News and analytical reports of the week (11-17.01.10)

Canada: new home prices rise for the fifth consecutive month. Berlin has been named the most liquid property market in Germany. Cyprus: property sales on the island have increased by 22% in December 2009, year-on-year.

In December, the value of residential property in 70-first-tier cities of China has increased by 7.8%, year-on0year, which has become the highest level registered since July 2008.

Over November, the cost of new housing in Canada has climbed up by 0.4%, compared to October. This figure has been growing consistently since July. Experts believe that prices on the primary market rise due to increasing costs on construction materials and labor.

Upon the results of 2009, the volume of transactions with residential and commercial property in Berlin has amounted to €2.3 billion, for comparison: in other major cities of Germany - Munich and Hamburg - the volume of deals concluded over the last year has amounted to €480 million (in each city). €560 million have been allocated in Frankfurt and Dusseldorf. This has allowed the specialists of Engel & Völkers company, to call Berlin the most liquid property market in Germany.

According to the results of 2009, asking prices for Estonian apartments have plunged by 23%, from €1.3 thousand down to €1 thousand per a sq. m. Over the year, the cost per a square meter on Tallinn’s apartment market has decreased by 19%, down to €1.3 thousand.

Over 2009, the average price of New Zealand’s residential property has climbed up by 2.8%, compared with 2008, to 404.7 thousand New Zealand dollars ($299.6 thousand). The sharpest increase has been registered in the city of New Plymouth (7.1%).

Last year, nearly 2.8 million U.S. households have received a notice of possible eviction upon the basis of mortgage non-payment. Such figure has become a record for the country. The number of such households might increase over the coming year.

In December 2009, Cyprian property sales have soared by 22.3%, compared to the same period of 2008, up to 763 transactions. However, in comparison to November the figure has decreased by 3.7%. Totally, 8170 properties were sold on the island over 2009, a 44%-large increase in comparison to last year.

Over 2009, foreigners have purchased 13% fewer flats in Israel than in 2008. Totally, 2.8 thousand apartments worth 4.3 billion shekels (€802.7 million) were purchased by foreigners over this period.

Hundreds of British citizens have arranged a protest action against the upcoming demolition of their homes in the Spanish province of Almeria. Due to the corruption of local mayors and developers, municipalities have been issuing permits for construction on land, which has been allocated for agricultural purposes by the regional government of Andalusia (Almeria is a part of this autonomous community). At the moment, regional authorities are trying to return this built-up land. The situation is compounded by the fact that illegally built homes were bought by thousands of foreigners, mainly - by the British.

In November, the volume of Slovakian construction has increased by 13.7%, with seasonal adjustments, compared to October, up to €542 million. However, in comparison to November 2008 the figure has plunged by 13.9%.

Over Q4 2009, investment indicators of the Czech commercial property market have reached the highest level within the past 15 months. €280 million have been totally invested in the national property over October-December.

During the last year, the volume of investments in the UK shopping centers has soared by 42%, compared to 2008, up to £2.06 billion (€2.31 billion). Deals worth £400 million (€ 448.7 million) are currently pending on the stage of discussion.

P.S.
A beach house with a broken window, missing door and sagging roof, located in the British county of Suffolk may be put on the market for £40 thousand (€45 thousand). Dimensions of the property are as follows: 1.5x2 meters. There is no access to water, gas and electricity networks, thus the house is unsuitable for overnight stays. Pretty high price of the property is reasoned by the fact that it is located in the prestigious area of the Southwold town.

Meanwhile, the nation’s “skinniest” home has been sold in New York, U.S. The width of the townhouse, where a number of famous personalities had formerly lived, works out barely 2.8 meters. The property has been sold for $ 2.1 million.

Author: Alexey Lahov