global property report 2012

Global Property Report2012

Avondale Investment Management(UK)

“Inspired Investment Solutions”

Global Property Report 2012

A WORD FROM THE AUTHOR

The international property markets since the global financial crisis and continuing Eurozone

crisis have been in a state of variable flux for some time.

So as we head into the later part of 2012 where are the hot spots, potential new emerging

markets, and places to avoid?

The Global Property Report 2012 is the most up to date and definitive property guide to the

world’s property markets on the web and is designed to help both the commercial investor

and private property buyer in their quest to find that unique investment opportunity or dream

property.

The Global Property Guide contains over 42 pages of in depth information covering 21 of the

world’s most important property markets providing investors, the most up-to-date and

thoroughly researched information on the market.

Tony Randall


Authors note and Copyright


Authors note

Every possible effort has been made to ensure that the information contained in this book is

accurate at the time of going to press, and the author and publishers cannot accept

responsibility for any errors or omissions, however, caused. No responsibility for loss or

damage occasioned to any person acting, or refraining from action, as a result of the

material in this publication can be accepted by the editor, the publisher, or author.

Copyright

The right of Antony Randall to be identified as the author of this work has been asserted by

his accordance with the Copyright, Designs and Patents Act, 1988.

All rights reserved. No part of this publication may be reproduced, transmitted in any form or

by any means, stored in a retrieval system without the prior written permission of either the

author or publisher, or in the case of reprographic reproduction a license issued in

accordance with the terms and licenses issued by AIM Ltd.

Avondale Investment Management Limited 2012

Contents



List of Contents

1. Introduction page 1

Section I Global Property Market Review 2011 page 2

1. Global Property Market Review pages 2 - 6

Section II Global Property Report 2012 page 7

United Kingdom Market

1. UK Market pages 6 – 9

International Property Markets in 2012 page 10

European Property Market Sectors page 10

1. Irish Market pages 10 - 11

2. French Market pages 11 - 13

3. Spanish Market pages 13 – 15

4. Portuguese Market pages 15 – 17

5. Greek Market pages 17 – 18

6. Turkish Market pages 18 - 19

Middle Eastern Markets

1. UAE Market - Dubai and Abu Dhabi pages 19 - 21

2. Bahrain pages 21 - 22

3. Saudi Arabia page 23

North American Markets page 23

1. Canadian Market pages 23– 25

2. USA Market pages 25- 26

Russian Market page 26

1. Russian Market pages 26 - 28

South American Market page 29

1. Brazilian Market pages 29 – 31

2. Argentinian Market page 31

Asian Markets page 31

1. Chinese Market pages 31 – 33

2. Hong Kong Market pages 33 -34

3. Singapore Market pages 34 - 35

4. Thai Market pages 35 – 39

Asia – Pacific Markets page 39

1. Australian Market pages 39 – 42

2. New Zealand Market pages 42-43

Bibliography and Authors Biography page

1. Bibliography page 46

2. Authors Biography page 48

Avondale Investment Management (UK) Copyright Material. www.avondaleinvestment.com Page 1


.

Introduction

Regrettably the international property markets since the global financial crisis are still in a state of flux and although, the traditional property markets such Europe, North America, and

the United Kingdom are at best stagnant and at worse still in recession.

The good news is that the new and emerging markets are showing robust growth and much potential. Hot spots and prospective emerging markets such as South America and in particular Brazil and Argentina and the Asia- Pacific region which encompasses Australasia and New Zealand, China (the world second largest economy), India (one of the BRIC member nations), and the ASEAN (Association of South East Asian Nations), member countries such as Thailand, Singapore, Indonesia, and Malaysia.

These new and emerging markets are certainly compared to their traditional and illustrative neighbours offering good potential investment opportunities for the shrewd commercial real estate investor who is prepared to do their research and take that educated risk and invest in

the new world markets .

As we head into the latter part of 2012 this report which is in two sections, firstly reviews the

most important global property markets of 2011 and secondly takes a more in depth look at

the key traditional, and new and emerging property markets of 2012 .


Section I

Global Property Market Review 2011

The worlds housing markets had a weak fourth quarter of 2011 according to the latest survey of worldwide house price indices prepared by the World Property Guide. During the

year-end to Q4, house prices fell in 25 countries (out of 44) and rose in only 19.

The Middle East with its strong and established tourism structure with popular destinations such as Egypt, Dubai, UAE, Tunisia, and Morocco for example have all seen dramatic falls

in tourist figures.

Regrettably, a year on from the Arab spring, there is no sign of the current political crisis abating due to the continuing social and political unrest throughout the region. With continuing civil un-rest in country’s such as Syria. It is difficult to see confidence returning to the property market and perhaps more importantly foreign investment return to the property market’s within the region in the near future.

Property prices in Dubai through 2011 fell by a median average of 15% and there is no likelihood of an increase in sales growth or prices for this year. In Abu Dhabi, it was a similar

storey with property prices falling by a median of 14% last year.

Closer to home the picture in terms of the property markets in Europe, look in terms of investment opportunities in the established second home residential markets and development sector appear to be just as gloomy to say the least for the near future.

The Spanish property market contracted by 19.8% in 2011 after the feeble recovery of 2010 ran out of steam. 2011 was the worst year on record since Spain’s property boom turned to bust, as illustrated by the chart above.

There were just 313,637 homes sales in 2011 (excluding social housing), down 19.8% on

2010 and 56pc more than half on 2007.

In value terms, the market has shrivelled up to 30% less than what it was in the go-go years.

If anything, the trend got worse towards the end of the year, with December 2011 down 26pc

compared to the year before, considerably worse than the -17 YOY in November 2011.

The market is not much better in Portugal another established second holiday home market where a weak economy and lack of lending is continuing to depress the residential property

market with a median price drop of 17%.


Residential property prices in Greece continue to fall, with the Greek economy enduring one

of its worst crises in its history. The average price for new apartments fell by 4.5% and for

old apartments by 5.5% respectively by the year-end of 2011. Average house prices across

the country fell by a median average of 6.75%.

(Opposite left French residential property prices

bucking the general trend across Europe and

showing steady price increase especially in

regional international tourist areas outside

Paris)

The good news in Europe is the steady rise of

residential property prices in France,

particularly in popular locations, which are

continuing to rise steadily, the latest report from

the FNAIM shows.

By the end of the third quarter of 2011 prices rose by an average of 3.3% yoy within the

metropolitan area of Paris and 4.3% for properties outside of the country’s capital.

The domestic market in the UK where the property market is depressed and is at best

stagnant, admittedly apart from the established hot spot of London and there only the high

end residential market is showing signs of improvement due mainly to external investment

from Asian customers.

The future signs are not good, with the UK economy slowly dragged into a wholesale recession by external economic factors such as the Eurozone crisis. Closer to home with personal income is becoming ever more squeezed by internal economic factors such as inflation, increased year on year prices in the consumer sector, stagnant wage growth, higher taxation, increased unemployment, historically low interest rates and lack of lending

from the UK’s financial institutions.

Perhaps remarkably against this dismal economic backdrop UK house prices remained

relatively unchanged in 2011 Nationwide Building Society spokesperson (House price

indices table below Nationwide indices in blue) said that the average home rose in value by

1% in 2011, but fell by 0.2% in December compared with the previous month.


However, the economic climate was likely to lead to a similar situation for the housing

market in 2012 and more than likely carry into at least the 2nd quarter of 2013, it said.

There were geographical differences. Prices in Northern Ireland fell sharply in 2011 but rose

in London.

"The 1% rise in house prices recorded over the past 12 months could hardly be described as

a strong performance, but against a backdrop of anaemic economic growth and a

deteriorating labour market, UK house prices were surprisingly resilient in 2011," said

Nationwide's chief economist Robert Gardner.

However , a word of caution must be added to the UK property market property analysis’s predict that property growth and prices will not reach the pre global financial levels of 2008

until 2018 at the earliest, yes a decade after the global financial fallout.

In Ireland since the economic bubble burst both commercial and residential property prices since their peak at year-end 2007 have dropped by an average 58% across the country. Property price by the end of 2011 stood at median of 11.9% and prices are expected to continue to drop in Ireland with best and worst case scenarios of between 2.5 to 22%

dependent on the continuing Eurozone crisis.

The American property market particularly popular with British nationals many thousands of who have holiday and retirement homes in the sunshine state of Florida. Is regrettably still bumping along the bottom with only small increases in regional pending sales across the country and with no real growth predicted until unemployment is effectively tackled and capital released by the countries financial institutions. Residential property prices throughout the USA dropped a median 4.9% across the country.

An example of the depressed regional state of the property market in the USA can be

witnessed in the contraction of property prices across the state of Florida. (See table below):

Building Type

No of bedrooms Price Location Median Capital Appreciation 2011 +/-

2 bedroom house- good location near

beach with no parking space

2 bedroom and 2 bathroom, etc.

$159,800 Miami -19% p.a.

Condo unit -good location near beach

or with sea view-with restricted parking

space

1/2 bedroom low end of market

$97,400 Miami -30% p.a.

At the year-end of 2011 on average prices dropped in the Miami area by 30% for a 1/2 bedroom condominium unit close to the sea and house prices dropped by an average 19/%

for a similarly located two bedroom house.

One shining light in terms of a success story is the burgeoning growth and investment

opportunities which can be found in the property markets in South America and in particular

Brazil


In 2011, asking prices on average for new residential apartments throughout the country rose a median 24.3 % throughout the year. House prices also continued to grow albeit at a slower pace of just 5.6%

However, a word of caution must be added, the property market in Brazil is still relatively in its infancy and is yet to fully develop and become established. With inherent problems in the country’s infrastructure ( not uncommon in South American countries) which need to be tackled such as poor logistics in terms of just in time delivery at port side and a lack of investment in the countries domestic transportation system. Brazil has still a long way to go

to be a safe investment bet.

Witness for example the chronic under funding in Brazil’s domestic airlines and regional airport’s at first hand and you will understand the need for a complete new funding and planning strategy for transportation in this fast developing country. These are just a couple of examples of important crucial infrastructure issues that the country must address sooner rather than later and that the external investor must consider when venturing into the

property market in Brazil and further afield.

Down under residential property markets in Australia generally struggled for growth in 2011

with reduced buyer activity and decreased median house prices recorded in all capital cities.

Data from Australian Property Monitors shows that in the latter part of the year an expected

spring revival in buyer activity failed to happen. National median house prices fell by 1.6%

over the third quarter and were down by 4.2% over the year.

(Opposite left a glut of residential property for

sale in India could lead to a huge drop in

residential property prices analysts predict)

According to the latest BOI (Bank of India)

report, the sub-continent of India has seen

steady increases in both the residential and

commercial property prices across the

country by the end of the 4th quarter 2011.

Taking into consideration, regional variation

residential property prices have risen on average 3% to 9% and commercial property prices

have seen increase in the region of between 4% and 9.5%.

However, slow sales and a glut of properties across the country are set to hamper the

residential real estate market especially in the metropolitan areas such as Delhi and Mumbai

for example and prices could fall as much 30% according to analysts at Bonanza Properties.

The glut is likely to extend into 2013 as steady streams of new developments are launched

on the market; Developers who bought land at high prices now have to bring prices down.

The world’s second largest economy China saw home prices in China fall for the fifth

consecutive month in January as real estate and lending tightening measures continued to

take effect.

Prices have fallen on average 0.18% from December to RMB 8,793 per square metre in the

major cities across the country. In September, prices dropped for the first time in a year and

then from October to the end of 2011, prices fell by between 0.03% and 0.28%.


The data comes after Chinese Premier Wen Jiabao reiterated the government's tough

stance on the real estate market. He said that the government must continue with

macroeconomic controls, consolidate its property tightening campaign, and bring about a

reasonable correction in housing prices.

The Russian property market last year saw record investment volumes into Russian

commercial real estate with growth of over 200% above the level reached in 2010, according

to the latest research by CBRE.

There were 43 investment deals last year compared to 27 investment deals in 2010 and 50

deals closed in the record 2008. Investment rose to €4.55 billion and the average deal size

was approximately €105.6 million. This compares with an average deal size of €71 million.

The research report says that the stabilisation of the Russian economy in 2011 saw a level

of confidence return to the real estate investment market. Domestic investors continued to

dominate at 59% but the share of foreign investors rose significantly from that in 2003 to

2011 and this was much more balanced than in recent years, when 70 to 80% of

investments were accounted for by Russian money.

In pre-crisis years, the balance was usually 70 to 80% foreign money. Residential property

prices increased on average 9% across the country. Analysts predict strong growth in all

sectors of the property market for this year.

~


Section II


1. United Kingdom Market

Residential Market

House sales per surveyor across the UK are almost 40% lower than five years ago at the peak of the boom, according to the latest UK Housing Market survey from the Royal Institution of Chartered Surveyors.

During May, the average number of

completed sales per surveyor was 15.6. This

represents almost a 40% drop from May

2007’s figure of 25.4 and goes some way to

illustrating the extent to which market activity has fallen in recent years.

With transactions down and affordable mortgage finance now harder to come by, homes are

taking considerably longer to sell. Indeed, during the three months to May, surveyors sold

23.1% of the homes on their books, a significant fall from the same period in 2007 when it

was 40.9%.

