JANUARY 2012 |
www.opp.org.uk
NEWS French market could falter By Sean Lightbown
Overseas property agents in France told OPP this month that the French market is “in danger of stalling unless we all take a sensible view on pricing.” The industry is worried about overseas investors shying away from buying property in France next year, as they look for security above everything else. Trevor Leggett, head of real estate
fi rm Leggett Immobilier, told OPP “in the UK, transaction levels are likely to be their lowest for 40 years. There are no fi gures available for the French market yet but they will certainly report a slowdown in the second half of the year.” “If you take Paris and Provence- Alpes-Côte d’Azur out of the equation, it is clear that the regional market has not been so buoyant.” Crucially, says Leggett, “Credit
Agricole is forecasting a national fall in prices of 5-6% next year with an 8% fall in overall sales.” “It is the latter fi gure which is signifi cant. The market is in danger of
Murky waters | France could be in trouble without a price rethink say the experts
stalling unless we all take a sensible view on pricing. If owners and estate agents are realistic with their expectations and valuations then the French property market can remain amongst the healthiest and most attractive in Europe. Many investors are ranking the safety
of an investment as their priority. William Souche, international sales coordinator for holiday residencies group Village Center, exclusively told told OPP that “(Investors) now understand security is the most important thing. People have lowered their expectations and being
able to guarantee a lower rate of 4 to 5% is better.” Catherine Houziaux, international sales
manager at Village Center agreed with him, adding: “Clearly investors (would be upset) at the change in rental fi gures but the lesson even today is that promises of high rent on new build property should be treated with caution.” Prices are fl uctuating too, with
the French real estate professionals’ organisation FNAIM reporting falls of 4.6% in Britanny and 10.1% in the Champagne Ardenne region.
US mortgage debt at record low
US mortgage debt has dropped to its lowest level for nearly five years as purchases fall, foreclosures wipe out existing home loans and confidence stagnates. Data from the US Government’s
Federal Reserve has revealed that outstanding home mortgages totalled $9.88 trillion in the third quarter. This is down $0.06 trillion from the
$9.94 trillion fi gure posted at the end of June. Doug Duncan, chief economist
PORTUGAL’S DOWN
PORTUGAL’s residential market suff ered losses of between 10% and 15% in 2011 on completed property deals and the average value of the properties sold, according to a new study out called “The Luxury Tourist Resort Property Market.”
at mortgage-fi nancier Fannie Mae said that the mortgage lending which boosted consumer spending in the boom years isn’t aiding the economic recovery, leading to falling prices. The drop in home-loan values may
also continue for “at least another couple of years” he added. $4 trillion-worth of value has been
taken from real estate in the last four years according to the United States Federal Reserve Bank.
SWEDISH STRENGTH
SAVILLS has helped seal a €15 million deal for two student accommodation buildings in Gothenburg. Leif Johansson, in Savills Gothenburg team, said: “The sale is another sign of the strengthening residential real estate market in Sweden.”
Shrinking | US mortgages are falling NRI TAX SETBACK
NON-RESIDENT Indian (NRI) overseas property buyers are facing new taxes. The Greater Hyderabad Municipal Corporation wants to fi x a month’s rent as an annual property tax on homes not permanently occupied by their owners.
INDUSTRY | 11
NEWS IN BRIEF MEP’s buyer help pledge
BRITISH MEP (Member of the European Parliament) Diana Wallace has published a booklet called “European Property Rights and Wrongs” this week in an eff ort to protect the rights of overseas property buyers. “Property rights issues in countries such as Spain and Cyprus are by far the most pressing in the Petitions Committee,” Wallace told OPP, “and while tens of thousands face demolition, eviction or bankruptcy, the EU has been unable, or refused, to act.”
Buy-to-let havens named
TOULOUSE, Munich and Hamburg have emerged as the most attractive locations for overseas property investors looking to get into buy-to-let opportunities abroad says German real estate consultancy PATRIZIA Immobilien AG. The Augsburg-based company has just published a report comparing 82 European cities “in terms of their fundamental demographic and economic data.”
LA up as California rises
HOME values in Los Angeles rose by 2.5% year-on-year in the third quarter of this year according to a new index released this week by First Republic Bank. The average price of a luxury home in Los Angeles is currently $2.01 million and prices are up in Los Angeles, San Diego and San Francisco as California starts to emerge from the downturn. Los Angeles area values rose 0.7% versus Q2 2011 and increased 2.5% on the third quarter of 2010, and average home prices in the Los Angeles area have grown in three of the past four quarters. Luxury homes values are the most robust, according to local agents.
NEW LUXURY BUILD
THE Resort Homes Group has been selected by Ritz-Carlton founder Bill Johnson to help bring a string of new luxury developments to market in the next few years. The company “plans to develop a series of luxury resorts over the next several years.”
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