8 | INDUSTRY MARKET NEWS
NEWS IN BRIEF
RICS upbeat on housing
Low interest rates and reviving economies have helped housing markets across much of Europe to avoid meltdown, according to RICS. The European housing crash has been relatively short-lived and the downturn appears more limited than that of the early 1990s, according to the Royal Institute of Chartered Surveyors’ 2010 European Housing Review. However, the report admitted that transaction levels are unlikely to recover to mid-decade boom levels and housebuilding is still sharply down. The report also recognised a “horseshoe” of countries around the edge of Europe where housing markets are still fraught – Ireland, Spain, Greece, Eastern Europe and the Baltic States.
Spanish coastal price slide
House prices in Spain continued to fall last month, with second homes on the coast and islands particularly badly affected. The house price index from valuation company Tinsa showed prices across the country fell 5.5% year-on-year in February. This is the same percentage fall as seen in January, suggesting a certain degree of stabilisation. However, prices on the Mediterranean coast dropped by 8.2% and on the Balearic and Canary Islands by 8.9%, returning to an increase in the rate of fall after several months of stable drops. Tinsa’s report said lethargic demand from Central European countries may have added to weak domestic demand.
Thailand raises taxes
Thailand’s government has made a U-turn and extended some of its property tax breaks to the end of May. Tax breaks for property firms will be ended as planned as businesses are thought to be recovering in line with the economy. However, the end of the incentives would have limited affect on the country’s international sales, according to CB Richard Ellis, as that sector of the market is now strong enough to survive without them. “The incentives applied to projects that were completed and were not a factor in off-plan sales due for completion after March 2010,” said CBRE Thailand’s executive director, James Pitchon.
SPAIN
Sales revival sparks hope for Spain market
Agents and developers in Spain are reporting increased sales levels following the first national rise in transactions in three years. House sales were up 4.1% year-on-
year in the fourth quarter of 2009 to over 116,000, according to data from the Ministry of Housing. This was the property market’s first yearly increase in transaction numbers since the last quarter of 2006. The number of sales to foreign residents in the fourth quarter of 2009 also increased by around 12% year-on-year and 21% compared to the previous quarter to a total of 7,340. The data tallies with reports from a
number of companies across Spain who have seen an increase in enquiries and sales in the last few months. Developers including Taylor Woodrow de España, Key Mare and Almanzora Group, as well
CARIBBEAN
Citizenship programme fuels Caribbean buzz
Programmes that allow wealthy investors to become Caribbean citizens are helping to fuel increasing interest in the region’s property market. Caribbean agent 7th Heaven
Properties saw enquiries rise by around 40-50% in January 2010 compared to the same time last year, with around 20% of that increase attributed to people looking to obtain citizenship. “We’re most dealing with enquiries
from Russians and South Americans, as well as a few British investors, who are looking for a better quality of life and a better tax situation,” said managing director Walter Zephirin (pictured).
These buyers have replaced those
looking for buy-to-let investment, he said. “They’re looking for a property market that hasn’t experienced the massive declines of Spain or Dubai. The sales cycle takes a little longer in the Caribbean but we are hoping to convert these enquiries later in the year.” Several countries in the Caribbean
offer economic citizenship to people who invest in government-designated business or property. For example, St Kitts and Nevis requires a $350,000 real estate investment or a $200,000 contribution to the Sugar Industry Diversification Foundation.
as agents such as CAM Mediterranean and Masa International, have all seen sales improve on this time last year. “Our sales for January 2010 have
increased by almost 200% on 2009,” said Chris Mercer, managing director of Murcia-based agent Mercers. “We have already achieved the same number of sales in the first two months of 2010 as we did for the first quarter of 2009.”
Regional differences
While the government data is the first official indicator that the Spanish market might be improving, the overall figures don’t tell the whole story and the start of a full recovery may be yet be some way off. The total number of properties sold in 2009 was still down by 18% year- on-year. There are also wide variations in transaction levels across the country
Sales surge | Recorded sales in Barce- lona have rocketed by 35.4% y-o-y
and a few key areas, such as Barcelona and Madrid, have helped to push the total number of sales up while other locations have continued to decline. “These figures seem to be loaded
by the fact that banks are transferring properties into new holding structures and these deals take place in the main business centres and may explain the ridiculously high numbers for Madrid and Barcelona,” said Ian Waudby (pictured), chairman of developer Crest Group International.
www.opp.org.uk | APRIL 2010
Better life | St Kitts offers citizenship in exchange for a $350,000 investment
SAUDIS SEEK $640BN
Saudi Arabia will need around $640 billion in
investment to help build almost five million homes by 2020, according to a new government report. Jeddah Municipality’s strategic plan indicates that international expats and migration from rural areas over the next 20 years will increase pressure on the housing sector, reported Arab News.
THAI CONDO SALES SOAR
Condominium sales in Bangkok, Thailand, were
valued at THB15.1 billion for the fourth quarter of 2009, a 380% year-on-year increase according to developer Raimon Land. Foreign buyers accounted for just under 10% of sales. A total of 1,087 units were sold for an average price of THB98,551 per square metre.
OZ BUBBLE FORMING?
Around 60% of investors in Australia believe a
bubble is forming in the country’s property market, according to research by BusinessDay and Colmar Brunton. Prices rose by 13.6% in 2009 fuelled by the combination of housing shortages, low interest rates, speculation and the government’s relaxation of foreign ownership rules last year.
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