Property Market

Understanding the culture of Chinese buyers

2014-04-20T19:22:00.001-07:00

Understanding the culture of Chinese buyers

It’s no secret that Chinese buyers sometimes behave differently to Australian buyers in the property market.

The number of Chinese people buying Australian properties has grown. At the same time, some agents, brokers, vendors and bankers are expressing frustration at what is seen as their crazy behaviour.

They see Chinese people paying what are often seen as inflated prices, as well as arguing, jumping around and bargaining hard in a bid to buy a property.

But dig a little deeper and you will start to understand that there are historic and cultural reasons behind this behaviour.

Historically, Chinese people like to own property. There is a cultural attitude towards owning your own, not borrowing or leasing it.

Before the rise of Communism, which started in 1949, many Chinese owned their own property, whether that was a factory, a farm, shop or house. Of course, once Communism was established this changed and everything was shared.

However, the dream and ideal of property ownership is deeply established in their minds. So when Chinese people are buying property it is not because they are following a trend or because the market is ripe; it is a tradition.

Of course it’s true that we Chinese people like to bargain, regardless of we are rich or poor. This is how most people buy things in China – even if we can afford something we still bargain for it.

There are two reasons for this. If you buy something and didn’t bargain for it you would be seen as foolish. But also, if you get a good bargain, you “win face” in Chinese culture – and face is more important than saving money.

When it comes to the Australian property market, of course vendors can factor in the Chinese buyers’ love of bargaining by inflating the sale price.

Here’s a word of advice: this can backfire. When Chinese buyers find out this was the case, and that they’re being played, that will end of the relationship. They will never go back to you.

In Chinese culture, value & relationships are placed ahead of everything else

But if they find that you’re reasonable, honest, polite and friendly then not only will they go back to you for more business but they will also recommend you to their friends and family as well.

Indeed, relationships are sometimes worth more than money and if the relationship is good, Chinese buyers may even be happy to pay a little bit more.

I would suggest trying not to be too harsh on Chinese buyers, especially in the start of your dealings with them. If you want a long-term relationship, you must understand their perspective.

There is a saying among Chinese that means less short term profit but more long-term business. In other words, do not kill the goose and take its egg.

Rise in US house prices a "positive" development

2011-07-30T16:08:00.001-07:00

The small month-on-month rise experienced in US house prices in May has been described as a "positive" step for the sector by one real estate expert.
Adam Samuel, director of Nubricks.com, said that it is too soon to tell whether this will develop into a consistent upturn, but welcomed the news that values are starting to climb.
His comments come after the latest Standard & Poor’s/Case-Shiller index revealed that locations on the ten and 20-city composite indices increased by 1.1 and one per cent respectively in May compared to April.
However, all regions recorded a drop when compared to the same period in 2010.
Mr Samuel stated: "A lot of people are looking around and a lot of people are searching, but in regards to actually putting their money down and investing in the US market, I would say that things have remained fairly consistent over the last 12 months."
He did go on to point out that if enough investors enter the market, house prices will start to rise again.

‘Excellent opportunities’ can be found on Spanish property market

2011-07-30T16:07:00.000-07:00

Buyers keen to find a property in Spain do not need to rush into any deals, it has been advised.
Freelance property journalist and founder of Propertyjournalist.com Marc Da Silva explained that prices are not likely to increase in the nation over the next couple of years.
He even suggested that they may drop further, which could enable investors to find a better bargain.
"In Spain, prices have been falling there at a rapid and alarming rate for quite some time. It is a wonderful opportunity to negotiate a cheap property deal," Mr Da Silva stated.
But he recommended that buyers wait to make a transaction until the pound has strengthened against the euro because the problems being experienced by several eurozone economies indicates that the currency is "potentially overvalued".
Earlier this month, Primelocation.com revealed that the number of searches for real estate in Spain dropped significantly between the first and second quarters of the year, falling by 24 per cent during this period.

