Tag Archives: asian
Switzerland has seen sustained prices growth but it now slowing due to cooling measures
Switzerland has seen sustained levels of residential property market growth between 2008 and 2013 with house prices up 28%, the opposite of what has happened in many other European markets. Economic expansion, low interest rates, growth in real wages and immigration of wealthy individuals have all supported housing demand. The strengthening Swiss franc also raised their price in comparison to other currencies, according to a new analysis from international real estate firm Savills. However, price growth is now slowing, amid government efforts to cool the market by introducing stricter lending requirements. ‘The decoupling of the Swiss franc with the euro has seen its value appreciate and make Swiss exports more expensive, slowing the economy in general. Foreign buyers with Swiss franc denominated mortgages have been especially hit,’ said Yolande Barnes, director of world research at Savills. The report points out that Switzerland has one of the world’s strictest citizenship systems. Qualification requires 12 years of permanent, legal and notated residency, fluency in one of the official languages and integration into Swiss culture and community. On top of this Switzerland introduced new quotas for European Union citizens in 2013. Foreign buyers are also heavily restricted on residential property purchase with just 1,500 permits released a year, although the rules vary significantly by Canton. In Geneva the emphasis is on the rental market with some 80% of the population of the city doing so and the rental market is strongly pro-tenant, the report explains. ‘Geneva is an expensive city in which to live and there is especially strong demand for city centre apartments which are in short supply,’ said Barnes. Demand is fuelled in part by employees of the finance and business services sector on generous relocation packages, the report shows. Property prices in Geneva have grown 55% since 2006, compared to 27% across Switzerland. ‘These rates of growth are echoed in the rental market. High prices have put property purchase and even rent out of reach of many locals in Geneva, which counts itself alongside Zurich and Zug as one of the most expensive locations in the country. Each day 90,000 workers commute from neighbouring France to the city, a number that has doubled over the last decade,’ Barnes explained. ‘For those who can afford it and, non-nationals who can obtain a permit to purchase, Geneva offers attractive property in a safe, secure environment. The most desirable property enjoys lake or mountain views,’ she added. The report also looks at what is happening to property prices in the Swiss Alps which attract second home buyers from across the globe. The Swiss Alpine resorts of Gstaad, St Moritz, Zermatt and Verbier are among the world’s most exclusive, and expensive, with ultra-prime prices ranging from €20,000 to €30,000 per square meter. The report explains how these resorts have diversified beyond skiing to cater to many of the other demands of the super-rich. Designer shopping, Michelin starred restaurants and polo are all part of the offer. These… Continue reading
Outer London prime property becoming attractive to buy to let investors
UK buy to let buyers are taking advantage of attractive mortgage rates and a thriving prime property market in outer London, especially new build schemes, it is claimed. Properties in this sector offer greater returns than the prime central London real estate market, according to London estate agent Fraser & Co. An example is Mrs Busby, 43, who bought a two bedroom property with her husband as a buy to let investment in the Aqua new build development in Finsbury Park. ‘The area is currently undergoing a 20 year regeneration plan, which makes for a promising long term investment,’ she said. ‘We looked at other developments in the area, but Aqua proved best value for money when considering the quality and its position overlooking the West Reservoir which meant it can’t be obstructed by any new buildings,’ she explained. She added that another attraction was that the property was part of a smaller development of just 82 apartments. ‘Being part of a smaller development creates healthy competition that will only benefit our property by increasing the re-sale profitability,’ she pointed out. The couple are establishing a property portfolio as part of their pension scheme and are taking note of the investment potential outside of prime central London. They felt that the area offers good transport links and new builds tend to be the safer option as most come with warrantees and require little maintenance. Robert Fraser, managing director of Fraser & Co, said that for years the buy to let market was dominated by Asian buyers but now more domestic buyers are showing interest in capitalising on the greater return on investment of property available in outer zones. ‘Where there is redevelopment and good transport links to central London, there is significant growth potential. While Aqua is benefitting from the regeneration going on in Finsbury Park town centre and at Woodberry Down, Rotherhithe is experiencing a double ripple effect from Canada Water and London Bridge, making Anchor Point equally attractive,’ he explained. He pointed out that last month, Southwark and Hackney experienced asking price growths of 5.6% and 4.1% respectively compared to Kensington and Chelsea and Camden which experienced either zero or negative growth. ‘As buy to let mortgages become more appealing, we expect to see domestic investors nipping at the heels of their international counterparts, allowing areas in zone 2 to continue to thrive and extend out towards zone 3,’ he added. Continue reading
