by the increased interest, as the majority of foreign investors tend to stick to known tourist destinations such as Florida or Las Vegas. It looks as if it is attracting investors who are looking for a lower cost investment which will produce positive cash flow and long-term stability, and the fact that Memphis is becoming well known as a business city, also helps considerably.

Now estate agents in the city are hoping to adapt to the new needs of international investors, and are learning to cope with different time zones and different cultural, legal and language barriers. At the moment foreign investors make up around 7% of all US home sales, so it is an important part of the market. However this particular Memphis estate agent believes that foreign investors will account for 20% of all sales during the fourth quarter of 2011 into the first quarter of 2012, and has plans to increase this percentage next year.

Standard & Poor Predicts Further Price Drops in Gulf Region

A gloomy report from Standard & Poor predicts that property prices and rents in the Gulf region will continue to fall for the rest of the year. The agency thinks that developers will continue to postpone projects in favour of renting out and managing current stock, and it went on to say that it expects to see a shift away from luxury property towards more affordable housing, and that this will be particularly pronounced in Saudi Arabia.

According to a credit analyst for the ratings agency, prices and rents will continue to decline for the rest of the year, even though some of the properties in Qatar, Bahrain and the UAE have lost up to 60% of their value.

Apparently part of the problem is that the legal and regulation framework in these countries needs to be reformed to help stimulate the property market. Another problem is that the markets are oversupplied, and even though some people want to buy they cannot afford these luxury properties and cannot obtain finance.

The property market in Bahrain and Egypt is expected to remain slow, at least in the short term, which is due to the protests earlier in the year, and a considerable number of projects have been delayed or even cancelled.

Construction isn't expected to restart on any major scale until the political situation has stabilised, and the proper authorities are put into place to issue permits, licenses and property titles. There is also the possibility that property firms in the Gulf region may eventually adopt a real estate investment trust status, as at the moment REITs are relatively rare in this area.

US Property Market Finally Shows Signs of Stabilising

According to the second-quarter real estate market report from Zillow, the property market in the United States may finally be showing signs of heading towards stabilisation.

Although property prices have fallen by an average of 6.2% in the majority of markets, these falls have been slowing, with the last quarter showing just a 0.4% decline, the smallest for more than four years.

Some property markets are showing price increases, and negative equity has declined slightly. However economists are predicting that the bottom of the market won't be realised until next year due to the high numbers of foreclosures and continuing uncertainty over the economy.

Overall property prices have fallen by around 28% since their peak in June 2006, and the average property costs $171,600. The rate of foreclosures is gradually declining, as in March it reached a peak of 21.4% of all sales, while in June this figure fell to 19.7%.

Although property experts acknowledge this is good news they are still cautious about the future, and feel the road to recovery will not be particularly smooth. This is due to the fact that there are still a lot of foreclosures in the pipeline, and many people still have high levels of negative equity which could put their homes at risk in the future.

Some property markets have now shown two consecutive quarters of appreciation, and these include Washington DC where property prices increased 0.2% through to the first quarter of the year, and 1.7% through the second quarter. In the Pittsburgh prices increased 0.1% through the first quarter of the year and 2.8% through the second quarter.

Nicaragua Is a Great Destination for Investors Seeking a Bargain

Nicaragua is the largest country in Central America, and much of the southern Pacific Coast is being developed with luxurious planned communities designed specifically for overseas buyers.

While these developments are absolutely gorgeous, the Northern and Central Pacific Coast offers a far more affordable alternative, and many investors are catching on fast.

A lot of the towns here are quite simple, but are undergoing gradual transformations and the percentage of holiday homes is increasing. One such village is Pochomil whose most significant claim to fame is the substantial number of excellent seafood restaurants on the beach which is wide and sandy and about 10 miles long.

The Pacific Ocean here is extremely calm and warm, and is perfect for swimming and other water sports. This village is near to a luxury resort at Montelimar, and is also close to the former presidential seaside retreat. The nearest large city is the capital of Nicaragua, Managua, and many of its residents choose to escape here for day trips.

At the moment prices here are still very low as a three-bedroom property with ocean views can be bought for as little as $150,000, and the village has attracted a real international mix. Unlike the planned communities along the south Pacific Coast, this region has retained its authentic feel.

As well as being an attractive country for second homeowners, Nicaragua is increasingly being seen as offering opportunities for foreign direct investment, and is often regarded as one of the most competitive sourcing options for the textile industry, even when compared to countries such as Vietnam, China and Bangladesh.

Nicaragua has a skilled labour force and is very pro-business offering attractive fiscal incentives, and is likely to see good economic growth over the next few years.

Property Prices in Australia Fall Unexpectedly

Property prices in Australia are continuing to fall, as new figures for June show they have now declined for three straight months. One index showed that property prices in eight major cities dropped by 0.1% during the last quarter, and they are now at their lowest level since 2009. However the price falls in some cities were much larger, as property prices fell by 1% in Perth, and by 1.6% in Darwin. They are still continuing to rise in some cities as they increased by 0.4% in Sydney, and by 1.1% in Canberra.

Australia currently has the highest interest rates in the developed world, at 4.75%, although it has just been decided to keep rates the same for another month in spite of worries over high inflation figures. Rates have been increased seven times between October 2009 and November 2010.

The number of permits to build new homes, or to renovate existing houses and apartments fell by 3.5% from May, and building approvals have fallen by 15.5% year on year to June. This was unexpected as economists had been predicting a 3% increase in approvals during June, and a 10.3% fall for the year. Some analysts are taking the view that a fall in building approvals is good for house prices and should ensure that there aren't any real significant price drops in the future.

In spite of these gloomy figures, the medium to long-term outlook looks good, as economic growth is expected to boost the housing sector. There is a strong underlying demand for new homes, as around 135,000 units are built when there is a need for 200,000 new homes annually.

Chinese and Taiwanese Seek Japanese Bargains

One of the biggest property brokerage firms in Taiwan is helping Taiwanese and Chinese buyers find property investments in Japan, as the government restrictions are making it increasingly difficult to buy in their home markets. Japan is proving attractive due to low interest rates, and the high rental yields can be double those available in their home countries.

Property prices in Japan are currently low, while the Chinese and Taiwanese governments are currently trying to suppress property prices are due to their rapid increase over the last couple of years. China has already raised interest rates five times since October, has limited property purchases in Beijing and Shanghai and is now looking towards curbing the growth of property prices in smaller cities.

Taiwan has increased the cost of borrowing for five straight quarters, and has also introduced a new tax on luxury properties sold within two years of purchase. It's been estimated that this action will lower transaction volumes by 10% this year as the market is no longer so attractive to speculators.

The property market in Japan is already showing signs of recovery after the recent earthquake and tsunami. New housing starts increased by 6.4% in May compared to a year earlier, and a $25.5 billion disaster package has just been approved for rebuilding after the earthquake. Rental yields in the country are around 5% to 6%, which is double that of China or Taiwan, as property prices here haven't increased as substantially as other Asian markets. Chinese investors in particular are increasingly looking for other markets, as they prefer to relocate assets offshore.