Looking ahead, chartered surveyors expect transaction levels to see a slight upturn over the

coming three months, with a net balance +9% more respondents predicting rises, while

expectations for future prices remain squarely in negative territory.

Prices continued to fall last month as 16% more respondents reported falls rather than rises

in prices. This reading has now been in negative territory since June 2010.

Across the UK, the results in most parts of the country were consistent with prices edging

downwards last month. The capital once again outperformed the rest of the country as the

only area to record more surveyors reporting increasing rather than decreasing prices.

Perhaps unsurprisingly, the amount of homes coming onto the market and the level of new

buyer interest were both similar to April, as respondents reported flat net balances of -3%

and -1% respectively.

‘It is no surprise to see such a sizable drop in transactions since the market peak back in

2007. On-going economic instability in the UK and overseas has continued to undermine

consumer confidence, and the reluctance of many banks to offer affordable mortgage

products has created something of a stagnant market,’ said Peter Bolton King, RICS housing

spokesperson.

‘In spite of this, a gradual stability is returning to the market and surveyors expect transaction

levels to increase over the coming months, even if prices continue to dip across most parts

of the country,’ he added.


Residential property prices increased in May by 0.5% compared with the previous month,

taking the average house price in England and Wales to £161,677, according to the latest

Land Registry figures published.

On an annual basis, property prices have now increased by just 0.4% across England and

Wales .London experienced the highest increase in its average property value over the last

12 months with a movement of 7.7%.

London also experienced the greatest monthly rise with an increase of 2.6% while Yorkshire

and the Humber experienced the greatest annual price fall with a decrease of 3.9%. Apart

from London, the only other region to see prices increase was the East of England, up 1.6%

on an annual basis.

On a monthly basis, London saw prices increased of 2.6% followed closely by the West

Midlands at 2%. The North East saw the most significant monthly price fall with a decrease

of 1.9%. Only two other regions saw monthly price falls, Wales down 1.8% and the North

West down 1.5%.

The most up to date figures available show that during March 2012, the number of

completed house sales in England and Wales increased by 25% to 58,609 compared with

46,742 in March 2011.

The number of properties sold in England and Wales for over £1 million in March 2012

decreased by 41% to 501 from 845 in March 2011.

The South East of England topped the table of regional applications with 267,587 in May

and overall there were over 54,000 properties lodged for registration ranging from £10,000 to

£28 million.

Land Registry's House Price Index (HPI) is the most accurate independent house price

index available. Using data on completed sales, it is the only index based on repeat sales. It

includes figures at national, regional, county and London borough level.

One industry commentator said that a stagnant market is a clear sign of actual inactivity.

Ashley Alexander, managing director of estate agent review website MeetMyAgent.co.uk,

said that major sporting occasions this summer would mean fewer people spending time out

house hunting.

"There are simply too many factors preventing a purchase. A lack of stock generally,

intransigent sellers, tougher lending criteria and consumer caution are keeping transaction

levels low," he added.

"Even the prospect of low interest rates for another year or two, or even three, is not enough

to convince people to buy."

“The continued uncertainty in the economy and an "intensification" in the Eurozone crisis

meant that lenders would continue to be cautious in offering mortgages. This would continue

to put the brakes on any housing market activity or price rise.”

As we move towards the beginning of Q3 2012, the other big obstacles preventing the UK

residential property market from real growth are:


1. Austerity measures - Such as the continuing interest only mortgage crackdown by lenders. Lenders have made it much tougher to take out cheap interest-only loans, which have helped prop up the property market. This is policy creates a reduction in

credit and will exert downward pressure on prices. Government cuts are also starting

to filter through, as the UK tries to balance the books. That will mean public sector job losses, higher taxes and a dip in confidence.

2. The Eurozone crisis - The second problem is that lenders are still cash-strapped and

the Eurozone debt crisis is weighing heavily on the banking sector - it may have

contributed to a dramatic fall in swap rate money market costs and the fixed rate

mortgages that these heavily influence, but if things get worse banks will find their

balance sheets hammered.

3. The cost of moving is also sky-high - Those buying family homes in areas where a relatively modest property of its kind costs more than £250,000. Face a stamp duty bill of at least £7,500; add estate agent and solicitors' fees and moving can set a normal family back £15,000 or more, without even having to find the extra cash for a 25% deposit on a more expensive home.

Commercial Market

After a robust finish to 2011, UK commercial property saw deterioration in performance at the start of 2012, with values falling by 0.3% and total returns of just 0.4% in April , according to the latest monthly report from CBRE. It says this is the culmination of a gradual decline in market sentiment over the past six to

nine months, and despite a surge in investment activity in December, a buyer’s market is

prevalent.

Last year saw £33.4 billion worth of property exchanged, with around 35% bought by foreign

capital but all three sectors, offices, retail and industrial, saw values fall by 0.2% with

industrial and offices delivering better returns of 0.3% thanks to a larger income component.

Whilst most sub-sectors saw a negative step

in performance in March, the once resolute

central London office market saw its first

decline in values after two and half years of

positive growth.

(Opposite left, Canary Wharf and one of

London’s key Commercial property markets)

‘This has caused a softening in overall office

performance this month, as the counter

buoyancy effect of a strong central London office market has stalled,’ says the report.

Both outer London/M25 offices and rest of UK offices saw values fall by 0.4%. The latter

markets have not experienced much of an upturn in values since June 2009, with outer

London M25 up just 2.6% whilst rest of UK values have fallen by 0.9% over this time. If it


were not for central London, which has seen a recovery of 47.2% in values over this time,

the overall office market would easily be the worst performing sector.

Like the wider market, all retail suffered a general weakening in performance over the first

quarter of 2012, seeing total median returns of 0.2%, down from 0.4% at the end of last year,

as values fell 0.2%. This deterioration came amidst the continuing cooling in investor

sentiment, especially evident in shopping centre performance throughout Q1.

In summary there is nothing to suggest that the UK property market will be anything different

than what it was like in 2011 with low to stagnated growth in all sectors accept for perhaps

slight growth in the rental sectors.

International Property Markets in 2012

European Property Market Sector

1. Irish Market

The residential rental market in Ireland has remained notably stable for the last twelve

months. Indeed, rents have stabilised as far back as December 2009, with little change since

that date.

This quarter under review mirrors this trend. As previous quarterly reports have shown,

national rent indices still appear to mask a rural/urban split within the Irish rental market, with

rural prices continuing to fall, albeit at a slow pace, and these falls are offset by increasing

rents in urban areas.

Similarly, the stock of available properties available for rent continues to fall. In March, the

total number of rental properties stood at 16,023 (v 16,932 March 2011); a 5.7% decline on

the previous year's levels.

House prices in Ireland could drop by 55% from peak to trough, according to stress tests

being used by the Irish Central Bank (at the beginning of 2012) to assess the true extent of

bad debt in the country's financial institutions.

The outlook seems bleak, with house prices destined to fall by 55% between the peak of

2006 and the trough of 2013.

(Opposite left, houses in Ireland have fallen in

price, but can they go any lower?).

The figures will be of little comfort to those

homeowners who paid high prices during the

boom that saw modest three-bedroom houses

in Dublin selling at £1m.


The tests for commercial property also look bad for those trying to fill empty office space

around Dublin and beyond. In the best case, the central bank is forecasting a 2.7% drop

throughout the year, but a massive 25% drop if the economy deteriorates further. The tests

are being conducted by Blackrock Solutions and are designed to reveal the full potential

losses at four Irish banks: Allied Irish, Bank of Ireland, Irish Life & Permanent, and the EBS

Building Society.

"Given what is going on in the world, with Japan and Bahrain, there could be a slowdown in

global growth and Ireland is an open economy and hugely dependent on the international

markets for exports. There is no growth at all on the domestic side and exports would be hit

by a global deterioration," said Alan McQuaid, chief economist at Bloxham Stockbrokers.

Speculation has been rife that the test results will reveal a further black hole in Irish banks

and lead to calls for a second bailout when they are published on 30th of April 2012. Some

€35bn (£30bn) has already been earmarked under the IMF-EU assistance programme, but

some leading banking figures predict another €15bn will be needed.

Blackrock looked at 15 key economic indicators including GDP growth, unemployment,

investment, consumption, and inflation.

The best outlook is that GDP will grow 0.9% by the end of this year, but the worst case

scenario is that it will shrink by 1.9% this year before moving back into a positive figure of

0.4% in 2013.

Currently median house prices have dropped by a further 5.6% by the end of April of this

year.

In an effort to help stimulate the Irish residential property, market the Bank of Ireland and

Permanent TSB confirmed earlier this year (April 2012) that they will make available, albeit

in limited circumstances, special mortgages that will enable borrowers to effectively carry

over negative equity from their existing home and add it onto a new home loan.

This will come as great news to both distressed investors and to Irish families who need to

trade-up but could not find a solution to date.

2. French Market

(How will the UK’s closest neighbours fair in respect to the French property market for the remainder of 2012?).

As we enter the second half of 2012, the

residential property market in Paris is expected to

be flat during the rest of 2012 after a mad rush at

the beginning of the year due to new capital gains

tax rules.


January was an extremely busy month for the market as sellers rushed to beat the new

legislation and buyers snapped up good deals but since then the property market in Paris

has slowed down considerably, according to a new report.

Stock levels have fallen and a two tier market is emerging once again, as prime property

sells but everything else is sticking on the market, says the report from property company

Lonres.

With the deadline, for the changes to Capital Gains Tax (CGT) legislation on 1st February

2012 looming, there was a real sense of urgency for vendors to sell in January. This resulted

in a higher than average volume of instructions being recorded for the time of year. Buyers

took advantage of the increase in stock levels, combined with low mortgage and interest

rates, by putting in reduced offers. This resulted in a slight decrease in prices of 3%.

Since the passing of the CGT legislation deadline, activity levels in the Parisian market have

quietened down dramatically. Stock levels have fallen considerably and the market has

returned to how it was prior to the changes.

Buyers can still find quality prime stock in the right locations but non-prime stock is proving

harder to sell and is once again tending to stick on the market. ‘This is resulting in a distinct

two tier market re-emerging. Buyers are still dictating the market and once a property is at

the right price it does sell,’ said director of the firm’s French operation, Laurent Lakatos.

The recent Presidential elections meant that the property market in France, including Paris,

slowed down as people sat tight, and waited, to see what happens. ‘We expect that the

residential market in Paris will be fairly flat for the rest of the year and we may even see falls

in the region of 1% to 5%,’ explained Lakatos.

He explained that central Paris has a very different demand base to that of central London.

Wealthy French nationals drive the majority of the prime Parisian market. Presently, many

are investing in property in Paris as a means to exit the stock market and to place cash

during the Eurozone Crisis.

International buyers are far less prevalent in Paris. The number of multi-national companies

with offices in Paris has fallen in recent years and as a result so too have the number of

expats.

‘Investing in residential property in Paris is also unattractive to international investors as

there is so much red tape involved, no tax loopholes to exploit and tenants are legally very

well protected.

A few trophy properties are purchased by very wealthy overseas buyers, typically Russian or

Chinese, but are either used as second homes or left empty for capital growth purposes,’

said Lakatos.

‘The Paris market is also not influenced in any significant way by bonus pay outs. Although

some firms do pay bonuses they are generally of a much smaller magnitude and less

widespread than London employees and therefore their impact is far less reaching,’ he

pointed out


For the British (and any other overseas buyer who currently has a strong home currency),

whose love affair with French property sees no sign of waning there is good news for

prospective buyers in France. With the euro plummeting to new lows against the pound,

property prices have fallen in French areas popular with British buyers

Just four years ago, the plunging pound forced thousands of British to abandon their dream

of a new life in France. However, with the euro falling to new lows against the pound, and

the French property market showing signs of recession, the tide is turning.

The association of estate agents, FNAIM, predicts a fall of 5% on average over the year, and

the French notary association sees a drop of between 5%-10%, while Crédit Agricole, one of

France's largest banks, puts the falls at 5%-6%.

They are quick to emphasise the situation is nowhere near that of the bursting of the

property bubble in 2008-2009 and cautiously talk of an "adjustment" rather than "a crash".

Like London, property in Paris is considered some of the most overvalued in the country with

an increase over the last decade of a whopping 184%.

Outside Paris, prices have also fallen in areas popular with British buyers – 4.6% on average

in Brittany, 6% in Lower Normandy, 9.7% in Burgundy and between 3%-4% in the Dordogne.

According to the property website seloger.com, Albi in the south-west Tarn region takes the

prize for France's biggest price drop – a massive 18%.

The trend is likely to be relatively long term. According to the Bank of France, the number of

mortgages issued dropped a dramatic 41% between January and February this year, the

lowest for nearly three years, as financial institutions tightened lending criteria and insisted

on higher deposits.

Simon Malster of Investors in Property says buying in the French Alps is a different story. "It

is a special market and not as volatile. Values are also holding up in ski resorts in Austria

and Switzerland."

Negotiation is the key in France. Sellers are having to accept some hard bargaining – which

could mean that dream cottage in Carcassonne is closer to becoming reality.

3. Spanish Market

The Spanish property market continues to suffer acutely according to the latest reports.