California property appealing to foreign buyers

2011-07-20T23:15:00.001-07:00

Real estate in the Silicon Valley region of California is increasingly being targeted by foreign investors, it has been claimed.
An article in the San Jose Mercury News noted that the influx of overseas buyers is being fuelled in part by workers moving to the area from elsewhere, as well as those looking for investment properties.
Speaking to the publication, realtor with Alain Pinel in Los Gatos Michael Riese commented that many buyers from outside the country consider "a home purchase in the US as a solid investment, compared with what they may otherwise put their cash in back home".
The publication revealed that Chinese buyers are among the most active in the Silicon Valley real estate market at present.
And it seems that California is not the only region that is appealing to investors when it comes to US property, with the country as a whole seeing the sector improve, according to a recent Jones Lang LaSalle report.
Research recently published by the firm revealed that global direct investment volumes were up by seven per cent in the second quarter of the year – compared to the first three months of 2011 – and had risen by 47 per cent over the same period in 2010.

US homeowners ‘overpricing’ properties

2011-07-20T23:14:00.001-07:00

Many US homeowners looking to sell their properties are overvaluing their abodes and pricing them significantly above the current market value, research has revealed.
According to a survey by Zillow, people who bought real estate in or after 2007 are overpricing by 14.1 per cent on average.
It is buyers who made a purchase between 2002 and 2006 who are the most realistic, as they tend to place their properties on the market at 9.3 per cent above their actual worth.
Those who bought before 2002 ask for 11.6 per cent over the true value, the study added.
Chief economist at Zillow Dr Stan Humphries commented: "Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing – not a desirable outcome for either the sellers or the market as a whole."
Earlier this month, the Clear Capital Home Data Index revealed that house prices in the US fell by 3.2 per cent over the first six months of 2011, with a further decline of 2.4 per cent anticipated by the end of the year.

Indian buyers targeting Italian property market

2011-07-02T01:01:00.001-07:00

Wealthy Indians are increasingly purchasing properties in Italy, it has been revealed.
Vice-president of credit risk management at Deutsche Bank Gulzar Malhotra told Business Standard that locations such as Sicily and Tuscany are proving popular among Indian investors.
He explained that the decline in property prices experienced across Europe is attracting more foreign buyers to the marketplace, with perennial favourites like Italy among the top locations for those seeking second homes or investment opportunities.
However, Indians are restricted in terms of what they can purchase because the Reserve Bank of India has capped the amount that can be spent on foreign property annually to $200,000 (£125,517) per person.
In May, DTZ published its Money into Property Europe 2011 report, which noted that transaction volumes across the continent increased by 64 per cent in 2010 compared with the previous year.
The organisation went on to predict this to rise by a further 20 per cent by the end of 2011.

Australian property market ‘to start recovery’

2011-07-02T01:00:00.000-07:00

Property prices in Australia are expected to remain steady throughout the rest of this year, one business research organisation has predicted.
BIS Shrapnel has published its Residential Property Prospects 2011-2014 and stated that a crash in the market is not anticipated.
In fact, the firm commented that some of the nation’s state capitals should experience "moderate price growth over the following two years", despite a drop in the median value of homes being recorded in many areas in the first three months of 2011.
Meanwhile, chief executive officer of Metropole Property Strategists Mike Yardney agreed that the Australian real estate sector is on the road to recovery.
He cited population growth, a culture of homeownership and a lack of new developments as factors that could support property prices and underpin growth within the industry.
Mr Yardney also noted that due to a shortage of homes in certain areas, rents are expected to rise, which could be good news for any investors with residential properties in their portfolios.

Egypt ‘a good option’ for property investment

2011-07-02T00:59:00.001-07:00

One expert has claimed that Egypt could be a good bet for anyone seeking an overseas property investment.
Director and founder of Rogue Property David Freeman stated that the north African nation is "definitely a place I’d recommend".
He noted that Sharm el Sheikh, a Red Sea resort in the Sinai Peninsula, has some developments that are worth considering and added that its popularity as a tourist destination enhances its appeal.
Meanwhile, a report in the Financial Times earlier this week revealed that construction activity in Egypt has slowed considerably since the revolution that took place in January this year.
With less stock being added to the Egyptian real estate market, investors may decide that now is a good time to make a purchase.
Hassan Allam, managing director of Hassan Allam Construction, told the publication that many people are holding back until the results of the elections – which are due to take place in September 2011.

