HUNGARY FOR GOOD PROPERTY INVESTMENT

Hungary is Europe's best investment opportunity says website, the Global Property Guide. Why? It has the continent's second lowest property prices, averaging USD1,683 per square metre, and its third highest rental yields – 8.11 per cent, states the website's report Hungary: Housing Market Reaches Bottom?

Bizarrely, this happy state of affairs is down to “incompetent government” the report says. A government subsidised housing boom in the early noughties has imploded leaving rich pickings at the bottom of the market cycle for foreign investors.

“Hungary is an investment opportunity,” says the report, “Not because buyers have made a lot of money out of Hungarian residential property. They have not, though the rents can be good, but rather, Hungary’s crisis gives buyers an opportunity”.

A resurgent economy, falling interest rates and renewed confidence will spur an upturn in the housing market the website's analysts consider.

http://globalpropertynews.blogspot.com

WHERE'S CHINA'S RICH ARE INVESTING

Having rapidly established themselves as big spending property investors in many Asia-Pacific locations over the past couple of years, the Chinese are appearing in measurable numbers in many western cities. London, New York and Paris are targets. They also like some provincial locations, including Cambridge (for studying) and Cote d'Azur (holiday homes).

A link to my Financial Times article below shows what, where and why the Chinese are buying.

This market is huge. China has 475,000 inviduals with assets worth USD1 million or more, that's the fourth largest national group of HNWIs in the world, wealth managers, the Scorpio Partnership, reveals. Despite China's tight capital controls many Chinese HNWIs squirrel money overseas, much of it into property, an asset with which the Chinese have great affinity.

We can expect more Chinese money to pour into the world's property markets over the next few years. Professional Property Services forecasts they will be the world's biggest property investors by 2020.

http://www.ft.com/cms/s/2/4cf60cf2-ed17-11df-8cc9-00144feab49a.html#axzz15LZ7fQxy

http://globalpropertynews.blogspot.com

GLOBAL PROPERTY RECOVERY "SUSTAINABLE"

Singapore tops the Knight Frank Global Price Index, registering a 37 per cent leap in property values in the twelve months to the end of second quarter, 2010. China occupies second place and Hong Kong (pictured here) third in the table of 49 countries.

Among 15 nations recording price falls, all but one are European. That odd man out is Japan where prices dropped 4.4 per cent.

Latvia has risen like the legendry pheonix from the ashes. The Baltic state is ranked fourth on the index, registering an 18 per cent surge in prices over the past 12 months. It was badly burned in the property market inferno of 2008. Prices in neighbouring Lithuania and Estonia continue to fall. Finland is the only other European country in the top ten.

Britain and other European nations dominate positions 11 to 20, all registering respectable increases of between 5 to 9 per cent. The only non-European nation in that group is Dubai where prices are up 5.2 per cent, a modest recovery following a halving in values in the emirate during the slump.

Knight Frank's head of residential research, Liam Bailey, says “There is a sense that the headline grabbing double digit price changes that almost became the norm in 2008 and 2009 are lessening in scale and number. Prices are beginning to return to something close to a 'sustainable' level.”

http://globalpropertynews.blogspot.com

SPANISH DEVELOPERS CUT PRICES....AGAIN

They are still slashing prices in Spain. Developer, Taylor Wimpey de Espana, is knocking off 50 per cent on some “remaining stock”.

In a bid to gee up the market, the developer claims it is “offering the last chance to purchase completed homes in hot locations across Spain”, emphasising that sales in August 2010 were 30 per cent higher than twelve months previous.

Spain's troubles are far from over – prices are still falling, down -3.7 per cent over twelve months Knight Frank reports.

The economy, the foundation for any housing market, remains troubled. Spain may re-enter recession, because of government austerity cuts and suffer “a decade of deflation, stagnation and sky high unemployment” while its trade balance is restored to equilbrium warns consultancy, Capital Economics.

Spain may withdraw from the Eurozone, a move that would not be welcomed by owners of Spanish homes, especially those from overseas. Re-adopting the peseta could devalue Spanish property in international currency terms, because it is likely to be worth less than the Euro.

http://globalpropertynews.blogspot.com

CUBAN PROPERTY LAW RELAXED

The Cuban government is making it easier for foreigners to own property on its island. A new law extending lease lengths from 50 years to 99 years has been welcomed by international developers building leisure communities on the island, because it will make buying a home in Cuba more enticing they say.

Attracting golfers, a tried and tested source of year-round demand for holiday accommodation in many parts of the world, will be key to sustaining Cuba's emerging leisure resort sector.

The first hotel, golf course and holiday homes complex under construction, The Carbonera Club, will be completed in 2011 by its British developer, Esencia Hotels and Resorts. The USD300 scheme near Varadero includes 800 apartments, 100 villas and an 18-hole golf course.

Among other developers arriving on the island, Canadian firm, Leisure Canada, plans to build two leisure resorts. Cuba's Ministry of Tourism wants ten more golf courses created to draw holidaymakers and holiday home buyers.

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TURKEY'S PROPERTY INVESTMENT OPPORTUNITY

Turkey is flavour of the year for property pundits. The latest report to praise its economy, government and property market comes from the Global Property Guide.

Citing its rapid economic recovery following the credit crunch, the financial prudence of its government and its booming tourism industry The Global Property Guide website states enthusiastically “We believe Turkey offers an exceptional opportunity for property investors” in its report, Turkey: Europe's Best Residential Property Investment?.

Some encouraging stats: GDP is forecast to grow 5 per cent in 2010, inflation is 5.7 per cent, its lowest level in 39 years, and interest rates are down to 10 per cent – they were 60 per cent seven years ago. Turkey's liberalised mortgage market is expanding, so that could help raise property values, and, unlike some other places in the world, banks are keen to lend.

Much focus is on Turkey's commercial hub, Istanbul, where rental yields reach 6.35 per cent for 75 metre-square flats in Bakirkoy district. International designer developer, yoo, has launched its first apartment scheme (pictured above) in the city.

http://globalpropertynews.blogspot.com