Brexit making people look abroad
30% increase in UK Citizens planning to move abroad after Brexit
Moments after the shock of the EU referendum result the cost of living calculator from the Expatistan site said:
“The number of people comparing UK cities and cities abroad spiked to over 50% It comes as no surprise that the correlation between how a city voted and people researching to move abroad showed positive.
The lower the percentage for those pro Brexit, the lower the interest to move out of the UK. With locations where Remain votes where higher, the interest to move abroad grew higher.”
USA and Australia where the top 2 countries people were looking to move to, with Spain coming in third.
Here at Propertyshowrooms.com we have also noticed such an increase in property searches and notice that on our portal we find that more people have been searching for property in Spain, Cyprus and Portugal and further abroad to the UAE and Thailand.
Another notable result of Brexit is that a lot of Brits are researching how they can keep their EU passports.
The cover of a British passport reads “European Union”, when the UK leaves Europe, this will no longer be the case as it will cease to be an EU passport.
A possible route to an EU passport is marriage. For example, the spouse of a citizen of Spain can become a citizen after only one year of wedded bliss.
Article by +James Roberts on behalf of Propertyshowrooms.com
Luxury Condo Prices to Remain Flat in Malaysia
As new development projects are completed in Kuala Lumpur and fringe locations, competition in the rental market is expected to heighten amid a weak Malaysian housing market.
Property prices in the high-end condominium segment will remain flat, while rental prices fall, due to increased competition between existing units and new launches, said property consultancy firm Knight Frank Malaysia.
The increasingly competitive property market is also forcing developers to be more innovative, with attractive packages and creative deals being offered to boost sales, it said.
In its report called Knight Frank Malaysia Real Estate Highlights 2H2015 , the firm said this may also lead to some of the projects scheduled for launch by the first half of this year, to be deferred.
” There has been an increased trend of projects offering leaseback arrangements and pool management programmes with guaranteed rental returns to boost sales and attract potential buyers and investors looking for long term investment in terms of rental returns and potential capital appreciation, “.
The report added that potential buyers and investors, however, would continue to adopt a ” wait-and-see ” approach as market sentiment remained weak.
In the third quarter of last year, Kuala Lumpur recorded 1,694 transactions in the condominium and apartment segment, 6.3% less than a year earlier.
For the office market segment, in Kuala Lumpur and Selangor, it said there was growing pressure on rental and occupancy levels due to the high supply pipeline of existing as well as new stock, and a weaker leasing market.
” The depreciation of the local currency and volatility in commodity prices coupled with economic and political uncertainties do not bode well for the office market which traditionally have been driven by the services sector and oil & gas (O&G) businesses “.
” The contraction of the O&G sector, the main lifeline of the office segment following the plunge in crude oil prices, has negatively impacted the market “.
” Tenants continue to be spoilt for choice with attractive rentals, incentives and tenancy terms “.
The firm said rental rates could fall due to heightened competition in the tenant favoured environment.
With business confidence at a low, coupled with the economic slowdown, it was inevitable that the take-up rate and overall occupancy levels would be impacted, it said.
” Nonetheless, rental rates of well-located good grade, dual-compliant office space are expected to remain resilient, ” said Knight Frank.
In the Klang Valley retail market, Knight Frank said the weak local currency and recent toll hike were expected to further dampen consumer sentiment over the next six months as disposable income falls.
” Majority of retailers are adopting a ‘wait- and-see’ approach and caution in their expansion plans amid poor sales performance and reduced profitability “.
” A handful of regional and local retailers operating several brands are taking up larger lots at competitive tenancy terms with attractive rentals and incentives to improve space and cost efficiencies “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Hong Kong Housing Ranked Most Unaffordable in the World
According to the 12th Annual Demographia International Housing Affordability Survey of 87 global cities by US think-tank Demographia, property in Hong Kong is the most expensive in the world while that in the US is the most affordable.
The report shows that the four most affordable housing markets, all with home prices 2.6 times median annual income, were found in the US – New York’s Buffalo, Cincinnati, Cleveland and Rochester. Overall, cities in the US have the most affordable housing according to the Demographia list.
At the other end of the spectrum, housing in the bustling port city of Hong Kong in southern China is classified as ‘severely unaffordable’. Property prices are on average 19 times median annual income. Second from the bottom of the list is Sydney (12.2 times) followed by Vancouver (10.8 times).
The rankings are based on the ‘median multiple’ of the respective housing market, ie the median price of property is divided by the median annual income before taxes. Cities with a median multiple of 5.1 and over are ranked ‘severely unaffordable’.
Housing affordability in Hong Kong is its worst since Demographia started its survey, in part due to well-off mainland Chinese buyers investing in Hong Kong property. US monetary policy and increasing demand in general contribute to housing scarcity which in turn places more upward pressure on housing prices.
