Ups and downs in the luxury real estate markets as usual – no one knows which end is up it seems.
Following the exciting news last month that China’s property prices rose at the second fastest pace on record – 12.4% following a record 12.8% in April, along with a 70% drop in sales volumes, which makes one wonder as to exactly what is going on - now comes the shocking news that Shanghai’s average new luxury home prices dropped 13% in July from April. It appears as though the attempts by the Chinese Government Inc to prevent another asset bubble are working/not working/ no one has a clue – depending on whether you are an analyst or a real estate agent.
Foreclosure are starting to rise in Dubai, and one of the major developers, Dubai Holding,requested and got a $555 million credit extension, making one wonder also what is going on in the Dubai property market. “Things in Dubai seem as dire as ever, the crash continues to take its toll with the amount of foreclosures in Dubai still climbing and developers struggling to stay afloat. The latest news fro Dubai concerns Dubai Holdings subsidiary, the Dubai Holding Commercial Operations Group, which has just been granted a two month extension to their revolving credit facility of $555 million.”
The UK market is struggling along, with sales levels at almost record lows, but prices hanging on in there and some London agents claiming big sales to foreign investors. In fact, speaking of China – this seems to be where the government Inc subsidies are headed. Instead of investing in Chinese luxury property, the wealthy recipients of the bailouts are headed off to Hong Kong or London, and according to the People’s Daily, “Chinese investors spent approximately 170 million pounds ($260 million) buying up newly built properties in central London in the 12 month period ending March 2010, driven by a weaker pound and tightened real estate policies at home.” How about that – and according to the Land registry, prices have indeed increased in Kensington as the rest of the country loses value.
London Luxury Property Prices
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Although the recession has effectively been over for while, many expected property prices to work their way up to the heights of two years ago. This certainly hasn’t been the case in many areas of the UK and many other countries across the world have struggled to overcome the recession.