London, New York and Kuala Lumpur named as top three property hot spots

It says that the London property market is being fueled by international investors with 5% growth forecast for 2012 while New York is perceived as a safe haven with prices still 20% below their peak.
It adds that Kuala Lumpur leads the way in the Far East, with average price increases of 5 to 24% and says there is encouraging activity in San Francisco, Brisbane, Perth and Istanbul.
The leading property investment company which specialises in securing prime investment opportunities in 20 emerging and developed markets around the world, categorises markets as ‘Bright’, ‘Fair’ or ‘Cloudy’.
The report places established hubs of London, New York and the emerging city of Kuala Lumpur in Malaysia rank as IP Global’s top three hubs to watch in the ‘Bright’ section, with San Francisco, Brisbane, Perth and Istanbul interesting ‘ones to watch’ or Cloudy’. Troubled cities to avoid are listed as Athens, Hong Kong and Prague.
With strong growth forecasts of 5% for 2012 and 23% over the next four years, prime London property continues to attract foreign investors and top the rankings. Sales volumes increased 85% over the last year, as a result of 11% price growth and rental demand remaining strong.
The report points out that rental forecasts from Savills indicate growth of 4% this year in Greater London, but the strongest growth is expected in smaller properties that are less centrally located. According to Jones Lang LaSalle smaller flats saw rental growth of 17.1% during 2011. Demand will continue to be highest here, as tenants seek better affordability during 2012, says IP Global.
 
Amid economic uncertainty in Europe, the Middle East and Asia, New York City is again, a destination for those seeking a safe haven. The New York market is experiencing renewed interest from cash rich investors looking for real estate opportunities with prices still 20% below their peak. According to the Association of Foreign Investors in Real Estate, New York has been ranked for a second year running as the top city for foreign investment for 2012. Manhattan rents jumped 9.5% in the fourth quarter of 2011 as demand increased on the back of mortgage lending standards remaining strict and supply of residential stock stilted.
Malaysia’s economy grew by a rate of 5.3% in 2011, and additionally, having recently been ranked the 3rd most open economy in Asia by Nomura Research and 18th in the World Bank’s ease of doing business report, Malaysia will likely continue to be a top destination for foreign direct investment. Amidst this continued growth and diversification of the Malaysian economy, the property sector has continued to deliver strong returns to investors nationwide, with the greater Kuala Lumpur region leading the way with average price increases of 5 to 24%.
Furthermore, Paul Nixon, president of the Malaysia Institute of Estate Agents (MIEA) states that Malaysia’s real estate market compares favourably to other countries in South East Asia, particularly considering that residential property is one of the most affordable in the region relative to income. IP Global continues to see this market as a strong investment opportunity during 2012.
The report also says that after posting strong rental growth of 14.8% last year, San Francisco is also expected to remain among the top 10 markets in effective rent growth in 2012.
In Brisbane, after price falls in 2011, the outlook for 2012 is much stronger with many analysts predicting growth of between 5 and 10% on the back of the Queensland resource boom in surrounding areas such as the Surat Basin.
IN Perth, according to the APM Annual State of the Market report, the continuing low levels of construction and the $100 billion of mining activity in the area will lead to house price increases of between 5 to 10% in 2012.
The report also says that foreign direct investment into Istanbul increased by 27% in 2011, a clear indicator that Istanbul is already becoming a popular property hot spot.

 

Text and photo: http://www.propertywire.com

15.03.2012, Real Estates