News and analytical reports of the week (05-11.05.2010)

Apartment prices increase in Riga, sales are on the rise in Tallinn. The number of transactions on the U.S. secondary housing market grows. Foreigners were allowed to buy Cambodian property.

Latvia: in March, the cost of typical apartments has increased by 2.5%, compared to the preceding month. Over the past six months the figure has soared by 17.5%.

Estonia: in March, the total number of transactions with Tallinn’s property has surged by 30%, compared to February. The number of apartments sold during the same period has increased by 27%.

Romania: apartments on the primary market of Bucharest have appreciated by 3.5%, March-to-February. Prices have declined by 0.2% on the secondary market of the Romanian capital.

United Kingdom: according to the information provided by the nation’s largest mortgage bank Halifax, the cost of local housing has increased by 1.1% over March, compared to the preceding month. The growth of housing prices is largely due to seasonal factors, experts say. A surge of activity is traditionally registered on the market in March, after the ending of winter “hibernation”.

In late March, the Russian company “Gazprom” has completed one of the two most significant transactions in the London’s West End, which is a key office market of the British capital. The total amount of space leased in London, has soared by 330% over Q1 2010, compared to the same period last year.

Ireland: Irish Minister of Finance, Brian Lenihan, claims that the Irish housing prices have stabilized and are not expected to decline any further. The stabilization was aided by the transferring of “bad” loans from the banks to the National Asset Management Agency (NAMA), the minister said. He also claims that the market situation was positively affected by the overall improvement of economic situation in the country.

US: In February, the index of pending transactions with secondary housing has increased by 8.2%. Experts claim the tax breaks introduced by the U.S. authorities to be one of the reasons behind such positive dynamics.

Cambodia: the lower house of Cambodian parliament has approved a law which will allow foreigners to purchase property in Cambodia. The law permits foreigners to own properties located above the second floor of the building. Thus, land parcels, private homes and small commercial properties are still banned for foreign purchase. In addition, foreigners will not be allowed to buy property, which is located closer than 30 kilometers to the Cambodian border. Such regulations are explained by the needs of national security.


P.S.
Last week has brought a lot of news regarding the transactions with celebrities’ properties. For example, Mel Gibson, a famous actor and director has finally managed to sell his estate in Connecticut. However, he had to reduce its price by $10 million. The specified property was put up for sale in the summer 2007, the original asking price worked out $39.5 million. In June last year, Gibson has slashed its price down to $29.75 million.

Another well-known actor, Nicolas Cage, has failed to sell his house. The initial asking price for the unit, which Cage tried to sell through an auction, amounted to $10.4 million, but bidding on it was cancelled within one minute after the start, since the unit never received even a single bid. As a result, the rights of ownership were transferred to the company which had provided Cage with a loan for the housing purchase.

A popular Russian humorist, Evgeniy Petrosyan, has purchased a New York City apartment for his daughter from the first marriage, Victoria. The price of the unit has amounted to nearly $1 million. It is said that the flat is located on the top-floor of a residential building in Manhattan. The woman had already moved in to a new home with her husband and children.