According to the latest GHPI from Knight Frank, London, which analyzes the performance of conventional homes globally, prices increased by just 0.5% in 2011 and decreased in the fourth quarter by 0.3%.
The index's fourth quarter performance has been its lowest since the second quarter of 2009. This indicates that a significant worldwide recovery to home price rise is still far from being achieved. service
There will be no reversal until the distinction between house prices and two of its key drivers - income and rents - is absorbed, as will the excessive supply of new houses built in many regions before 2008.
Prices fell in the fourth quarter of 2011 in 60% of the nations covered by the index. If this tendency continues, the total GHPI may easily be downgraded in 2012, particularly if the Asian downturn persists.
The mix of global economic instability, poor consumer confidence, and rigorous mortgage lending regulations in Europe and North America diminishes growth, while strong government cooling measures successfully reduce home pricing inflation in Asia Pacific.
The downturn in Asia has had a significant impact. In 2007, prices increased 42%, 21% and 33%, respectively, in China, Hong Kong and Singapore. Growth was -2%, 11% and 5%, respectively, previous year.
The slowdown in China has generated suspicion about probable government intervention, but Nicholas Holt, the Asia-Pacific Research Manager of Knight Frank, thinks this is implausible. "As Beijing is pressured by local governments to loosen certain of these controls, the central government seems ready to retain its property-tight policies that should keep market feelings low during 2012."
Outside of Europe and Asia, this quarter, Brazil is at the top of the rankings, with a rise in prices of 26% in 2011. This amazing achievement is largely due to a strong population increase, family income and a growing mortgage market.
The European markets hold all 12 lower ranks, with Ireland finishing 17% below. However, not all European economies are dormant. Despite the eurozone crisis, Estonia, Slovenia, Iceland, Norway, Switzerland and Germany have achieved yearly growth rates of more than 5%.
The indicator shows that the production of the global housing market is far from constant. Although in certain places there is cause to be cautious, the general trend is unlikely to be hopeful for 2012.
The deteriorating labor market in London is further driving down premium residential rent.
According to Knight Frank, the average London rental price fell by 0.2% in February. Renting has now fallen by 0.4 percent for three months, bringing average income down to levels seen in June 2011. In mid-2011, strong growth led to an annual rise of 6.7% in Q4 2011.
The last wave of rental price decreases is attributable to deteriorating circumstances in the central London employment sector, according to Liam Bailey, Head of Residential Research at Knight Frank.
"Bailey says to World Property Channel that the fast rebound in rent levels between mid-2009 and late 2011, when rentals climbed 26. 9%, was driven by a regeneration of London's key economy following the ravages of the credit crunch and a worldwide recession.
Rents regained all losses in 2008 and early 2009 until October last year and had achieved an all-time level of 1.8% over their prior March peak."
"From 2008"
For future development, continuous demand-side expansion was needed. However, when the city began losing employment in Q3 last year, demand began to decline in October "While job prospects remain gloomy in Central London, several indications suggest that landlords should be hopeful. The number of new tenant registrations grew by 23% in the three months before February last year" " "The supply has also risen, although at a slower pace. Only 13% of new property instructions increased in the same period last year" River River River River River The ratio of new applications to new directives increased in recent years from 3.1 to 3.5 and shows that business conditions are changing in favor of landlords. " The most significant portion of the market remains lower price ranges, with average rentals of £500 to £1500 per week down by just 0.1 percent between three months and February, down from 0.9 percent over £1500 per week.
"After such an important rent rise and the Christmas slowdown which occurred before and after Christmas, it is no surprising that the rents have dropped marginally over the previous three months," Tim Hyatt, head of the residential Knight Frank team stated.
Corporate employment are essential for the rental industry, but it is too early in the year to predict what rentals will be made over the following 6-12 months. Demand is continuously growing, and most of our locations report the healthiest book of instruction they have ever seen. I have no doubt that these properties will be rented quickly and rents will continue to grow as long as the town no longer cutbacks."