House Prices Bubbles Update

The Economist has just published its annual Global House Prices survey, noting that average prices in Australia have jumped by 18 per cent in the year to September 2010, as a result of China’s thirst for minerals and an appreciating currency. It also argues that prices in Spain have been kept artificially high by government action and property is overvalued by 46 per cent (Australia’s market is overvalued by 63 per cent!)

Other poor property investment locations include Hong Kong, France and the UK, which is 32 per cent higher than ‘fair value’, according to The Economist. Best value, it says, can be found in Germany, Japan and the United States, which are all under-valued.

Ireland saw the largest price falls in the past year, dropping 17 per cent, but property in the country is still over-valued, says the survey. China’s real estate appreciated by 9 per cent, whereas Singapore saw the largest rises overall, up 23 per cent. The Chinese government has taken further steps this year to cool the housing market, by raising interest rates and obliging buyers to pay higher deposits.

The survey does warn, however, that just because properties are undervalued, this does not mean that they are bound to rise. In Japan, where homes have been way below their long-term average for some years, there was a further fall in 2009-2010. Even though some experts think that the US is the most attractive location for property investment, The Economist warns that there could be further trouble ahead with banks foreclosing on delinquent loans and people with negative equity reneging on their mortgages.

Germany, at 13 per cent under-valued and with a buoyant economy, stable government and some nice lakes and mountains, may be the best bet overall.

Original comment can be found at House Prices

This site is written and contributed to by property professionals from inside the UK House Building Industry.
That's right, we're developers - hated by all for our unwavering pursuit of profit and demonic need to concrete over the UK's greenbelt.
You may well wonder why we (as opposed to estate agents) are best equipped to advise you on the subject of selling property?
Surely our expertise lies in knowing how to buy land, put together development proposals, navigate the planning process and build identikit housing estates?
This is all true but it misses the one key point that our core goal (like yours) is to sell property for the highest possible price!
Just like you we also have to deal with flaky buyers, shoddy estate agents, slow solicitors and inept mortgage brokers.
The difference is, we do it on a daily basis and as such have become masters of managing the process.

Ashton House, Cornwall Avenue, London, N3 1LF

This release was published on openPR.