Housing gloom 'worst in 30 years'

Confidence in the UK housing market fell in March to its lowest point in 30 years, according to a closely watched survey of property surveyors.

The Royal Institution of Chartered Surveyors' (Rics) said that 78.5% more surveyors reported a fall than a rise in house prices in March. This was the gloomiest reading since Rics began the survey in 1978.

The results come after leading mortgage lenders offered similarly downbeat views on property prices. Rics said the next six months would be crucial for homeowners and would-be buyers in the UK.

Historical low

The Rics house price balance dropped for the eighth consecutive month. It exceeded the previously lowest reading in June 1990.

Jeremy Leaf, Rics spokesman, said the gloom was the result of the credit crunch and its effect in stopping mortgage providers lending to each other.

"Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight," he said.

But he added that a significant crash in prices remained unlikely and buyers with access to large deposits had the chance to get their hands on property they could not previously aspire to.

Following the trend

The survey follows March reports from the UK's two biggest mortgage lenders which reported month-on-month falls in house prices and predictions of a fall throughout 2008.
The Halifax last week reported a 2.5% fall in prices in March, the biggest monthly decline since September 1992 and the slowest annual growth for 12 years.

Prime Minister Gordon Brown and Chancellor Alistair Darling are meeting banks and mortgage lenders to discuss liquidity - widely regarded as the key factor affecting mortgage availability.

This has meant lenders are keen only to attract low-risk customers who can offer a significant deposit.

Some 49% more surveyors reported a fall than a rise in new buyer enquiries, up from 39% in January.

"Many would-be buyers are either struggling to raise the necessary finance to precipitate a move or are exercising caution in the light of current economic uncertainty," Rics said.

Falls in price

The falls in prices are particularly marked for flats and maisonettes and in certain parts of the country.

The sharpest falls were in the East Midlands and East Anglia, while slower falls were recorded in north-west England, Wales and London.

Scotland continued to buck the trend, with house prices reported to be rising slightly. The stock of unsold property on surveyors' books declined by 1.3% compared with February, but up 50% over the year.

Source: BBC News

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Boom in Moscow’s commercial real estate

Currently commercial real estate in Moscow - including offices, trade and warehouses - offer the highest yields in Europe. At the same time Russia’s regions are also becoming attractive for investors with long-term strategies.

According to Knight Frank research, despite the challenges caused by the global credit crisis, investor interest will only grow.

“The German funds, English, Irish investors - all of the people we would see in the emerging markets. I've just come from Dubai. There's a lot of interest in commercial space there, but because it's all sold strata title it's less attractive for the big investors. What we're seeing here is big funds interested in making big purchases,” said Jeremy Oates, Managing Director of Knight Frank Russia and CIS.

However, Knight Frank says rents are growing faster in Moscow than anywhere else, bar London. Consequently, rapid growth brings its own risks.

Russia's regions serve as a foil to the capital - lacking infrastructure but offering more potential.

According to Marina Usenko, Senior Vice President of Jones Lang LaSalle, in the regions it’s possible to start in almost any sphere of commercial real estate, “be it offices, retail, or logistics”.

Also, experts say investors are attracted by comfortable conditions offered by local governments.

Still, for all the attraction, the regions have fewer tenants and that means Moscow is likely to remain Russia's number one market in commercial real estate.

Source: Russia Today

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NewNational and regional housing markets soften, New Zealand

Two sets of real estate figures released last week show the property market continues to soften.

Although average house sale prices in Marlborough rose last month, both the growth rate and the number of sales slowed.

Real Estate Institute of New Zealand (REINZ) figures released on Friday showed that the Marlborough region's median fell from $350,000 in February to $311,250 in March. In March last year, the median was $325,000.

The region's figures bucked the national trend of noticeable drops in under-$400,000 properties, with sales dominated by properties at the lower end of the market.

The REINZ figures showed the national median price up from $337,500 in February to $349,000 in March, with an annual increase of 1.6 percent from the $343,500 in March 2007.

Nationally, house sales plummeted in March to 5129, compared with 6356 in February, and more than double that figure of 10,989 in March last year.

The REINZ figures for the Marlborough region showed just 84 houses sold in March, down from a figure of 99 in February.

In March last year house sales numbered 142.

Meanwhile, despite an increase in the average sale price in the region, Quotable Value (QV) figures released today show Marlborough's price growth percentages took a slide to 4.8 percent in March, down from 6.7 percent in February.

Nationally, residential property annual growth percentages also dropped to 6.5 percent in March, down from 7.7 percent in February.

The average Marlborough region sale price increased last month by just over one percent, from $363,869 in February to $368,707.

Nationally, the average sale price for homes fell to $388,894 last month from $393,240 in February, Quotable Value figures show.

"The market is continuing to soften, with more listings and fewer buyers leading to reduced demand," said QV spokesman Blue Hancock.

"While some properties or localities are selling below previous expectations, other areas continue to hold up well," he added.

Market sentiment was negative and likely to remain so through the winter months, Mr Hancock said.

REINZ national president Murray Cleland said that while confidence, especially in the bottom end of the market, appeared to have fallen, the earliest Easter in many years also had a part in the drop in sales.

Of the 12 regions covered, median prices fell in seven, rose in four and were unchanged in one, Mr Cleland said.

The unusual factors in March could not hide the fact that in many parts of the country prices were rather weaker.

The likelihood that a growing number of properties would come on the market either through bank-forced sales, or through the collapse of property investment schemes, would put more pressure on the market, Mr Cleland said.

He added that he felt median prices would be unpredictable because of the low sales.

Source: Marlborough Express

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