How Global Home Prices Are Faring - Housing Tracker

Global Home Prices

U.K. Homebuilders to Cut Tens of Thousands of Jobs. “Home Builders Federation: U.K. homebuilders will cut tens of thousands of jobs as the £19 billion ($37B) industry grapples with the worst housing slump in more than a decade. Homebuilders Federation President Stewart Baseley: “There isn't a builder in the land who isn't considering overheads and job losses.'' Job losses “will be in the tens of thousands. I've never seen a downturn escalate as quickly as this.” Taylor Wimpey Plc, Britain's biggest homebuilder, may eliminate 600 jobs and Persimmon Plc, the second-largest, has postponed work on new developments.” (Bloomberg, May 21st)

Residential Projects Register A 25% Slump. “New Delhi, India: Till recently, houses were selling like hot cakes… [Now] residential projects are feeling the heat of the US subprime crisis and poor market sentiments. The most hit is the North India property market with project sales witnessing a steady dip in transaction volumes. New project launches and even [existing] ones… are not finding enough buyers. Royal Bank of India: For 2007-08, growth in bank credit in housing has gone up from Rs 2,24,758 crore to Rs 2,51,668 crore, an increase of just 11%. Compare this with bank credit growth in FY07 and FY06 that stood at 24.72% and 38.31%, respectively. (India Economic Times, May 21st)

French Housing Holds Steady In Face Of Subprime Crisis. “[In 2006-2007], some buyers camped out to snap up apartments as soon as they were released… on the Île Seguin Rives de Seine, [near] Paris. Today, they are not lining up overnight, but sales are still brisk - more than 800 of 1,100 already on the market have been sold… Plans are for a total of 5,300 apartments by 2010, in addition to offices, parks, [and] at least 70 restaurants or retail outlets… French federation of real estate agents: March prices were up 0.1% from February and 2.5% from March 2007 despite regional variations. S&P recently forecast house price inflation of 3% in the medium term.” (Int’l Herald Tribune, May 19th)

Decelerating Demand. “Poland's residential market has entered a period of relative stabilization after three years of rapid growth… The supply of new homes has outpaced demand… While a record number of units were completed in 2007, in H2’07 developers had difficulty selling them… From 2005-2006… the country saw a massive inflow of foreign capital… International investors, both individual and corporate, recorded considerable yields even after the US mortgage crisis and market downturns in Spain, Ireland and the UK had occurred. Now… the majority of speculative investors [have withdrawn]. Spanish and Irish investments in Poland may now be affected by poor conditions on the developers' home markets.” (Warsaw Business Journal, May 19th)

Movie King Hanks Looking For A Slice Of Castle Luxury. Ireland: “Hollywood A-lister Tom Hanks is rumoured to be keenly eyeing up one of the multi-million euro residences on the historic grounds of the 12th century Kileen Castle in Co Meath. The exclusive homes will be situated within private woodlands on the spectacular 600 acre estate and developers have employed state of the art facilities to ensure the dwellings are nothing less than fit for a king… Wealthy homeowners who are lucky enough to secure one of the choice properties… a number of which are reported to cost an estimated €9 million, will have their every need catered for by a 24-hour concierge service.” (Independent.ie, May 18th)

'Israel Is Still A Hot Market For High-End Real Estate'. “The current crisis that started with the sub-prime fiasco has [affected] real estate prices all over the world. It is now possible to buy real estate for rental purposes at prices that are lower by up to 20% from a year ago, and I believe prices will fall more… With regard to Israel, I do not think that it will affect prices, at least not to the extent they are being affected and falling overseas. The real estate industry in Israel is resistant to sharp falls in real estate prices, and demand from overseas Jews who want a foothold in Israel further bolsters prices.” (Jerusalem Post, May 18th)

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Comments

[Xingonghua:]

Real estate in Chennai and Bangalore have peaked that of Newyork 200$ per sq. ft in some places.

But there is no buyer or renter..... Many houses are vacant in bangalore as people can't pay exhorbitant rent

2008 Jul 15 04:04 AM