Regional variations emerge in Australian property market

2011-06-11T02:50:00.000-07:00

Regional differences are emerging in the Australian housing market, with some regions reporting price rises and others seeing values decline.
Sydney and Canberra are seeing real estate values continue to climb, but those in Perth and Brisbane falling, according to the latest house market index.
In addition, the figures show that cheaper properties are selling better than the luxury end of the market, with interest rates and natural disasters such as the floods in January taking their toll.
According to Tim Lawless, RP Data’s research director, expensive suburbs have helped drag the overall market down.
Indeed, over the year to end April, properties in the most expensive suburbs fell 5.4 per cent. This compares to declines of 0.9 per cent and 0.5 per cent in the middle priced suburbs and cheapest suburbs respectively.
"The luxury end of the housing market is also showing its volatility. During the growth phase of the cycle the most expensive homes realised the highest capital gains," he said.
"Yet as the market cools premium home values seem to be losing steam the fastest."

Spanish property market ‘looks bright’

2011-06-11T02:49:00.000-07:00

Despite a number of indices suggesting that prices are falling and oversupply is having a negative impact on the sector, one firm has offered a positive outlook for the Spanish property market.
"In Spain things are looking very bright," Dr Dennis Coote, founder of The Hampshire & Home Counties Property Networking Club, said.
"Prices are not going up very fast, but there’s a very lively atmosphere. I don’t see any evidence of people being hard up here, honestly. It’s very much [a vibrant market]," he explained.
His comments follow the publication of new research by the Royal Institution of Chartered Surveyors into distressed property listings.
According to its Global Distressed Property Monitor, Spain has seen one of the largest increases in foreclosed property anywhere in the world, with the firm only expecting the number to increase.
Indeed, in the coming three months, Ireland, Spain, Hungary and Italy expect the highest numbers of distressed properties to come to market, while Russia, China, South Africa and Poland expect the lowest.

Spanish property set to be popular this summer

2011-05-02T02:41:00.001-07:00

Property analysts have forecast that the Balearic island of Mallorca will be this year’s hottest Spanish destination.
As confidence in European property markets continue on the road to recovery, a growing number of investors are expected to increase their exposure to the market.
The Balearics’ property market remains strong, with a 145 per cent increase in property sales in 2010 compared to 2009 recorded by the Public Works Ministry.
Ignacio Osle, sales and marketing director of Taylor Wimpey de Espana, claimed that it is easy to see why the Mediterranean island is proving popular with buyers.
"Over the last 12 months we have seen both visitor numbers and enquires for property on Mallorca rise steadily," Mr Osle said.
"Buyers from the UK and Europe are not only looking at the traditional property hotspots on the mainland but further afield to Spain’s stunning islands such as Mallorca."
It follows a recent study by Aviva which found that more Brits that ever before are considering emigrating.
Some 46 per cent of those questioned by the insurance firm claim that they are considering a permanent move abroad – with Spain one of the most popular countries for relocation.

