With the global residential market expecting a brighter outlook in 2013, some international property hotspots are beginning to emerge. In a recent report in My Paper, property analysts recommended several destinations that could provide lucrative investments to Singaporeans.
First on the list is London, UK, regarded as a safe haven for property investment despite the decline in prices in past years. However, a report from CBRE revealed that average values of homes in prime central London have risen 12.6 percent since 2012.
“The prime market is swelling in size,” said Jennet Siebriets, Head of Residential Research for London at CBRE.
“Prime values can now be achieved across a greater area, with selected developments breaking local price ceilings in areas such as the City, Canary Wharf, the Southbank and even in areas like Vauxhall.”
Over in the US, New York and Miami were named the best places for property investment. Most analysts expect the US property market to fully recover and prices to rise in Q2 next year.
According to financial institution UBS, national house prices could move up four to five percent annually in the next few years.
Meanwhile, Madrid in Spain is regarded as a vibrant commercial centre, given its lively tourism and exotic culture.
Ong Kah Seng, Director of R’ST Research, recommends investors to purchase units in high-activity areas. They can also engage the services of established letting agencies to help manage and lease their apartments to tourists.
“Attaining a loan from the local authorities may be very difficult at this juncture, as the national banking system is filled with poor-performance loans and defaults, so make sure that you have ample cash,” he noted.
Nearer to home, Jakarta has surprisingly topped other more established markets in the Asia Pacific region, according to a recent survey by the Urban Land Institute and PricewaterhouseCoopers.
Colin Galloway, the report’s author cited the striking turnaround in Indonesia’s capital in recent years, which could signal bright prospects for investors.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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