Australian Property News

Signs of recovery in international markets

Posted on Tuesday, January 11 2011 at 4:11 PM

Apartment prices in some European and USA cities are showing strong signs of recovery.

Prices in Paris increased by 9.7 per cent in the year ending 2010, according to the National Association of Real Estate Agents.

In France as a whole, the average price of residential real estate only increased by 0.6 per cent. Paris' strong price increases, however, are not expected to continue. France is implementing cost-cutting measures, and economic activity ground to a halt in October, due to rolling strikes and nationwide demonstrations, as workers and students protested against plans to increase the retirement age from 60 to 62, and the age for full pension from 65 to 67.

Real estate prices in Austria's capital also increased. The residential real estate price index for Vienna rose 9.9 per cent, the highest annual price increase since 1992. However, property prices in the rest of Austria stalled. The reasons may partly be due to a shift to more secure investment options, as Austria's growth weakens.

Things have also picked up in the US. The Manhattan real estate market made a huge rebound, after one of the worst recessions on record. The number of sales are back to normal levels and prices have recouped nearly all of the losses sustained during 2008 and 2009. The Manhattan Residential Market Report says the average sales price of a Manhattan apartment was eight per cent more than one year ago. The average time a property is on the market decreased from 132 days to 113 days.

However, prices in Ireland are expected to fall for years to come, as it braces for massive tax hikes and sharp spending cuts. The painful measures are conditions for the bailout from European Union and the International Monetary Fund. Ireland's house price crash, one of the worst in Europe, has wiped out almost a decade of gains. Average house prices fell by 14.8 per cent.