It has been a dismal year for house prices, according to the Global Property Guide’s latest survey of publicly-available house-price time-series for the year 2008. And seen from a global perspective, the downturn is still accelerating.

The collapse of the world’s housing markets can be seen from three points of view, and unfortunately, all of them reinforce the bad news.

During 2008, the downward price momentum accelerated, as compared to 2007.

Only 2 countries saw positive momentum in 2008 (a slower downward house price movement than last year, or faster upward movement), while 28 countries saw their housing market momentum deteriorating, compared to the previous year. The two countries with a positive momentum were Germany and Switzerland.



During 2008, house prices fell in most countries.

During 2008 only 8 out of 32 countries saw house prices rise, after adjustment for inflation, while 20 countries experienced house price falls.

In contrast, during the year 2007, the downturn was just beginning, and only 6 countries saw house prices fall, while 24 countries saw house prices rise (all figures inflation-adjusted).

Many house-price falls during 2008 were extremely severe. Countries with house price falls of over 10% during 2008 were Latvia (Riga) (37%), Lithuania (Vilnius) (27%), the US (20%), the UK (18%), Iceland (16%), Ireland (12%), and the Ukraine (Kiev) (12%) (all figures inflation-adjusted).

During the final quarter (Q4) of 2008, the downward price momentum significantly accelerated, as compared to Q3, suggesting that the situation is deteriorating.

During 2008’s final quarter, 9 countries saw house price falls of 5% or more during just that quarter. Price drops of more than 10% during this single quarter occurred in three countries – in Latvia (Riga), which saw price falls of 15%, in Ukraine (Kiev) (13%), and in Hong Kong (15%). Other countries with Q4 house-price falls of 5% and over, included the UAE (8%), Lithuania (7%), Iceland (7%), Singapore (6%), Bulgaria (5%), and the UK (5%) (all figures inflation-adjusted, except UAE).

These price falls were much greater than during the previous quarter, Q3. During that previous quarter, only two countries experienced house-price falls (inflation-adjusted) of 5% or more, and no countries experienced house-price falls of more than 10%.

REGIONAL SURVEY BY GLOBAL PROPERTY GUIDE

Europe has major problems

The Baltic countries of Latvia and Lithuania suffered the hardest price falls both in nominal and real terms. In Riga, Latvia, the average price of standard-type apartments plunged 37% during 2008. Prices have been going down in Latvia since late 2007, after a remarkable increase of about 70% in 2006. The most alarming decline took place in the 4th quarter, when prices declined by 15%, the steepest quarterly drop in real terms in any country. These price falls were triggered by increased interest rates, and by the tightened credit rules which Latvia imposed in 2007.

Average prices of apartments in Vilnius, Lithuania, fell by 27% during 2008. House prices started slowing in mid-2007, and crashed in early 2008.

House prices in the UK plummeted by 18% in 2008. Although mortgage interest rates dropped slightly, to 4.48% in December 2008, the number of loan approvals for house purchases fell 58% in 2008.

There is serious trouble in Iceland (house price fall of 16% during 2008), Ireland (12%), Ukraine (12%), Malta (9%), Portugal (8%), France (8%) Finland (7%), Norway (6%) and in Spain (6%).

North America’s woes

In the US, the centre of the global financial crisis, in 2008 house prices fell 20% according to the Case-Shiller house price index, which emphasizes urban areas. OFHEO and FHFB figures, which are associated with Fannie Mae and Freddie Mac loans and have somewhat lost credibility, suggest a smaller decline of 6% and 3% respectively, during 2008. The US government recently approved a $ 787 billion economic stimulus package, of which $275 billion will be allocated to rescue the ailing housing market.

Canada has been much less affected than the US.

Pacific heads down

Both Australia and New Zealand saw house price declines during 2008, of 7% and 8% respectively.

Asia no longer insulated

Housing markets in Asia have not been insulated. Singapore, Hong Kong and Philippines recorded house price falls during 2008.