US Foreclosure Numbers Show Increase

The number of homes in the US that received foreclosure filings rose last month which is the first increase for three months. According to RealtyTrac, notices of repossession, default or auction sale were sent to 222,740 homes in June which is a 4% increase on the previous month.

This rise may be due to the increase in the number of properties sold, as banks could be prompted to issue foreclosure notices. The numbers of foreclosures had slowed in previous months as the banks became worried about the high numbers of homes hitting the market and subsequently dragging down prices.

Some experts feel that delaying the number of foreclosures is just delaying the recovery in the housing market, and there are estimates that it could take as long as 2015 or 2016 for prices to begin recovering.

During the first six months of the year the number of homes receiving foreclosure notices had fallen by 25% when compared to the last six months of 2010, and by 29% compared to the first six months of last year.

Sales of previously owned property in the US declined to a six-month low in May, while the supply increased which is a clear indication that the housing market is still in the doldrums.

Prices of foreclosure and short sale properties are typically around 20% below market value, and these represented about a third of all transactions in May, which is slightly less than the 37% recorded in April. Nevada still has the dubious distinction of having the highest foreclosure rate in the US with an incredible one in 21 homes receiving foreclosure notices.

Residential property market in Hong Kong remains strong

According to a report from Jones Lang LaSalle, the property market in Hong Kong remains strong in spite of a slowdown in sales volume. The report points towards low interest rates, limited space availability, corporate expansion and strong consumption as the reason for this continued growth.

The Hong Kong government imposed cooling measures over the last year, and this led to an initial slowdown in sales growth during the first six months of 2011. There were a total of 55,200 sales and purchase agreements during the last six months, and this is 16% less than the previous year, but with the number of transactions averaging 9,200 per month, this level is still considered to be healthy.

There were 1,260 transactions for property valued at HK$20 million or more, during the first six months of this year, and although this is 33% less than the last six months of 2010, it is still 7% more when measured on a year on year basis.

The total of these transactions was HK$59.4 billion which is 20% less than the second half of 2010 but 11% more year-on-year. In fact the capital values of luxury property has increased by 16.2% this year, and rents have gone up by 4.9% which is mainly due to demand from corporate expatriates.

The overall price of residential properties has increased by 10.1% this year, and this increase is mainly due to higher household incomes and a lack of available housing. Sales of new properties have slowed as just 4,700 new units were sold between January and May, while 13,600 units were sold during the previous 12 months. Experts expect sales volumes to remain low for this year, but don't see any real market risks.

US banks easing terms on risky loans

Two of the largest US banks, the Bank of America and JP Morgan Chase, are helping borrowers by easing their mortgage terms or cutting their debt, and some of the grateful recipients are not even in default.

One lucky borrower received a letter last year from Chase telling her the amount she owed on her condominium would be cut in half. Her loan was for $300,000, but she wasn't in default, and although she didn't understand quite why they have chosen to do this she certainly wasn't going to turn down such a lucrative offer. However the offer was deliberately vague, and upon acceptance the interest rate was raised to around 5% so repayments remain roughly the same.

Before this offer was made this particular property owner was in negative equity, and as such was far more likely to be at risk of foreclosure as anyone in this position is more likely to move away to take a job than anyone who has a financial stake in the property.

Apparently banks are overhauling loans for borrowers who have pay option adjustable rate mortgages which were taken out in the late stages of the property boom, as these are viewed as potentially causing future problems. This type of loan allows borrowers to forgo making the principal payment and some of the interest payment for an introductory period which can last several years. The extra interest and monies owed are then added to the loan.

Although there are many homeowners who could desperately use this kind of assistance, the lucky few chosen to receive this help are often suspicious as to the motive. In March economists at the Federal Reserve wrote a paper saying they could find no real evidence that any lender is actually reducing principal on mortgages.

Holiday Home Buyers Advised to do Research

This is the time of year when many people holidaying abroad are tempted by the thought of owning a holiday home, and a few will go ahead and make their purchase without fully considering the consequences.

A new report from Smart Currency Exchange advises would be second home owners to approach this transaction in the same way as any other business or commercial transaction. This is especially true at the moment where many people are being tempted to buy abroad by the abundance of bargains in places such as Florida, Spain and Portugal.

One thing that Charles Purdy, Director of Smart Currency Exchange advises is to always have an exit strategy, as circumstances can change quite rapidly sometimes, and a lot of people may be forced, or may choose to return to the UK. One thing that people should always check is the year round weather, as some places which seem idyllic during the summer months can be anything but during the winter. Some of the amenities may shut during the low season, and there may be far fewer flights.

He advises people to rent for a few months or a longer before making their final choice, and to do their research thoroughly as to any future developments which may affect their property. Getting good legal advice is also essential, and it is worth paying extra to ensure it is independent. Buying a property overseas can be a life changing experience, but research is essential to ensure it is a positive life choice.

Chinese government is successful at avoiding property bubble

It looks as if the Chinese government has been successful at avoiding a property bubble as prices during May fell in 23 out of the 70 cities surveyed, up from 16 in April.

Prices of existing homes in Beijing fell by 0.2% from April while property in Shanghai registered a 0.2% increase. Prices of new homes increased in 67 out of the 70 cities. The Chinese authorities are determined to prevent a bubble, and on June 14 the authorities ordered banks to hold more money as reserves, as it continues to fight inflation.

The government measures work better on existing homes as they restrain purchasing power, whereas developers of new properties are in no rush to slash prices, and are watching to see how government policies will develop.

The prices of new homes in the larger cities such as Beijing slowed last month, as much of the government's efforts have been focused on the largest urban areas. However a total of 29 cities posted increases of more than 5%, even though this is down from 33 cities in April.

Prices of new homes in Beijing have increased by 2.1% while Shanghai homes increased by 1.4%. The smaller cities such as Lanzhou, Mudanjiang and Urumqi all posted much larger gains of at least 7.7%.

Standard & Poor cut Chinese developers outlook from stable to negative on June 15, and it's likely that property sales will slow as the government policies really start to kick in. The credit rating company thinks that as prices may be 10% lower in the next 12 months.

Experts predict a long, slow struggle for US housing market

Experts are predicting that the American housing market will take a long time to return to any sort of normality, due to the huge number of foreclosures and empty homes, while the proposed 20% minimum deposit threatens to limit the number of buyers able to get on the property ladder.

The vice-chairman of the US Federal reserve, Janet Yellen, has said that the recovery will be long and drawn out, and that the Fed must work hard with other agencies to help clear the current stock of vacant properties and to prevent further foreclosures.

There were around 2 million vacant homes during the first quarter of this year, and the inventory of unsold property is likely to stay high for quite some time, increasing the downward pressure on house prices.

Americans are still having considerable difficulty getting finance, and the Federal Reserve is now trying to persuade lenders that all mortgages should meet higher underwriting standards as an alternative to foreclosure. Robert Shiller, the US economist responsible for the Case Shiller index predicts that house prices could fall by a further 10% to 25% during the next five years.

