THE ADDRESS Magazine Summer 2014 - Page 319

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. www.theaddressmagazine.com 319