Singapore’s private residential prices dropped 9% during 2008, in sharp contrast to the 26% price increase of experienced during 2007. The developed countries’ economic troubles adversely affected Singapore’s exports, and during 2008, output in the manufacturing sector, particularly of electronics, precision engineering and chemicals, shrank by 10.7%. Singapore was officially in recession in Q3 2008.

Hong Kong has been badly hit by the crisis. House prices were down by an average of 6% in 2008. But during the last quarter, Hong Kong experienced a severe decline in prices of 14%.

In Makati, Philippines, prime 3-bedroom condominium prices fell by 2% during 2008, after an 11% price rise during 2007. Nevertheless construction of high-rise residential buildings continues, with residential condominium stock rising by 7% during 2008, according to Colliers Philippines.

Japan recorded modest Tokyo condominium price rises of 1.2% during 2008. On the other hand, land prices in Japan’s six major cities fell by 6% y-o-y to Sep-2008.

In Shanghai, China, house price rises slowed to 5% y-o-y by the end of 2008, after peaking at 30% y-o-y to May 2008. However Shanghai is likely to be somewhat exceptional, and Xinhua News Agency reported house prices declines in 70 major cities during 2008. Shenzhen suffered the hardest fall, with prices down by 18% during 2008

UAE on shaky ground

In Dubai, UAE, despite the bleak global picture, saw surprisingly large dwelling price rises of 41% during 2008. However during the year’s final quarter, prices fell by 8% in nominal terms. This downturn is attributable to strongly tightening lending criteria, an increase in interest rates, multiple layoffs, and alarm among buyers.

Forecast: No recovery in 2009

History suggests that in a crash, housing markets take many years from peak year to full recovery. In view of this and of the pessimistic IMF forecast for the global economy, no real recovery is likely in the global housing markets this year.

The IMF has predicted that the world economy will grow by 0.5% in 2009, the lowest level in 60 years. GDP in advanced economies is expected to decline by 2% during 2009. The United Kingdom and Japan will be hit the hardest. Output in the UK may contract by 2.8%, while Japan’s may fall by 2.6%.

Growth in emerging economies is expected to slow to 3.3% in 2009, down from 6.3% in 2008. Developing Asia is forecast to be the least affected, with growth of 5.5%. China’s economy is predicted grow by 6.7% in 2009, but this is a substantial decline from 9% growth during 2008.

We cannot be optimistic for five reasons:

• Valuations still clearly remain stretched in most countries, in terms of price/rent ratios.

• Economic growth is slowing or negative in many countries, which is negative for housing values.

• There are no signs that banks are becoming more willing to lend.

• The unprecedented nature of the financial system’s collapse has greatly added to the difficulties facing the world’s housing markets.

• Some national governments are experiencing difficulty in refinancing their national debt, putting their currencies under pressure. Currency instability is likely to aggravate housing sector problems in countries where many loans were taken out in a foreign currency.

The positive news is that the US government and several others are acting with vigour, as has the IMF. Nevertheless, there is a long tough road ahead.

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Description of the Global Property Guide:

The Global Property Guide (http://www.globalpropertyguide.com) is an on-line property research house, specializing in analyzing residential property valuations around the world.

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Requests for comments are best made by telephone to +(63) 917 321 7073. UK-based callers should telephone before lunchtime. Our local time is Hong Kong time, i.e., standard time + 8.00

Economics Team:

Prince Christian Cruz, Senior Economist

Phone: (+632) 750 0560

Email: prince@globalpropertyguide.com

Publisher and Strategist:

Matthew Montagu-Pollock

Phone: (+632) 867 4220

Cell: (+63) 917 321 7073

Email: editor@globalpropertyguide.com

Address:

Global Property Guide

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5F Electra House Building

115-117 Esteban Street

Legaspi Village, Makati City

Philippines 1229

info@globalpropertyguide.com

To own a home is still many people’s dream in today’s world. As the times have been going, many people have tried their luck in various investments, major among them being real estate investment. In present times, real estate investment has grown into a big field and the homes being built are even more diverse as many contractors try to make more comfortable places for people to live.