A minimum 20% deposit has been proposed by six federal regulators, but angry critics say this will prevent a large percentage of the population from ever buying their own home, condemning them to rent for ever.

There are worries that the only people who will be able to get mortgages in the future will be the very wealthy, with other potential buyers being either excluded or charged higher rates.

Property prices are still falling in Cyprus

Property prices are still dropping in Cyprus, and the asking price of homes has fallen by 25% in the last 18 months. Even these huge discounts are not sufficient to attract buyers, as the only property is being sold are those regarded as being real bargains.

The price drops are being blamed on a combination of factors including the global recession, the problem with title deeds and stricter lending conditions. Apparently banks have cut the number of mortgages by as much as 50% as they are too scared to lend. Of course some properties were simply priced too high for the market and a correction was inevitable.

It's not all gloom and doom, as some experts remain optimistic about the future of the property market, and feel that certain places have just fallen out of fashion, while those nearer the sea or with good views are holding their value. Properties in Paphos had been particularly badly hit, but there are signs that the market may be picking up here, as large numbers of Russians are choosing to buy property here as Paphos is seen as a quiet, beautiful and safe location.

British buyers are still in short supply, although some Cypriots are taking advantage of the low prices to invest in property. The story isn't much better for the rental market as a villa which would have previously been rented for €600 a month will now rent for €500, but there are hopes that improved tourism figures may help boost the property market. Revenue for tourism was up 53.5% in April.

Investors Eye up Singaporean Industrial Property

Industrial property in Singapore has been forecast to outperform residential, office and retail property over the next few years. Cushman and Wakefield reported that capital values for industrial properties increased by up to 22% in 2010, and the vice-chairman, Donald Han, expects a healthy 15% increase this year. He feels that as long as the economy and manufacturing sector continues to expand the market could enjoy another two years of steady capital values and rental increase.

Demand for industrial property has increased due to the government cooling measures which have forced speculators to move from expensive residential property to the more affordable industrial properties.

Industrial property is currently costing around US$240-US$280 per square foot which means a reasonably sized unit of 1000 to 1500 ft.² would cost less than US$400,000. This compares very favourably with the cost of residential property as this amount would not buy much more than a shoebox.

Although prices of residential property rose sharply last year, analysts are currently hedging their bets about which way the market is heading as the government measures begin to take full effect. Most agree that prices cannot keep on rising so steeply, even though the most recent data shows that prices are still below pre-global financial crisis levels.

The prices of residential property rose by 2.1% during the first quarter of this year which is slightly down from the 2.7% growth recorded in the last quarter of 2010. Prices have now increased for seven straight quarters, although the number of sales is slowing.

US new home purchases at record low

Homebuyers in the US are shunning new homes as purchases are now at record low levels with the figures for April showing that the property market remains a weak link in the US recovery.

The number of new homes sold in April was 300,000 which is the same as March, but it seems as if buyers are choosing to purchase previously owned homes which is having a serious effect on homebuilders.

The figures for this months new-home sales are not expected to show any significant improvement. The high levels of foreclosures will continue to have a negative effect on property prices. Unemployment levels are now at 9% and wages are remaining static.

When this is combined with tighter credit regulations it seems likely that a recovery in the housing market will take years. Steve Blitz, a senior economist for ITG Investment Research Inc in New York feels that new-home sales will remain depressed due to the considerable housing inventory.

The chief financial officer of D.R. Horton, Bill Wheat feels that demand will remain weak into 2012. D.R. Horton is the second largest homebuilder in the US.

Housing starts fell by 11% in April to 523,000, as builders have already begun to cut backoreLogic Inc estimated in March that there were 1.8 million homes that were more than three months delinquent, already in foreclosure or bank owned, and there are already 3.87 million pre-owned homes on the market which will continue to affect sales of new houses.

At the peak of the market, new-home sales accounted for 16% in July 2005, while in March they accounted for just 5.6% of the market.

French Tax Laws Set to Sting Second Homeowners

The French government has just announced that second homeowners in France could be subjected to a new tax if they don't live in the country and don't pay French taxes. It's likely to apply to people who don't rent out their properties as owners who collect a rental income are likely to be unaffected by the new tax.

It looks as if the tax would be equivalent to 20% of the cadastral rental value and it is expected that this tax will bring in an extra €176 million to government coffers every year. As yet there isn't a firm date for this new law to be implemented, but it's expected it could be as early as January 2012 and that the new law will be passed in Parliament this summer.

The French budget Minister, François Baroin has defended this new bill on the basis that anyone owning a second home doesn't contribute towards national services and infrastructure even though they benefit while in the country.

It's widely thought that there will be a six-year period of grace for people who had previously been French tax residents before moving abroad. It is also likely that anyone who paid taxes in France for three years during the last decade for leaving the country could benefit.

This change could affect 360,000 second home owners who are mainly British and Dutch citizens.

There are questions being raised about the legality of the new law under EU laws even though it has clearly been written to apply to French citizens as well as overseas buyers. The European commission has already announced its going to take a look at this draft law but the reality is that member states are free to set their own tax laws.

Aftermath of the Earthquake leads to building boom in Japan

The aftermath of the earthquake is likely to lead to the biggest housing boom in Japan for at least 15 years. Japan's second-largest house builder, Sekisui House Ltd is set to focus its attention on building new homes locally after concentrating much of its efforts into overseas housing markets such as Australia and China over the last three years.

The company had decided to target countries that are dealing with increasing population, good economic growth and rich resources as the housing market in Japan was damaged by falling wages and increasing unemployment.

New housing starts in Japan fell to less than 1 million units in 2009 and 2010 which is the lowest level for four decades, but now demand is expected to exceed that of 1996 when 1.6 million new homes were built after the Great Hanshin Earthquake.

The Japanese Prime Minister is proposing a ¥4 trillion budget to help rebuild homes destroyed and damaged by the earthquake and subsequent tsunami. There is also a proposal that the government should raise taxes to pay for this extra spending, but experts feel this would hurt the economy and could jeopardise the revival plan.

After the last earthquake in 1996 housing starts increased for 10 months, but the area damaged in March is much larger and the need is much greater. There are about 30.3 million homes in Japan, and 90% have not yet been assessed for quake resistance. An estimated 0.4% of the 29,692 homes built by Sekisui in the area of the Hanshin earthquake were destroyed and 9.3% were just slightly damaged.

The chief executive officer of Sekisui, Isami Wada announced the company's intention to continue building more earthquake resistant homes that help give people peace of mind and security.

Stylish living in Sweden

Although it's just a two-hour flight away from the UK, very few Brits buy property in Sweden, and yet the country has much to offer as it has stunning scenery and great skiing. While the north of the country is sparsely populated, the southernmost part of Sweden is on the same latitude as Edinburgh and the cities of Gothenburg and Stockholm have lots of cultural entertainment and restaurants but yet remain relatively uncrowded.

Temperatures here can reach 30°C in the summer and the area attracts large numbers of Dutch, Germans and Norwegians who buy summer houses as holiday homes.

Prices in Sweden fell by around 10% to 15% in the aftermath of the global financial crisis, but as the government lowered the interest rates, prices have gradually climbed back to where they were at their peak.

