News and analytical reports of the week (25 – 31.01.2009)

Israel, Canada: housing prices approach their peaks. Bulgaria: The rate of decline in housing prices slows down. United Kingdom: local property may depreciate in 2010.

USA: Over November, Standard & Poor's/Case-Shiller Index of home prices in 20 major US cities, has climbed up by 0.2%, compared to October. Improvements in this indicator have been registered in 14 out of 20 cities. For comparison: in October, monthly growth in home prices has only been recorded in 11 of 20 first-tier US cities.

Private home sales on primary market have decreased by 7.6%, December-to-November. Over the same period, sales of homes and apartments on the secondary market have plummeted by 16.7%.

ISRAEL: In December 2009, the value of primary housing in the country has climbed down by 0.8% compared to the preceding month. Over November, monthly prices have declined by 6.1%. For the first time within the last two years, prices for new homes in the country fall continuously during two months, the rate of decline, however, gradually slows down. This has allowed experts to claim that the value of Israeli residential property has reached its peak. In addition, over December, the number of transactions on the national primary housing market has plunged by 14.6% compared to the preceding month.

CANADA: In November, the cost of residential properties on local housing market has climbed up by 0.8%, compared to the preceding month. Currently the price index is only 0.1% below the peak rates of August 2008.

BULGARIA: In Q4, the cost of apartments on the local secondary market has decreased by 1.9%, compared to the preceding quarter. Flats have been appreciating over the whole year 2009, however the pace of price decline has been slowing down each quarter.

FINLAND: Over Q4 2009, the value of secondary residential property has climbed up by 2.8%, in comparison to the preceding quarter, while increasing by 2% in the segment of new buildings. Prices in these segments have been also increasing throughout Q3.

UAE: The value of Dubai residential property has increased by 0.7%, in Q4 2009, compared with the preceding quarter. The UAE-largest realtor company, Asteco, also notes that, over Q4, Dubai housing prices have stabilized.

UK: In January, the value of local residential property has increased by 1.2%, compared to the preceding month. However, British analysts, economists and realtors agree that the vast majority of British property will depreciate by an average of 10% throughout 2010. Luxury property will probably become the only exception from the forecasted trend.

ESTONIA: In Q4, the number of apartment transactions in Tallinn has soared by 25%, compared to the preceding quarter, while increasing by 10% on annualized basis. Most transactions in the central part of the city have been concluded with properties in the price segment of €650-1300 per a sq. m. On Tallinn's outskirts, apartments worth €580-830 per a sq. m. have been selling the best.

EGYPT: The annual tax, which was supposed to come into effect in this country on January 1, 2010, has not yet entered into force. Egyptian authorities say they need time to establish the agency, which will assess properties and calculates the tax amount.

OFFICE PROPERTY: London's West End has occupied the first place in the list of world’s most expensive office markets in 2009. According to the DTZ agency, in 2009, the annual cost of one office space (which includes the cost of rent, operating costs and taxes) in the West End has worked out $21,420.

P.S.
Residents of the Halifax city, located in the Canadian province of Nova Scotia, have managed to litigate the increase of taxes imposed on their property. The fact that ATVs regularly drive close to their homes, which leads to a decrease in their properties’ value has become the main argument. The tax is calculated exactly on the basis of residential properties’ valuation.

Author: Alexey Lahov