The biggest (biggest in terms of importance) of these signs arose in the last couple of weeks. It is a well known fact that weak supply (mainly in the south and south west of England) putting sellers back in charge, has been the main driver for the growth in prices that we have seen. Now signs are emerging that supply is increasing faster than demand, a foretold precursor to the second coming.

Firstly the Royal Institute of Chartered Surveyors said that the number new homes for sale had increased faster than new buyer registrations for the second consecutive month in its February review of the housing market.

Then, on Monday (Mar 15), Rightmove revealed its index of asking prices for March, which rose just 0.1%, the smallest ever rise recorded for March by the UK’s largest property portal. The portal said that this was because of a surge in the number of people putting their property up for sale.� According to Rightmove there are more properties up for sale than there has been for 18 months, after a 17.5% increase on the previous month, a 34% increase on the previous year.

Then, we have to add in the fact that mortgage approvals are falling again: according to the Council of Mortgage Lenders the number of mortgages approved in January 2010 was 49% lower than December 2009, and down 25% according to the British Bankers Association (45,650 – 35,083). This is of course only 1 monthly fall after several months of rising approvals, so it could well be simply a blip, but coupled with 2 months of rising supply (RICS) it is still very worrying.

With all this in mind, it is little wonder that both indices of the UK’s largest lenders recorded price falls in February. According to the Nationwide UK house prices were 1% lower in February than in January, and according to the Halifax they were 1.5% lower in the same period. It is still far too early to say that the second dip is now inevitable, but there have now been far too many indicators to say that it definitely won’t happen either.

This article written by Liam Bailey of Property Abroad.com

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Indicators Mounting to Suggest Second Dip in UK Housing Market

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

International Property News Beat – Easy Hotels Sofia, Anger at Trump & UK Commercial Property Rebound

More and more Brits seem to be turning their backs on owning second homes abroad and are now buying in the UK. Estate agents, Savills claim that there has been a sharp growth in the sales and demand of second homes in the UK due to a weaker sterling and the availability of more affordable UK properties. According to data to be release by Savills later this week, second homes’ sales worth �500,000 and above grew by 40 per cent in the last three months of 2009 compared to the three-year average. This compares with an uplift of just 10 per cent in total prime regional transactions.

Cornwall appears to be the most popular second home destination in UK with annual house price growth at 16.6 per cent as compared to the overall prime regional second homes market at 5.21 per cent . Second home ownership in Cornwall is only marginally lower than that of primary residency properties with 43 per cent of prime stock in Cornwall sold to second home buyers.

Sales in the traditionally strong market of Fife, Scotland, where second homes account for 25 per cent of prime properties was weak with 0.8 per cent growth and a 19 per cent house price growth.

Almost 90 per cent of second homes in Cornwall and other UK second home destinations are domestic and emanate from the wealth of London’s financial sector which has led to some of the most volatile price fluctuations of the downturn. Buyers’ from the ‘City’ (London’s financial sector) accounted for 38 per cent of second home sales and 55 per cent of second home sales between �1m- �2m.

Lucian Cook, director at Savills, said “Early signs this year are that second home turnover is back in lin e with the market average, though it is too early to get a firm read of how the election and increased taxes and the City bonus factor will affect the market.”

Martin Lamb, head of Savills Exeter, said: “The top end of our market is driven by cash and prices for the best properties are hardly off 2007 values. We now have far more buyers out looking for second homes worth �2m than we have buyers looking for more modestly priced homes to live in.”�

Photo credits: Armando Maynez via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

UK Second Home Market Grows by 40% – Savills

It has to be said that Google’s Street View service has been somewhat of a success since its inception around a year ago – 1 in 5 people use is to find their next home! 3 in 5 people use it to find their way and others use it to check out prospective holiday destinations. Google Maps (Street View’s parent service), has seen a 30% increase in usage since the Street View service was introduced.

