News and analytical reports of the week (10-17.05.2010)

Bulgaria: buyers dictate their own terms on the local proeprty market. Spain: housing prices are “groping for the bottom”. Lithuania: local housing prices have stabilized.

Bulgaria: in Q1, average asking prices for apartments in Sofia have decreased by 3%, compared to the preceding quarter. The decline in home prices both in the city and throughout the country is going to prevail during a few next months, which will be followed by market stabilization, Colliers International experts predict.

Spain: According to the country’s leading appraisal company, Tinsa, in Q1, average Spanish home prices have declined by 4.6%, compared to the same period in 2009, while increasing slightly in comparison to the preceding month. Annual rate of decline has been continiously slowing down since June 2009. If this trend should prevail, the average cost of housing in the country will stabilize or even begin to grow within the next six months.

Lithuania: in April, apartment prices in five first-tier cities of the country have climbed down by 0.6%, compared to the preceding month. During 2009, the pace of decline in Lithuanian housing prices has slowed down, and the continuation of this trend in 2010 would speak for the stabilization of the indicator.

Asia: in Q1, property investments in the region have increased to $16.5 billion, the share of premium-class office space has comprised 35% of the total investment. Commercial buildings have managed to attract 14% of investment, while residential acquired 13%.

China: the pace of annual growth in Chinese home prices accelerates. In April, the indicator had soared by 12.8%. For comparison: in March, the level of annual increase in local housing prices amounted to 11.7%, while working out 10.7% and 9.5% in February and January, respectively.

Australia: the state of New South Wales has introduced a new tax on property. The tax on transfer of land ownership will be levied upon sale of land plots with residential and commercial properties on them, priced from 500,000 Australian dollars ($450,000).

Saudi Arabia: a residential area for non-Muslim foreigners is to be built on the territory of Medina, the Islamic holy city. The estimated project’s cost works out $8 billion.

UAE: in Q1, Dubai housing prices have demonstrated the first annual growth since the crisis emerged. Compared to the preceding quarter, the average cost of housing in the emirate has also increased, according to Colliers International.

United Kingdom: the new Cabinet of Ministers headed by Prime Minister David Cameron is expected to increase the tax on capital gains up to 40-50%. This means that owners of rental housing will be transferring twice more money to the state treasury than ever before.

Canada: In March, the average housing prices on the primary market of the country have climbed up by 0.3%, compared to the preceding month. In comparison with March 2009, the indicator has increased by 1.6%.

United States: in April, the number of foreclosed homes or households threatened with foreclosure has decreased by 9%, compared to the preceding month. In yearly terms, the figure has declined by 2%. According to James J. Saccacio, RealtyTrac CEO, April has become the first month of yearly decrease in the indicator, registered within the five-year-long history of such statistics.

P.S.

It's no secret that many perceive the Amazon basin area as impassable jungle and rivers teeming with piranhas. However, the modern consumer economy reaches even such remote regions. By the end of 2010, shopping centers will be built in four cities located in the tropical forests of Brazil, with populations over 300,000 people. Developers plan to build malls in three more cities of the region.