Reports of the Week

08.06.2010 14:45
Real Estate Market Analysis | Reports of the Week The portal has prepared a regular monthly report on foreign property markets most popular among Russians. May data allows the portal’s analysts to highlight the following trend. In anticipation of the summer season, interest of Russian buyers expressed towards resort markets of “warm” countries (Spain, Italy, Turkey and France) has significantly increased. Beyond the TOP-10, interest in Egypt, Greece, Thailand, Croatia and Abkhazia has also climbed up. Simultaneously, less attention is paid to “cold” destinations such as Germany, Finland and Czech Republic.

Poland: over Q1, national property prices have declined by 0.2%, compared to the preceding quarter. In Q4 & Q3 2009 the pace of depreciation was higher. Experts note that price stabilization is due to improving conditions in mortgage lending.

Related article: Housing suburbs gained pre-crisis demand

Romania: local authorities plan to increase property taxes for owners of two or more residential properties. In case if property is not rented-out, owner of an “extra” housing unit would pay 15% larger taxes for it. Tax for the second “extra” housing unit will be increased by 50%, by 75% for the third, and by a hundred percent for any other “extra” residential properties. For homeowners, who rent-out their units, tax on first and second “extra” properties will be increased by 30% and 100%, respectively, and would work out
200% for the third and subsequent units.

Greece: in Q1, Greek apartment prices have declined by 2.4%, compared to the preceding quarter. In annual terms, the decline amounted to 2.6%. During January-March, 22.1 thousand housing transactions were registered in the state. This is 8.1% less than over the preceding three-month period, but 38.5% more than in January-March 2009.

Croatia: in May, the average value of residential property in the country has decreased by 0.4%, compared to the preceding month. In comparison with May 2009, the figure has declined by 5%.

Latvia: the average apartment prices in Latvian capital have increased by roughly 1%, May-to-April. Since September 2009, when the two-year-long price decline has finally seized, and was replaced by growth, typical apartments have already appreciated by

Estonia: in Q1 the number of transactions with local apartments has decreased by 14%, compared to the preceding quarter. However, in comparison with Q1 2009, the number of transactions has climbed up by 19%.

Australia: in April, residential property has appreciated by 0.2%, compared to the preceding month. The growth was more pronounced in previous months. According to the experts, rapid price increases are not expected in short term.

Canada: June 1, the country’s central bank has increased its benchmark interest rate up to 0.5%. Analysts of Toronto-Dominion Bank expect average Canadian housing
prices to decrease by 2.8% over 2010, partly due to an increase of the benchmark rate.

U.K.: according to the Halifax mortgage bank, over May, national housing prices have declined by 0.4%, compared to April. Previously, other authoritative sources have reported of a slowdown in growth of this indicator, upon the results of the preceding month. Bank economists claim that this indicates a slowing of market activity and correlates with their assessments that, in general, over 2010 the cost of British housing will remain intact in yearly calculations.
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