Apart from their prohibitive cost, new housing developments in space-starved Hong Kong have become so tiny that they are referred to as ” mosquito units ” by locals.
The dire housing situation in Hong Kong was one of the concerns raised by young people who took to the streets in 2014 in massive pro-democracy protests known as the Umbrella Movement. Since then, the Hong Kong government has said it would increase housing supply.
” Virtually all of the geographies covered are facing more uncertain economic futures than in the past, ” said the Demographia press release.
” As always seems to be the case in economic matters, younger people and lower income people tend to be at greater risk “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Up To 10% Growth Expected for Thailand’s Property Market in 2016
Thailand’s economy has experienced some significant ups and downs in recent years but despite the weak economy, its property market is expected to pick up significantly this year, driven by the growing low-rise sector of the residential market.
Atip Bijanonda, president of Thailand’s Housing Business Association, said the Thai property market this year would grow by 5-10%, boosted by transactions in single-house and townhouse segments.
” In many provinces, condos will remain sluggish this year, while demand for single houses and townhouses will continue to grow as supply remains limited, ” he said.
According to the Real Estate Information Center (REIC) , the number of low-rise units – single houses, townhouses and duplexes – remaining for sale in 26 provinces totalled 146,870 worth 541 billion baht. Also available were 98,130 condo units worth 275 billion baht.
Bangkok, Chon Buri and Nonthaburi are recorded as having the most condo and low-rise units remaining for sale.
Prasert Taedullayasatit, president of the Thai Condominium Association , said sales of single houses and townhouses had picked up since the third quarter last year. Demand was strong for townhouses priced 2-3 million baht as large developers shifted to the segment.
Townhouses priced higher than 10 million baht located close to mass transit stations showed the most significant growth with the sector competing with condos in the same location due to lower prices.
” Developers should prepare for changes in the real estate landscape, ” Mr Prasert said. ” As happened last year, big developers are expected to continue dominating the residential market, putting smaller developers in trouble “.
Don Nakornthab, senior director of the financial institutions strategy department at the Bank of Thailand, said the government’s spending on infrastructure in 2016 may be minimal but it could lead private investment and help the property sector, as most megaprojects will develop mass transit and transport networks.
” Developers should be more cautious in property development as the economy remains slow, with high household debt and low prices of agricultural products having an impact on consumers’ purchasing power, ” he said.
Economists expect Thailand’s economy to improve from last year as the government’s economic stimulus policies and other measures introduced by the central bank and the Public-Private Partnership Committee are implemented.
In 17 major provinces, the property market significantly slowed down, with the number of housing units launched dropping by 29.3% in the first three quarters last year to 31,193. The number of units sold also fell by 35% in the same period.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Blackstone Predict New Opportunities in Australian Commercial Property
Blackstone, the world’s largest real estate investor do not see Australia’s commercial real estate market as overheated as many analysts do, suggesting that global volatility will continue to create new investment opportunities in 2016.
The firm’s global chief investment officer for real estate, Ken Caplan said: ” We bought a half-interest in Southern Cross not long ago, so we continue to see opportunities [in Australia]. We still see it as an interesting time to be investing. Australia has done well for us. We like the investment and would like to do more “.
In December last year, the private equity giant bought a half share in the Southern Cross office complex in Melbourne for AUD675m, with Canadian giant Brookfield owning the balance. Analysts have speculated that the yield of just over 5% is a new benchmark for the Melbourne office market.
Globally, Mr Caplan expects the pace at which yields have tightened to slow after the strong run real estate has had in recent years. However, he did not see interest in Australia abating, rejecting talk of a commercial property bubble. ” I see a lot of reasons why Australia will remain a place that investors will want to invest capital into real estate “.
Blackstone has more than AUD5bn of property and AUD1bn of real estate debt in Australia. In 2015 the group made its first push into the Australian real estate debt market, buying $750m of Australian loans as part of its USD26.5bn to purchase General Electric’s global real estate assets.
” It does feel like we are in an environment where we will see more interesting opportunities. And having the dry powder across the firm of USD85bn [funds available globally across asset classes] means we are able to take advantage of this, ” Mr Caplan said.
Blackstone has been most active in Sydney and Melbourne office and retail property and according to Mr Caplan, ” That’s where I expect we will continue to be most focused “.
Increased investment activity in commercial real estate markets is generally a precursor to increasing prices in the residential sector. That’s why savvy investors pay close attention to the activity of the investing giants like Blackstone for indications of where smart capital is flowing and seek opportunities locally.
Opportunities to invest in commercial real estate around the world are becoming more widely available through crowdfunding platforms and real estate trusts, with entry levels at more affordable ranges for retail investors.
The commercial sector of global real estate markets is expected to see significant growth in the next 12 months, as more economies achieve stability or seek to stimulate growth through investment in business.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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