Appeal of Turkish Property Is Increasing to Overseas Investors

Turkey is becoming more alluring to UK buyers due to the current weakness of the pound, which is making property in traditional European hotspots less appealing. There are also a number of factors that could help boost the appeal of Turkish property even further.

The world’s largest airport is currently being planned for Istanbul, and the first phase will have capacity for 90 million passengers. It is expected the airport will be up and running by 2017. Once fully completed the airport could have capacity for up to 150 million passengers annually. The new airport is all part of the government's 2023 plan which is a nationwide program of major projects due forcompletion in time for the centenary of the Turkish Republic. 

The largest airport in Turkey is currently Ataturk in Istanbul, and it was the sixth busiest in Europe last year. Turkish Airways is planning to introduce a number of new routes during the next 12 months, and it's likely that Ataturk airport will be placed fifth this year.

The appeal of Turkish property hasn't gone unnoticed by major financial institutions, as Ernst & Young recently ranked Turkey as being the second most attractive market for investment property in Europe this year, while PricewaterhouseCoopers placed Istanbul first for developing prospects. It is still possible to buy an apartment in and Istanbul suburb for under £60,000.

At the moment Turkey is bidding to host the 2020 Olympic and Paralympic games. If it were to win this would be a huge boost for the property market as it would not only encourage more tourism, but would also lead to increased foreign investment and global recognition.

French Ski Property Still Proving a Popular Option

The ski season is now getting underway, and many resorts have already opened. This has led to an increase in the number of buyers looking to purchase property in the French Alps for use this season. One reason for this is due to the declining value of the euro, which has been especially good for those buyers from the UK.

While many purchasers are choosing to finance their purchase with a French mortgage, as interest rates are currently extremely low, a considerable percentage is choosing to pay cash. The average purchase price is around €350,000 for a two-bedroom apartment, and transaction numbers are up by around 30% compared to this time last year.

Most buyers are looking for something with two bedrooms, but they are also interested in ease of access, and properties near to Geneva airport, or those offering a relatively short commute are proving to be pretty popular.

While some buyers are choosing to purchase freehold properties with the view to letting it out while it isn't being used, others are choosing leaseback properties as these can offer a hassle-free way of owning a holiday property while earning income.

However experts to point out that it is essential to view any property purchase in France as being a long-term proposition, and to choose a place with a view to owning it for at least 10 years. During the past year property prices in France have fallen by an average of 1.3%, and there's never been a better time to buy. France is perennially popular with tourists and is still benefiting from having a relatively stable economy, in spite of the continuing euro zone crisis.

New Zealand Property Prices Increase Due to Demand

Property prices in the biggest cities in New Zealand are continuing to increase due to demand, and values are reaching new records. According to a report from the realestate.co.nz, the average asking price for a home was $611,864 in October which is a massive increase of 9% compared to the same month last year.

According to estate agents Barfoot & Thompson, the average asking price for a property in Auckland was $618,707 in October which is an increase of 5.6% compared to the previous month.

Average asking prices are also increasing nationally, reaching a new high of $445,529. Prices and Canterbury are also increasing, with the average price having reached $414,070 which is 13% higher than a year ago.

Auckland and Canterbury are the two largest property markets in the country, and seller confidence is clearly high in these areas. While prices increased in most areas, they declined in the West Coast by an average of 6.8% to reach $285,657.

Buyer activity during October was extremely high, and estate agents saw competitive bidding at auctions as demand outstripped supply. For example Barfoot & Thompson listed 1,645 new homes during October which is the highest level in 31 months, and the most for any October during the last three years.

However even this number of listings was insufficient to meet buyer demand, particularly for homes at the higher end of the market. During the first ten months of this year the company has sold 783 homes worth more than $1 million, an increase of 64.4% on the same period last year.

Brazilian Property Boom Begins to Slow

Over the past few years lending on residential property has typically grown by 50% a year, but this year lending is expected to grow by just 20% to reach s 95.9 billion Brazilian reals. This level of growth is still very healthy in comparison with many other international countries, but still represents a sharp decline on previous years.

At the beginning of the year lenders in Brazil were expecting to see the market expand by 30%, and the economy was predicted to grow by 4.5%. Now growth is forecast to be just 1.8% which is largely due to the European debt crisis.

At a local level the Brazilian property market has its own problems. In the past property development companies raised money through capital markets to launch new developments. However demand failed to keep pace, leading to rising levels of inventory. This year has seen the number of new launches reduced, with falling levels of inventory, and it's important to remember that the mortgage market in Brazil is still developing.

