Already half of homes sold in the United States are repossessions. This proportion looks likely to rise.
The London-based Royal Institution of Chartered Surveyors (RICS) says the US would have had the fastest rate of increase in distressed property sales in the world in the first three months of 2010. Specialist property funds are hoovering many of them up in the expectation of selling them for a profit later. They may need to be patient. Rising repossession rates will contribute to US house prices falling 5 per cent in 2010 consultancy, Capital Economics, says.
There is some relief from the misery - The Wealth Report, published by Citi and Knight Frank, says New York has overtaken London to become the world's most successful city based on economic activity, political power, and the role of its media and educational institutions. That must be good news for the Big Apple's housing market.
http://globalpropertynews.blogspot.com
Tuesday 20 April 2010
Monday 12 April 2010
CHINA PROPERTY BUBBLE?
It's boom and bust all at once in China. The world's three fastest growing housing markets are all in the Middle Kingdom according to Knight Frank. Prices leapt 52 per cent in Shanghai, 47 per cent in Beijing and 40 per cent in Hong Kong in 2009, growth that was way ahead of everywhere else.
China's economic boom is enabling millions of Chinese to get a foot on the property ladder, and ongoing migration from the countryside to the cities will ensure demand remains high in the cities for years to come.
But, there is another story – in late 2009 distressed property sales were growing faster in China than anywhere else in the world figures from the Royal Institution of Chartered Surevyors (RICS) show. China's earlier speculative bubbles may have caught out buyers who over-borrowed it seems.
Hong Kong has experienced many housing market bubbles over the years, so its authorities are restricting mortgage lending to stop another forming – worryingly, prices continue to rise.
http://globalpropertynews.blogspot.com
China's economic boom is enabling millions of Chinese to get a foot on the property ladder, and ongoing migration from the countryside to the cities will ensure demand remains high in the cities for years to come.
But, there is another story – in late 2009 distressed property sales were growing faster in China than anywhere else in the world figures from the Royal Institution of Chartered Surevyors (RICS) show. China's earlier speculative bubbles may have caught out buyers who over-borrowed it seems.
Hong Kong has experienced many housing market bubbles over the years, so its authorities are restricting mortgage lending to stop another forming – worryingly, prices continue to rise.
http://globalpropertynews.blogspot.com
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