Google Street View Car

Photo credits: Daniel Bowen via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Google Street View Now Has Full UK Coverage

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

International Property News Beat – Emaar in Turkey, China Property Surge & Real Estate Lies

Under the agreement, Countrywide has the exclusive license to the Sotheby’s International Realty^® brand across the United Kingdom and Channel Islands. Countrywide will create a new subsidiary called United Kingdom Sotheby’s International Realty to operate its new luxury brokerage business in those regions. As part of the transaction, Countrywide acquired the Sotheby’s International Realty – London office in Mayfair, previously owned and managed by NRT LLC, the largest owner and operator of real estate brokerages in the United States. The office will be renamed London Sotheby’s International Realty.

“This is a major step forward in our worldwide growth plan,” said Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “This agreement will enable the Sotheby’s International Realty brand to expand significantly in London and throughout the United Kingdom. The leadership of Countrywide is very talented and committed to growing our presence steadily over the next several years.”

The Sotheby’s International Realty network has approximately 500 offices in 38 countries and territories worldwide. Franchise affiliates benefit from an association with the world-renowned Sotheby’s Auction House, established in 1744.

“Countrywide moves more people than any other agent in the United Kingdom through a network of 1,200 offices with 41 leading estate agency brands,” said Grenville Turner, Countrywide Group Chief Executive. “We plan to expand the presence of the Sotheby’s International Realty brand in central London and across the United Kingdom and to capitalize on the renewed sense of confidence we see in the property market. While this new business will be run separately from our other brands, we intend to leverage the support of our existing business structure. We also look forward to collaborating closely with the Sotheby’s Auction House in London as we develop our strategies.”

Countrywide has seen growth in its U.K. market share over the last year, and believes this agreement provides the platform for additional expansion. “The Sotheby’s International Realtybrand is iconic and offers a huge potential for quality growth,” said Robert Scarff, managing director, Countrywide Estate Agents. “The strength of the U.K. property market for foreign investors makes this an ideal situation for us.”

According to Charlie Smith, managing director, United Kingdom Sotheby’s International Realty, the agreement offers the opportunity to be part of a larger network of offices across the United Kingdom. “I’m thrilled with this news as Countrywide is the biggest player in the market with the energy and power to help us grow a U.K.-wide network,” said Smith, whose tenure with theSotheby’s International Realty brand surpasses 10 years. “This offers potential to grow across prime locations and signals a new and exciting chapter in our history.”

About Sotheby’s International Realty Affiliates LLC

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation, a global provider of real estate and relocation services, entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system by Realogy’s subsidiary, Sotheby’s International Realty Affiliates LLC. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.

About Countrywide

Countrywide is the U.K.’s largest and most successful estate agency and property services Group, operating more than 1,200 associated branches across England, Scotland and Wales.

Countrywide’s network of expertise helps more people move than any other business in the U.K. and is a leading provider of estate agency, lettings, mortgage services, land and new homes, franchising, auctions, surveying, conveyancing and corporate property management services.

Countrywide’s award-winning service has earned the business 29 high-profile industry awards in the last two years, which include Best Estate Agency, Best Letting Agency and Best Land & New Homes Agent of the Year at the 2009 Negotiator Awards, and Best Surveyor & Valuer at the 2009 Mortgage Strategy Awards. Customers also voted Countrywide Best Estate Agent at the 2009 Estate Agent & Letting Agent of the Year Awards. For more information, visit: www.countrywide.co.uk

Contacts

Jennifer Zimmerman
Director, Public Relations and Communications
Sotheby’s International Realty Affiliates LLC
1 Campus Drive
Parsippany, NJ 07054
(973) 407-6375
Email Contact
Gemma Stacey
Group PR Manager
Countrywide
Tel: + 44 (0)7515753344
Email Contact

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Press Release: Countrywide Acquires U.K. Franchise for Sotheby’s International Realty Brand

Vietnam’s luxury property sector has been surprised by a rise in local Vietnamese buyers, filling the void left by the exodus of foreigners at the tail end of 2008.

Last year saw locals buy into the Hyatt Regency Residence and Ocean Villas in Danang or Sanctuary Ho Tram Resort in Ba Ria Vung Tau province where an apartment is priced at at least $180,000 and a villa up to $1.7 million.