A number of people are reluctant to venture into real estate investment inspite of the promising prospects on board. This is because they do not understand how the industry works. From a business perspective, real estate can be a worthwhile investment. It offers diverse benefits including generation of rental income, profits in the event that one decides to resell the house and it acts as collateral when you want to get a loan.

If you get into real estate investment, you will be sure of significances which come with fewer risks as long as you understand the various aspects of real estate. One of the best examples of a real estate investor is a person owning some real property in which he resides or he has let some of the houses and therefore receives rent payments from his tenants of a specific period of time. The other fine aspect of real estate is the fact that the value of a property appreciates especially for land and houses for living and this guarantees that you will continue receiving more returns as time goes by.

The Internet has made it easier for real estate investors to track possible ventures and explore new real estate investment offers. It is also a learning ground for anyone who wants to gain knowledge on real estate investment.

Low interest rates on mortgage have contributed to the explosion of real estate investment. More people can now afford to buy property compared to previous years. There has been an increase in the value of property found in big cities and towns, making many more want to invest. Another major contributor to this is the amount of equity, that is, the difference between real market value and the balance to be paid on the mortgage.

In some parts of the world, real estate investors take advantage of the tax breaks to invest and get huge returns eventually.

Real estate investment is better when you fully understand and cover costs incurred to ensure that the returns are visible.

Having property on the chief site should be believed as the blessing as property is now being regarded as the hot commodity that yields excellent flow of uniform income. Well retained residential or commercial properties would draw better patrons for the long hire and that secures your flow of income on the expected basis. The excellent way is to hire out the property to some property agent and they would take good care of your property and give healthy regular income every month regardless they have the regulars to occupy that property or not. In order to get dependable and long term clienteles, they have to preserve the property well by investing their money. Thus, without having to do anything by yourself, you can simply have the help of earning a recurring income as well as maintaining your property properly through the aid of the agents. Investing into residential property would always be confirmed as fruitful compared to the commercial property. The ever rising population in the world is highly answerable for the constant boom in residential investment Brisbane. With the rising population, the rate of accommodations is not rising. The residential properties around the world are not plenty to offer the right accommodations to everyone.  Thus a new idea has been pioneered to facilitate you boost your earnings with your limited resources by the Canterbury services.

You are asked to invest your money properly in the shares of a few alleged companies or for investing in residential property. The appropriate investment is such that give you a stable flow of income on the recurring basis keeping your capital aside. But, it is better to endow your hard earned money in something that is fruitful, gratifying and most importantly makes your life restful instead of blocking your funds in shares. They accentuate on being debt free at first and then focus on the investment. Most primarily, the outstanding government taxes, credit card fee, and the other debts need to be established on a priority basis so as to simply shun the amassing of the high interest rates which would pile up slowly. Being debt free is superior to being moneyless.

Once the debts are developed then ponder on some healthy sources of investment from where you can a lucrative source of income. If possible, you can also get some tax free loans where in you can invest your money in the residential property. The leasing out the property is improved than dealing in property as you have to pay extreme tax each time you sell or buy the property and by the day’s end, you are still struggling to obtain remuneration from the investments.

Right, you know where you want to buy your home in France and you have set a budget. You now want to select an estate agent to help you. Here’s some tips to help you choose your property bureau.

There are plenty of UK estate agents handling property buys in France but make sure you:

- refer to estate agents who belong to well known regulated organisations such as The Federation of Overseas Property Developers, Agents and Consultants (FOPDAC) or The Association of International Property Professionals (AIPP).

- have a good look through internet resources. This will give you an indication of the range and price of French property available. It will also identify key features to check for.

Your website searches will prepare you to book appointments to see the French property for sale you are interested in.

- aim to do business with one property agent in each of the areas you have shortlisted. Unfortunately, it often works this way – if you contact a few agents in one area – you may well find that they do not regard you as a serious buyer.

Essentially, your UK estate agent finding French property for you needs to possess these 2 features:

- a good command of the French language and

- a working knowledge of the legal ins and outs of the French property buying process.

