Well 2008, and even more so 2009, have and will proove to be very interesting years for property investors.
What have we learned in 2008: property is more stable than shares? I think the eye opener for anyone too young to have lived through the 87 crash was just how little investment, whether it is shares or property, has to do with the market fundamentals. Its all driven by people i.e. emotions, greed and fear particularly.
More on An Interesting Year in Property Investing in Australia
Up-market estate agency Savills has closed its office in Budapest, Hungary, because the property market in Hungary has come to a complete standstill.
The office was only opened in 2006 to take advantage of German and Irish property investors buying property in the region. However, sales levels have plummeted this year.
More on Hungarian Property Stops Selling – Savills Close Budapest Office
It used to be a surprise when Australia’s Reserve Bank changed the official cash rate. Not any more – and it is more with a “finally” than surprise that greeted the Reserve Bank’s announcement.
It looks as though all the emirates are trying to emulate Dubai’s success with the recent announcement of a new residential tower in Ajman, UAE.
To be built at an estimated cost of $68 million, the Emerald Tower will be situated in the newest development area of Emirates City, located on Emirates Road, Ajman.
The Emerald Tower will be a 50-storey residential tower equipped with full amenities like health club, swimming pool, advanced CCTV and safety systems, prayer room, 8 high-speed elevators along with covered car parking for each unit.
Q1 is the iconic 80-story skyscraper – impressive even on the Gold Coast, Australia’s home of skyscrapers. Q1 is Australia’s tallest residential tower was completed.
Less impressive are stories emerging of the losses that some property investors are taking. One 4-bedroom apartment on the 72nd floor was bought in March 2005 for A$3.4 million was re-sold in January this year for A$2.75 million, which is still a lot of money for a 417 sqm apartment, even one with “stunning views”. Which it should have as Q1, at 322.5m high, is the world’s tallest residential tower and the world’s 20th highest tower.
New Zealand’s house prices and interest rates are at their highest rates for years. Property Investors Federation vice-president Andrew King says
“a 25-year mortgage for 90 per cent of the cost of the country’s median-priced house, worth $345,000 last month, would currently cost a new home-buyer $745 a week, including rates, maintenance, insurance and an allowance for other costs. By contrast, the national median rent last month was only $305 a week.”
The devil is in the detail though. King’s figures are based on a 25 year mortgage, almost all mortgages written in the last few years are 30 years. He’s also assumed only a 10% deposit. That is low, most banks will add the extra costs on anyone borrowing more than 80% of the property’s value. King also assumes a floating mortgage rate of 10.95% – no one in their right mind would float their entire mortgage, especially now that the 2-year fixed rate has dropped to 9.2%, at that’s just an indication that interest rates are on their way back down, finally.
After all the recent news about new Island developments in the UAE – one project in Saudi – The “Islands of Venice,” has failed, necessitating a substantial refund to property investors.
More on Failed Saudi Arabian Project to refund Investors Money
A strong economy and interest from foreign investors seen fueling demand in Phnom Penh’s property investment market
With foreign investors eyeing a piece of Phnom Penh’s property pie, the Cambodian capital’s real-estate market has potential for growth this year, a survey by Agency for Real Estate Affairs (AREA) shows.
AREA president Sopon Pornchokchai said land prices in Phnom Penh range between Bt200,000 and Bt300,000 per square metre.
We thought it was time to take a look at the goings-on in the property world. Who is saying what? Which markets are looking good and which are headed south? What’s happening on other property blogs?
