The Global Property Guide has issued its latest global survey on the worldwide real estate market. Figures for the year ended June 2016 make for very interesting reading on the upside and downside. Whether you are a contrary investor, looking to buy property markets which have shown weakness, or you follow the trend, buying into markets which are relatively strong, there are options aplenty. So, which markets caught the eye to the year ended June 2016?
Chinese property market
It may surprise some people to learn that Chinese property prices increased by just over 20% in the 12 months to the end of June 2016. At a time when the Chinese property market is facing severe criticism from property investors, due to perceived monetary policy issues, it seems that property prices have rebounded. There is some concern that Chinese authorities have manipulated performance data in the past and an increase of over 20% in property prices does not seem to fit the headlines the market is currently attracting. However, as and when the Chinese economy does turn upwards there will no doubt be a rush of demand for property with perhaps limited supply.
New Zealand property market
We recently covered the New Zealand property market which increased by 10.43% over the period in question. For many years New Zealand has been seen as the poor cousin of Australia but demand for New Zealand real estate has increased dramatically of late. There is a suspicion that much like Australia the larger increases in New Zealand real estate prices are centred round a small group of major cities, but there is no doubt the market in general is more popular than ever today. It will be interesting to see if this performance continues in the short to medium-term and whether price rises do begin to spread out towards the smaller cities, towns and villages.
Romania property market
When you bear in mind that the European Union is under enormous pressure with the UK set to leave it is surprising to see the Romanian property market doing rather well. This has been seen as one of the more speculative markets of Europe but a 10.1% increase in prices is worth looking into. It is also worth noting that property prices in Romania are still well below their 2008 high and gradual rather than explosive growth is forecast for the short to medium term. The mortgage retail market has also been extremely strong although subtle changes by the Romanian authorities over the next few months could dampen short-term enthusiasm.
German property market
German property prices have increased by 9.89% over the last 12 months which is very impressive when you bear in mind ongoing problems within the European Union. Any further improvement from this position will partly depend on the performance of the European economy but there does seem to be very strong corporate demand for German real estate. Indeed there is a suspicion that relatively low transaction figures are masking this strong demand due to supply issues. Germany would not be the first country in Europe to hold back on supply during these difficult times, a policy which has historically helped to support real estate prices at least in the short term. If the EU economy does recover then Germany will no doubt benefit but what if the EU economy continues to struggle?