Dubai Launches Real Time Property Index

Dubai Real Time Property Index

First Published: Nov 2, 2013 RealEstateExpedition.com

Dubai has launched a real-time property price guide index for the first time. This new index is a joint venture between Arabian Business and Better Homes.

The Dubai Real Time Property Index will cover the region's key areas such as downtown Dubai, Dubai Marina , Dubai Investment Park, The Palm Jumeirah, Jumeirah Lake Towers, and Jumeriah Village circle, and The Greens.

This property index will show both sales and rentals real time transactions. Also, the latest prices with the monthly changes will be shown for the above-mentioned areas.

The Dubai Property Index looks at moving average median prices listed with Better Homes to make its index. Some inconsistent data that are extreme were ignored to stabilize short-term fluctuations in order to main its long-term realistic trends. Click here to view the index: The Dubai Property Index.

Real Estate in Mongolia

Mongolia Real Estate

 

First Published:  Published on: Sep 22, 2013 RealEstateExpedition.com

Mongolia is the world's most sparsely populated country with an area of approximately 604,000 square miles - making it the 19th largest country on earth. Mongolia's emerging economy is highly correlated to its over US$1.3 trillion resource sector and it's no wonder the real estate sector is tied to its recourse wealth.

The property market has experienced rapid development and price appreciation in Mongolia in the past few years. Property prices reached their lowest point in the early '90s. However, a continuous 20 to 30 percent appreciation every year rewarded investors who participated since its lowest point. The property boom has occurred especially in large cities like the capital, Ulaanbaatar. However, some other cities such as Dalanzadgad, Sainshand, and Khan-Bogd have shown strong growth, as these cities are close to mining factories that attract residents from all across Mongolia.

Mongolia has no restrictions for foreign investors buying residential property. There is no requirement for physical presence; however, a valid passport is required. It is advisable to contact a real estate firm familiar with foreign investors in Mongolia to ease the buying process.

Rapid price appreciation in the real estate market in Mongolia is mainly caused by heavy demand but lower supply. High demand is caused by several factors, but an increasing influx of foreign investment and the middle class becoming financially stable enough to buy are considered most important.

No rewards come without risks and the real estate market in Mongolia has its own challenges. Investors need to do their own research before making any decisions, as there may be lack of due diligence, transparency, and accountability in the real estate sector in Mongolia (like any other sectors in a developing country). And also, the unprecedented real estate boom in the real estate market in Mongolia may not last forever as real estate booms due to resource sector growth have turned into bubbles in other parts of the world in the past.

Toronto's Red Hot Real Estate Market

Toronto’s Red Hot Real Estate Market

First Published: Oct 2, 2008

Well, finally it looks like Canada’s largest housing market is cooling off. Recent numbers show declines in real estate transactions, however, it may not take a deep dive like in the U.S.

Toronto Real Estate Board reports that for the first half of September, transactions decline 23 percent from the first half of September 2007 and a 11 percent decline from the first half of September 2006. But if you compare 2006 and 2007, in 2007 there was a 16 percent increase in the first half of September than 2006.

Do all these mean that prices are declining as well? Not necessarily. According to Toronto Real Estate Board, average home price in Toronto is $386,524 (as of mid September 2007), up from mid September 2006($384,796), and 12 percent higher than mid September 2006 ($330,005).

As you can see, although real estate transactions are declining, we have not seen any price decreases. One thing I noticed that home owners, who are in the market to sell, finding it hard to do a quick sell like they did it in 2007. One of my relatives is in the market to sell their condo for three weeks – but so far they have not received any genuine responses. If it was last year, “the sell” would have been done by now.

Are you planning to buy a condo or a house? Do you think these real estate stats and recent market volatility will make buyers alter their plans? One of my friends is actively looking for a place to buy and nothing is going to deter him from buying his place. Things like volatile markets, sluggish economy, global financial meltdown, mortgage rates are no problem for him. I have another friend who was looking for a condo. However, since the beginning of recent financial crisis, he gave up his search. He thinks it is not a good time to make a major purchase. He wants to wait until everything is over.

Now, let’s look at a comparison of condo prices I have done.

300 Front Street West in Downtown Toronto (between the CN Tower and Rogers Centre) Square Footage: 1144 Approx
Starting Price:  $697,750 Approx
Tentative Occupancy 2012Top Floor: 50th

1 Bloor Street East Condo (Yonge and Bloor intersection) Square Footage: 1150 Approx Starting Price: $1 Million Approx
Tentative Occupancy 2011Top Floor: 80th

A New Condo in Scarborough or North York Square Footage: 1150
Price: Approx From $400,000 to $500,00

A Ten/Fifteen Years Old Condo in Scarborough or North York Square Footage: 1150
Price: Approx Around $200,000

If you are actively looking for a condo or a house, don't dive into any conclusions before doing your research and analyzing all pros and cons.

Real Estate Stats Source: Real Estate Board

Will Toronto Skyscrapers Fall?

Toronto Skyscrapers Aren't Falling In Prices

It should not take us by surprise that World Class City Toronto, one of the best liveable cities on earth, is the leader in constructing the most skyscrapers. However, the Canadian government implements tighter mortgage rules to cool down the Canadian housing market and there have been many talks about the oversupply due to disproportionate over-building of downtown Toronto condos. According to most of the analysts, sky-high prices for downtown condos are bound to fall due to less demand as supplies are exuberant and buyers are reluctant to enter the market because of the eminent housing market crash due to tighter mortgage rules. But is this the case?

Yes, there are some depressing numbers when you look at the last quarter of 2012. There were 3800 condominiums sold in downtown Toronto. This is a 23 percent decline over the last quarter of 2011. In terms of new condo sales, the number looks even worse. New condo sales were down 47 percent in downtown Toronto. However, defying these falling numbers, the total new condos under construction hits a record high of 56,900 in 2012 and new condo constructions starts a record all time high 24,390.

Now let's look at some positive numbers. During the first 2 weeks of February, there were 2800 sales in the greater Toronto area. This was down roughly 8 percent more than last year, but the number of new listings was lower too. Average home price was $509,000, which represents a 4 percent increase than last year. Average home price was $775,000 in downtown Toronto and one third of the homes were sold above the asking price.

There have been some bidding wars in downtown Toronto where supplies were low. With so much market crash speculation, downtown Toronto districts were able to keep prices fairly stable and a price increase was even noticed. For example, Toronto downtown's biggest condo district, C01, dropped only 1.66 percent in January than one year before and district C08 actually showed a 4 percent increase in prices.

So, will skyscrapers fall in Toronto in prices? It does not look like that way based on recent market activities. As Toronto downtown has enjoyed double-digit job growth from 2006 - 2011, more professionals are making skyscrapers their homes, pushing the demand high for condos. IMF recently predicted that Canadian residential real estate market is 10 percent overvalued. However, 10 percent overvalued homes, among other factors, may not be enough to make Toronto skyscrapers fall in prices.

First Published: March 12, 2013 on RealEstateExpedition.com