EUROZONE PROPERTY PRICE FALLS

The Eurozone lurches from crisis to crisis, sending property values tumbling in its wake. Worst affected are the so-called PIGSs – debt-laden Portugal, Ireland, Greece and Spain.

Property prices fell in Portugal last year and will do so in 2012 the London-based Royal Institution of Chartered Surveyors forecasts. Some commentators say prices could drop by 20 per cent by the end of 2012 providing “bargains” for overseas buyers.

Economists warn Ireland may go back into recession and need another bailout, exacerbating five years of price falls.

In Spain, the country's central bank says the housing market downturn will last five years, which means values won't stop falling until 2013. The country's two previous slumps lasted that length of time.

In Greece, that country's central bank expects prices to fall this summer following two years of decline, and Athens University forecasts demand for Greek homes will fall to record lows.

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GLOBAL PROPERTY PRICE TRENDS

The global housing market has “stumbled” estate agency, Knight Frank, says. It's Global House Price Index, quarter four, 2010, shows property values rose 2.8 per cent in the year to December 2010. This is slightly down on the 3.1 per cent rise in prices recorded in the twelve months to the end of quarter three, 2010.

Hong Kong's prices rose fastest in 2010 - 20 per cent. Latvia, Israel, China and Singapore were the other top five locations. Cyprus and Ireland filled the bottom two slots.

Knight Frank's head of residential research, Liam Bailey, says the number of countries recording price falls in late 2010 grew.

"It looks increasingly likely that Asian markets will escape a crash in prices, but in many of the previously ‘hot markets’ (India and China) price falls later this year seems a realistic assumption,” says Bailey, "Across Europe and the US the lack of bank lending is likely to extend the recent period of price reversals. Outside of the luxury markets in the global city hubs, it is difficult to see what could bring about a rapid improvement in the housing markets of the developed economies."

Knight Frank's report follow's The Global Property Guide's survey which shows some European markets weakening and Asian markets rising.

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CHINA BUYS NORTHERN IRELAND

Following several months of secret negotiations, China has bought a 100 year lease on Northern Ireland from the British government. The GBP70 billion deal wipes out Britain's national debt and gives China trading and political benefits, including membership of the European Union.

The transfer of power is expected to take place on May 1st, 2011.

The Republic of Ireland has guaranteed not to challenge China's annexation of Northern Ireland in exchange for China agreeing to pay off the Irish national debt. All Ireland's nationalised and part nationalised banks will be transferred to the Bank of China as part of the deal. This will enable the Chinese to develop banking operations in Europe.

Sources close to Beijing say the Chinese will develop Northern Ireland into a low tax manufacturing, logistics and trading centre.

The Northern Ireland assembly will go into emergency session today to discuss the plans. In an unusual show of unity all of Northern Ireland's parties are said to be against the deal.

A spokesman for the British government said "this historic agreement will ensure Britain enjoys a bright economic future. There will be benefits for the people of Northern Ireland and for all of the people of the British Isles from having China invest its national surplus on our shores. It will secure jobs, bring peace and create economic growth for years to come."

A spokesman for Northern Ireland's biggest politcal party, the Democratic Unionists, described the deal as "utter foolishness".

HAPPY APRIL FOOL'S DAY