Investing in a Holiday Home – What to Expect

2011-04-28T01:53:00.001-07:00

When you invest in a holiday property, you risk letting your emotions get the better of you at the expense of your finances. Fortunately, a little wise advice can help your holiday home provide you some income as well as great holidays and hopefully selling your house will never become a necessity.
Some owners love having a holiday home at their disposal and are satisfied if they can make $10,000 and pay the land taxes. Others pull in up to $60,000 a year for a handsome return on their investment, but must remain heavily involved, looking after the home between tenants, providing keys, and so forth. What is most important to you—return or lifestyle?
Rates for short term rentals are certainly superior to long term. A one bedroom in Sydney with an unfurnished return of $400 a week will likely earn $800 weekly as a short term, furnished rental property, minus about 20 percent for the management fee.
However, how often will you be able to pull in top rents? In a metropolitan area you may well get 90 percent occupancy, but in a regional area you may achieve only 20 to 40 percent. Management fees also vary wildly, from 16 percent plus a $90 cleaning fee each rental in Victor Harbor, to up to 50 percent on the Gold Coast.
It’s also important to consider actual cash flow versus high rents. Rental properties may stay empty for weeks at a time, but you’ll still need to pay the mortgage, while maintenance and management costs cut into your gross income and choke your cash flow.
Holiday letting can often be more lucrative than permanent rentals. For instance, a five-bedroom house can bring in as much as $75,000 a year in Lorne, Victoria. This equals a 6.9 percent gross yield, based on the current price of similar homes in Lorne. This is substantially more than the 5.5 percent yield for permanent rentals, according to the July 2009 listing in Australian Property Monitors.
Keep in mind that banks view holiday rental properties as higher risk, so investors may have to contribute a higher deposit. Another crucial aspect is the income tax break. Depreciation benefits and regular tax deductions may be associated with furnishing holiday rentals, depending on strategy. The Tax Office states that deductible property expenses are valid only in relation to the period that tenants actually occupy the property, or it is truly free for commercial rental. Travel costs are likewise deductible for true maintenance, but not personal trips.
Due to capital growth and the phenomena of sea change, owners of holiday homes in certain seaside locations have profited enormously in the past ten years. An idyllic location with a small local population and enough appeal to attract holiday-makers every year may be the key. Holiday homes that previously barely broke even in rental fees have risen in value by hundreds of thousands of dollars in the past ten years.
Even with current, higher purchase prices, there is still growing room in the right locations. Seaside locations will always have the potential for long term capital growth, and some continue to experience healthy price increases even in the current economy. Still, investors must be able to cover costs when seasons are slow. A property in an established city or town inhabitants will provide more reliable ordinary returns than in a remote beach village. In addition, amenities and infrastructure are needed for eventual capital growth.
Even well-known locations currently offer great bargains, such as the Gold Coast. True beachfront properties in older structures are available there for around $300,000, a real steal.
Still, remember that holiday homes are an investment in lifestyle with the goal of long term gain. Body corporate fees and renovation costs can be quite high, and you will need to own the property about ten years to get about 10 percent a year in capital gains. However, that’s better than for general housing, and some properties reap even more.
Independent one or two bedroom properties appeal to more buyers and provide the option of permanent occupancy. However, beware of council zonings. Some complexes do not permit more than three month occupancy, making eventual permanent letting or occupation impossible.
To summarize, you need to be a good marketer and manager of your property in order to reap big gains from a holiday home. If you simply want a place for a weekend getaway in a prime locale, just be ready to shoulder many costs yourself. Either way, with realistic expectations, you can make the best of your holiday home.
Article written and supplied by Anna K. on behalf of Sell My Castle
Anna K. is a journalist from Brisbane, Australia. She writes for several blogs about finance topics such as real estate, insurance and several others which attract attention of many readers.

French property demand remains high

2011-04-21T04:12:00.001-07:00

Demand for property in France appears to be strong, with the number of overseas enquiries for homes in the country rising.
Comments from French estate agent Leggett Immobilier suggest that the country has put the recent global economic troubles behind it and is now an attractive market for investors to by in.
So far in 2011, the firm reports that it has seen an almost 100 per cent increase in new buyer enquiries compared to last year’s figures.
The stability offered in France is proving attractive to international property investors and reports suggest that the increasing demand is also being driven by mortgage rates, which are at their lowest levels since the Second World War.
"Enquiry levels from both shows are substantially up from both 2009 and 2010," managing director Trevor Leggett said.
"This is particularly the case for property on the Cote D’Azur where our representatives have already closed a significant number of sales this year."
Meanwhile, according to the latest figures from foreign exchange company Moneycorp, Germany, France, Italy and Ireland all proved popular destinations last month.

Spain proving popular with investors

2011-04-21T04:11:00.001-07:00

Despite concerns surrounding the economy, interest in property in Spain from British buyers has not been dampened.
The country’s property market appears to have weathered the latest worries surrounding the state of its finances, with Rightmove reporting that interest from Brits remained high during March.
Indeed, the province of Valencia in Spain was the website’s top climber in terms of searches over the course of the month, with a massive rise of 166.78 per cent compared to the previous month.
Conversely, Australia appears to be heading in the opposite direction with five separate regions in Rightmove’s top ten fallers.
Shameem Golamy, head of overseas sales at the firm, noted that Spain was not the only destination that has been downgraded on the international financial markets to see an increase in interest.
"This could be from savvy investors looking to cash in on the economic uncertainty in those territories, or simply those looking to research property prices before flying away to enjoy the holiday season," he added.