Property prices are much lower outside the cities and towns and a lot of Swedes own a second home, or summer house which is little more than a log cabin.

These can cost as little as £25,000. Prices in Stockholm can vary as it is made up of separate villages which each have their own character. In the city centre most people live in apartments, and not surprisingly this is the most expensive area at around £6250 per square metre.

A family house close to the city centre will cost about £773,000, but you can halve this figure by moving slightly outside of the city. Swedes enjoy a very high standard of living, and there are good job opportunities here for people with good qualifications, but taxes are high.

Confidence remains high in Hong Kong property

The first land auction since last November has just taken place in Hong Kong and raised amounts close to the highest estimates of analysts. This indicates that developers are still confident that the market can withstand any attempts by the government to control property prices.

A plot of land in the Hung Hom district which is near to the site of the former airport was bought by Nan Fung Development Ltd and Wing Tai Properties Ltd for HK$1.525 billion. Five surveyors and analysts had estimated this site would raise anything from HK$1.07 billion to HK$1.53 billion.

The site will be jointly developed and it's estimated the whole project will cost between HK$500 million and HK$600 million to build over 100 three and four-bedroom luxury apartments. The price paid for the site equates to HK$9934 a square foot while the estimated selling price will be HK$12,934 per square foot.

Property prices in Hong Kong have risen by 65% in the past two years, and the government has been trying to control this rapid rise since last year and hopes that boosting land supply will lead to more affordable housing, since many of the public have complained that housing costs are now unaffordable. Property prices rose 0.6% to the week ending April 17 after a 1.6% decline in mid-March after mortgage terms increased.

Prices of homes have increased by around 10% since last November. The government is selling a total of nine sites in the second quarter of this year which will enable 2650 apartments to be built. It could auction 52 sites this year which would mean 16,000 homes could be built. This would be an increase of nearly 80% on the number of homes built on government sold land last year.

Chinese banks increase reserve requirements

Chinese banks have increased their reserve requirements in order to restrict the flow of cash and cool inflation, and the central bank governor Zhou Xiaochuan has said that monetary tightening will continue for some time.

The reserve ratios are due to rise half a point pushing the requirement to 20.5% for the biggest lenders and this latest move comes just two weeks after interest rate increases. It's hoped these measures will prevent banks from lending aggressively in the next month.

It also seems likely that another interest rate increase may come as soon as next month after figures showed inflation accelerating at its fastest pace since 2008.

The policymakers in China may also consider allowing the Yuan to appreciate more quickly in order to reduce the cost of imported products including oil.

The US in particular thinks the Chinese currency is undervalued and there are expectations that it will rise about 2.3% during the next 12 months. The US Treasury secretary Timothy F.

Geithner has said that a stronger currency would help to counter inflation within China and would also help to reduce economic imbalances that have contributed to the global financial crisis. The Yuan has increased in value by 4.5% against the dollar since last June, which was when the Chinese scrapped their policy of keeping the currency unchanged against the dollar.

The Yuan is close to becoming included in the International Monetary Fund's Special Drawing Rights basket, and this should help China overcome inflation. However some officials feel that the SDR basket should be broadened to not only include China but also the currencies of Russia, India, South Africa and Brazil.

Thailand's Property Market Finally Slowing Down

According to estate agent Brett Gordon, founder of Panna Capital in Hong Kong, the property market in Thailand is slowing down after a year of spectacular growth.

The Bank of Thailand's Economic Conditions Report released in January showed sales in Bangkok reached 178,128 in 2010, up from 161,240 in 2009. However on January 1 2011 the central bank raised the loan to value ratio.

The loan to value ratio for condominiums costing less than 10 million baht is now 90%, while the ratio for low rise properties will be 95%, applicable to purchase contracts dated on or after January 1, 2012.

Brett Gordon sees this as a sensible move although there are concerns being raised in a report from CB Richard Ellis that limitations on foreign ownership in Thailand could do long-term damage to the market.

This effect is already showing quite clearly in the Bangkok property market as it didn't gain any real income or have any significant property deals during the last quarter of 2010.

The report from CBRE went on to say that although there are concerns about the influx of foreign capital into Thailand the restrictions mean that the property investment market remains largely the domain of domestic buyers.

However the threat of a property bubble in the condominium market has subsided due to decreased demand and a reduction in supply.

For his part Brett Gordon sees the retail sector in Thailand as being the most interesting, in particular the small listed retails. He feels that the dominance of large listed retails in the country has reached its maximum.

The increasing popularity of Uruguay

Uruguay only used to appeal to Argentinians, Chileans and Brazilians who all knew about the pristine beaches, pleasant cities and vibrant nightlife.

However when the local currency crashed a few years ago Uruguay suddenly became a lot more appealing to foreigners, and there is a lot to recommend this small South American country.

Uruguay has an open, free market economy with no foreign currency limitations. Some 80% of bank deposits in the country are held in euros or US dollars and Uruguay has a strong financial privacy law. It's easy to obtain residency as much depends on having an annual income of more than $6000.

The economy grew by an impressive 8.5% last year which is more than the much talked about Brazil. Punta del Este, Colonia del Sacramento and Montevideo have attracted the tourists for a long time and visitor numbers to these areas for January this year were up 40% on January 2010.

A large percentage of tourists come from Argentina and other areas within Uruguay, with locals especially anxious to spend their new-found wealth from owning agricultural exports.

Punta Del Este is an appealing seaside town that is a mixture of sophisticated high-rises and the brick built houses. During the height of the season it attracts the famous and wealthy, but for much of the time it's sleepy and laid-back.

La Barra is just a short distance away from Punta Del Este but is already being redeveloped with luxury apartments being built near the beautiful beaches. Property around here is selling well and was relatively untouched by the recession with prices per metre averaging $3000 for prime ocean and beach view condos.

Confidence Returning in UK Property

According to the latest Zoopla.co.uk Housing Market Sentiment Survey, there is a returning of confidence to the property market as about two-thirds of homeowners stated that they anticipate property prices to increase over the next six months. Last year about 50 percent believed that the property prices would increase.

In comparison with a third of people in December who thought that prices would fall, only a quarter expect prices to fall now. More optimism abounds now concerning the amount that prices will increase. Out of 7,984 people surveyed, people predicted that prices in their area will increase by 2.8 percent within the next six months, which is a 1.9 increase from three months ago.

Northern Ireland saw the greatest improvement, in which 57 percent of homeowners anticipated property prices to increase. This is a 42 percent increase from three months ago. Scotland also saw respondents anticipate high gains at 63 percent.

With the last nine months experiencing steady declining prices, Nicolas Leeming from Zoopla.co.uk states that this may be a good sign that the property market is on the upward swing.

There is a low inventory of homes currently and homeowners are continuing to anticipate prices to increase in their areas. The confidence levels are not the same as they were in early 2010, but the improvement is being received well and increasing optimism.

Many real estate experts anticipate about a 2 percent decrease in property prices in 2011 as a whole and many are quite optimistic that the property market will have a favorable year.