Some 700,000 homes are currently languishing on the market unable to find a buyer, and a

further 300,000 part-completed properties are in the same boat. Most of these are in the

popular holiday areas.

As well as the dire state of the market (oversupply, overvalued, non-completed

developments, prices falling and illegal properties), the weak pound/euro exchange rate is

also being blamed.

Along, with other domestic economic factors such as the high public debt which is forecast to

rise to 90% of GDP by the end of the year, and the high unemployment rate which currently

stands at 24.4 % of the Spanish workforce (June 2012) .


Such dire economic factors have even led to a well-known domestic desperate developer,

offering a guaranteed rate of 1.30 Euros to the pound in order to entice buyers to take the

plunge in their Catalunya golf resort.

(Opposite left, an unfinished residential

building on a mountain in Estepona, near

Malaga, southern Spain. Many residential

building projects in the country have come

to a standstill due to the financial crisis.).

Another major problem for the market is the

baron mortgage market, arguably especially

for foreigners.

Spain stands out with a housing market and

a lending record that is far worse than

France, Portugal, or Italy. If you must buy, somehow try to re-mortgage money from your

own home back in Britain,” says Melanie Bien of mortgage broker Private Finance

The official view from The Bank of Spain (Banco de España) is slightly more positive, the

bank states that it does not expect to see the Spanish economy improve this year. The flip

side to this prediction is that the weak nature of the economy may push property prices

lower, which will help attract more homebuyers, according to Spanish property website

TheSpanishBrick.com.

The Bank’s official 2012 forecast predicts that the Spanish economy will shrink by 1.5%

during the year and the unemployment rate will rise to 23.4% which is already been

corrected to nearer 26% by year end.

Furthermore, the International Monetary Fund projects that Spain will still be in recession for

two more years because the negative G.D.P. will be 1.7% in 2012 and 0.3% in 2013.

The dire economy forecast is further evidence that Spain’s property market, which is

suffering from a lack of activity and an oversupply of homes, is unlikely to recover anytime

soon.

Therefore, as we moved into the second quarter of 2012 the market sector predictably has

shown further signs of contraction and over supply. In the first three months of the year,

Spanish house prices fell a further 12.6% year on year, the end of their sharpest decline

since current records began.

The figures from the national statistics institute, INE, marks the biggest fall since it began

collecting data in 2007, easily beating the previous trough of 7.7% in the second quarter of

2009. It comes during a deepening a property market slump and is more bad news for the

country's battered economy.

Spanish banks were left high and dry after a housing boom collapsed four years ago,

saddled with billions of euros in bad debts related to the property sector, while sky high

unemployment has driven a sharp climb in unpaid loan rates. With the banks struggling to

stay afloat, loans for anyone wishing to buy a new home are declining rapidly, with mortgage

lending suffering its largest fall in over six years in April.


In a report earlier this month (June), the International Monetary Fund (IMF) said Spanish

house prices could drop by almost 20% by the end of this year under an adverse scenario.

The INE data shows how prices are faring in different regions.

Andalucía saw price falls of just 9.8% whereas the Balearic Islands were down 14.9%, as

were prices in Aragon and Catalonia. The latest house price index published by Tinsa, a

leading appraisal company, showed a decline of 11% in May compared to the same time last

year, with house prices on the Mediterranean coast, where most holiday homes are located,

and from the peak of the market to present are down 14%, with the Balearic and Canary

islands down 24%

All these figures are too rosy, according to Mark Stucklin, of Spanish Property Insight. It

seems the measures recently introduced by the government to bring down house prices are

having some effect.

” Or maybe we are just reaching the point where official figures can no longer keep up the

pretence that house prices haven’t fallen as much as they have,” he said.

He believes that in reality the prices at which properties actually sell are down by between

30 and 50%. Rosy official figures are no laughing matter. They cause people to wait for price

falls that have already happened, which just drives the price down further, and drives away

foreign investors, he explained.

The problem is that all the most influential organisations take official figures at face value.

One of the best things the Spanish government could do right now is produce some accurate

and reliable house price data, and fast, he added.

4. Portuguese Market

With the on-going saga of lifeline bailouts to Eurozone nations, property buyers will be

forgiven for channelling their buy-abroad aspirations elsewhere.

Although the full impact of austerity measures (bolstered by a £70 billion EU-IMF bailout

package) has yet to hit home, signs of life in this default-wary country have been present

since the second quarter of this year. A flat-lining economy has been seen as a milestone in

the journey of gradual value recovery.

Residential property prices and sales are continuing to fall, according to the March 2012

index from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário

published today (Wednesday 25 April).

The results highlight the continued, broad based weakness of the sales markets in terms of

prices, activity, and expectations in contrast to the partial strength of the lettings sector.

In the sales market, although the national price balance improved slightly from -64 to -56,

indicating 56% more respondents experienced price falls rather than rises, it remains very

negative.

Meanwhile, the national confidence index, which is a composite index, based on price and

sales expectations, improved slightly from -53 to -48, a five point rise, but it also remains

negative.


The report says that house price declines continue to be driven by falling demand. Rising

supply is not presently an issue, with new vendor instructions falling since December 2010.

In recent months however, there has been a trend towards stabilisation, increasing the risk

that supply may be an additional factor weighing on the market going forward.

The lettings market, meanwhile, continues to benefit from the fallout in the sales market, as

households who cannot access mortgage finance are renting instead. Indeed, tenant

demand continues to rise and lettings expectations remain robust.

However, rents are falling and rental expectations are negative. This could reflect an excess

of rental stock in the market, but affordability constraints may also be an issue given the

macro environment. Moreover, there is also some anecdotal evidence from agents of a

mismatch between the type of stock offered to let and that in demand.

‘Almost all comments from agents mention the critical impact that financial institutions are

having on the market at present. Not only are credit restrictions limiting transaction volumes;

banks are also aggressively trying to run down their distressed property inventory, which is

being cited as an additional source of downward pressure on residential prices,’ said CI

spokesman, Ricardo Guimaraes.

Nevertheless, Josh Miller, RICS senior economist, pointed out that rents are also declining.

‘Although sales volumes continue to fall, activity in the lettings market is rising as households

who cannot access mortgage finance look to rent instead.

However, rents are also declining in spite of the shift in tenure preference away from owner

occupation which may be indicative of the current stresses on the household sector reflected

in a 15% unemployment rate,’ he explained.

(Opposite left, residential properties in

upmarket international tourist areas such

as Vale de Lobo are at best likely to retain

their value or at their worst drop in value by

up to 5%).

At present, residential real estate in the

country's pricier southernmost stretches

and the Lisbon area is averaging £1,250 to £2,000 per sqm, central and northerly regions

around £800 per sqm. “Prices are down from their 2007 peak but are far from out,” adds

Stephen Anderson of Vilamoura-based consultancy Infinito Real “Because the Algarve took

the pain of the global downturn early on; the market has had more time to adjust as

motivated vendors push for fair deal prices, although the potential for corrections in more

oversupplied areas remains.”


As to the best properties to target: “Those in prime positions: beach access and frontline

golf, remain the most sought after as many purchasers consider that they will sustain their

value over the long time,” says De Meillac. “.

"The western Algarve, around Lagos and Praia da Luz, also has strong international appeal,

with buyers from the Continent and Russia now investing. Prices in this region were more

heavily reduced in 2009/10, and are now falling at a slower rate, as the market shows signs

of stability.”

Developers seem more optimistic in their outlook for the sales market, with developers

recording broadly stagnant sales expectations in the third quarter of 2012 as opposed to

falling sales expectations for agents.

6. Greek Market

The Greek economy remains in a precarious state. The impact of fiscal consolidation and internal devaluation are clear to see, with unemployment in the double digits and the real estate sector, along with most sectors of the economy, seeing severe contractions.

Prices in the residential property market are expected to at least fall by 15%, this year, while

the decline could prove even greater if the country’s financial situation worsens.

Based on the level of transactions carried out in the market in 2011 (defined as one of the

worst years for the sector) the prices of old and new properties suffered a decrease on

average of about 20% to 35%, market experts say.

(Opposite left Greek real estate prices are

set to continue to decline throughout 2012)

According to Lefteris Potamianos, owner of

the Search and Find agency, as well as

treasurer of the Attica and Athens real estate

agents association, the price drop concerns

transactions carried out through real estate

agents and buyers’ negotiations.

“While the asking prices were about 10 to

15% lower compared to previous years, the end prices were often lowered by another 10%

following negotiation,” noted Potamianos. Nevertheless, according to the real estate agency

owner, the most important decline recorded in relation to older properties, were in a number

of cases the financial needs of those selling was the driving force behind the transaction.

On the opposite end of the market spectrum, transactions regarding newly built properties

developed by construction firms were minimal last year, even though most construction

companies, especially in the fourth quarter, showed some conciliatory signs by lowering their

initial demands. Towards the end of the first quarter of 2012, transactions for new built

properties have shown a decrease on sale year on year end Match to 2012 of 2.1%.


Overall, however, it is estimated that total transactions across the country decreased by 50%

compared to the previous year, because of buyer hesitation, lower spending power, and

banks refusing to administer mortgage loans -- the latter in stark contrast to practices

observed in previous years.

The above factors are not expected to show any signs of changing this year, given that the

coming weeks are expected to be crucial in terms of the country’s economic fate. In the case

of a positive outcome, there could be a stabilization of prices starting in the second half of

2012, although even this scenario seems more like dreaming than a realistic prospect. In

any case, prices are expected to drop in the first half, reaching 10% to 15 % less compared

to 2011.

Currently, at the end of the beginning of the second quarter (April 30th), median house prices

dropped by 12.1%.

As a result, prospective buyers will have the opportunity to buy residential properties at

considerably lower prices compared to 2008.

However, as market professionals such as CBRE Atria managing director Yiannis Perrotis

point out, the taxation initiatives undertaken by the country’s Finance Ministry have dealt a

heavy blow to the real estate market.

“It is inconceivable that in this particularly negative climate, both in terms of the economy

and the real estate sector, there is talk of increasing the property values used for tax

purposes,” he said.

7. Turkish Market

(Opposite left, the Turkish residential property

market is currently bucking the trend of

stagnation, and decreased value of sales of

property in its residential and holiday villa

market in 2012 will the trend continue?)

National sales prices for existing residential

property in Turkey increased by 0.95% in

April, according to the latest data from the

Reidin Gyoder the Turkish home price index.

Regionally they increased 1.06% in Adana, 0.75% in Ankara, 0.49% in Antalya, 1.18% in

Istanbul, 0.85% in Izmir and 0.33% in Kocaeli.

New home prices increased by 1.28% compared with the previous month and 11.62% higher

than they were year on year in April 2011. Trademarked projects on the European side of

Istanbul increased by 1.38% and on the Asian side of the city they were up by a smaller

margin of just 0.69%.

The increase is mainly down to increased sales in the holiday villa market with strong sales

being recorded from both the expanding Russian and Scandinavian overseas holiday home

markets and strong sales being recorded from the more traditional overseas second home

markets of Britain and Germany.


In terms of the property size, properties between 51 and 75 square metres increased in

value by 1.03%, those between 76 and 100 square metres increased by a slightly higher

margin of 1.32%.

Properties of between 101 and 125 square metres increased by just 1% and those between

126 and 151 square metres increased by 1.21% property sizes with floor plans above 151

square metres increased by 1.14% compared with the previous month of March.

The rental market for both holiday lets and second homes are showing strong signs of

recovery as we move into the second half of the year. With rental, yields in excess of 8% for

smaller apartments possible and the best places to invest are on the European side of

Istanbul.

There are also some promising up and coming areas close to the city's university campuses.

Many of these areas are seeing significant property development and further improvements

in infrastructure close to the city centre.

The best bargains can be found in the outlying districts of the city, overseas buyers with

healthy budgets which can stretch far enough, should consider the city centre which still

offers excellent rental yields even with high prices taken into account.

Buyers looking for holiday properties should consider resorts such as Antalya and Fethiye

and for an outside bet Kalkan which provide the best prospects along Turkey's popular

coastlines.

Yields of up to 8% are possible in these locations with average yields around 6% which is

higher than most overseas buyers can expect in holiday locations elsewhere in Europe.

Modern seafront homes in Kalkan for example can generate up to £3,000 a week in the peak

season of June to September.

Middle Eastern Markets

1. UAE Market - Dubai and Abu Dhabi

(Opposite left, Dubai where it is expected that house prices will continue to fluctuate throughout this year 2012.).

Sections of Dubai's battered property market

has shown some nervous signs of recovery at

the beginning of this year but the release of

new supply coupled with wider global

economic woes has still seen an overall

decline in prices, an Arabian Business poll

found.


Well-established communities in Dubai such as Emirates Living and Downtown Burj are

expected to see house prices rise by 3 to 6% by year end, a survey of real estate analysts

found. Currently the median property price increase for the end of the first quarter of 2012

has shown a modest increase of just 1.7%

However, property prices in less desirable locations such as International City and Dubai

land could decline 4- 12% leading to a marked two-tier property market in the Emirate, the

poll found .Currently property prices in these location to the end of the first quarter of 2012

have shown a median decrease of 4.1%.

“Prime developments or locations have in the last year enjoyed some moderate price and

rental appreciations and we expect this trend to continue through 2012,” one analyst said.