Dubai property market is ‘stabilising’

2011-04-20T01:16:00.000-07:00

Demand for property in the UAE could be set to rise following a recent report from a leading real estate firm in the region.
Research relating to the first three months of 2011 by Asteco has revealed that, for the first time in two years, the Dubai property market has stabilised.
According to the firm, apartment rentals averaged a decline of just two per cent over the three-month period.
However, despite the slowdown in average rents there were regional differences, with drops of as large as five and seven per cent in some areas.
Elaine Jones, chief executive officer of Asteco Property Management, noted that movements within the market were being driven by a desire by buyers to attain good quality, value for money stock.
"The rental market stabilised in certain areas, with a downward trend in others, albeit at a lower rate. This is attributed to the pressure of new stock on the already oversupplied market, especially for apartments and offices," she said.
It follows a recent report by CB Richard Ellis which revealed that Dubai is now considered one of the top shopping destinations in the world.

‘Plan ahead’ when investing in Spain

2011-04-18T05:20:00.000-07:00

Individuals looking to purchase property in Spain have been told to plan ahead in order to minimise risk.
This is according to Paul Collins, editor of BuyAssociation, who noted that many of the problems that crop up when buying a home abroad can be avoided with a bit of forward planning.
He explained that issues include changes to the country’s political situation, as well as legislative changes, such as stamp duty, which can add to the overall cost.
"Most of these things are signalled in advance, so with good research and careful research a lot of these things can at least be prepared for and mitigated in advance," he said.
New figures from the Bank of Spain show that real estate investment in the country climbed 2.9 per cent over the course of 2010, the Press Association reported.
The bank found that the last quarter of the year saw the highest annual improvement in foreign investment, with many industry experts attributing the increase in sales to low prices and promotions by the country’s banks.

Housing approvals rise in Spain y-o-y

2011-04-18T05:19:00.001-07:00

The number of approvals for new homes in Spain increased by seven per cent in January compared to the previous year, the latest statistics have revealed.
According to figures released by the Spanish government, there has been an increase in the number of housing developments year-on-year.
However, the level of planning approvals in Spain fell by 15 per cent to 6,784 compared to December – an indication that the market is still not in the full throes of recovery.
Mark Stucklin, of Spanish Property Insight, is more upbeat about the long-term chances for the Spanish property market, forecasting that building activity will increase this year.
"In my opinion, 2011 will mark the bottom of the cycle for planning approvals, though I should stress that is just a hunch. If it is not this year it will be next year, so it’s not as if I’m taking a wild guess," he said.
It follows comments from European finance minister that Spain is not expected to follow in the footsteps of Portugal and seek financial aid.

Queensland Coastal Plan eroding investor confidence, says Property Council

2011-04-15T00:38:00.000-07:00

The Property Council of Australia (PCA) has expressed great concern following today’s release of the new Queensland Coastal Plan by Minister for Environment and Resource Management Kate Jones.

Ms Jones has moved to protect more coastal areas from development with a new, consistent approach to coastal planning aimed at stopping more coastline and communities becoming vulnerable to erosion and inundation, associated with climate change and severe weather events.
State Environment Minister Kate Jones said the plan took the long-term view that was needed.
"Councils will be able to better plan for the impacts of climate change and extreme weather events, not just over the next few decades but over the next 100 years," she said.
But Queensland Executive Director of the Property Council of Australia Kathy Mac Dermott said the Plan introduces major uncertainty and raises a raft of question just days before the Premier’s Building Revival Forum on 12 April 2011.

