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3 major property market changes to expect this year

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It's really no surprise that with the start of a new year comes a host of changes on the global property market. For property investors and developers alike, an understanding of what's going on in different parts of the global market is always helpful.

Of course, taking advantage of the latest tools and technologies is also useful. Investment appraisal tools, for example, can help to accurately appraise purchase and disposal values for properties based on rental cash flow.

Below, we'll take a look at three property market trends to expect this year.

1) New World Cities becoming increasingly attractive

Recently, JLL came forward about the current state of New World Cities on the global real estate investment stage. Interestingly, the organisation found that these cities are becoming appealing to investors.

New World Cities are fast becoming property hot spots, and JLL notes that they're accounting for a large portion of total global real estate investment volumes. In fact, while the top 10 globalised metropolitan economies accounted for almost 30 per cent of global investment over the space of the last three years, a core set of 32 New World Cities steadily increased volumes. While volumes stood at 10 per cent back in 2006, 2015 saw this rise to over 20 per cent.

Expert opinion:

"With pricing at near record levels in many gateway cities, New World Cities can offer better value for investors and are establishing themselves as consistent and liquid markets which are open and transparent," JLL Global Research Programmes Jeremy Kelly said.

2) Property in Vancouver

Another strong year could lie ahead for Vancouver, if the market follows 2015. Knight Frank explained this month that prime residential property prices in the Canadian city rose by a significant 25 per cent over the course of the year.

Interestingly, Knight Frank noted that growth in Vancouver outpaced other regions by a significant margin. The cause? The organisation pointed to a lack of supply, foreign demand and a weak Canadian dollar.

Expert opinion:

"The value of the world's leading prime residential property markets rose on average by 1.8 per cent in 2015. This was similar to the 2 per cent overall growth seen in the previous year. However, in 2015 66 per cent of the PIRI 100 locations recorded flat or positive price growth compared to 62 per cent in 2014," Partner at Knight Frank Kate Everett-Allen said.

3) Miami and Manhattan: Increasing transparency

Sofia Song, also from Knight Frank, described the new US Federal Government measures that will impact property buyers in both Miami and Manhattan. Shortly, all buyers making cash purchases will need to supply their identities in order to "crack down on money-laundering" being carried out by shell organisations.

Interestingly, Sofia Song explained that the policy is "old news" for the London market, where transparency issues have been around for some time. She noted that London remains one of the strongest property markets, and Knight Frank has similar expectations for New York.

Expert opinion:

"If the federal initiative deters illicit monies being harboured in the US then I think we would all have to collectively agree that that is a good thing particularly in light of our current geo-political state of affairs," said Douglas Elliman senior executive Leslie Wilson.

The various property markets across the globe are certain to see numerous changes over the course of this year, especially in high-demand markets like those listed above. To take advantage of the right tools and software suites, reach out to the experts today.

Date Published: 31 Mar 2016
Category: General News

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