they say is a true measure of the performance of real estate compared to the local risk
environment. Tokyo provided the highest
return in relation to bonds and has started to
be favoured by adventurous investors who are
aware of the character and risks of Japan’s real
estate markets.
On the other hand, Savills identified Hong
Kong, Shanghai and Mumbai as looking more
vulnerable to correction. Bond yields and
interest rates are seen as rising soonest in Asia
and as a result, the Savills’ report predicted
the most stress in overstretched markets there
in the short term. Meanwhile, New York and
Sydney were seen as markets with a great
scope for growth.
Also, there is a series of second-tier cities
identified for what is seen as their good value
alternatives, places that could start to rise in
investor popularity. Among them are: Istanbul,
Hanoi, Kuala Lumpur, Jakarta and Bangkok, all,
according to Savills, places to watch.
Colombians & Italians show
interest in Miami properties
While Venezuelan buyers account for 14% of
all international real estate buyers in Miami,
the local association of realtors says there is
increasing interest from Colombia, France,
Mexico and Italy. Next to Venezuelans,
Argentinians and Brazilians account for 11% of
Miami foreign sales.
Colombians now account for 8% of sales, tied
with Canadians, while the French are responsible for 5%, and Mexicans and Italians 4%
each. This is the first time Italy has moved into
the top tier.
Fully 77% of realtors in Miami say they are
working with at least one international client,
compared to a national average of 27%.
One-third of foreign buyers spend more than
USD500,000 while 11% spend USD1million
or more.
Chinese buyers, while second nationally in
the United States as foreign buyers, have up
to this point played only a small role in Miami
but with new direct flights from Asia, that is
expected to change.
German home prices increased
by the greatest amount in at
least 10 years
After only small changes over the past decade,
home prices in Germany rose by 4% in 2013,
according to a Bloomberg report, using
data from the VDP Association of German
Pfandbrief Banks.
The increase is driven by low borrowing rates
and a supply shortage in Berlin and Frankfurt,
although university towns are also seeing
big increases.
Condominiums enjoyed the largest price
increase at 4.9%, apartment buildings at 4.7%
and single-family homes at 2.6%.
Foreign investors
favour London
New York has been surpassed by London as
offering the best opportunity for foreign real
estate investment, according to a survey from
the Association of Foreign Investors in Real
Estate (AFIRE).
New York fell to second while San Francisco
came in third, followed by Houston and
Los Angeles.
But with four cities in the Top 5, the United
States continues to be seen as the most stable
and secure country in which to invest, followed
by Germany.
The U.S. also topped the chart for capital
appreciation and led in planned purchases for
2014, with almost 50% of survey respondents
planning a modest increase in their U.S. portfolio, and 20% predicting a "major" increase.
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