“The coastal plan raises serious issues around property values, future land use and development rights - along with existing and future state and local government infrastructure.
“Until there is certainty around these issues, the plan further erodes investor confidence and diminishes Queensland’s competitiveness.
According to PCA the Queensland government has prepared coastal hazard area maps showing areas projected to be at risk up to the year 2100. These maps factor in climate change impacts, including sea-level rise of 80 centimetres and a 10 per cent increase in the maximum potential intensity of cyclones.
“We understand that approximately 100,000 properties in Queensland are located within the areas identified as ‘high hazard’, with an additional 60.000 properties located in ‘medium hazard’ areas,” said Ms Mac Dermott.
The 160.000 properties at risk equate to 10 per cent of all Queensland properties.
“The Queensland government has sent a strong message that settlement in high hazard zones should be ‘avoided’,” she said.
According to PCA, councils will have up to five years to draw up ‘adaptation plans’ for (development in) at-risk areas, and the Queensland Government is working with the Local Government Association Queensland on guidelines.
“We do not expect any immediate prohibition of development in existing urban areas within identified hazard zones.
“However, additional costs for development projects are to be expected as yet unknown mitigation measures will have to be negotiated with Councils, with project timelines also affected.
“This is yet another State Planning Policy (SPP) that undermines the South East Queensland Regional Plan, and which could also lead to up to 5 years of uncertainty in Government mapped hazard zones.
“As part of its 2011 Advocacy Agenda, the Property Council has called for a moratorium on SPPs for the next three years.”
The Property Council is currently undertaking a detailed review of the Queensland Coastal Plan and its implications for the property industry in Queensland.

Asian Property Popular with Wealthy Investors

2011-04-15T00:26:00.000-07:00

A number of property investors with cash to spend are looking to increase their wealth by purchasing real estate in the Asian property markets.
While a number of traditional locations around the world, such as London and New York, are expected to remain popular, many buyers are "starting to spread their wings" by looking at different areas, according to BuyAssociation.

"We have certainly seen quite a bit of growth in the far-eastern and Asian markets. There seems to be buyers with cash to spend and they are looking at their overseas property markets as being a good place to invest," Paul Collins, editor at the website, said.
Indeed, recent research from Knight Frank has revealed that almost 40 per cent of global luxury residential property markets saw values climb during 2010, with six of the top ten biggest increases seen in Asia.
Overall, the property consultancy's research showed that luxury property price growth was highest in Shanghai with a 21 per cent rise. Also performing strongly were London and New York, with increases of ten per cent and 13 per cent respectively.

Buyers becoming increasingly focused on a property's 'real' value

2011-04-14T02:22:00.001-07:00

With capital growth currently suppressed and the investor focus switching to rental yields, buyers are scrutinising their buy-in price now more than ever, according to Propell National Valuers.
However 15 per cent of buyers still pay $10,000 above the real value of a property, Residex chief executive John Edwards told The Australian newspaper last week.
While Propell National Valuers national director Kel Spencer said 15 per cent sounds a bit high and "sensationalised", he also acknowledges that buyers are now increasingly turning to independent valuers and advisers for help to secure and negotiate the real value of a property.
"To determine the real value of a property it's important to analyse the comparable sales in a nearby location and derive land values and building values from that," he said.
Spencer said mortgagee auctions and deceased estates often sell on the day so those sales can even be a little reduced in price and are often ignored in valuations because they're not in ample supply nor typical of prices around.
Valuations generally remain valid for 90 days for market accuracy purposes.
WBP Property valuations manager Brendan Smith said buyers must do their homework, particularly in changing markets.
He said buyers must first become familiar with the market.
"It's not just about turning up to a property… go look at other properties; attend some auctions in the previous weeks," said Smith.

Spain ‘will not’ follow Portugal in seeking aid

2011-04-13T01:21:00.001-07:00

European finance ministers do not expect Spain to follow in the footsteps of Portugal in seeking a financial bailout.
Spain is the latest eurozone country to come under pressure from financial markets in the past year, with Ireland, Greece and Portugal previously having to request monetary aid from the EU.
It stems from concerns surrounding a large budget deficit and a burst housing bubble in Spain.
To this end, the country has made progress in slashing its deficit, but unemployment remains high, at close to 20 per cent.
However, French finance minister Christine Lagarde dismissed concerns about the country’s fiscal strains, with the Wall Street Journal quoting her as saying that "Spain isn’t a problem".
The news is likely to be welcomed by individuals looking to buy real estate in the country, with their currently a high level of distressed properties available.
Market concerns have eased in recent weeks with investors gradually growing more confident that Spain can clean up its beleaguered savings banks.