“For the secondary developments we expect prices and rental rates to soften further as more

supply comes onto the market into the second half of the year.”

The office property sector in Dubai remains highly competitive due to the high levels of

supply in the Emirate, touching on 60 million square foot, with an additional 10 million

anticipated by the end of the 2012, according to the latest analysis report from Cluttons.

The effect of such high supply is that vacancy rates have remained high at approximately

40% across the city. However, instead of on-going downward pressure on prices

experienced throughout 2010 and 2011, Cluttons notes that average quoting rents for prime

developments in the city have remained stable over the past three months.

DIFC, Emaar Square, and the Sheikh Zayed corridor remain the most expensive locations,

with JLT, Barsha and Tecom offering the lowest rates.

Despite the excess of supply, there remains a relatively short supply of good quality

buildings for corporate occupiers with major requirements. Single landlord owned buildings

still remain an essential requirement for most larger corporate occupiers but there is a lack of

supply in prime areas of buildings that can accommodate larger requirements over 40,000

square feet.

Cluttons is noting a greater appreciation of ‘green’ or sustainable initiatives from occupiers

and the market is seeing evidence of this becoming a regular requirement in the search

process

Analysts polled said average prices in neighbouring Abu Dhabi could fall up to 10% amid

increased supply. Analysts expect an average of 19,716 units to come on to the UAE

capital's market this year.

“Prices will fall in Abu Dhabi this year in the region of 5-10 %. The emirate is going through

the same problems as Dubai did in the past,” said one analyst. Property prices in Dubai

soared after the city opened its real estate sector to foreign investors in 2002, granting them

freehold ownership rights at many developments.

From start-2007 to mid-2008, prices rallied almost 80 % Morgan Stanley estimates showed,

with billions of dollars’ worth of new projects launched by local developers. Nevertheless,


home prices in Dubai, the Gulf property market that had the biggest reversal because of the

financial crisis, have declined 60% in the wake of the global economic downturn.

While prices in Abu Dhabi fared better during the crisis, analysts remained concerned about

the significant supply of high-end homes scheduled to enter the market.

Several Dubai-based developers have turned their sites to midmarket housing in a bid to fill

the gap left by the collapse of the emirate’s housing bubble. The year ahead will see an

increasing number of developers look to develop affordable housing projects but these can

be hindered by the rising cost of land and declining house prices in the GCC, analysts said.

Rental prices in Dubai and Abu Dhabi will also see a downward trend, dropping 5% and 10%

throughout the year and currently stand for Dubai at an average of 5.1% decrease of the first

quarter of the year.

Analysts’ opinions remained split regarding what they considered the biggest challenge

ahead for the UAE’s property sector. Excessive supply and the impact of Europe’s economic

woes were cited as he biggest concerns, alongside a lack of clarity in Dubai’s regulatory

environment.

2. Bahrain

There has been an upturn in the number of new expats settling in Bahrain, specifically in the

oil and gas industry, which has resulted in companies taking on multiple villas and driving

down prices, according to the latest real estate report from Cluttons.

The company, which has specialised in the Middle East markets since 1976, said, however,

that demand in the market is not as strong as it was pre-2011 and rents are only being kept

flat due to the lack of new properties coming to the market, with many of the larger projects

being delayed or put on hold.

In its first quarter report on Bahrain’s, residential market is says that there is some price

stability in popular areas such as Amwaj, Jasra, Hamala, Saar and Janabiya, and well

maintained compounds with good facilities and security are proving to be more popular than

individual villas.

However, some apartments in even the most popular areas have experienced falls in rent of

6.25% compared with 2010. Other areas have suffered significant losses due to their close

proximity to perceived areas of unrest.

Rents have started to stabilise, but this is partly due to the lack of new properties coming on

to the market, as many of the larger projects are being delayed or put on hold, the report

points out.

The sales market is quiet, with the majority of sellers refusing to realise a loss, thus keeping

their properties on the market for longer periods. The majority of sales taking place now

involve forced sellers who are taking a loss on the originally paid prices. Most sales take

place in Riffa Views or Amwaj Islands.


The first units on Bahrain’s $1.6 billion Dilmunia Health Island project (see above) are

expected to be ready to handover by the end of 2014, the developer behind the project has

announced.

The first of four infrastructure development phases, which will include the 125-hectare

island's highways, bridges, landscaping, power, water, sewerage, and drainage and

telecommunications supplies, has been offered to 30 contractors.

The winning firm it is hoped will be appointed by the end of May 2012 and work is due to

start at the beginning of the third quarter. Construction is expected to take 24 months to

complete, enabling subcontractors to begin work in parallel.

‘End users can be handed the keys to their units by the end of 2014,’ said developer Ithmaar

Development Company (IDC) in a statement. It will be comprised of a mix of residential,

leisure and commercial sub-developments, surrounding core health and wellness facilities.

The company says that Dilmunia is more than just a high quality real estate development

because it will be adding value through the health and wellness amenities that will benefit all.

Dilmunia wants to tap into the $100 billion global healthcare market and in addition is

expected to provide housing for approximately 15,000 residents. Thousands of who will work

in the project’s medical, well-being, hospitality, and retail sectors.

‘In many cases it will be introducing entirely new industries, which people in Bahrain

previously had to travel abroad for,’ said Mohammed Khalil Alsayed, chief executive officer

of IDC.

Preliminary developments, including dredging, reclamation, and rock protection works, have

already been completed on the artificial island, located off the northeast coast of Muharraq.

Later phases of the infrastructure work will also include completion of the Grand Canal.

‘The 2.2 kilometre Grand Canal is important to highlight because it will be one of Dilmunia's

key features, offering patients, residents and visitors a unique and atmospheric recreational

amenity. It will be another first for Bahrain,’ Alsayed added.


3. Saudi Arabia

Villa prices in Jeddah have increased by up to 11% in the first quarter of 2012, signalling that

the Saudi real estate market is performing well; based on a new study by real consultancy

firm Jones Lang LaSalle.

The western area of the Red Sea city saw average rates of around SAR4,600 (US$1,226)

per square metre and the capital city Riyadh has also seen prices rise, with average villa

prices up to SAR4,200 (US$1,119) per square metre.

Apartment prices are also higher at SAR2, 600 (US$693) per square metre and in the office

sector, the recent sale of the Eastern Tower in Jeddah has shown there is strong demand.

However, the completion of new projects in both cities is likely to see rates start drop in the

second half of 2012, JLL says.

Meanwhile the retail market has become more fragmented, with an increasing variation

between the rents that can be achieved for line stores in the most popular centres and the

average rental value around SAR2,380 (US$634) per square metre, which has remained

stable at the end of the first quarter of 2012.

While Riyadh did not see the completion of any new hotel projects, Jeddah has remained

one of the strongest performing hotel markets in the Gulf, with occupancy rates of 79%,

room rates of SAR770 (US$205) and revenue per available room also on the rise.

‘The residential and hotel sectors of the Jeddah market have so far performed most strong ly

this year, with continued growth in sale prices, rental levels and occupancies,’ said Soraka Al

Khatib, head of JLL’s Jeddah office. ‘In the office and retail markets, the completion of more

projects will increase options for tenants during 2012 and will lead to more competitive rental

levels being offered to retain and attract tenants,’ Al Khatib added

North American Market -Canada and USA Markets

1. Canadian Market

Residential median property sales in Canada fell 3.8% from January to March 2012, the

biggest monthly fall since July 2010, the latest figures from the Canadian Real Estate

Association (CREA) show.

It was also the first monthly fall since October 2011. The monthly decline reversed a string of

monthly increases over the closing months of last year, and returned national activity to

where it stood at the end of the third quarter of 2011.

Last year was also muted in terms of price increases, with the national average home price

up less than 2% year on year in March one of the smallest increases of the last 12 months.

The actual (not seasonally adjusted) national average price for homes sold in March 2012

was $348,178, representing an increase of 1.2% from its year ago level. This ranks among

the smallest increases since early 2011. On a seasonally adjusted basis, the national

average home price rose 1.6% on a month on month basis, marking a rebound from a

decline of similar magnitude in December of last year.


‘The national housing market is stabilizing and remains well balanced. That said, forecasts

for economic and job growth going forward vary widely for different parts of the country,

suggesting a possible continuation of a softening trend in some markets, as well as the

potential that demand will pick up based on strong fundamentals in others,’ said Gary Morse,

CREA’s president.

Activity was down in over half of all local markets in March from the previous month. Led by

declines in Greater Toronto and Montréal, demand also softened in a number of other major

urban centres including the Fraser Valley, Calgary, Edmonton, Winnipeg, Ottawa, and

Greater Vancouver.

(Opposite left, Vancouver city saw a drop in

new listings of 1.4% in March 2012)

Actual (not seasonally adjusted) national

sales activity was up 4% from year ago

levels in March, the smallest year on year

increase since last May. As was the case in

a number of months last year, actual sales in

February 2012 stood close to the five and

10-year average for the month.

The number of newly listed homes edged down 1.4% on a month on month basis in March

following a 2.9% increase in December and January. The monthly decline in new supply

reflects a drop in new listings in a number of Canada’s largest urban centres, which offset a

jump in new listings in Vancouver, CREA said.

Sales fell in January and February shifting the national market back towards the mid-point of

balanced territory and reversing the recent trend that had seen the market becoming tighter

over the final four months of 2011. The national sales to-new listings ratio, a measure of

market balance, stood at 53.8% in January, down from 55.5% in December and 55.4% in

November.

Based on sales to new listings ratio of between 40 to 60%, some 60% of local markets were

balanced in February. Compared to January, there were fewer buyers’ and sellers’ markets,

and a greater number of balanced markets.

The number of months of inventory stood at six months at the end of January on a national

basis, up from 5.7 months in December 2011 and returning it to where it stood in October

2011. The number of months of inventory represents the number of months it would take to

sell current inventories at the current rate of sales activity, and is another measure of the

balance between housing supply and demand.

‘Year on year comparisons in the national average price are expected to become volatile

and may turn negative, reflecting average price developments in the second half of 2012 in

Vancouver,’ said Gregory Klump, CREA’s chief economist.

‘At that time, high end home sales in Vancouver’s priciest neighbourhoods surged to all-time

record levels, which skewed the national average price upward considerably. A replay of this

phenomenon is not expected this year,’ he explained.


‘As a result, comparisons for national average price to year ago levels over the coming

months will reflect an upwardly skewed base effect. For this reason, year on year

comparisons should be kept in perspective. Developments in the MLS HPI (Housing Price

Index) will provide important guidance on price trends, since it is not affected by the problem

of compositional shifts in the mix of sales activity,’ he added.

2. USA Market

Residential property prices the US decreased again in the fourth quarter of 2011 and few

areas are likely to see increases this year according to the latest data from Zillow.

The Home Value Index fell (May 2012) 1.5% but there were less significant declines in the

previous quarter compared to the overall median drop across the country in 2011 of 5.7%.

Including distressed sales, the five states with the highest price gains were Montana, which

was up 4.4%, Vermont up 4%, South Dakota up 3.2%, Nebraska up 2.5% and New York up

1.7%.

(Opposite left, some good news for the

beleaguered relators in New York property

prices increased by 1.7% in the first quarter of

2012)

Including distressed sales, the five states with

the greatest fall in prices were Illinois, which

was down 11.3%, Nevada down 10.6%,

Georgia down 8.3%, and Ohio down 7.7% and

Minnesota down 7.5%.

Excluding distressed sales, the five top states were Montana where prices increased 7.7%,

South Dakota up 3.5%, Indiana up 3.3%, Alaska up 3.1% and Massachusetts up 2.9%.

Excluding distressed sales, the five states with the greatest falls were Nevada down 9.7%,

Minnesota down 5.2%, Arizona down 4.9%, Delaware down 4.2% and Michigan down 3.5%.

Including distressed transactions, the peak to current change in the national HPI (Housing

Price Index) from April 2006 to March 2012 was -34.7%. Excluding distressed transactions,

the peak to current change in the HPI for the same period was -24%

Zillow predicts that home values will continue falling throughout the year but with smaller

declines than 2011, probably ending the year 3.7% down. While home values in some

individual markets are likely to reach a bottom this year, Zillow does not forecast a definitive

national bottom until the middle of 2013.

The Zillow Home Value Forecast uses data from past home value trends and current market

conditions, including leading indicators like home sales, months of housing inventory supply

and unemployment, to predict home values over the next 12 months for the nation and the

25 largest markets.


Metropolitan statistical areas (MSAs) like Los Angeles, Riverside, California, and Phoenix,

which were among the hardest hit in the housing downturn, will likely reach bottom soon and

will experience home value increases or stability by the end of 2012, according to the

forecast.

Other markets that are likely to reach a bottom and see home values increase or remain flat

in the second half of 2012 are Baltimore and Washington DC. Markets which may end 2012

without significant increases in home values, but which are likely candidates to see a bottom

late in the year are Dallas, Denver, Miami-Fort Lauderdale, New York, Pittsburgh, San

Diego, San Francisco and Tampa.

‘While it may be disconcerting for home owners to see values nationally fell at a fairly rapid

clip at the end of last year, that trend won't last through 2012,’ said Zillow chief economist

Stan Humphries.