Australian Property Investment to Increase

According the Alan Oster, NAB chief economist, the number of people that plan to invest in Australia’s property market this year is surprisingly high. Figures show that numbers of interest have risen from 24% in December to 33% in March.

The increase is largely due to improvement in rental yields and changes that allow self-managed super funds to purchase residential property developments. This is good news for the property market, but the National Australia Bank survey shows that credit access continues to be a problem for developers.

Property price growth is expected to grow this year at about 0.6 percent and rental prices are anticipated to rise. Some in Australia are in favor of a “buyers strike” until the prices strengthen, but in exchange for the wait, they will have to pay higher rents.

Experts predict that rents will increase about 3.5 percent within the next year, and 5.2 percent by March 2013. WA is expected to see the biggest gain (4.6%) and SA/NT (2.9%) and Queensland (2.5%) are expected to experience the weakest gain.

Western Australia is expected to lead the way regarding house prices, with a 1.1 percent rise over the next year. New South Wales and the Australian Capital Territory are expected to see increases as well at 0.9 percent.

A recent survey has found that access to credit is now beginning to be more of a hindrance to purchasing properties over the interest rates. Regardless, Australia’s property experts agree that the property market will slowly see improvement this year.

Australians Finding Value in US Property Market

Australians are viewing the US as a good property investment opportunity, but real estate experts are cautioning investors to do their research before making an investment.

Australia has a strong dollar and the US property market has an abundance of foreclosures on the market. With median prices being much lower in the US, Australians are tempted to make overseas investments to enrich their portfolios.

The median house price in Perth, Australia is $465,000 and in the US is $210,000. With the falling rate of home ownership in the US, the market is peaking the interest of international investors.

According to Leigh Gavin, head of property research at Frontier Investment Consulting, for every 1 percent that home ownership rate falls, it equals about 1.1 million households.

In the last year, about $600 million dollars have come in from Australian investors into the US property market. Some are even paying for investments that they have never seen. This may not be wise though, if the area that the properties are being purchased are not in attractive areas. The potential for loss in the future is greater if the area is run down or in a high crime area.

Some experts are advising that investors look into multi-family housing and some companies are available to assist overseas investors find and purchase such housing for as little as $10,000. Multi-family housing is booming in the US due to Generation Y’s reluctance to purchase their own homes with the economy the way it is.

In Australia, yields on apartments are about 2-3 percent, but in the US yields are about 5-6 percent. The US property market is expected to continue to see slow recovery this year, as more and more people begin to show interest in purchasing homes once again.

Spanish Property Benefits from Construction Decrease

Spain's property market is benefitting from a decrease in new home construction in 2010. A decrease of 33 percent has been reported from 2009 to 2010, according to the latest statistics from the Government.

A 60 percent decrease in Spain property construction completions have occurred from 641,419 new homes in 2007 to 257,443 new homes in 2010. This is largely due to a decrease in demand for residential properties.

Planning approvals have also declined according to research, as they hit an all-time low of 91,662 last year. This is an indication that less and less homes will be coming onto the market for the short to medium future.

Spain has been experiencing a great oversupply of homes across many regions of the country, so a slowing down in property construction was necessary to balance things out. Since Spain’s property market peaked in late 2006, property prices have decreased by up to 60 percent.

There are around one million unsold homes on the market in Spain currently. Despite the large number of homes, some house builders, such as Polaris World, are still planning on building new homes this year. Property experts do not believe that this is a good idea, as the market is best when supply vs. demand is more balanced.

With the large number of unsold properties at affordable prices, the amount of overseas investors has increased. Investors are very interested in capitalizing on the oversupply to fatten their investment portfolios in the hopes of high returns on their investments in the years to come.

PWC Declares American Property Market is in Recovery Mode

PricewaterhouseCoopers has declared from a recent report that the property market in America is in the mode of recovery and investors are the ones who are really leading the way. From all the reports over the last couple of years, this latest report seems to be the most encouraging, as the data indicates that confidence is returning to property investors.

According to data from the PwC Real Estate Barometer, the commercial real estate market is doing considerably well and will continue as long as confidence among businesses and consumers continues. The office and multifamily housing sector are expected to show positive signs of recovery by the end of this year.

The retail sector is not expected to do quite so well this year, but experts believe that next year will begin to see more recovery. There are some inflation fears and consumers are not spending as much right now, but investors are beginning to have more interest in distressed retail properties, as they believe it is a good time to purchase now before the market stabilizes.

Surprisingly, the luxury retail sector is showing signs of recovery, as people with a great deal of money are not afraid to spend it at this time. Some are surprised, but the retail sector is doing better than many expected, as many thought the boost wouldn’t come till at least the year 2013.

With the commercial real estate sector doing so well, and the retail market beginning to show small signs of recovery, experts believe that the increase in transactions will give the economy the added boost it needs.

Growth Predicted in US Commercial Property

According to a recent report by PricewaterhouseCoopers LLP, the United States commercial property sales are expected to increase within the next few years, as more and more property investors gain confidence in the market as a whole.

According to this quarterly survey, job growth, as well as higher business and consumer optimism, are encouraging purchasers to get into the market now with the interest rates where they are. By waiting, interest rates could increase, as well as push prices up in the office, industrial, multifamily, and retail sectors.

Everyone is awaiting recovery of the real estate industry, and as confidence grows among investors, the better will be the results for the industry. The long wait has caused some investors to become more eager to get back in there.

According to an index from the Massachusetts Institute of Technology Center for Real Estate in Massachusetts, commercial real estate prices surges 19 percent in 2010. Estimates from real estate experts believe that commercial property transactions could increase up to 40 percent this year, to $135 billion.

Additonally, the PricewaterhouseCoopers report stated that with low interest rates and stiff competition among buyers, the chances of getting good returns on investments are favorable. In 27 of 31 office markets, capitalization rates decreased.

It is estimated that within the next two years, most industrial markets will improve, with 86.2 percent expected to be in recovery by 2012 as demand surges. With supply and demand becoming more balanced, vacancy rates should decrease and the rental industry should increase.

The multifamily sector has been doing quite well due largely to more challenging lending restrictions and limited home buying opportunities. As a result, demand for apartments have increased and are expected to continue for the next couple of years.

http://www.bloomberg.com/news/2011-03-21/deal-volume-to-drive-u-s-commercial-real-estate-recovery-pwc-survey-says.html

Spanish Property Market Shows Signs of Improving

Spain joins various other countries beginning to see more favorable property market conditions this New Year. Statistics revealed by the Ministry and Public Works and Transport of Spain, Spain’s real estate market is experiencing noticeable growth, which is a good sign that it is indeed recovering from the financial crisis.

Backing this growth is data from Spain’s government regarding total property sales in 2010. 491,000 real estate transactions occurred in 2010, which is 5.9 percent higher than the previous year. Since the financial crisis began in 2008, Spain’s fourth quarter of 2010 experienced the most market success, with figures coming in at 14.2 percent. Experts look favorably on this jump and anticipate the growth to continue throughout 2011.