Even more surprisingly is the fact that some analysts have linked this to the fact that Vietnamese citizens are hiding stacks of wealth in other investment vehicles including gold and securities, because the official average salary in Vietnam is just $1,100.

It is far more likely to be explained by the massive gap between rich and poor in Vietnam, the large proportion of society living in poverty, and the section of society that is becoming increasingly wealthy as leaders of industries like manufacturing, tourism, and banking.

1, 2, 3 or even 10 luxury developments seeing sales to a majority of local citizens is not enough to become a representation on the pictures the world has of a Vietnamese nation which is still a poor country by international standards.

That aside, of course the increasing number of sales to locals in the luxury sector can only be a good thing for the economy and the real estate sector. The reliance on foreigners will hopefully be a mistake never again made by developers, so an increase in sales to locals may mean that a luxury sector can still exist in Vietnam. It is also an indication that affluence is rising in the country, which contrary to the belief of some is still a good thing for a beleaguered nation such as Vietnam.

On the downside, Vietnam property became grossly overvalued, as it did in many other countries in Asia and around the world as foreign speculators drove markets crazy. In most places the exodus of foreign buyers has been a sobering experience for the market, especially the luxury sectors therein, such an increase in local demand in Vietnam’s local sector may prevent the market from being sufficiently corrected.

That being said, if there is such levels of foreign demand, maybe the market has already corrected far enough.

Photo credits: Vietnam Real Estate Blog

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Luxury Property in Vietnam Bought by Locals Causes a Stir

Mortgage backed securities sold by US (lenders) mortgage originators were at the heart of the financial meltdown that we have all just fallen victim to. Any drop in their sale now would damage its fragile recovery, not only by causing a rate-hike, but also by causing liquidity for new mortgages to fall backwards.

For those that do not know, mortgage backed securities are a form of investment. Basically it is where mortgage originators bundle up multiple mortgage deals that they have in place with debtors into pools (also known as being “packaged up”) and sell them to investment funds. The investment model was originally started by the US Federal Reserve, which began buying mortgage bundles from lenders, in order to free up their capital to make more mortgage loans available.

The primary sellers of US mortgage securities on the international market are Fannie Mae and Freddie Mac and the less heard of Ginnie Mae, AKA the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association, all of which act as guarantors on the payments of the mortgages they sell. Ginnie Mae further guarantees the timely payment of its mortgages. Fannie and Freddie were privatised, but are now once again state-owned.

The primary investors in mortgage backed securities are government-owned funds, AKA Sovereign Wealth Funds. During the last US housing boom, foreign governments invested billions of dollars in mortgage backed securities. The mortgage-holders bundled up in those packages defaulting en-masse, is thought to have been one of the main contributory factors in the collapse of the US banking system, which of course led to the global financial crisis.

So, will foreigner sovereign wealth funds be so quick to jump back onto the MBS wheel? The Fed is obviously banking (pardon the pun) on the answer being yes, but according to experts their desire to buy MBS will not be anywhere near enough to stop interest rates from spiking.

“I don’t think it will be enough to fill the hole,” said Ajay Rajadhyaksha, head of fixed-income strategy for the United States at Barclays Capital.

However, it is also worth bearing in mind that increasing interest rates will increase the yields from mortgage backed securities, which collect the returns from mortgage payments. Therefore an initial drop in securities sales may bring increasing sales as interest rates are pushed up.

Of course any jump in interest rates would hurt the US housing market as it struggles on a rocky path to recovery. But the other effect of a drop in the sale of securities would be just as devastating: that is the very reason why the first sale of mortgage backed securities was made; to generate liquidity for new mortgages within the banking system.

Without doubt the cumulative effect of an interest rate rise, and the availability of credit falling backwards would definitely hurt the US housing market in the short-term. The FED is simply hoping that the increasing revenues from securities as interest rates rise, will combine with the increasing liquidity in the banking system to intensify the recovery in the medium term.