The fourth quarter's weak performance proves that pronouncements of a bottom in home

values have been premature, but the good news is that 2012 will prove to be a better year

than 2011. In fact, many markets show signs of a bottom this year, although a bottom may

continue to elude the nation as a whole in 2012,’ he explained.

Humphries cautioned that healthy job creation is necessary to ensure a solid recovery in both housing and the overall economy. ‘The job market has sputtered recently, and because variations in local job creation impact housing demand, markets will recover unevenly around the country,’ he said.

‘Fortunately, against a backdrop of modest further declines in home values, we expect that

home sales will pick up briskly this year as affordable prices bring more buyers to the table,

especially investors and second home buyers,’ he added.

At the end of the first quarter of 2012, the rate of homes foreclosed edged upward from eight

out of every 10,000 homes in February to 8.4 out of every 10,000 in March.

However, the rate was lower than at the end of the fourth quarter of 2011, when 8.6 out of

every 10,000 homes were lost to foreclosure.

Additionally, foreclosure re-sales made up 19.4% of all sales in March. Foreclosure re-sales

have steadily risen since August, when 17.1% of all sales were foreclosure re-sales.

Russian Market

1. Russian Market

At the end of 2011 beginning of 2012, the Russian housing market did not recover - despite

appearances. Resale apartment prices rose 3.79% during the year to end-Q4 2011,

according to the Federal State Statistics Service, but the kicker was inflation - resale

apartment prices actually fell 5.25% when the price figures are adjusted for inflation.

• Moscow - resale apartment prices fell 5.38%, after inflation.

• St. Petersburg - resale apartment prices fell 15.23%, after inflation.

Rents are also declining. In February 2012, the average Moscow rent fell 2.7% y-o-y to

RUB207,582 (US$6,439) per month, according to the Bureau.


Moscow Mayor Sergey Sobyanin imposed a ban on residential construction inside the Third

Transport Ring, the main access road to the capital’s business centre. As a result, new

housing supply contracted by 18.1% y-o-y to H3 2011.

Russia had a massive housing boom from 2000 to 2007, with secondary market prices

skyrocketing by 436% while primary market prices rose 362%. Property prices started to

weaken in late 2008, and began falling in the second quarter of 2009.

House prices are still declining, though the rate of decline began to slow in Q3 of 2010.

According to the Land Code of 2001, private ownership of land properties is allowed for both

locals and foreigners. The legislation was extended to Moscow in January 2006.

The enormous price-rises over the past few years in Moscow mean that it now makes better

sense, in Russia’s capital city, to rent than to buy - at least so far as concerns the high-end

district central Moscow apartments.

Gross rental yields on central Moscow apartments at the beginning of 2012 were firmly in the

3% to 4% range, which is not very attractive to property investors (but attractive to renters, of

course). This is the result of the boom in prices of the last few years.

(Opposite left, St Petersburg Europe’s fourth

largest City, where rental yields are predicted

to increase his year but property prices are

due to drop).

Surprisingly, St Petersburg at the beginning of

2012 still had highly attractive gross rental

yields on smaller apartments, with 60 square

metre apartments averaging around 9.4%.

It must be stressed that these yields are

gross, i.e., before vacancies, costs, or any other expenses, and that they are based on

offered prices, not actually achieved prices. The rental yields also relate specifically to old or

refurbished apartments, not new apartments.

Although rental yields are expected to continue to rise throughout the year, median house

prices are expected at best to be stagnating or drop by a median of between 3 to 5%.

Last year saw record investment volumes into Russian commercial real estate with growth of

over 200% above the level reached in 2010, according to the latest research by CBRE.

There were 43 investment deals last year compared to 27 investment deals in 2010 and 50

deals closed in the record 2008. Investment rose to €4.55 billion and the average deal size

was approximately €105.6 million. This compares with an average deal size of €71 million.

The largest deal in 2011 was the purchase by Morgan Stanley of the 191,000 square meters

Galleria shopping centre in St. Petersburg in December, for an estimated €840 million.


The research report says that the stabilisation of the Russian economy in 2011 saw a level

of confidence return to the real estate investment market. Domestic investors continued to

dominate at 59% but the share of foreign investors rose significantly from that in 2003 to

2010 and this was much more balanced than in recent years, when 70 to 80% of

investments were accounted for by Russian money. In pre-crisis years, the balance was

usually 70 to 80% foreign money.

The retail sector attracted slightly more investment than the office sector in 2011, some 38%

versus 37%. The hotel sector also featured prominently at 13% due to the Ritz-Carlton sale.

The industrial sector accounted for just 3%, and mixed-use projects was 9%.

Moscow accounted for the majority of investments, with over 74% of all investments. St.

Petersburg accounted for 22%. Other Russian cities which received investment in 2011

included Kaliningrad, Kaluga, Murmansk, Ulan-Ude and Samara. The majority of foreign

investment outside Moscow was directed to St. Petersburg.

Yields are rarely disclosed in Russia however, the report suggests that yields for prime

objects in Moscow at the end of 2011 were 8.75% for offices, 9.5% for retail, and 11% for

industrial.

Prime objects in St. Petersburg can expect to attract similar levels in retail, as it is the fourth

largest city in Europe with a population of 4.8 million that has greater wealth than the

national average.

According to CBRE, overall economic growth in Russia is believed to have been in the

region of four to 4.5%. The consensus view is that growth will be of a slightly lower level in

throughout the year, though still far higher than the expected levels in the European Union.

As such, the record volumes of investment in 2012 are unlikely to be repeated.

CBRE expects that Moscow will remain severely undersupplied in terms of quality new office

centres in the short and medium term. In turn, this may propel investors towards other

sectors such as retail and hotels.

‘2011 was a record year for investment in Russian real estate with €4.55 billion invested,

which is over 1.5 times higher than in 2008, the previous record year.

For the first time in a few years, retail attracted the largest portion, and accounted for the

largest deal,’ said Christopher Peters, director of research, CBRE in Russia.

‘The share of foreign investors rose significantly from that in previous years, though

domestic investors have accounted for the majority since the onset of the financial crisis.

Yields in all sectors fell compared with 12 months ago. With slightly lower economic growth

in Russia and globally predicted for this year than in 2011, the record level is unlikely to be

exceeded or repeated this year,’ he added.


South American Market

1. Brazilian Market

Property prices in Brazil are likely to increase modestly, around 5 to 10%, throughout 2012

and the real estate sector should avoid a bubble, according to a poll of real estate and

financial experts.

The Reuters poll of 15 banks, research groups, and business associations downplayed the

risk of a sharp downturn, with a recent credit boom underpinned by a steady improvement in

wages and affordability conditions.

Overall consumer inflation is expected to hover around 5.5% in 2012, according to market

forecasts compiled by the central bank.

That performance turns the Brazilian housing market into a rare bright spot in a gloomy

scenario around the globe. Further gains, however, should be smaller than in 2011 as the

Brazilian economy cools off.

Brazil's gross domestic product (GDP) growth slowed to a standstill in the fourth quarter of

2011 as the Eurozone debt crisis hurt global demand and is expected to grow by around

3.5% by the end of this year, much less than the 7.5% growth recorded in 2010.

Most of 2012’s rise in house prices have been concentrated in the first half of this year,

added the participants. Seven out of 15 thought prices would stabilise by the end of the year.

The rapidly expanding Brazilian middle class is expected to keep a close eye on

opportunities to stop renting and move into ownership, holding up prices even after they

almost doubled in some neighbourhoods.

‘When the slums disappear and the Brazilian housing sector gets more mature, then prices

will stop rising,’ said Andre Perfeito, chief economist at Gradual Investimentos Brokerage.

In Sao Paulo, Brazil's biggest city, average new home prices skyrocketed 85% from April

2009 to February 2012, to 6,019 reais per square metre ($3,250), according to

a survey conducted by the Ibope polling firm. Consumer inflation rose nearly 15% over that

same period.

‘There are structural factors in place to justify such a strong performance. A sharp fall in

prices this year is very unlikely,’ said Paulo Cesar das Neves, analyst for the local research

firm LCA.

Rental yields for residential property across the country have continued to move strongly

upward in Brazil in terms of US dollars, in defiance of widespread worries that the Brazilian

property market may be becoming overheated.


(Opposite left, Rio De Janerio, where both

property prices and rental yields are

expected to grow throughout the year)

In Rio de Janeiro, the price movement was

strongest, with apartments moving up in

price an amazing average of 48%, from an

average of US$3,429 per sq. m., to

US$5,094. Rio penthouses moved up by

less, and apartments in Barra da Tijuca

hardly moved up at all.

In Sao Paolo, the prices of 50 sqm apartments moved up 33% during the year to date, to

US$3,384 per sqm; apartments of 120 sqm have moved up 10.5% to US$2,616 per sqm.

Sao Paolo apartment prices moved strongly up across all size ranges, except for the largest

apartment sizes (200+ sqm).

During this past year, the Brazilian Real moved 3% up against the US$ (a relevant fact, as

real estate prices in Brazil are measured in US $). Sao Paolo penthouses moved up across

the size range, with 120 sqm, apartments moving up 37%.

The good news for overseas buyers from Britain (and other countries with strong currencies)

is the strength of Sterling against the Brazilian Real means that for British buyer’s property in

Brazil is even more affordable than ever.

Sterling is trading at a two and a half year high against the Brazilian Real and this means

that if you bought a five star two bedroom beachfront apartments south of Natal on 01 June

2011, it would have cost £111,617 but now the cost is £90,564.

Samantha Gore a property consultancy specialist from Rio comments that;

‘From early June 2011 until now the Brazilian Real has been fading against the Pound, to

the tune of 28%. Likewise, the US Dollar is at a two and a half year high and the Euro a two

year high against Brazil’s currency,’ she said.

She pointed out that a very attractive Brazil property buying scenario has come about by the

retreat of the Real. The Eurozone collapse has sent shockwaves over to Brazil as investors

fear that demand for this Latin American nation’s exports could drop sharply as an at least

partial Eurozone breakup becomes increasingly likely.

Brazilian Finance Minister Guido Mantega is pleased that the Real is losing value and

therefore becoming more competitive

. ‘The weak real is beneficial for the Brazilian economy because it makes Brazilian products

more competitive, which means that Brazilian industry can better compete with imported

products that become more expensive, and can export more,’ he said recently.


Ms Gore believes that optimism in Brazil extends further ‘The middle class continues to

grow, fuelling demand for poverty in the domestic market which in turn is keeping prices on a

upward curve, at least the foreseeable future. Benchmark interest rates have just been

lowered to 9%, which is great news for local buyers eyeing a mortgage and developers

seeking finance for new projects.’

2. Argentinian Market

(Opposite left, property prices are set to

continue to rise across Argentina albeit at a

slower pace throughout the year).

Politicians in Argentina have approved a

controversial new law to restrict the sale of

agricultural land to foreign buyers.

The bill, which has been approved by the

Chamber of Deputies and is expected to be

endorsed by the Senate later this year , limits the amount of land that can be bought by an

overseas buyer to 1,000 hectares in key areas of the country. It also sets a limit of 15% of

total land being owned by foreigners.

Chamber of Deputies general law committee head Luis Cigogna said the purpose of the new

law it to keep strategic and non-renewable land for Argentines.

However, the new law makes an exception for foreigners who have married Argentines or

have lived in the country as permanent residents for more than 10 years.

In Argentina, it is estimated that foreigners own 11% of the country’s 445 million acres (180 million hectares) of productive land, according to the Argentine Agricultural Federation,

which has long pushed for limits.

More and more foreign buyers are interested in property in Argentina as it is seen as an emerging property market with huge potential. Brazilians, Americans, Canadians, and French buyers are looking for second homes as prices are expected to escalate in the medium term.

According to the Argentina Real Estate Chamber (AREC), property sales increased by 16% in the first three months of 2012 and prices are now around 20% up on a year ago. With the continuing uncertainty of the global financial markets and the Eurozone crisis, in particular it is predicted by the AREC that median property prices across the country will rise this year by 3 to 6%.

Asian Markets

1. Chinese Market

The primary residential market remained quiet in the fourth quarter of 2011, amid the

government’s home-purchase restrictions and the wait-and-see attitude adopted by potential

buyers. The total transacted area of primary residential properties in 20 major cites dropped

6.4% quarter on quarter, or a significant 45.4% year on year. Adjusted new home prices fell

2.3% quarter on quarter. This represented the first drop since the first quarter of 2009.


Only Haikou and Jinan registered year-on-year growth in total transacted area, while others

among the 20 major cities witnessed drops of 20–73%, with Shanghai, Chongqing,

Hangzhou, Suzhou, Tianjin and Dalian recording falls of over 50%.

Adjusted primary residential prices in over half of the 20 major cities showed quarter-on-

quarter drops. However, only four cities (Hangzhou, Wuxi, Chongqing, and Xiamen)

registered price reductions compared to the same period in 2010.

(Opposite left, Shanghai, will the central government’s new

property tax have a detrimental effect on property prices in

the city?).

Property prices in major Chinese cities continued the

downward trend in January to March of this year as the

government's tightening measures remain in place.

From January to March 2012, 48 cities out of the statistical

pool of 70 major cities saw drops in new home prices, while

home prices in 22 cities remained unchanged, the National

Bureau of Statistics (NBS) stated.

