Dubai, once the location of the biggest construction boom, is now the scene of the world’s biggest property slump according to London’s Knight Frank estate agency. The first three months of 2009 saw house prices drop by 40%. A year ago Dubai was seeing house prices spiraling upwards on an annual growth rate of 48%. The boom spawned developments such as the Palm Jumeirah and Burj Dubai, the world’s tallest tower.
The global turn around in house prices has been remarkable. Singapore, the nation worst hit by the collapse in world trade saw the second biggest decline of 16.2%. The UK in the last 12 months saw a decline of 16.5%, whilst in Germany prices fell by just 1.5% last year. Finland saw an increase of 4% over the first quarter, whilst Jersey in the Channel Islands saw a 5.6% increase with foreigners taking advantage in the fall of the Sterling.
We are currently sourcing opportunities with reputable brokers in Phoenix, Las Vegas, and Southern California, with San Diego being our favoured city. Most deals will be negotiated directly with lending Institutions. Texas also offers excellent opportunities in the apartment and hotel sectors. Stay tuned.
House prices still low in snowbird states
Bank of Montreal Financial Groups recent report ( October 2014 ) says that US snowbird destinations are still below peak levels seen in 2006.Overall in the past two years housing prices have increased by 20 %, but are only about half way to the peak levels of 8 years ago. For example homes in Miami are down 52 %compared to 2006 prices, Las Vegas homes down by 43 %, and Phoenix by 30 % The average home price in Florida which remains the most popular state for Canadian buyers is $ 124,000. more than 500,000 Canadians own homes in Florida. With a tightening rental market, it makes more sense for Canadians to buy rather than rent just for the winter!
Canada’s US Land Grab
Canadian Institutions are on a buying spree south of the border. There appears to be just less and less available to buy back home. According to PricewaterhouseCoopers LLP Canadians have bought US 27 Billion more in US property than Americans have purchased here over the past four years. According to a CB Richard Ellis the entire amount of commercial activity in Canada in 2013 was $ 26 Billion, making the US real estate investment impressive by comparison. Canadian investment in the US comprises firstly of office buildings, followed by apartment buildings , and industrial space,. Long term it is becoming more difficult for companies like RioCan and pension funds to grow in the Canadian market place says its CEO Ed Sonshine. The US market size is 12 times bigger than Canada. Canadians remain the largest investors in the US market.
Montreal based Ivanhoe Cambridge acquired $ 2.25 Billion, 42 storey office tower at 1095 Avenue of Americas from Blackstone Group LP in November, 2014 ( Globe & Mail 19th Nov, 2014 ) The building is said to have been acquired at a capitalization rate of 4.5%