The Rise of the First Time Buyer in South Africa
The young professional demographic in South Africa has expanded to the degree that more young people are in a position to buy their first home much earlier than their peers a couple of decades ago.
The increase in first time buyer activity in South Afr…
European Commercial Real Estate Continues its Ascent in 2015
Overseas investment has continued to pour into Europe’s commercial real estate markets which have recorded growth for the seventh consecutive quarter in the first three months of 2015.
CBRE’s All Property Capital Value Index increased by 1.1% during Q1 2015, across all asset classes in European commercial real estate.
The index shows Germany , the UK and the Nordics as the strongest performers, with values rising across the board by 1.7% in Germany and 1.6% in both the UK and Nordics during the first quarter. The industrial property sector boosted southern Europe, driving growth up 0.6% over the same period.
Industrial property continued its reign as best performing asset class in the commercial sector, recording growth of 1.7% followed by retail at 1% and offices 0.8%.
CBRE’s senior analyst Matthew Edmonds said: ” Once again, there was compression across the full range of yields as investors continue to seek opportunities further up the risk curve. Prime assets are still the highest in demand but the group of assets with higher equivalent yields compressed noticeably, confirming growing interest in more opportunistic and value-add properties region-wide. “
Investment hotspots have shifted focus in the last year with many investors taking advantage of the relative strength of the dollar and sterling against a weak and consistently fragile euro. More foreign investors are looking again at Greek property markets on the back of the country meeting its debt obligations and showing signs of getting back on track, particularly in its property markets.
2015
Berlin
Dublin
Madrid
Hamburg
Athens
Birmingham
Copenhagen
Amsterdam
Lisbon
London
2014
Munich
Dublin
Hamburg
Berlin
London
Zurich
Istanbul
Copenhagen
Stockholm
Frankfurt
Going forward into 2015, it seems likely that momentum will continue to gather across Europe’s property markets, led principally by non-EU investors seeking to capitalise on euro weakness, particularly in countries offering residency visas for property buyers.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Foreign Investment Driving Up Property Prices in New Zealand
Homes are becoming less affordable for Kiwi buyers as prices continue to rise on the back of increasing foreign investment in New Zealand’s property markets.
Although Asian investment comprises a healthy majority of foreign buying in the country and are certainly singled out as being the main driver of price hikes, other nationalities are steaming in on Antipodean real estate. With Asian capital investment in Kiwi property with almost half the market share, there is still a considerable percentage – around 54% – of buyers from Australia, Europe, UK and South Africa.
Media speculation in New Zealand has unfairly pointed the finger at Asian investors as being responsible for driving up property prices to the extent that local residents are unable to buy principal residences. Reports have included new million-dollar homes in the Vaughan Farm development in Long Bay were almost all vacant having been ” bought by rich Asians and left unoccupied to reap the capital gain “.
However press reports have not been substantiated by any proof and the country’s estate agents are keen to highlight New Zealand real estate’s attraction to overseas buyers from outside Asia. New Zealand has always been a popular investment destination for Asian capital, particularly in recent years with the degree of wealth generation China has enjoyed.
However, more than 20% of foreign buyers in NZ property markets in 2014 were from Australia compared to 25% from China and so there seems to be little evidence of imbalance. There are many reasons why investors are attracted to the country’s property markets, not least it’s stable economic climate, great quality of lifestyle and the sheer beauty of its landscape.
Where perhaps Kiwis are being priced out of domestic property markets, Australians still see a lot of value represented in the country’s real estate. Many Australian buyers are miners getting good tax refunds they wish to invest in property and in the absence of value in their own country, they are looking further afield for property in New Zealand .
A high percentage of purchases in New Zealand’s property market are said to be for straight investment purposes. Obtaining a mortgage in the country is a fast process, often taking as little as 47 hours to complete. Many agents across the nation anticipate a continued rise in Chinese investment although not disparate with growth in capital from other nationalities.
Article by +Roxanne James on behalf of Propertyshowrooms.com
The Rising Tide of Investor Sentiment for Philippines Real Estate
Although it’s difficult to come by property pricing data in the Philippines, industry insiders are reporting a significant upshift in values, particularly at the luxury end of its property markets.