On a year-on-year basis, 15 cities saw price declines in

January to March, up from nine year end in December

2011, the NBS said. In month-on-month terms, prices of resold homes in January to March

fell on average in 54 cities, up from 51 cities one month ago. The NBS also said that the five

cities that saw price rises in resold homes in January from December reported a gain of no

more than 0.15%.

In year-on-year terms, resold home prices dropped in 37 cities in January to March, up from

29 in December last year.

Since 2010, the country has imposed a raft of measures aiming to calm property prices.

Those measures include higher down payments, a ban on third-home purchases, a property

tax in some cities and the construction of low-income housing.

Knight Frank’s (China) forecast for the property market in the world’s second largest

economy expects increased inventory and funding pressure will force more developers to cut

prices to promote sales, but the sentiment in China’s residential market is set to remain

weak throughout this year.

Meanwhile, the central government, and a number of local governments emphasised that

regulatory measures on the property market would continue throughout this year. Property

tax is also expected to be extended to other cities from Shanghai and Chongqing, which

could further regulate and promote healthy development of the market.

However, taking into account the contribution of the property industry to the local economy,

some cities may fine-tune current policies to promote demand for owner-occupied homes.


China’s central bank however has pledged support for domestic first-home buyers as a

crackdown on real-estate speculation threatens to trigger a property slump in the world’s

second- biggest economy.

Officials will increase support for construction of affordable housing and ensure that “loan

demand from first-home families” will be met, the People’s Bank of China said on its website

yesterday evening.

Policy makers aim to limit public discontent by making housing more affordable, with Vice

Premier Li Keqiang, a possible contender to be the next premier, describing the distribution

of low-cost homes as a key test of government credibility. At the same time, the ruling

Communist Party aims to avoid the economic “hard landing” that Fitch Ratings said

yesterday is a key global risk.

“The government doesn’t want to see home transactions slide too fast that may hurt

economic growth,” said Lu Ting, a Hong Kong-based economist at Bank of America Corp.

2. Hong Kong Market

(Opposite left, Repulse Bay Hong Kong Island, will property prices continue to drop throughout the year)

According to the latest report released by Knight

Frank, Hong Kong’s property market remained

quiet through the first quarter of (January to

March) 2012 with the global economic outlook

still unclear. While the office and residential

markets recorded low levels of activity, the retail-

leasing sector continued to outperform as

international brands continuing to enter or

expand in Hong Kong competed for prime spaces.

Prime office -Layoffs threatened a number of financial institutions in Hong Kong, as

uncertainty in the global economy started to take its toll. The office leasing market saw only

a handful of transactions over the first quarter. In Central, a law firm took up a mid-floor

measuring 5,483 sq ft in Prosperity Tower, while a 5,479-sq-ft low floor in Henley Building

was leased.

Grade-A office rents in Hong Kong continued their downward trend, with the average rent

dropping 1.5% in January to March. Central recorded the biggest correction of 1.9%,

followed by Mong Kok / Yau Ma Tei, where rents decreased 1.5%. Hung Hom and Kowloon

East, however, saw rents grow a respective 3.2% and 1.2% last month (May 2012). Grade-A

office rents in the CBD are likely to see a 10–15% correction in the first half of the year.

Meanwhile, asking rents in non-core areas are likely to remain firm, with landlords enjoying

low vacancies amid strong relocation demand.

Residential – The number of residential sales dropped further in January to March 2012.

Residential sales fell 18.4% month on month to 3,507 to March—the lowest figure since

November 2008. Sales of luxury homes valued over HK$10 million fell 17.4% to 385.


In the leasing market, an increasing number of landlords released their flats for lease.

However, absorption was weak during the traditional low season. As a result, luxury rents

decreased a further 1.3% month on month to the end of the first quarter.

Looking ahead, announcements confirming no further regulatory measures in the 2012–

2013 Government Budget cleared some uncertainty. Knight Frank believes residential sales

volume will rebound in April.

Retail - Strong retail sales growth continued up until the end of the first quarter with a

number of shopping centres and high-end retailers reporting double-digit sales growth.

However, many retailers, especially mid-market operators who cannot afford sky-high rents

in prime locations, are expected to move to non-core areas or up to higher floors. Knight

Frank expects rents in non-core areas to rise by a moderate 5% this year.

3. Singapore Market

(Opposite left, a mixed forecast from analysts for the property markets in Singapore for this year.).

Residential property prices in Singapore fell

slightly by on average of just 0.1% in the first

three months of 2012, according to the latest

figures published by the Urban Redevelopment

Authority (URA).

This compares with a 0.2% increase in the

previous quarter and is the first quarterly fall in

prices since the second quarter 2009, following

nine consecutive quarters of declining price increases.

Prices of non-landed properties in Core Central Region (CCR) and Rest of Central Region

(RCR) both fell by 0.6% compared with the 0.5% and 0.1% increased respectively in the

previous quarter.

For Outside Central Region (OCR), prices increased by 1.1% in the first quarter 2012,

compared with an increase of 0.6% in the previous quarter.

Rentals of private residential properties registered a lower rate of increase compared to the

previous quarter. Rentals increased by 0.3%, less than the 0.4% increase in the previous

quarter.

The data also shows that 6,903 uncompleted private residential units were launched for sale

by developers in the first three months of 2012, compared with just 4,105 units in the

previous quarter.

Developers sold some 6,458 uncompleted private residential units in the first quarter of

quarter 2012, compared with 3,525 units in the previous quarter. Take up of so called shoe

box units, which are smaller than 50 square metres, accounted for 27% of new sales in the

quarter.


Lower priced units less than $750,000 accounted for 42% of new sales, much higher than

the 25% in the last quarter of 2011. Overall, many of these units are located in the suburbs,

as 82% of the new units sold by developers were from OCR in the first quarter of 2012.

It means that the rate of increase in rentals has been slowing for three consecutive quarters,

since the third quarter of 2011.

Cautious market sentiment and waning demand restrained office-leasing activities for Q1

2012, according to Savills Research Singapore. Expectations from financial and banking

services have declined significantly amid the current economic volatility.

In line with this, vacancies among Grade A office buildings in the CBD grew 6.9 %, while

Grade A rents slid 1.5% for the second consecutive quarter. “Investment activity of en-bloc

office space resumed, but Grade A capital values fell by 3.8% quarter-on-quarter,” it said,

adding that “only two sites were offered for office development under the Reserve List of the

1H/2012 Government Land Sales (GLS) Programme.”

Moving forward, into the second half of 2012 the bleak global economic outlook will continue

to affect the leasing market. Capital values are expected to decline by 10 % while Grade

A rents will likely fall 15 % this year. “Negative fallout arising from the prolonged financial

turbulence and global economic slowdown has intensified, resulting in slower absorption of

Grade A office space. This has continued to push up vacancy rates and put downward

pressure on rents in the CBD,” noted Alan Cheong, Savills Research.

Overall, Singapore’s economy expanded 3.6% year-on-year in Q4 2011 and achieved a 4.8

% growth in GDP for the whole year. However, the pace of growth has considerably dropped

on a quarter-on-quarter basis since then.

4. Thailand Market

(Opposite left, will the Thai property

markets fully recover from last year’s tragic

flooding of central Thailand and Bangkok?).

Although, Bangkok may struggle to recover

this year, international tourist resorts such

as Pattaya, Hua Hin and Phuket will likely

see continual steady growth.

Last year’s flooding to central Thailand and

Bangkok has inevitably had an impact on

the property market in Thailand with sectors affected across the board, according to

international property consultants CBRE.

In the short term, residential project sales in Bangkok have slowed down whilst the city is still

affected by the aftermath of the floods and in the medium to long term, the crisis will also

have an impact on multiple levels from location to product and pricing, the latest analysis

says.


There has been a change in demand patterns in terms of preferred location and product in

Bangkok. ‘Buyers obviously have been hesitant to purchase in areas where heavy floods

have occurred. The business areas of Lumpini, Silom, Sathorn, and lower Sukhumvit will

continue to be the preferred locations while other areas will be assessed once the remedial

work has been completed,’ says the report.

Buyers are paying more attention to design features and flood protection measures while

housing developers in the future will need to ensure that both estate infrastructure and

individual houses incorporate flood protection features when launching new projects, it

explains.

Post flooding, construction costs in Bangkok have risen due to a high demand for

construction materials and skilled labour, particularly qualified technicians and contractors to

rehabilitate damaged properties. Projects under construction in affected areas such as

Rangsit and along the MRT purple line are now back on track but remedial work to repair

flood damage has had to be undertaken before construction can be re-started.

Affordability and pricing has also been affected, particularly for the entry level and middle

market. ‘The crisis has directly affected the spending power of those affected who may have

lost their income or face additional expenses such as repair or replacement of damaged

cars. This and many other flood related issues has slowed down purchase decisions and

has shifted the focus to lower priced products,’ the report explains.

At the mid to high end of the market, demand for second homes from wealthy Bangkok

residents has started to rise, notably for city, resort condominiums, and villas. Resort

markets such as Pattaya with its good and fast transport links to Bangkok and the

international resort island of Phuket will benefit.

‘Overall, the market in Bangkok has seen a slight shift toward condominiums and away from

houses or townhouses, particularly among younger buyers. The perception is that even if

condominium buildings are inaccessible if flooding occurs, possessions and furniture will still

be safe. This is not to say the market has completely turned away from housing

developments, but it is expected that housing sales will drop in the medium term until buyers’

confidence is restored and until developers can demonstrate effective prevention measures

and designs that minimise flood damage,’ the report adds.

The office sector is one of the least affected sectors. ‘While demand has been improving,

concerns about the global economy will slow down decisions, but it is unlikely that

companies will look to reduce space. In terms of location, it is again too early to say if a

particular area will benefit, as we do not yet know the full extent of the flood impact. The

fundamentals of the office market remain strong. With limited supply coming online in the

next three years, we are unlikely to see a dramatic drop in rents even if demand weakens,’ it

adds.

The Thai price index for single-detached houses/villas rose by 12.16% in the year to end-Q 4

2011, according to the Bank of Thailand (BOT). When adjusted for inflation, the index

actually rose by 7.75% over the same period.


This was in sharp contrast with the 16% average y-o-y price falls (17% in real terms) seen

from Q 3 2009 to Q 3 2010.

During the year to Q 4 2011:

the price index for townhouses rose 6.6%

the residential land price index increased 13.4%

The index for single-detached houses was up by 12.2%, from annual increases of

3.7% in Q 2 2011 and 10.6% in Q 3 2011.

In the final quarter of 2011, there were approximately 12,000 new launches countrywide; a

9.6% increase from the previous quarter, according to BOT. The launches are mainly in the

low to medium high-end market, with reduced unit sizes, compensating for the increasing

land prices throughout the country.

It is estimated that 60% of all new houses that have been built by the end of Q 4 of 2011

have been built within the Eastern Seaboard (Pattaya and Rayong) region of Thailand.

Where growing domestic and international demand is fuelling the increase in the housing

market,

Total outstanding property credits rose by 7% to THB 1.52 trillion (US$ 49.73 billion),

according to the Department of Land, Ministry of Interior.

Residential property prices for houses and villas are expected to steadily rise throughout this

year but will be dependent on two factors the continuing Eurozone crisis and how long the

country can recover from last year’s flooding the worst in 60 years.

Property analysts predict continual strong growth for villas and condominium units in

international resorts such as Pattaya, Hua Hin, and Phuket. Where strong growth was seen

in 2011 and is set to continue into the second half of 2012 due to the continuing interest from

both the wealthy Thai ‘second home’ market and continued purchases from overseas

buyers. With weaker growth in Bangkok across all property markets as Bangkok continues to

rebuild following last year’s floods.

(Opposite left, Bangtao Villas, will the Thai

villa market continue to grow this year?).

Median growth across the country for

residential housing is expected to be in

the region of 7.5% to 10%.The demand

for new condominium units is expected to

be even healthier with average price rises

of between 8% and 12%.

Commercial retail - Tesco Plc., Britain's

biggest retailer, started pre-marketing on

Monday 6th of March 2012 for an initial

public share offer (IPO) to raise about $500 by bundling some of its shopping centres in

Thailand into a listed fund. It is expected to be Thailand's biggest IPO in more than five

years; the sale is scheduled to be priced on March the 15th.


The listed Tesco Lotus Property Fund will initially feature a portfolio of 15 existing shopping

centres, each anchored by a hypermarket, a Tesco spokesperson said. The pre-marketing

will run for two weeks, with the road show slated to start on March the 20th.

The listing will comprise an international and a domestic tranche. Bank of America Merrill

Lynch, Nomura Holdings, Phatra Securities, and RBS are leading the transactions.

Residential domestic home sales – The Central Government’s approval of a Bt25 billion-

loan programme for first-time homebuyers with special repayment terms and conditions will

help stimulate Thailand’s property market and the mortgage loan business for the rest of the

year, according to Kasikorn Research Centre KRC.

Under the loan programme, the Government Housing Bank will offer first-time homebuyers a

mortgage at zero interest for the first two years if it is less than three million baht, with a full

term of 30 years.

