News and analytical reports of the week (22-28.03.2010)

Spain: the national mortgage market grows. Thailand: local authorities continue to assist property buyers. Cities with the most expensive elite housing have been named.

Spain: in January, the number of loans granted for the purchase of Spanish property has increased by 10.9%, compared to the preceding month, while growing by 5.4% on annualized basis. This is reasoned by the record low mortgage interest rates.

Israel: in February, average prices for new housing in the country have decreased by 0.2%, compared to January. This has become the fourth consecutive month of decline in the specified indicator. Analysts note a decrease in the number of apartments bought with investment purposes. This factor has extensively contributed to a two-year-long price increases. At the moment, however, against the background of rising mortgages interest rates and the stock market the recovery, investors prefer other assets.

Singapore: Singaporean Department of Urban Development and DTZ consulting company have summed up the results of 2009 on the local property market. Over the past year, Singapore housing sales have soared by 130%. The sharpest activity on the market has been expressed by local customers.

Over Q1 2010 property sales in the city-state have multiplied dramatically, increasing by 16 times compared with the same period in 2009, and have amounted to $3 billion.

Thailand: local government has extended the program aimed on stimulating local property market up to the end of May 2010. The specified measures include a temporary lowering of property purchase tax - from 2% to 0.01%.

United States: the number of transactions completed on the secondary residential property market of the country has decreased by 0.6%, January-to-February. According to the American property professionals, the reduction in the number of sales is caused by bad weather conditions. Due to heavy snow, many transactions can not be completed.

In February, a decline in sales has also been registered in the segment of new residential buildings; the indicator has decreased by 2.2%. The buyers’ plans were once again spoiled by bad weather, analysts say.

Elite housing: an international consulting agency Knight Frank has presented a list of cities with the most expensive premium residential property in the world, as of 2009. The TOP-5 includes Monaco, London, Paris, Hong Kong and Rome. According to the last year results, premium property has depreciated by 6.3% in Moscow and by 8.9% in St. Petersburg.

Commercial property: in January-February 2010, the turnover of money on East-European commercial property market has soared by 70%, compared to the same period last year. Properties in large eastern cities, especially in Moscow, Warsaw, Budapest and Prague, attract investors’ interest most significantly.

P.S.
The number of people subject to wage cuts is growing in Greece that is currently undergoing through a debt crisis, which may prevent such citizens from making payments on mortgage loans. However, thanks to the KEG Apartments architectural office, these Greeks won’t be left without a shelter. The architects have come up with an idea to accommodate people in liquid storage tanks. Window openings may be cut in the tank’s walls. The only way to get inside such a “home” would be through the hatches in the top of the tank. Floor coverings, beds, bathrooms and other utensils will be secured to the side walls of the container.

Author: Alexey Lahov