Photo credits: Woodley Wonder Works (via Flickr)

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

US Housing Market Could Once Again be Rocked by Securities

The aigroup has nearly 20 years of experience in Russia and 10 years in the luxury property business and organizing successful overseas property shows in Russia, including the Moscow International Property Shows, Moscow International Investment Shows, the St. Petersburg International Property Shows and the Bulgarian Salons and Exhibitions.

“In the last years there has been a tremendous increase in the number of Russians buying overseas property, � said aigroup CEO Kim Waddoup, Russia’s internationally recognized authority on overseas property. �The largest increase has been in the first time buyer sector as the emerging Russian middle class buys. This market trend has been noticed by our participants who are catering to this market. However there has been a lack of an event catering solely to the wealthier sector and to satisfy this demand the Moscow Golf & Luxury Property Show has been created.”

The Moscow Golf & Luxury Property Show is sponsored by property luxury market leaders International Residence Magazine and 1-property.ru property portal, as well as Golf Digest Russia. The event will take place on April 23-24, 2010 from 12pm & 7pm, in the “T-Modul” exhibition hall in the centre of Moscow: location map. The Moscow Golf Show Party will be held Friday, April 23 at 7pm and will feature great food, exotic drinks and golf activities, which will give guests the opportunity to test the latest cutting-edge Russian golf equipment.

The remaining stands are selling fast and International Golf suppliers and developers of luxury property are recommended to contact the organisers to secure their space at this strategic event.

For further information visit www.aigroup.ru

Press Contact:

Kim Waddoup, CEO aigroup

Email: kim@aigroup.ru
About aigroup:
Russia’s aigroup offers full services for overseas property developers and agents to promote themselves directly to Russian buyers. With nearly 20 years of experience in the industry, aigroup is highly qualified to offer effective marketing solutions in order to penetrate the growing groups of Russian buyers. In 2003, aigroup launched the Moscow International Property Shows and in 2004 launched the magazine International Residence. The group now spearheads eight overseas property shows in Russia, and in addition, has also created Russia’s leading luxury real estate portal www.1-property.ru. Its shows include the Moscow International Property Shows, the Moscow International Investment Shows, the St. Petersburg International Property Shows and the Bulgarian
Home exhibition.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Press Release: Aigroup to Host Russia’s Premier Golf and Luxury Property Show

However, it is unclear exactly how much Trump has to do with the 48-story condo tower, at 15th and West Peachtree Streets; Atlanta-based Wood Partners, LLC and New York-based Dezer Properties Inc are also named on the paperwork.

If the case in Florida — where residents attempted to sue Trump, only to find out he was not the main developer — is anything to go by then the answer is: not a whole lot. The fact that the loan is scheduled to be sold is another indication that perhaps the lenders know something we don’t with regards Trump’s involvement; we don’t know many lenders that would doubt Trump’s ability to pay such a profitable loan.

According to sources the development is still likely to go ahead, but not for the foreseeable future due to oversupply of condos on the market since the credit-crunch heralded a catastrophic drop in demand for such properties. To that end a plan has been drawn up that would see the tower become a hotel on-top, with the same high-end retail and commercial spaces in the lower levels.

The problems for the development arose from the moment the development was supposed to arise; the market was dying off when construction was scheduled to begin in 2007. The last news article on the website for the project is in mid-2008 and says only that 90 units were sold on the development before it broke ground, and that it was scheduled to be completed in early 2010.

Looking further back through the articles, the Piedmont Review covered the development in great detail at the beginning of 2008, when there was still plenty of buzz about how it was going to fill the niche in demand for mid-priced ($400k to $1m) condos in the mid-town areas. It seems that the problem only arose when sales dried up after 90.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Trump Towers Atlanta in Foreclosure Questions

According to new data from international estate agency Knight Frank, the number of Brits buying second homes rose by 2.6% last year, which not only reversed 2008’s fall, but also took the number of British second homeowners to the new high of 245,384.

Unfortunately, according to the research most of the second homes purchased by Brits in 2009 were purchased in the UK. This has been put down to a combination of the strong euro, the green initiative behind holidaying at home, and the trend of “staycationing”; exploring what our own landmass has to offer. A recent Telegraph article said that sales of overseas property dropped 80% last year.

