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Hottest property markets in the world this year
Given the tough economic conditions in the Euro-Zone and economic uncertainty globally, which property markets are looking bright for 2013? London and New York, the economic powerhouses and most established markets in the world continue to provide the best safeguards for property investment, but are there any alternatives besides these "safe havens"? asks IP Global.
Let's take a look at some of the hottest property markets in the world, based on IP Global's Property Barometer of 2012.
Source: IP Global
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Hottest property markets in the world this year
Istanbul, Turkey
How hot? Very hot
Turkey is expected to be the fastest growing economy in the Organisation for Economic Co-operation and Development by 2017, with an annual average GDP growth rate of 6.7 per cent.
A revision to Turkish property law announced in May enables the citizens of 183 nations to own property in Turkey now, opening the market towards cash-rich investors from Russia and the Gulf for the first time.
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Hottest property markets in the world this year
Perth, Australia
How hot? Very hot
Located in the resource-rich state of Western Australia, Perth's relationship with the mining sector continues to underpin GDP and employment growth and the city's residential property market has been growing along with the broader economy.
Apartment prices have grown 12.73 per cent year-on-year as of September and apartment rents are up 20.83 per cent for the year.
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Hottest property markets in the world this year
Boston, United States
How hot? Very hot
The Boston market is rebounding quickly, with median price gains of 5.3 per cent so far in 2012, with prices now only about 5.6 per cent below their 2005 peak and vacancy rate below the national average at 3.6 per cent in the third quarter.
Benefiting from a strong local economy supported by growth industries such as technology, education, healthcare and bio-tech, Boston's property market has recovered much faster than most other US cities.
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Hottest property markets in the world this year
Ulan Bator, Mangolia
How hot? Somewhat hot
Driven by the boom in the mining industry coupled with the increasing influx of international capital, the Mongolian economy is forecast by IMF to grow by 12.7 per cent and 15.7 per cent respectively in 2012 and 2013.
In Ulan Bator, there has been a rapid increase in the number of wealthy local Mongolians and expatriates attracted to the area by employment and stronger economy.
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Hottest property markets in the world this year
Paris, France
How hot? Somewhat hot
New president Francois Hollande's proposed roll out of higher taxes on capital gains and rental income have caused many wealthy Parisians to seek refuge abroad, most notably in London.
As a result, luxury home prices fell 3.4 per cent in the first half of 2012 and demand slowed down. Many investors see the declining prices and a weak euro as an opportunity to seize up prime Parisian properties on the cheap.
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Hottest property markets in the world this year
Los Angeles, United States
How hot? Somewhat hot
In the first nine months of 2012, the median home price in Los Angeles has increased 4.2 per cent, but still 38 per cent of its pre-recession peak. Completions will increase signicantly next year pushing up the inventory level. Risks remain, however, as high unemployment and the amount of "shadow inventory" remaining could continue to weigh down the market.
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Hottest property markets in the world this year
Coastal Spain
How hot? Cloudy
Last year saw Spanish property prices continue to decline, highlighted by a 9.5 per cent year-on-year price decrease in September and nationwide home prices are now nearly as low as 2002, erasing a decade's worth of equity for many homeowners.
Coastal regions of Spain, especially popular tourist destinations, were overdeveloped during the boom years. Banks eager to reduce real estate exposure, are now offering foreclosed properties at high discounts, which has further depress the market. With a dire economic outlook in 2013, highlighted by 25 per cent unemployment in Q3 and a minus 1.3 per cent GDP growth forecast, investors would be wise to avoid the Spanish market.
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Hottest property markets in the world this year
Miami, United States
How hot? Cloudy
The Miami market has some signs of life in 2012, with 10 consecutive months of price appreciation amid high transaction levels boosted by overseas buyers. Condominium prices increased 36.2 per cent year-on-year as of September.
However, the Miami metro area ranked in the top 10 cities with the highest foreclosure rates in the US, with an 11 per cent increase in foreclosure filings in Q3 (year-on-year).
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Hottest property markets in the world this year
Singapore
How hot? Cloudy
Resale prices of private non-landed homes in Singapore increased by 3.2 per cent in Q3 of 2012, according to the latest data from the Singapore Real Estate Exchange, while price of new units fell 2.2 per cent over the period.
The introduction of the Additional Buyer's Stamp Duty and other government measures intended to cool the market last December has clearly had an impact on the market.