Overseas buyers drive Turkish demand

2011-04-13T01:20:00.001-07:00

An increase in the number of overseas buyers active in the Turkish property market has helped the sector to exceed growth expectations.
This is according to a recent report by the Association of Real Estate Investment Companies, which found that the market is returning to strength following the recent economic troubles, Hurriyet reports
Indeed, between 2006 and 2008, property sales to foreign nationals stood at $3 billion (£1.8 billion). In 2009, the figure fell by $1.8 billion, but has now rebounded up once again to $2.5 billion.
"Real estate sales to foreign nationals rose by 40 per cent, reached $2.5 billion. Foreigners’ interest in and appetite for Turkish property continues to increase. If the reciprocity problem is solved, we think the figure may double," Is?k Gokkaya, the chairman of organisation, said.
Mr Gokkaya added that the country’s construction sector expanded by 18 per cent over the course of last year, with new developments springing up around Turkey.
Meanwhile, Nick Mar, chief executive officer at Homesgofast.com, recently claimed that Turkey is one of the best foreign property markets at present, along with Spain, Brazil and Malaysia.

Investor confidence returning

2011-04-08T04:07:00.001-07:00

Homebuyers and investors are slowly coming back to the market, with mortgage sales during March bouncing back from the record lows of January and February, according to Australian Finance Group.
However, the company says the figures are still lower than a year ago. The $2.51 billion of home loans processed in March is up by 22 per cent on the February figure of $2.05 billion, but still 8.9 per cent lower than the $2.76 billion arranged in March 2010.
New South Wales recorded exactly the same figure for mortgage sales in March 2011 as March 2010. South Australia had a slight softening (-2.7 per cent) with greater differences recorded for Western Australia (-10.9 per cent), Victoria (-11.7 per cent) and Queensland (-15.4 per cent).
New South Wales also showed the highest level of investor activity, with 40.2 per cent of all new home loans being processed for investors – well above the national average of 34.7 per cent.
Australian Finance Group’s general manager of sales and operations Mark Hewitt says buyer confidence is slowly returning.
“The Reserve Bank of Australia holding off further rate rises has given some sense of normality and while the lender wars haven’t encouraged many people to switch, at least there’s now a feeling that lenders are trying to be competitive,” he says.
“In our view, last month’s banning of exit fees will have little, if any, positive effect on the market in the short term, and will certainly hurt non-major lenders going forward.”

Slow growth predicted for Australian housing market

2011-04-07T03:26:00.001-07:00

House prices in Australia are forecast to grow by just 0.6 per cent over the course of this year, a survey by National Australia Bank has said.
According to the research, access to credit was the "biggest impediment" stopping people from buying homes and pushing prices up.
Most respondents to the survey expected the strongest growth in values to occur in Western Australia (up 1.1 per cent) and New South Wales and the ACT (up 0.9 per cent). The weakest area is expected to be South Australia and the Northern Territory, with respondents expecting a 0.2 per cent decline in home prices over the next year.
However, while prices are expected to remain fairly stable, investors and agents are more optimistic about the rental market.
They noted that the year will see higher rents, with survey respondents predicting an average 3.5 per cent increase in residential rents.
Western Australia, New South Wales and the ACT were again expected to see the biggest rent rises of 4.6 and 4.3 per cent respectively, while Queensland rents are only tipped to rise 2.5 per cent.

Brazil is a ‘hot market’ at present

2011-04-06T02:41:00.001-07:00

Interest in Brazilian property could be set to rise following the comments of one expert.
Nick Marr, chief executive officer at Homesgofast.com, has heaped praise on the South American market noting that it should be considered an "exciting prospect" by investors.
Mr Marr said that there are a number of "great exit opportunities" currently available in Brazil as a result of the amount of potential local and international buyers active in the market.
The expert also suggested that Turkey, the Canary Islands and Malaysia are also top property investment destinations at present.
"Prices [in Brazil] are still low compared to Europe and with all the exciting things happening to the country – from Obama’s visit, oil finds, the World Cup and the Olympics – it’s proving irresistible," Mr Marr added.
According to the latest Global House Price Index by Knight Frank, residential property values across South America climbed by 3.8 per cent in 2010, ahead of the global performance of 2.8 per cent.