Last year was a spectacular year for the Malaysian property market and this was recently acknowledged in Knight Frank’s survey of the hottest housing markets in the world. Malaysia clinched the last spot at #14, a long way behind Singapore’s 5th spot and miles behind Hong Kong which still stands tall as the # 1 property hotspot in the world.
Note that Latvia is # 2 because of its government policy that provides EU residency to those
who invest $96,112 or more in a property there! Those who want to migrate to Europe the fast and easy way – here’s your chance! You just need to fork out about RM300K (cheaper than many properties in Malaysia) and you stand a chance to live and work anywhere in the EU!
#14 Malaysia
Annual Change: Up 6.2%
Q3 2010 Change: Up 0.9%
Outlook: Price rises in Malaysia are expected to continue in 2011, and some are projecting
another 13% rise in H1 2011.
#13 Norway
Annual Change: Up 6.6%
Q4 2010 Change: Down 0.1%
Outlook: Norway's domestic economy remains strong, so there's little reason to suspect a downturn, particularly with
oil prices looking bullish.
#12 Belgium
Annual Change: Up 6.8%
Q3 2010 Change: Up 2.6%
Outlook: Belgium's economic strength is built on that of Central Europe, and the continued expansion of Brussels as the European capital. The rumored ECB rate hike should have a negative impact on the sector.
#11 Taiwan
Annual Change: Up 7.4%
Q3 2010 Change: Down 1.0%
Outlook: Taiwan's property market is currently
undergoing a correction, and the central bank is engaged in tightening measures that should also hurt the market.
#10 Denmark
Annual Change: Up 7.8%
Q3 2010 Change: Up 1.5%
Outlook: Denmark's property market will be "
fragile" for some time, according to the country's economy minister. There still remains a great deal of real estate for sale, and few buyers, which should limit further price spikes.
#9 Poland
Annual Change: Up 8.1%
Q3 2010 Change: Up 1.1%
Outlook: Poland is a renewed target for
private equity investors. Growth in Poland has remained stable, being tied to central European strength.
#8 India
Annual Change: Up 8.9%
Q3 2010 Change: Down 1.7%
Outlook: India's real estate market could slow if the country continues its interest rate tightening policy. The sector also has
serious problems with corruption.
#7 France
Annual Change: Up 9.5%
Q4 2010 Change: Up 1.4%
Outlook: Like other European economies, France faces the repercussions of an ECB rate hike.
#6 Austria
Annual Change: Up 9.9%
Q3 2010 Change: Up 3.7%
Outlook: Growth in Austria, like much of central Europe, is stable. But there are concerns about the country's banking system and its
exposure to Eastern Europe. The real estate sector may be impacted by any increase in ECB interest rates.
#5 Singapore
Annual Change: Up 14.0%
Q4 2010 Change: Up 1.8%
Outlook: Prices were down overall in February, but
continue to rise in central Singapore. Government tightening measures are in place, the with the government providing housing for 80% of the population, there's only limited space for speculation.
#4 China (only Beijing and Shanghai)
Annual Change: Up 15.3%
Q4 2010 Change: Up 6.4%
Outlook: China is probably the most talked about
real estate bubble in the world, with
ghost cities the new topic du jour.
The rise in house prices is likely to slide with
tightening measures in China taking effect.
#3 Israel
Annual Change: Up 16.2%
Q4 2010 Change: Up 3.5%
Outlook: Israel continues to experience
strong GDP growth and a booming economy. The size of the country is also a limiting factor that may help to drive prices higher. Regional instability, however, may be a deterrent to potential investors.
#2 Latvia
Annual Change: Up 16.9%
Q4 2010 Change: Down 0.8%
Outlook: Latvia's market boom is somewhat based on a government policy that provides EU residency to those
who invest $96,112 or more in a property. Whether this policy will survive the scrutiny of EU leadership in the long-run, however, is unknown.
#1 Hong Kong
Annual Change: Up 20.1%
Q4 2010 Change: Up 3.7%
Outlook: Hong Kong prices experienced an enormous spike in 2010, based on both high demand and
easy money flowing from its exchange rate policy with China. As tightening measures take hold on the mainland, that rampant growth in Hong Kong should slow.