A decade after the 1997 Asian Crisis erupted, most housing markets in Asia are well on their way to recovery.

Boosted by strong economic growth and strong local and international demand, residential real estate prices in the Philippines, Singapore and South Korea rose by more than 10% in nominal terms y-o-y to Q1 2007.

In Hong Kong, after registering price falls in early 2006, the over-all residential price index is back in positive territory. The index rose 5.2% y-o-y to March 2007. However this is significantly lower than the annual price increases to the first quarter of 2005 and 2004, at 21% and 28%, respectively.

No bubble this time

Although property prices in most Asian countries are still below their peak levels, rapid price appreciation has taken place over the past five years, leading to renewed fears that a speculative property bubble is forming in several Asian countries.

The fear is not unfounded; one has only to recall Asia’s spectacular and disastrous property bubbles of the 1990s.

However, the recent price increases are actually recoveries from the previous slump caused by the Asian crisis and other phenomena.

As of Q1 2007, property prices in most Asian countries are in fact still below their peak levels in real terms.

Strong housing demand

Current economic and monetary conditions suggest continued strong demand for housing. All economies affected by the Asian Crisis grew by 5% or more in 2006. GDP growth from 2002 to 2006 has been markedly stronger than during the crisis period – 1997 to 2001, although slower compared to the tail-end of the “Asian Economic Miracle”.

As a result of financial and monetary reforms implemented after the crisis, banks and other financial institutions are in much better shape now. Asia’s mortgage market is set for a boom. This is despite the fact that mortgage lenders are more cautious of over-exposing themselves to particular sectors (some pundits worry that banks are actually being too cautious).

Despite recent interest hikes, in line with global interest rates, base interest rates for mortgage lending are generally lower now than before the crisis.

Socio-economic conditions also point to continued strong demand for residential properties. Strong urbanization and population growth has led to high population densities in several Asian cities.

In view of the relatively restrained dwelling price rises, strong economic growth and banking sector caution and healthy yields to be enjoyed on properties in Asia, talk of another bubble seems far-fetched.

Other problems

A more pressing concern for Asian economies is the continuation of reforms to improve real estate efficiency and transparency. Transaction costs remain high and the property registration is still cumbersome in several countries.

While Malaysia is encouraging foreign property buyers, Thailand’s military junta is pushing them away. Thailand announced that it is completing a crackdown on foreign companies established for the sole purpose of buying landed properties. While the motivation for this move is unclear, the signal is clear “foreigners are not welcome.” Political uncertainty and policy flip-flaps by the ruling junta are undoubtedly hurting the real estate market.

In the Philippines, proposed property market reforms are languishing in congress. These laws include the establishment of a centralized agency for registering property and a standard property valuation system.

Full Report:

http://www.globalpropertyguide.com/articleread.php?article_id=93&cid=



Economics Team:

Prince Christian Cruz, Senior Economist

Phone: (+632) 750 0560

Email: prince@globalpropertyguide.com

Publisher and Strategist:

Matthew Montagu-Pollock

Phone: (+632) 867 4220

Cell: (+63) 917 321 7073

Email: editor@globalpropertyguide.com

Address:

Global Property Guide

http://www.globalpropertyguide.com

5F Electra House Building

115-117 Esteban Street

Legaspi Village, Makati City

Philippines 1229

info@globalpropertyguide.com

Terms of Use:

On-line newspapers, magazines, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com

Having property on the prime site should be deemed as the blessing as property is now being regarded as the hot commodity that yields fine flow of regular income. Well upheld residential or commercial properties would fascinate better patrons for the long lease and that saves your flow of income on the fixed basis. Thus, one of the most common ways to yield a regular income regardless of the inhabiting customers is by leasing the property to agents who can take excellent care of the property. These agents keep the property clean as to get highly reliable and long term customers, it gets vital to preserve the property well. Thus you will have double benefits from your property, an expected source of fine income and your property is also being well retained by the property agent. Investing into residential property would always be confirmed as fruitful compared to the commercial property. Moreover, this steady boom in the residential investment Brisbane is caused by the rising population across the world. With the rising population, the rate of accommodations is not increasing. The residential properties around the world are not plenty to proffer the suitable accommodations to everyone.  Canterbury amenities have launched a new idea of making better earnings with your limited resources.

