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.

Canadian House Prices Set to Rise

Canadian house prices look set to rise due to continuing low interest rates and a strengthening economic recovery. Prices have risen between 3.9% and 4.6% in the previous three months and are expected to rise nationally by 3% this year. Vancouver used to be the property hotspot of the country but with the average price for a standard two-storey house being over $1 million many buyers are choosing to look elsewhere. It is expected that many mid-size towns and cities will be targeted by buyers looking to get more for their money, and a lot of these areas are able to boast of low unemployment rates and good economic prospects.

Winnipeg is a city that is expected to perform especially well this year with property prices predicted to rise by up to 7%. Some of the reasons for this include good public sector employment, a growing agricultural economy and a solid manufacturing base. Housing here is also in short supply and the rising population is expected to boost prices further. The average house price in Canada is currently $348,600, whereas the average house price in Winnipeg is still less than $300,000. Other areas expected to well include Calgary and Edmonton which is largely due to the Alberta oil sands.

In spite of its close proximity to the states Canada has weathered the recent economic downturn better than some other countries. This is largely due to its more cautious banking practices which have recently been closely examined by the UK as a model to follow. Anyone wishing to invest here should definitely consider looking at the less popular cities.

2011 to be Year of Recovery for Washington Property Market

AS you’d expect the Washington property market, like London in Britain and Paris in France, is very different to the rest of the US housing market.

While many US cities and states are still struggling, Washington home values have practically recouped the losses made during the downturn and is currently on an upward path.

A recent report by Clear Capital a 5.3% house price growth saw Washington rank second behind Honululu (7.2%) in terms of property price growth in 2010. The group is predicting that a 6.5% growth in Washington home values this year will be the largest in the US.

According to Clear Capital it is not just the prestige pushing Washington’s housing recovery, but the strong employment sector and low foreclosure numbers. With US unemployment currently at 9.8%, Washington’s 5% is clear indication of the massive potential of the city. Also, only 15% of Washington properties are bank owned compared to 40% in other areas of the country.

Locations such as Capitol Hill, Northwest D.C., Bethesda, and Chevy Chase are in higher demand due to the desirable locations and centrality. The towns that are further away are seeing slower increase.

2011 may also see a rise in property investors as they see the home values beginning to increase.

The crisis has led to the gaps between major cities and affluent towns and their less affluent counter parts severely widened. While Washington maybe an extreme case it certainly is not an isolated one.

South Africa Property Looking Good

South Africa is starting to look particularly good to foreign investors as confidence in the market has steadily grown over the past year. The BRIC group is set to include South Africa and to become the BRICS group which should further boost the country's popularity.

All the countries in this group are tipped to become global economic powers which could one day eclipse the economies of today's richest countries. This exclusive group includes Brazil, Russia, India and China who are all countries which have proved to be of great interest to property investors.

Property prices in South Africa have risen an average of 8.3% in the previous year, but one of the most popular suburbs of South Africa saw prices rise by nearly 50%, although these massive rises are thought to now have stabilised but should still offer returns of between 8 and 12%.

Many property developers are concentrating on exclusive developments which should appeal to foreign investors, and which offer innovative designs which will always attract buyers. Some foreign investors may have been worried about the stability of the Rand, but the last three or four years have shown it to be one of the best performing currencies.

The South African president Jacob Zuma had been petitioning to join the BRIC group for a long time, and the invitation to join came from the Chinese president Hu Jintao.

The Chinese have long been aware of South Africa's rich natural resources and are very keen to forge a good relationship with this country. There seems little doubt that investors would be wise to look at South Africa very closely.

Seattle Real Estate Market Shows Signs of Improvement

After several years of a slow real estate market, commercial developers in Seattle are noticing a greater need for apartments in the area and are hopeful that 2011 will be a more productive year.

Apartments are in great demand these days due to the amount of foreclosures and people just not opting to purchase homes right now. Developers are putting up apartment complexes and seeing them filled up quickly.

Within the last year, vacancy rates have dropped and rent has increased slightly, which are clear signs of increasing demand. Analysts predict that 2011 will see a growing market as developers get on board and get building.

A 122-unit is set to begin being built in Belltown this month as well as a 105-unit development near Seattle University next month. R.D. Merrill Properties has their hopes on constructing a 234-unit complex on Capitol Hill in March that will target young adults. This same company is planning on construction in three other areas as well, including Wallingford, Ballard, and Lower Queen Anne.

One of the country’s biggest apartment developers, Avalon Bay Communities, anticipates building a 272-unit apartment complex as well. The number of apartments in the early permitting stages has increased 48 percent in the fourth quarter alone.

The market in Seattle has even prompted developers in other cities to come get in on the ripe market. Atlanta-based Wood Partners opened an office in November.

People just don’t seem as interested to purchase homes these days due to the poor real estate market the past few years. Many are waiting to see what the market will do in the next couple of years before making that decision.