Homebuyers with less than one million baht annual income can borrow up to one million

baht. Successful applicants are also eligible for a waiver on a mortgage fee at 1 per cent of

the loan amount and an ownership transfer fee at 2% of the appraisal price. The Bt25 billion

amount is equivalent to 8% of the new mortgage loans extended each year.

Finally, the long delayed and awaited land and property tax bill for Thailand is to be redrafted

to take into effect changes since the last general election of July 2011.

It was originally written so long ago that finance Minister Kittiratt Na-Ranong has asked for it

to be brought up to date. He said that he generally supports the main thrust of the bill but

thinks it shall not be imposed nationwide.

He has suggested that the legislation should apply only to land plots that have been

appraised by the Treasury Department since it has so far been able to evaluate land prices

for only about six million of 30 million land plots nationwide.

It is also proposed that the ceiling on tax rates that are based on appraisal prices will be

increased to make the bill flexible. The rates proposed by the previous government were

0.05% on farmland, 0.1% on residential plots, and 0.5% for commercial land. Unused land

would be subject to a 0.5% rate, with the rate doubling every three years.

The ceiling rates are quite low compared with rates imposed by other countries, according to

Somchai Sujjapongse, director general of the Fiscal Policy Office. It does not mean that local

governments will adopt maximum rates, but the effective rates would be much lower, he

explained.

Another change urged by Kittiratt relates to tax allowances. The current draft offers tax

breaks for both small and low value land plots but the new draft would offer tax breaks based

solely on value. The tax exemption would be given to farmers and residential land owners.

Kittiratt also wants a proposal to create a Land Bank scrapped.

The reason is that the central government should not take local governments revenue, said

Sujjapongse. The previous government proposed setting up the Land Bank, which would

buy land from people and then redistribute it to landless people, with the funding coming

from property taxes.


Relevant parties in the real estate industry now have a chance to put forward their views

under a consultation process and a public hearing is likely to be held before the proposals

are forwarded to Kittiratt.

Tax officials and economists have pushed for the changes for many decades without

success. Political support for the bill has been weak, as most politicians are large land

owners.

The previous government’s finance minister, Korn Chatikavanij, got the Cabinet to approve

the bill, arguing that Thailand should tax wealth to create a more just system. The current tax

system is said to be unfair to wage earners, as their wages are taxed, while the financial

assets, land and other wealth of the rich are hardly taxed.

The land and property tax will be collected by local governments and is expected to help

them get more revenue for community development.

Asia- Pacific Markets

1. Australian Market

Since 2005 and up until the first quarter of 2012 real estate prices in Australia have increased by 45 % but wages have grown more steadily at 26% and over this period 12 Australian cities are now in the 20 top least affordable communities in the world.

(Opposite left, 1B Beresford Road Rose Bay

Sydney luxury market property sold for $5

million at the beginning of 2012 but will the

luxury market remain quiet throughout the

year?).

As we enter into the second half of 2012 there is mixed news coming from the largest

property market in the Australia-Pacific region.

Residential property markets in Australia generally struggled for growth throughout 2011 and

into the first quarter of 2012 with reduced buyer activity and decreased median house prices

being recorded in all capital cities.

Data from Australian Property Monitors shows that in the first quarter of 2012 (January to

March) an expected spring revival in buyer activity failed to happen. National median house

prices fell by 1.6% over the first quarter of 2012 and were down by an average of 4.2% for

2011.

Looking further back, significant price rises were recorded in all capital cities in the 18

months between January 2009 and December 2010 as first homebuyers flooded the market

to take advantage of a government grant.

Nevertheless, rising interest rates in 2010 together with strong price growth affected

significantly, housing affordability with buying activity falling back by the end of the year.


In 2011, housing markets entered a correction phase with income growth required to catch

up with the finance requirements for home purchases, particularly at the entry level.

In addition, a mixed economic performance, natural disasters, and fragile consumer

confidence exacerbated the reduction of buyer activity throughout last year.

This year is set to be a year of recovery for most Australian housing markets, the company

says. Australia’s economy is set to grow at an above trend of 5% by the year end of 2012

according to the OECD and driven by record levels of investment in the resources sector

particularly in Western Australia and Queensland.

The demand for skilled labour will intensify because of this growth with rising levels of

immigration set to offset a chronic shortage of workers. Regional economies are set to

benefit from strong incomes growth driven by worker shortages.

All means that demand for housing is also set to intensify this year, which will see housing

markets reenergised, albeit at different levels. Capital city markets with direct exposure to the

resources sector can be expected to record significant growth in house prices over the year.

The firm predicts that in the second half of 2012 some housing markets in some capital cities

are set to revive strongly while others will remain in the doldrums despite the continued

prospect of strong economic growth in Australia.

After falling by 4.2% over the year to December 2011, national median house prices should

recover to rise between 3 to 5 % over the year.

Sydney performed best of the capitals in 2011 with median house prices relatively stable.

The city provides a solid prospect for median house price growth of up to 5% in 2012 and

currently stands at 3.9% for the first quarter of 2012.

This growth will come mainly through the lower and middle band suburbs as buyers seek to

maximise choices in a market characterised by chronic shortages of accommodation and

Australia’s tightest city rental market.

The luxury market is expected to remain quiet in Sydney year although some modest but

sustained growth in house prices may be recorded towards the end of the year from a low

base.

Melbourne’s housing market has struggled for growth in the first quarter of 2012 as it

continues to adjust to the affordability barriers created by the strong price rises of 2009 to

2010. A waning economic performance in 2011 exacerbated declining buyer activity through

2011.

The company says that Melbourne house prices should drift sideways over the course of the

year with some modest incremental growth a possibility by the end of the year. Median

house prices for the end of the first quarter of 2012 showed a 0.2% increase y-o-y.

Brisbane was the worst performer of all capital city markets in 2011, with median house

prices down nearly 7% over the year ending in December.


A significant contributing factor was the floods last January. Nevertheless, the housing

market has started to revive this year with modest median house rises of 1.8% for the first

quarter of 2012 created by the off the back of the Queensland natural resources boom.

Perth offers one of the best prospects for prices growth throughout the year with a significant

increase in buyer activity. Low buyer confidence has seen Perth’s median house price fall by

nearly 6% to the year-end of December 2011, which is almost 10% below the peaks

recorded four years ago.

The firm predicts that Perth houses prices have the potential to rise by a double-digit

percentage though out the year and are currently showing a healthy revival of up 3.2% for

the first quarter of 2012.

The Adelaide housing market floundered in 2011, with house prices on average down by

over 5% and the market is expected to struggle to revive this year. First quarter median

house prices showed at best a stagnant market with a drop in house prices of 0.5%.

While the Canberra housing market proved particularly resilient in 2011 with median house

prices down by just 1.7%.

Canberra is set to record increases in homebuyer activity as economic growth fuels

increased public service activity in the national capital. A chronic undersupply of housing is

predicted to drive prices upwards by 5% to the year end and currently medina hose prices for

the first quarter of the year increased by 2.9%.

Whilst the residential sales markets have been sluggish over the past couple of years, there

is good news on the horizon for the construction and development sectors.

Approvals to build new homes in Australia surged by the most on record in May as a number

of major apartment projects got the go ahead, providing an important boost to what had been

one of the softest sectors of the economy.

The huge 27.3% jump in approvals blew away forecasts of a mere 5.1% rise and multi-unit

approvals surged the most at a monthly rise of 58.3% and are now up by 41.5% compared

with May 2011.

Detached housing approvals were up by 9% in May 2012, but down by 8.5% when compared

to May 2011. The May result follows, a 7.6% fall in total approvals in April to their lowest level

since May 2009.

It is a rare piece of positive news for the new home building sector, according to the Housing

Industry Association, the voice of Australia’s residential building industry.

‘Building approvals were up by a sizeable 27.3% in May 2012. This result provides some

hope of an improved new home building outlook emerging in time and delivers preliminary

evidence that recent interest rate cuts may be starting to have an impact,' said HIA Senior

economist, Andrew Harvey.


‘However, we need to keep in mind that the result comes off a very low base in April and is

driven by the highly volatile multi-unit part of the market. The level of approvals in the core

segment of detached housing remains well below the levels recorded one year ago,’ he

explained.

Key factors behind the strong May result include a partial rebound in Western Australia which

saw approvals up by 24.8% in May after a 47.2% fall in April, along with a similar rebound in

South Australia.

There is also a ‘bring forward’ effect in both Victoria and New South Wales where buyers

have rushed into the housing market to secure state government home buyer incentives

before they end on 30 June 2012.

Leading indicators of housing activity over recent quarters have simply been appalling, so

today’s positive building approvals result is welcome news which comes at a time when

many builders, manufacturers and suppliers in the residential building industry continue to

face very challenging conditions,’ added Harvey.

That should be welcome news to the Reserve Bank of Australia (RBA), which holds its

monthly policy meeting next month (July), and is expected to keep rates at 3.5% following

two straight cuts.

2. New Zealand Market

(Opposite left, despite the terrible natural disasters that befell New Zealand in 2011 they were not enough to dampen the property market, which saw median growth of 3%).

New Zealand saw its residential property prices increase over the last year, with property values up nearly 3% in the 12 months to January 2012.

However, as we approach the second half of

2012 average property prices and sales in

Auckland City are soaring with the city’s real

estate market seeing its busiest May for nine years.

The market has not slowed down as it normally does as over the winter period, according to

leading New Zealand estate agents Barfoot & Thompson.

Sales for the month were the highest in a May since 2003, and were 31% higher than for the

same month last year, and up 55.3% on the previous month. Listings were up 12.2%

compared with April and up 21.6% on a year ago.

‘A significant number of new listings, keenly priced mortgage lending rates, fine weather and

a large pool of potential buyers all played their part in the level of activity achieved,’ said

managing director Peter Thompson.


‘It was our highest number of new listings in a May for five years but even this number of

new listing was insufficient to meet buyer demand, and at the end of the month we had only

4,356 homes on our books, the lowest number in five years. We ended the month with 256

fewer homes on our books than we started with,’ he explained.

The low number of new homes built in past years, coupled with Auckland’s population

growth, has created a situation where supply remains the issue, and this is reflected in the

prices being obtained,’ he added.

An average price of $582,000 is the highest average price the real estate firm has ever

recorded.

‘In 2011 the average price achieved was $543,000, and this May’s average price is 7.2%

above that,’ Thompson pointed out. The firm sold 91 homes valued at more than $1 million

in May, while a little more than half of all the homes sold were valued at less than $500,000.

‘The shortage of available housing is being felt right across Auckland, and in all price

ranges,’ added Thompson.

However, over in Wellington prices were up just 0.7% year-on-year, while in Tauranga a small rise of 1.4% was recorded.

QV research director Jonno Ingerson said: "There appears to be a little more market activity since the beginning of the year, with signs that decisions made over the holiday break are now being put into action.” “ However, potential buyers remain cautious and calculated and are often unwilling to commit quickly

The average sale price in Christchurch over the past three months has increased by 3.7%

and Dunedin has recorded an increase of 3.4%.

If you have found this guide informative then you might like to try some of our other literature

covering Thailand and the Asia- Pacific region.

Other guides available are described at the end of this guide. Alternatively, please visit our

investment library which has an ever growing number of reports, guides and other literature

which is all intended to assist you in finding the right investment opportunity.

We are also very happy to deal with enquires direct and also welcome any feedback in

respect of our literature whether it be good or bad!

~


If you have found this report informative then you might like to try some of our other literature

covering Thailand and the Asia- Pacific region.

Other guides available are described at the end of this report. Alternatively, please visit our

investment library which has an ever growing number of reports, guides and other literature

which is all intended to assist you in finding the right investment opportunity.

We are also very happy to deal with enquires direct and also welcome any feedback in

respect of our literature whether it be good or bad!

You can by contact us at Avondale Investment Management Limited. Company contact

details of which can be found by navigating to the contact page of the website at

www.avondaleinvestment.com

On the other hand, you can contact the author of this guide by e mail at either

[email protected] or [email protected]


Bibliography


Bibliography

A list of research sources

Notwithstanding, the authors own company information and local knowledge a brief list of research sources for

this guide can be found as follows:

Newspaper and magazine articles

1. The Bangkok Post newspaper articles

2. The Bangkok Quarterly Property News newspaper articles

3. The Nation newspaper articles

4. Pattaya Mail newspaper articles

5. Pattaya Mail Real Estate Monthly newspaper articles

6. Pattaya Daily News newspaper articles

7. Pattaya Peoples News newspaper articles

8. Thai Asian News broadcast news

9. Business Report Thailand magazine articles

10. Thailand Tatler magazine article

11. Property Report Asia magazine articles

12. ASEAN Affairs magazine articles

13. Real Estate Magazine – Pattaya magazine articles

Websites- Government and Financial Institutions

14. Nationwide Building Society (UK)website

15. World Bank Group website

16. IMF –International Monetary Fund website

17. BOT Bank of Thailand website

18. Siam Commercial Bank of Thailand website

19. Bank of India website

Websites-News Organisations

20. BBC 24 World News website

21. Reuters website

22. The Jakarta Post website

23. Shanghai Daily website

All other websites including blogs

24. CRB Ellis (Asian website)

25. Knight Frank (Asian website)

26. One Stop Real Estate website

27. TAT Tourist Authority of Thailand website

28. International Institute of Strategic Studies website

29. Global Post website

30. Arabian Business.Com website

31. The Russia Forum blog and website

32. Italian Economy watch blog and website

33. Jones Lang Lasalle Asian blog

34. Australian Property forum bog and website

Tony Randall

The Global Property Report 2012


Authors Biography

Authors Bio – Tony Randall - Global Property Report 2012

Tony Randall is an investment management consultant who lives in Thailand.