You are asked to invest your money properly in the shares of a few supposed companies or for investing in residential property. The suitable investment is such that offer you a persistent flow of income on the expected basis keeping your capital aside. But, it is better to authorize your hard earned money in something that is fruitful, pleasing and most importantly makes your life comfy instead of blocking your funds in shares. They highlight on being debt free at first and then ponder on the investment. Any accumulating outstanding like government taxes or credit card balance has to be advanced on the precedence basis to shun any accumulation of the intense interest that results into a big volume gradually. Being debt free is superior to being moneyless.

You can later effortlessly concentrate on your healthy sources of investment once your debts are developed down for a lucrative income. If possible, you can also get some tax free loans where in you can empower your money in the residential property. Thus, you can consider renting of property to be an enhanced option than that of doing business it as later you would have to pay extreme tax amounts whenever you buy or sell your property which would thus make you struggle even at the end to obtain the remuneration of investments.

The field of Property has grown, in the past everyone has witnessed the large and small transactions related to the property. These transactions no doubt have given a boom to the property industry that is the Real Estate sector. It is because of the property that the industry has gained vital stats over a short period of time. To recall today the property sector stands at the second position in the Indian economy and is considered to be the most promising upcoming industry. It’s revenues stand to twelve billion dollars with the growth rate estimating thirty per cent per annum. This alone doesn’t stop the property; the sector is promising in the new era as everyone demands for the property and this becomes the basic nee to the growth of the property sector in India. Like any other field there are various sub fields that are included in the field of property as well. They are property broker, Property dealers, property consultants and among various other fields that are employed in the Real Estate sector and deal with the property as their main occupation or prime line of business. The property dealers today are seen today at every nook and corner of the road as they are employed in various activities related the property.

The need of the property is required with all. The property is used as a main cord to life. It is employed as a main source for residential in the form of villas, apartments, guest houses and among various other forms and also as a commercial usage in form of office, store houses and among various other field of business that uses land for the trade with the motive to earn profit or otherwise. The role of the property dealers is to make the transactions for the all the above mentioned areas smooth and hassle free for both the transferor and the transferee of the property. The property agents are the specialized people who deal with the quires related to the property in and out. They help the clients not only while they make a fresh purchase over a property that is involve themselves in the sale and purchase of the property but also help the people who are involved in the renting of the property. They serves as a hub point for the property transactions and keeps informed the people around about all that has happened in the field in the past and is predicted for the future. Ike a soothsayer, they also are clever witness of the present that tracks and beholds the information about the past and future in the Real Estate or the property sector. All though being a trust worthy factors in the property business, it is always recommended that they are not completely relied on while making any transactions in the property field. The clients is the important investor or the party that is involved in the transactions, hence it is always recommended that the client before making any transaction in the property field serve a basic home work to themselves that give them an idea about the latest that has happened I the field of property. It also empowers them to stand alone or with these agents while they are making any transaction for the property.

Real estate investment in Canadian property has escalated over the past few years. More and more immigrants are buying or renting properties in places like Toronto, Brampton, Mississauga, Oakville, George Town, and Burlington. These places hold tremendous potential and offers great opportunities for investing in real estate. Canada has a huge real estate market for residential properties, commercial properties, and rental properties. The growing infrastructure, warm people, diverse culture, great weather, residential tourism, and migration from other countries have all made these places highly popular and increased the growth prospect for real estate.

Buying Property in Toronto, Brampton, Mississauga, Oakville, George Town, and Burlington

Buying property in Toronto, Brampton, Mississauga, Oakville, George Town, and Burlington is pretty easy and involves a straightforward process. You can invest in various real estate properties like apartments, luxury houses, resorts, farms, flats, villas, town houses, condos, etc. If you wish to invest in the Canadian real estate market then this is a true bargain as AKPC_IDS += "396,";

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