At the moment outstanding mortgages account for just 5% of GDP, a figure that has considerable room for expansion. Experts view the slowdown in mortgage lending as being a good thing, as slower expansion will allow a more balanced development of Brazilian mortgage loans industry.

The Brazilian economy is also expected to rebound quite strongly next year, with most economists forecasting growth of at least 3%, while some are forecasting growth as high as 4.5% in 2013. Next year it is expected that mortgage lending will continue to expand, and that demand for homes will continue to rise as more Brazilians are able to purchase a home.

Canada's Property Market Cooling Even before Introduction of New Mortgage Rules

The property market in Canada was cooling even before Ottawa introduced tighter mortgage rules. In June existing home sales fell by 1.3% compared to May, and by 4.4% compared to a year earlier. The average house price declined by 0.8% compared to June last year to $369,339. These new rules will make the market even tougher, as 16 out of the 26 markets posted a fall in sales last month.

Not surprisingly Vancouver tops this list, but four cities in southern Ontario have also reported sales declines into the double digits. The mortgage rules were introduced by Finance Minister Jim Flaherty amid concerns about rising household debt and the possibility of a housing bubble.

The new regulations mean borrowers will be allowed to use up to 80% of their property's value as collateral for home equity loans, whereas before they could have used 85%. In addition the maximum amortisation period is now just 25 years for government insured mortgages, down from 30 years. Government backed mortgage insurance will only be available to homes with a purchase price of less than $1 million. In contrast with other previously introduced rules, there wasn't any rush by buyers to complete property purchases before these new regulations came into effect.

Property prices in Vancouver have declined by 13.3% year-on-year and it is very much a buyer’s market. Property prices in Toronto have increased by 6.8% year-on-year, but the biggest gains have been seen in Calgary, with increases into double digits and sales up by 16.7%. While economists cannot agree as to whether there will be a substantial price correction, estate agents feel the decline in sales activity combined with an increase in new listings has resulted in the housing market becoming more balanced.

Property Prices in Singapore Dropped Slightly during the First Quarter

According to figures published by the Urban Redevelopment Authority, the prices of residential property in Singapore fell by 0.1% during the first quarter of 2012. In comparison the previous quarter saw price increases of 0.2%, and this marked the end of nine consecutive quarters of declining price increases. This is the first fall in prices since the second quarter of 2009.

The property prices of non-landed properties in the Core Central Region, and the Rest of Central Region dropped by 0.6%, whereas the previous quarter had seen increases of 0.5% and 0.1% respectively. Property prices for homes within the Outside Central Region increased by 1.1% during the first quarter of this year, compared to 0.6% in the last quarter of 2011.

Rental rates increased by a slower percentage compared to the previous quarter, rising by just 0.3%, compared to 0.4% in the previous quarter. The rate of increase in rentals has been falling for three consecutive quarters.

Figures show 6,903 uncompleted private residential units were launched by developers during the first quarter of 2012, compared with 4,105 units during the last quarter of 2011. Developers sold 6,458 uncompleted private residential units during the first quarter of this year, compared with 3,525 units during the last quarter of 2011.

More than a quarter of all new sales were four units smaller than 50 m². Homes priced at less than $750,000 accounted for nearly half of all new sales, compared to just 25% of sales during the final quarter of last year. Most of these homes were in the suburbs, with 82% being sold in the Outside Central Region.

US Property Market Recovery May Be Slowed by Weaker Jobs Growth

During the last three months the jobs growth in the US has been relatively weak, and is likely to slow down the recovery in the housing market. Recently the unemployment rate increased to 8.2% as businesses are still failing to hire new workers.

Last month the jobs growth was just 69,000, while at least 400,000 new jobs need to be added to the economy in order for it to be considered to be on the road to recovery. There are concerns that the worldwide economy may be slowing, and that they could be more economic troubles just around the corner, especially with the continued Eurozone debt crisis.

Historically it's been shown that property transactions usually lag behind employment gains by at least a year. At the moment first-time buyers and investors account for around two thirds of all house purchasers.

Many homeowners are trapped due to lack of equity, or have negative equity, while those who still have adequate equity are often reluctant to move due to low home prices. At the moment mortgage rates are at their lowest level ever, with a recent Freddie Mac survey showing the fixed rate for a 30 year mortgage was just 3.75%.

It could be that more people will be prompted to take the plunge during the busy summer selling period, provided they are able to qualify for a mortgage. At the moment the banks still require very high credit scores in order to obtain conventional financing.

However government backed schemes such as the FHA require lower credit scores to qualify. Certain areas of the country, especially those in the hardest hit regions are already showing significant signs of improvement. In addition job gains have been reported in warehousing and transportation, as well as healthcare.