Data from the Bank for International Settlements (BIS) show that capital values of flats and commercial properties in the Makati area of the capital Manila has risen almost 50% per square metre in peso terms from the first quarter of 2008 through to the third quarter of 2014.
Research published by real estate researchers at Colliers International shows that land values in the Makati central business district (CBD) exceeded their 1997 pre-Asian Financial Crisis peak, with residential capital values up 3.4% from the previous quarter and around 5.6% year-on-year. Residential rents increased by an average of 5% year-on-year in the CBD.
The main driver of growth in Philippines’ real estate has been increased investor appetite for its luxury property, both residential and commercial. Competition between high profile brands has been aggressive at the high-end in recent months resulting in a polarised real estate market.
Internationally-known names are increasing their presence in the country: the Azure condominium in Paranaque city, southeast of Manila is offering a beach club house designed by Paris Hilton, while a Trump Tower is going up in Manila’s Makati area.
The latest investment hotspot in the Philippines is idyllic Boracay, named the world’s best island getaway by Travel & Leisure magazine and best Asian Beach Destination by TripAdvisor’s Travellers’ Choice Awards for the last four years.
Residential and hotel design company YOO are behind a sumptuous new development on one of the world’s most pristine beaches in Boracay. The five-star boutique residential resort offers a fantastic opportunity for investors to harness some capital growth on the back of increased investor interest in the Philippines.
The highly-anticipated resort is on schedule to open in 2016 and is already gaining international attention and prestige for its unique, design and breath-taking scenery. Luxury residential units are available from €195,000 to €1.8m with rental yields expected to achieve from 6% to 8% annually.
It’s a great time to invest in the Philippines and Boracay in particular, with the opening of a new airport this year offering 50-minute flights from Manila, 2 hours from Hong Kong and 4 hours from Singapore. An already popular tourist destination particular for Asian visitors, the tiny island is seeing a steady increase in holidaymakers from Europe, the US and the UK.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Spanish Banco Popular to Sell-Off €450m Bad Property Assets
In evidence of growing investor confidence in Spain’s property markets, Banco Popular is to sell its portfolio of Spanish real estate assets worth a total of more than €450m.
The portfolio is comprised of 1,473 homes in Madrid, Barcelona, Toledo and the Costa del Sol worth €300m; land plots in different Spanish regions to the value of €103.4m and includes 13 hotels, worth €47.2m, according to Bloomberg .
Documentation for the offer was prepared by investment firm N 1 and was sent out to potential investors last month. The Spanish bank’s strategy is to sell the first half of its portfolio this year and is at the core of its divestment programme of non-strategic assets.
So far in 2015, sales of Banco Popular’s real estate assets have reached record-breaking levels with the bank closing deals on €534m worth of homes in the first three months of the year, representing a whopping 115% increase for the same period in 2014.
Banco Popular has been anxious to stress that properties are not being sold at bargain basement prices to accelerate sales. On the contrary, it maintains that transactions are being closed at prices similar to their book value which backs current levels of portfolio valuations.
The bank joins others in selling its unproductive assets during a time when currency weakness is attracting wealthy foreign investors, mainly from the UK and US. In recent weeks, Spanish banks have offered unpaid debt and foreclosed assets worth €10,000m to international investment funds.
The most active financial institution in the rush to offload bad assets has been Bankia, with its ‘Big Bang’ project placing 38,000 residential units on the market including apartments, garages and storage worth €4.8bn. Bankia was also the first to bring to market a portfolio of outstanding mortgage loans despite concerns over repeating mistakes from the past.
With many of Spain’s banks holding property assets in areas sought-after by investors both before and after the global financial crisis, recent transaction activity looks likely to impede price growth over time. There has been a significant upward shift in interest from foreign investors in Spain’s property markets, mainly on the back of significantly increased purchasing power due to euro weakness.
When the euro inevitably finds a more advantageous level in FOREX markets, investment may start to fall slightly in Spain as investors digest the considerable choice of property that will become available over the next few months. With supply likely to outstrip demand, property prices could stagnate or even decline a little.
Nevertheless, if you’re an investor in dollars or pounds, it’s definitely advisable to make hay while the sun shines and you’ll almost certainly see some fantastic returns over time.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