Spain is also becoming more popular with overseas buyers, as overseas transactions have jumped 20.6 percent. The Alicante province is of particular interest among foreign buyers, as the number of sales increased by 24.3 percent. An additional 11 autonomies have reported that apartment sales have increased, while 6 areas indicate that demand is decreasing.

Basque County reports a 30 percent increase in growth, while Murcia reported 16.3 percent. Popular beach destinations such as Costa del Sol and Costa Blanca have reported increases as well, with Costa del Sol increasing 7.5 percent. Andalusia is currently Spain’s largest real estate market, with 88,000 transactions recorded, followed by Valencia, Catalonia, and the region of Madrid.

Spain is experiencing a growth in tourism as well, which will help with property market growth. Local real estate agents believe that 2011 will experience greater growth and stability and have a favorable year.

China aims for quality, not quantity GDP growth

For the last five years the economy in China has grown around 11%, but now the Chinese leadership has stated that its GDP target for this year is 7%. It's hoped that lowering GDP growth expectations for help keep inflation at 4% or less. This may be tough as the price of raw materials and resources is rising rapidly, and it also remain to be seen if this growth rate of 7% is realistic, as a growth rate of 8% has been set for the last seven years and has always been exceeded.

The leadership is thought to have set this target not only to try to cool the economy but also to maintain a balanced economy as it is aiming more towards domestic led consumer growth rather than cheap exports, investment and heavy manufacturing. It is hoped this policy will enable a more even distribution of income growth and a lower balance of payments current account surplus, and has raised income expectation for both rural and urban citizens to more than 7%, up from 5%.

The Chinese leadership is determined to raise the living standards for those citizens on low incomes. A plan is already underway to build 36 million affordable homes within the next five years. This may seem an extraordinary number until you consider that the population of China is 1.3 billion. Beijing is due to continue spending on upgrading the infrastructure and social services for low income families. China also needs to address its shortage of energy, especially as plans may be underway to relax the one child per family ruling.

Indian Realty Exhibition to Target NRI UAE Investors

India will be having a two-day exhibition, Times Realty India 2011, in Dubai, March 11-12 and is expected to see some large Indian real estate companies present. The exhibit intends to assist the non-resident Indian community who live in the United-Arab Empire to learn more about investing in the Indian property market.

Exclusive Indian residential and commercial projects will be showcased and plenty of information will be available for those interested in learning the ropes of property investments. Companies will be able to network and share information with each other as well.

According to the President of Mind Space, Mr. M I Sait, the real estate sector in India is very stable and reliable and a perfect place for investments. The market is highly dynamic and the economy is strong and growing continually.

One of the goals of the Times Realty Exhibition is to bring together builders and investors face to face to discuss the wonderful investment opportunities in India. A few of the showcased projects will include India Bulls, Hirananandani, Nirmal Estate, Earth Infrastructure, ERA Landmark, Sipra, Spire World, Canopy, and Akar Creations.

India is a key region for investors to find affordable luxury homes and the demand for homes is increasing. As the demand continues for affordable housing, developers are beginning to build in newer areas and build properties that are suitable for all budgets. These homes will be built to include landscaped gardens, as well as swimming pools. The Times Realty is expecting a good turnout for the exhibition, as more and more foreign investors are seeking a more lucrative market.

Polish Property Set for Boost through Tourism

Poland is still viewed as a developing economy, as it has a low cost of living and a large population. As yet it hasn't garnered much interest from the tourism industry, but this looks set to change in the very near future. Footballs Euro 2012 competition is being held in the Ukraine and Poland, and is likely to bring in thousands of tourists who have never visited the country before.

Poland is about to start promoting the country ahead of the games, with a new campaign about to be unveiled. It has already invested substantially in infrastructure which includes new motorways and airports in preparation for 2012.

The country is investing far more money into the tourism industry, and looks set to become a major destination which will undoubtedly affect property prices.

At the moment prices are still low, but all this looks likely to change, not only because of the tourism opportunities but also because the economy is showing signs of growth.

The economic growth in Poland more than doubled last year, and this was largely helped by increased consumer spending and the recovery in Germany which is one of the country's main trading partners. Wages in Poland have begun to rise, and employment increased by 3.8% in January when compared with January 2010.

Foreigners are allowed to buy condominium units in Poland, but buying land is more difficult as a permit from the Ministry of Internal Affairs is required. Rental yields for apartments average 5.38%, and buying costs are generally quite low at between 5% and 10%, with all costs being borne by the buyer.

Asia Leading Growth in Property Investment and Development

At the recent fifth annual City Development Meeting in HCM city, Lim Lam Yuan, President of Singapore’s Institute of Surveyors and Valuers stated that the Asia Pacific region is currently the leading area in global property market recovery since the global financial crisis.

Additionally, Yuan added that this region is seeing more and more wealthy men and women connect with this region and desire prime property for investments as well as lifestyle reasons.

Due to being the world’s most populous region, as well as a continued influx of people, Asia is emerging as an attractive destination for property developers. The continued increase in population, as well as plentiful economic resources and low costs has made this region superior in comparison with other nations in Europe or the United States.

China’s property market has been growing rapidly with sales totals reaching over 4.7 trillion yuan last year. This number is much larger that 2009’s total of 4.3 trillion yuan. Interest rates were as low as 0.36 percent. The rental market has seen some progression as well, with rentals for private residential properties experiencing a 17.9 percent increase.

India’s property market is doing quite well also. Due to excellent infrastructure, a well-polished legal system, and a high number of doctors and engineers, India is a prime location for investment opportunities.

India has been experiencing more investments in its country, with increased residential development, new construction and new town planning, mall development, and hospitality and office/industrial space development and management.

Colombia tipped for growth

Colombia has been tipped for growth since 2009 when the acronym CIVETS was coined by the Global Forecasting Director, Robert Ward for the Economist Intelligence Unit. The acronym stands for Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. These countries were singled out for attention because they have a young population, have managed to control inflation and have a relatively sophisticated banking system already in place.

This is certainly true of Columbia, and out of all these countries it has the best infrastructure already in place which will enable rapid economic growth. It has also managed to achieve consistent GDP growth for over 70 years and has never experienced hyperinflation, and in fact inflation has been kept within single digit figures since 1999. The GDP growth from 2002 to 2007 averaged out at 5% a year which was mainly due to increased foreign investment, export growth and reforms in the energy sectors. The country has large mineral and energy reserves, especially coal and natural gas.

Columbia has managed to triple its exports during the last six years which was largely due to the Andean Trade Promotion and Drug Eradication Act. During this time period exports grew from $13 million in 2003 to $32 million in 2009. It has successfully increased tourism numbers even at the height of the global recession. Tourism numbers throughout the world fell by 4% in 2009 while in Colombia it increased to 10.2% in the same year. The Columbian government actively encourages overseas investors as it is looking to increase business opportunities within international markets.

Denmark's property prices stable

House prices in Denmark recovered strongly during the first half of 2010, but came to a standstill during the second half due to weaker economic growth. Prices rose by an average of 2.6% every quarter between the fourth quarter of 2009 and the second quarter of 2010. While prices of flats fell slightly in the third quarter of 2010 they were still 6.6% higher than the same time in 2009.

