We now have recognized several marketplaces to look at with this quarter and also have made a few recommendations which ones you need to have a rain check up on.
In Q2 2011 we still remain optimistic about the London property market with mortgage financing becoming more competitive. Although interest rates are likely to increase in the second half of the year, there is still a huge under supply of real estate in London and overseas investors are now accounting for 48% of all prime central London property. Rents are at an all time high and supply levels are at and all time low, so it still makes for a very interesting market to buy in over the coming months.
Moving on to the US, we remain very confident about the New York and Jersey City market. Capital values in Jersey City are still 50% below their peak in January 2007. In Jersey City, just across the water from Manhattan, property is trading in the region of 25 - 30% of New York prices, with very strong rental yields, great transport infrastructure giving speedy access to Wall Street and downtown Manhattan. We have had lots of interest from our clients into Jersey City with properties selling faster than in Manhattan, inventory levels continually low and high yields of 6%.
Closer to home in Asia, we are still very confident about the Kuala Lumpur market as the government continues to implement economic stimulus packages, and forecasts capital value growth rates of between 7 to 10% this year. The Malaysian property market is also benefiting from a somewhat 'lack of regulation' compared to Singapore, Hong Kong and China.
Heading to Europe, the volume of sales to foreigners was up 40% in 2010 in Turkey. There has also been massive growth in the construction sector and the property market in Turkey has rebounded significantly compared to the rest of Europe. Property prices are set to increase with over 400,000 people immigrating to Istanbul every year which has created a housing shortage of 250,000 per annum. Turkey has the fastest growing economy in Europe, a trend that is likely to continue after Istanbul won European City of Culture in 2010, which is expected to attract significant inward investment over the coming months.
The rules certainly slowed down in the Singapore market considerably within the first quarter of the season. GDP has slowed down from incredible development in 2010 and designers are actually delivering substantially less residential projects. We're still very favourable about the Singapore economy and that we are searching for value in real estate market however in the economic sector as opposed to the residential. Industrial property is capable of doing achieving high rental yields of four to sixPercent with the price of borrowing low just 1% which makes it an extremely attractive investment market. We feel the Singapore industrial property sector to become among the key marketplaces to look at this quarter.
Further afield, Australia gets trouble getting a 30 plus year high for currency, interest and inflation which with one another are challenging purchasing property. Consequently we are starting to determine a little correction available on the market as property becomes quite pricey to maintain because of the cost of funding. Consequently we're feeling we'll possess a significant sluggish partner of year australia wide.
Throughout the rest of the several weeks of the quarter we'd advise searching for investment possibilities working in london, New You are able to and Malaysia although keeping track of the rising property marketplaces of Poultry and Singapore's industrial sector. For that reasons mentioned earlier, we advise to prevent the Australian property market throughout this quarter.
Take One Shenton, for example. Within close closeness for the Marina Bay Integrated Resort, Singapore Business Financial Center, Raffles MRT station and recommended 'Landmark' MRT station, One Shenton is positioned being the middle where everything happens.
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