He is also the author of The Essential Guide to

Thailand 2013, The Property Investment Guide to

Thailand, The Essential Mini Guide to Living in

Thailand 2013, A starters guide to doing business in

Thailand and a Guide to Property and Land Ownership

in SE Asia for Foreign Nationals.

Tony has over 25 years of property industry

experience working for international property

companies.

He founded Avondale Investment Management Limited a UK based property investment

company on the 15th of September 2011.

Having spent many years exploring SE Asia he soon realised that Thailand with its all year

round sunshine, tropical beaches, fantastic cuisine, which lies in the heart of SE Asia

increasingly became his principle destination of choice.

The attraction of an affordable eastern exotic lifestyle became too great a temptation and he

relocated to Thailand where he has lived for over the past three years.

He soon also realised the potential opportunities for overseas investment in the booming Thai and SE Asian property market for investors, property buyers, overseas workers, and retiree’s, in this most beautiful of Asian countries . Aimed at the serious investor and property professional the Global Property Guide 2012,

spans all of the world’s continents, and centres on twenty one of the most popular international

property markets. The guide succinctly provides the latest up to date information on the

world’s property markets revealing the hot spots in emerging property markets and the places

to avoid.

Contact details Telephone: +44 (0) 754 2701564 UK or +66 (0) 861029556 Thailand.

Email: [email protected] or [email protected]

Website: www.avondaleinvestment.com

Postal address:

United Kingdom – Registered address

Suite 72, Cariocca Business Park, 2 Sawley Road, Manchester. Lancashire, M40 8 BB.

England


Also available by the Author


Also available

A start up guide to doing business in Thailand

Introduction

The potential opportunities for overseas investment in Thailand and this most beautiful of Asian countries is there for all to see. Thailand is an international business hub for multinationals in search of a well-developed

infrastructure, pro-investment policies, a highly skilled workforce, and strong export

industries at the centre of SE Asia.

The potential opportunities for overseas investment in Thailand can be demonstrated by its ranking as the 11th best destination for foreign direct investment in the world and in the top twenty countries for “Ease of Doing Business” by the World Bank. Therefore, it’s no surprise that for example bilateral trade between the world’s biggest economy the United States and Thailand rose nearly 13% in 2011. It is also important to note that Thailand is strategically placed as the second largest economy in the ASEAN Community and is set to benefit even more from its regional partners when ASEAN and its ten member states realise the vision of the Asian Economic Community in 2015. The ’Start up guide to doing business in Thailand’ is designed as an easy to use and quick

reference guide to the somewhat complex issue of overseas investment in a foreign country.

The guide covers the most common topics relating to overseas investment into this

fascinating country such as Getting started, Taxation, Employment Law, Visa requirements

and much more.

The guide also has many links to relevant Thai Government websites all in their translated

English language versions to assist the reader to quickly access additional information

relating to each subject covered.

Tony Randall A start up guide to doing business in Thailand


Also available

The Essential Mini Guide to Living Thailand 2013

Whether you intend to retire, live and work or just invest in the country of your choice .One of

the core consideration’s which must be taken into account, are the lifestyle options that the

particular country of your choice, can offer you?

Whatever the reason, the dream of moving to a sunnier climate and exotic life can be more

than enough incentive; to move abroad and however long you plan to stay, moving overseas

is not just about deciding what to take with you.

Put simply your entire life is about to change and the more prepared you are, the better the

relocation will go.

The Essential Mini Guide to Living in Thailand 2013 is fully updated and abridged version of the original Essential Living Guide to Thailand and offers a practical and accessible review of all the potential factors - from finances to health care and visas to property.

Packed with photographs, helpful tables, and Q and A’s the mini guide is designed to assist you with every step of the process of moving and living in this most beautiful of SE Asian countries.

Written in clear English and drawing from the experience of expatriates living in this fascinating country. The guide is easily navigated and is divided into two practical sections for ease of use.

The first section covers ‘Pre -departure Thailand ‘covers everything from visas and logistics

to customs and excise and social etiquette to the Thai Calendar and GMT time.

The second section covers in depth everything you need to know about ‘Living in Thailand’

from driving to opening a bank account to budgeting finances ,working in Thailand, to

marriage and dealing with everyday practical issues such as paying your bills. A directory of

useful contacts is also included.

The guide will help you to decide what you really want from your stay in this amazing country and is a book you will refer to again and again, as you decide how best to plan for your future.

Tony Randall

The Essential Mini Guide to Living in Thailand 2013


Also available

Property Investment in the Kingdom of Thailand

Introduction

Until now there has been few comprehensive guide books catering for international property

investors whose primary motivation is investment. This book focuses primarily on private

equity real estate investment in Thailand and secondly on SE Asia.

Much attention has been devoted in recent years to SE Asia and the ASEAN block of

member states and with the Asian Economic Community set to become a reality in 2015.

Many analysts have argued that the SE Asian countries consisting of over 620 million people

and with a combined gross domestic product of 2.3 Trillion (sterling) will become one of the

world’s largest combined economies within the next decade.

Thailand with its democratic constitution set in the heart of SE Asia and the second largest

economy in the ASEAN market is blessed with wonderful climate and a friendly culture. The

Kingdom has been a number one choice for overseas visitors for many years.

However, it is just not about the country, culture, and economy that make Thailand a worthwhile investment opportunity.

Thailand is also very affordable (approximately 35% on average cheaper than the UK) and it is no wonder that an estimated 50% of all foreign nationals who annually move to Thailand

are in particular retirees.

With traditional international property markets such as Spain, Greece, Portugal, and the

USA, continuing to underperform Thailand’s emerging private international real estate

market is fast becoming SE Asia’s number one market for international property investors.

So, if you′re planning to take your property investment to the next level in SE Asia, whether it

be finding a second home, a retirement home or looking for the unique international

investment opportunity, who should you turn to for independent advice about your

investment?

The guide to Property Investment in the Kingdom of Thailand is essential reading for commercial real estate investors as well as anyone considering buying a property in Thailand.

Nevertheless, domestic investors should find the book of interest as well, as it covers many

same issues, opportunities, and impediments foreign investors face.

The author who lives in Thailand has gained valuable insight into the Thai property market and has 25 years’ experience of working in the UK and International property development

and property investment markets.


The guide adopts a no nonsense but professional and impartial approach to Thai property

investment opportunities, exposing potential risks and benefits to ensure the selection of the

most appropriate investments.

With almost three hundred pages of information on the Thai property market, this book

provides the investor with the most up to date information on issues such as:

current property legislation for foreign nationals seeking investment in Thailand

current capital values and rental rates

investment strategies

finance strategies

economic and institutional factors as well as practical

information relating to pension advice

UK and Thai tax legislation

Non Domicile status for UK citizens abroad

No, other guide encompasses the range of information and advice contained within the book.

So before you decide, avoid the pitfalls and read the guide to Property Investment in the

Kingdom of Thailand it will help save time and money by making you aware of where the

real and safe investment opportunities are and just as importantly what investments to avoid.

UK Copyright Registration no: 284654683 10.4.12

Tony Randall

Property Investment in the Kingdom of Thailand


Also available

A guide to property and land ownership in SE Asia for foreign nationals

Introduction

The international property markets since the global financial crisis and the continuing Eurozone crisis have been in a state of variable flux for some time.

Today, investors seek the stability and simplicity of property to gain good returns on

investment.

Equities or stocks which can be volatile but despite current world economics, property is

regarded as historically stable.

Many overseas investors now see Southeast Asia as an emerging market for property

investment for potential investment opportunities, whether it be in terms of a pure investment

opportunity or second home investment. Because home ownership is so common in west,

many also want to buy their own home or otherwise control their property.

Therefore, for the potential investor, what are the legal requirements in terms of investing

and purchasing property or land in SE Asia and how do they differ for the overseas investor?

Written by a property professional and expatriate the guide takes the investor through the

complexities and potential pitfalls of investing in property in SE Asia

Covering the ten most popular property markets in SE Asia including China, the Guide to

property and land ownership in SE Asia provides the investor with the latest up to date

information for foreign nationals such as leasehold legislation, company ownership, foreign

national property ownership rights, and property taxation.

Succinct and readable, the guide is designed to assist any prospective investor avoid the

pitfalls and enjoy the benefits of investing in the property markets of SE Asia.

Note: Property legislation in Thailand is covered in depth in the guide to Property investment in the Kingdom of

Thailand and is not included within this guide.

Tony Randall

A guide to property and land ownership in SE Asia for foreign nationals


Also available

The Essential Living Guide to Thailand 2013

Introduction

Whether it is the idea of working for oneself, enjoying more sunshine or simply wishing to

spend more time with one's family, millions of us dream about leaving our 9-5 jobs and

moving abroad.

Therefore, for those of you who are considering avoiding the humdrum of the western

lifestyle and the incessant talk on mortgages, taxes, shrinking pensions, the ever-increasing

unemployment figures and the ever decreasing value of your lifestyle?

The dream of moving to a sunnier climate and exotic life can be more than enough incentive;

to move abroad .Whatever the reason and however long you plan to stay, moving overseas

is not just about deciding what to take with you. Your entire life is about to change and the

more prepared you are, the better the relocation will go.

So why Thailand……….

Well just for starters, Thailand is already one of the most popular tourist destinations’ in the

world with over 19.5 million foreign tourists visiting the country in 2012 and it’s just not the

visitors who enjoy the Thai lifestyle. Over, two million foreign expatriate’s already live and

enjoy their life in amazing Thailand.

The kingdom of Thailand lies in the heart of Southeast Asia blessed with natural beauty, its

islands are amongst the most scenic and beautiful in the world. Recognised as one of the

friendliest and relaxing countries in the world, this is a country with something for everyone.

Let us not also forget that perhaps, the most distinctive point about Thailand is the Thais.

This nation known as the ‘Land of Smiles’ deserves its name for the Thais are always

smiling, easy-going, and very tolerant of people from other nationalities. Thai people are

rightly for known for their hospitality and for being kind, warm, and welcoming to foreign

nationals.


So whether you’re are an overseas’ worker, retiree, grey gapper, taking a sabbatical, looking

for a new life abroad, an ex-pat or even looking for just a holiday home The Essential

Living Guide to Thailand 2013 is your indispensable guide to this most beautiful and

exotic part of the world.

The author, drawing on all his experience of living in this fascinating of Asian countries,

takes the hassle out of relocating by providing practical advice on every step of the process

from the initial research, visa requirements, moving your possessions abroad and finding a

home.


There is also advice on how to cope with culture shock and language barriers; and the latest

information on taxation, work visa’s, international education, lifestyle issues ,property

investment ,health issues, marriage and divorce, planning and retirement and information on

gay Thailand .

Also included are four mini guides to Thailand’s most popular holiday destinations Bangkok,

Chaing Mai, Pattaya, and Phuket and also an up to date and comprehensive directory of

over 600 suppliers, contacts, and services in Thailand.

With almost 500 pages The Essential Guide to Thailand 2013 is not only the most in-depth and indispensable guide you are ever likely to read about Thailand but it is also your key to

escaping the rat race……..

UK Copyright Registration no: 28465468210.4.12

Tony Randall



Also available

A start up guide to doing business in Thailand

Introduction

The potential opportunities for overseas investment in Thailand and this most beautiful of Asian countries is there for all to see. Thailand is an international business hub for multinationals in search of a well-developed

infrastructure, pro-investment policies, a highly skilled workforce, and strong export

industries at the centre of SE Asia.

The potential opportunities for overseas investment in Thailand can be demonstrated by its ranking as the 11th best destination for foreign direct investment in the world and in the top twenty countries for “Ease of Doing Business” by the World Bank. Therefore, it’s no surprise that for example bilateral trade between the world’s biggest economy the United States and Thailand rose nearly 13% in 2011. It is also important to note that Thailand is strategically placed as the second largest economy in the ASEAN Community and is set to benefit even more from its regional partners when ASEAN and its ten member states realise the vision of the Asian Economic Community in 2015. The ’Start up guide to doing business in Thailand’ is designed as an easy to use and quick

reference guide to the somewhat complex issue of overseas investment in a foreign country.

The guide covers the most common topics relating to overseas investment into this

fascinating country such as Getting started, Taxation, Employment Law, Visa requirements

and much more.

The guide also has many links to relevant Thai Government websites all in their translated

English language versions to assist the reader to quickly access additional information

relating to each subject covered.

Tony Randall A start up guide to doing business in Thailand

Contact:

Avondale Investment Management (UK)

Suite 72 Cariocca Business Park ,2 Sawley Road ,Manchester.Lancashire.M40 8BB.United Kingdom.

Telephone:

+44 (0) 7542 701564+66 (0) 861029556

E mail:

[email protected]@hotmail.com

Website :

www.avondaleinvestment.com