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.