The present property cycle began in 1993 with prices peaking between 2006 and 2007 by which time the price of a single family home had increased by almost 250%, while flats had increased by 360%. Since then prices have declined by just under 30%. The cost of buying a property in Denmark is relatively low at 1.3 to 3% of the property value, and rental yields here are between 4.2% and 5.7% and taxes on rental income are moderate.

Denmark enjoys one of the highest standards of living in the world and is one of the few countries that contribute more than 0.7% of its gross national income to foreign aid in less developed countries. Principal exports are food products and machinery with the United States being its largest non-European trading partner.

The economic crisis has affected Denmark as its export market has shrunk which is partly due to weaker trading partner’s currencies. There are also some problems within the banking system but overall it remains stable and is considered to have sufficient capital to meet the needs of the economy and interest rates are expected to remain steady as inflation is under control. The economy grew by 1.9% in 2010 and is expected to grow by 2% this year. The country has one of the lowest unemployment rates in the EU.

Large companies already eyeing up Columbia

Large international companies are already starting to realise the potential in Colombia and investment firms are looking at property companies which will provide the best returns.

The feeling is that the property market there is about to take off and it's best to get in early to get the best profits. It's not just large property companies who are investing here as the world's richest man Carlos Slim already has major holdings in Colombia which are largely in oil and gas reserves, and has indicated he intends to increase these further.

There is an increasing demand for affordable and middle income housing within Colombia and with the rise of the middle class this demand will remain constant for quite some time to come. Colombia also has plans to integrate its securities exchange with Peru and Chile which will attract overseas investors and create more liquidity.

Colombia has a population of 45 million, and in common with so many other rising economies it is youthful. The country has managed to shake off much of its violent reputation through the institution of new security policies. These policies were put into place in 2002 and have reduced the number of murders by half and the number of kidnappings by 93%. Since then the country has gained confidence and has greatly strengthened its economy.

The economy is predicted to increase by 4.5% this year, and foreign investment in the country has quadrupled over the last decade. The current president plans to double government housing subsidies to the poor and middle class to boost the economy even further.

Germany's strong recovery continues as economy bounces back

Germany's economy is recovering extremely well as it expanded by 3.6% last year, and while this was partly to be expected from such a deep recession it was also due to carefully implemented government measures. These measures ensured that unemployment was kept at its lowest level since 1992 which has ensured a feeling of prosperity in the country with business confidence at its highest level for 20 years.

Germany has always been very good at keeping its public finances under control and it had the added advantage of not experiencing any credit or property bubble, and it has also concentrated on keeping export levels high. Its central geographic position also enabled it to take advantage of cheaper labour from eastern European countries increasing the efficiency of firms. One of its biggest export markets is China as luxury German cars are in high demand, as is machinery for Chinese factories.

While the economy may be booming house prices in Germany are still surprisingly affordable especially when compared to similar properties in the UK. There have been indications in recent months that the property market is beginning to benefit from continuing consumer confidence and that the strong economy is drawing in new investors. The continued recovery has also meant that the construction of new homes has begun once more although anyone choosing to invest here should regard it as a long term prospect. The fact that a high proportion of the population choose to rent rather than own makes this country extremely attractive for buy to let investors.

US Housing Recovery on the Cards

Some experts say that the United States is on the way to a housing recovery as home affordability is returning to pre-bubble levels in more and more cities in America.

Home values have fallen 2.6 percent in the last quarter and such a significant drop has not been seen since the first quarter of 2009. Moody’s Analytics tracks the ratio of median home prices to yearly household incomes in 74 markets. According to their data, housing affordability is about the same now as it was between 1989 and 2003 in 47 of those markets. It is believed by most finance experts that the housing boom began in 2003.

It was during the boom that house prices increased greatly due to lax lending and inflation. This increase was greater than the average increase in household income, thus the ratio of home prices to yearly household income peaked in 2005 at 2.3 percent. Since September of 2010, it has dropped to 1.6 percent, which mirrored the lowest level in 35 years.

Chief economist at Moody’s Analytics, Mark Zandi, states that these are very affordable prices for people based on incomes. Home price declines are drawing buyers back into the market and especially property investors.

According to other economists and housing analysts, further declines in home values between 5 to 10 percent may occur by late this year or early next year. With such a decrease, most believe that this will be the bottom and that prices will begin their increase from there.

Kenyan property still good investment

The Kenyan property market has survived the recent downturn reasonably well with prices still rising albeit more slowly than during the property boom of the last decade. It is now lower-cost housing that is proving most popular, and there is also a change in the way property purchases are being funded. As the economic recovery has taken place there has been an increase in the number of mortgages being taken out whereas properties used to be bought for cash.

This increase is due to a policy implemented by the Central Bank of Kenya which reduced interest rates and in turn triggered a large decline on returns on government bonds. This forced financial markets to look for some other form of income which led to them to begin promoting mortgages especially to middle income professionals. There is no doubt that the mortgage market has huge potential in a country where just 16% of the population own their own homes, but the increase in mortgages has also amplified the shortage of housing especially for those on lower incomes.

This shortage is attracting investment in several forms as there has been an increase in direct foreign investment in property projects, as well as interest from foreign private equity firms and pension funds. This increase looks likely to spark further building projects to increase the housing stock in an attempt to meet growing demand as more and more Kenyans want to get onto the property ladder. It's highly likely that in the short to mid-term the demand for housing will continue to outstrip supply as the economy continues to improve and the availability of mortgages gets better.

Spanish property market picking up

Recent research into the Spanish property market indicates that it will recover before the economy which is the reverse of what usually happens. Developers in the country are increasingly optimistic with Taylor Wimpey de Espana reporting an increase of 25% in the number of properties sold in 2010 when compared to 2009. This has resulted in most of the stock being sold.

Customer enquiries increased by 27% in the third quarter of 2010 and primarily came from people looking for retirement and holiday homes. This increase in sales and interest has prompted Taylor Wimpey to start development in three new sites in Spain where 30% of the properties have been sold off plan already.

Spain will always remain a hugely popular country for British holidaymakers and those looking to retire there or to purchase second homes, and although the downturn did affect demand homes in sought after locations are continuing to sell well. These include homes in the Costa del Sol and Marbella. Although the Spanish government has reported a glut of homes for sale in less popular regions some Spanish property developers are refuting these numbers. Official reports say there are about 1 million unsold properties whereas the developers say there are just 350,000 unsold homes.

It remains to be seen which reports are true and many believe that rental yields here will continue to fall before picking up later on in the year. But if the property market here is beginning to turn around and then investors might wish to begin researching seriously now before the traditional upturn in house sales in the spring.

Slovakia property market bottomed out

As Slovakia continues to recover from the economic downturn house prices appear to have bottomed out, and are down 15.8% from their peak prices. Property increased in value here from 2006 to 2008 with rises averaging from 14% to 35% annually. Although prices appear to have bottomed out consumer demand is still weak and may be affected by rising unemployment levels.