The question the overseas property industry must ask of this data is: will the buyers come back in 2010, 2011, or will this have forever cancelled the British lust for holiday homes and investment properties abroad?

The short answer is: a bit of both; yes they will come back, and in fact there are clear signs that they already are; but yes the credit crunch has forever changed overseas property, or certainly made a lasting change, in that people will no longer fall over themselves to invest in emerging market buy to let’s simply because they are cheap; and not without looking into the supply/demand fundamentals in the locality.

In fact, in yet another irony to emerge from the currently bizzaro-world that is the international economic scene; the currency fluctuations and debt time-bombs are actually increasing sales of overseas property.

Never before (or certainly not in my lifetime) has there been so much fear over inflation and currency devaluation making our savings halve in value or worse. And so never before have so many people sought to put their cash savings into tangible assets. Many people are putting their money into gold bullion, but the effect of this since the start of the crisis has already sent the price of gold soaring.

The massive price of gold is making property the better option. But not property in the US, UK or Europe, where the debt balloons could yet cause further property deflation, but in markets that are considered to be insulated from the financial madness. This is leading to increasing sales of property in the Caribbean, where Cardea property consultants sold $7 million worth of prime St Lucia property in January (Overseas Property Professional – membership required).

Digression over; sales of property overseas have been increasing gradually since last April. Initially all buyers were paying cash, and it was predominantly lifestyle buyers favouring high-end property in established markets. This has slowly started to change, with clear signs that investors were returning appearing in things like Germany entering portal top 10s etc.

This was reinforced recently when major portal Primelocation reported a 55% increase in searches for property in Cyprus and Bulgaria, and a 60% increase in searches for Turkish property. The portal also reported a 25% increase in overseas property searches on the whole.

The increase in sales last year caused overseas realtors to breathe a sigh of relief, and the return of investors another. However, all agents reporting sales are also reporting that buyers are grilling them for more information on the properties and developers, and that most buyers buy only after visiting the development of choice. This means that agents have to step up their game, they have to make sure they know the properties they sell inside out, and that any investment potential is backed up by a lot of research on their part.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Overseas Property Down, but, Not Out?

In what is one of the biggest ironies the world may have ever seen, because of stimulatory measures taken to stave off the effects of the financial crisis, several countries are now having to act quickly to avoid their housing markets overheating, and to curb the same irresponsible subprime lending practices that caused the crash in the first place.

The most notable of these is China. The government has recently enacted several policies aimed at cooling the housing market, which is rapidly inflating into a bubble, and the latest move is aimed directly at irresponsible and even fraudulent lending practices.

Directive 138 is specifically targeting the special relationship that is being forged between lenders and real estate agents.

This relationship has become particularly close lately as lenders recently started paying cash bonuses to realtors for bringing in business in the form of high value loans. This is because of the fierce competition for loans in the growing Chinese housing market. The authorities are keen to stamp out the practice because it leads to realtors not doing the proper checks on their potential clients, and even to the realtors providing false documents to the potential debtors.

This seems like an obvious consequence to those of us on the outside looking in; to the realtors it was a no-lose situation: it is in their best interest for their clients to get a mortgage, because that allows them to pay for the property, which gets them the commission there, so the banks adding a cash incentive only intensified their reasons to want the client to get a mortgage. Who knows why it wasn’t obvious to the lenders. It seems that greed is still blinding even though we now know what this greed can bring.

The signs that the overheating mortgage market is leading to a US style crash are already becoming apparent: According to China Net News, failure to meet mortgage repayments is an increasing phenomenon, resulting in rising instances of bank-initiated legal action, and nearly one million Yuan in economic losses.

Court sources show that in Haidian district last year, late mortgage repayments took 400 people to court, while Changping and Shijingshan saw a fourfold increase in similar cases compared to the year before.

To be frank, the world cannot afford a crash in China like the one that happened in the US, so let us all hope that the measures being taken are enough.

Photo credits: NigeJones via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Chinese Authorities Fight Irresponsible Mortgage Lending – Sound Familiar?