During the downturn in the economy contracted by 4.7% but is now recovering as it grew by 3.8% during the third quarter in 2010. Interest rates in Slovakia are quite favourable as they declined throughout 2010; however the banks remain cautious about lending. A new government was elected in June 2010 and is expected to be good news for the economy as it has promised to return the country to the high growth rates it previously enjoyed and has also pledged to reduce the budget deficit.

At its highest point the economy grew by 10.58% in 2007 and is estimated to have grown by 4.1% in 2010. While analysts believe the outlook for Slovakia is good they do not think that property prices here will increase rapidly, but that the growth will be slow and sustainable. Rental yields on property here are also quite low as although the system used to be rent-controlled it was abolished in 2005 but the decree was never implemented. It remains to be seen if the new government is willing to tackle such a sensitive issue.

Slovakia was formerly part of Czechoslovakia and is considered a very stable and liberal economy having undergone eight years of reforms under the centre right coalition which was led by Mikulas Dzurinda. These reforms earned it international praise and undoubtedly helped smooth its entry into NATO and the EU.

Vietnam appealing to foreign investors

Vietnam is becoming more appealing to foreign investors and was recently ranked fourth in the world of emerging global real estate markets by the Association of Foreign Investors in Real Estate. This influential group collectively holds more than $627 billion of property throughout the world. While Brazil, China and India were still in the top three places Vietnam was a surprise fourth having previously been unranked in 2010.

Much of the increased appeal is thought to be due to the rapid growth of the property market and Vietnams open door policy to foreign investors. The second largest tower in Asia is due to be built this year in the capital of Hanoi and will cost $1.2 billion, and new construction is beginning to take place throughout the country. Vietnam has enjoyed strong economic growth and aims to become an industrialised country within the next 10 years.

However the governing Communist Party realises the need to restructure the economy and to speed up the growth which started some 25 years ago. Some of these state owned enterprises have grown too fast and are suffering from poor infrastructure and an unskilled workforce which is something that has been recognised by the governing party and which they are determined to address.

These factors look unlikely to deter foreign investors who view the economy as having recovered well from the global recession. Urban centres are likely to increase and to attract overseas companies which will aid the current rapid growth of middle-class citizens who are most likely to want to spend their new found wealth on new homes.

Property prices in the Philippines recover

Property prices in the Philippines are recovering due to overseas workers sending money home to buy houses. Prices had dropped since the economic downturn leading many to see an opportunity for a bargain; this has caught many industry specialists unawares as no one expected such a fast rebound. While property sales in 2008 and 2009 totalled P100 billion, this figure is expected to triple this year as rising demand increases prices.

About 10% of the population work abroad and the money they send home is equal to more than 10% of the annual GDP. This percentage is set to increase as more and more Filipinos are securing higher paid jobs in the media, engineering and medicine. The money they earn abroad can secure them a middle-class lifestyle at home, but the salaries in the Philippines are currently much lower than those that can be earned by working abroad.

How much longer this will continue remains to be seen as the demand for luxury homes in the Philippines is increasing as the Asian Pacific economy continues to boom. One of the top places to buy homes in the Philippines is Makati as many multinational corporations based here leading to strong rental returns. The close proximity of all amenities combined with safe neighbourhoods has made this area extremely popular.

The economy here is thought to have grown by 7% in 2010, with last year's peaceful elections boosting investor confidence. The sound economic platform combined with low interest rates and an expected ratings upgrade by the international agencies is beginning to attract a lot of foreign investment.

Brazil Property has Bright Future

Brazil is an emerging market and has proven to be a hot spot for property investors in the last year or so. In 2010 Brazil had a tremendous year economically as well as in the real estate sector, though some predict that things will slow down in 2011.

Recent figures show that perhaps Brazil’s property market hit its peak, but the potential still exists for further growth. From September to October 2010, the average home price fell 3.53 percent and there were 25.6 fewer houses sold.

These statistics do not surprise experts, as Brazil has experienced such a rapid increase. At some point, the market growth hits its peak and a slowing down will occur.

The real estate organization EMBRAES reports that since 2008, the average value of a one, two, three, and four bedroom apartments in Sao Paulo is worth more than 50 percent more now when compared to the previous two years.

Some say that the slowing of the market is simply a sign that the market is returning to normal after a surge of real estate over the last couple of years. The supply and demand are closer now and experts think that the market is where it ought to be now.

Overseas investors have been very interested in Brazilian property and they are expected to continue to invest in the market. With low unemployment, income growth, and a strong economy, property investors see the potential of a high return yield in the years to come as property prices increase.

Additionally, the Olympic Games and FIFA football World Cup are planned to be held in Brazil this year which will boost confidence in the area as well.

Housing Market in Bangkok Still Expected to Grow

The housing market in Bangkok experienced rapidly rising prices during the first half of last year which were mainly attributed to Government incentives which came to an end last March. Prices increased in spite of political unrest in April and May which did not cause panic selling although it did delay some projects. Many new housing developments were begun last year, and although prices are expected to continue increasing they will not rise as rapidly as last year. Surveys have shown that that there is not an oversupply in the Bangkok condominium market and that property investment is can be expected to give an average total yield of 11.5 % per year.

New regulations brought in this month prohibit banks from lending more than 90% of the value on new condominiums costing less than 10,000 baht. These measures were brought in to deter property speculators who were finding the terms just too attractive to resist. Condominiums in the city have an average 21% vacancy rate, although investors should do their research thoroughly as some areas are showing much higher occupancy rates. Ramkhamhaeng has an occupancy rate of 91% and gives a total yield of 11.7%. Occupancy in Ratchada-Lat Phrao is 86% and gives a total yield of 11.9%.

The most popular properties are one-bedroom units with the market for larger units being slower. These larger units may offer some appeal to investors as developers have been offering extra incentives such as furniture packages and guaranteed yields. Demand has remained high enough to deter developers from offering discounts.

Stability Expected in Las Vegas Property Market in 2011

Economists and executives in the Las Vegas area have predicted that the property market in 2011 will be about the same as it was in 2010 but anticipate a rebound in 2012. Las Vegas is a sought after destination for retirees and home prices are affordable right now, bringing in overseas investors as well.

The rather high unemployment rate of 14 percent as well as a rather weak economy has kept the property market from significant growth the past couple of years, but analysts have confidence that within the next couple of years the economy will improve and more jobs will be available.

The market is doing better than it has in the past couple of years. In 2008 there was a 33 percent drop and in 2009 there was a 22 percent drop. Last year, in 2010, there was a 3 percent drop, which means that the property market is growing stronger.

Chief economist Lawrence Yun of the National Association of Realtors states that the economy is slowly improving across the nation and more jobs are out there. He believes that Las Vegas will benefit from such factors.

Yun also stated that he believes that the amount of foreclosures will remain about the same. The abundance of foreclosures have brought in a good number of real estate investors, especially foreign ones, who are buying approximately 40 to 50 percent of the homes in the area. Las Vegas has international appeal with an abundance of leisure activities that draw in tourists from all around the world.