Agents - How are you finding the market?
- Thread starter TRMA
- Start date
And you expect to get an honest answer to that question from agents?!
I guess not everyone is a cynic.
To respond to OP's question, since the turn of the year late Jan to late march has been quite productive, but we have been lucky that some vendors have taken our advice on board, we also have had our share of vendors that wouldn't listen and are rueing a missed opportunity. All in all it has slowed considerably, but there is still sales going through. If you read over previous posts from this site and others I'm sure you will see many people professing that buyers should be looking at 20/30% below asking, but i honestly haven't experienced any property here (Limerick) selling at these prices. The lowest has been 15% below, the average would be 5-8% below.
I wouldn't necessarilly assume so, it's not unknown for someone to post in the wrong forum on AAM.
I wouldn't be holding your breath with regards to getting many responses from agents specialising in Overseas property sales. Whilst there are plenty who post in this forum few, if any, have the integrity of MrMan and openly declare their interest.
Care to explain how you can substantiate such a claim so?
Just to clarify it is the Overseas Property Agents I'm interested in. To give my own tuppence ha'penny - there is good demand at the lower price level in the market. That is people who's dream it is to buy a holiday home in the sun and who have 30/40/50k to spend. Egypt and Turkey are selling well in this respect. The more investment driven euro priced markets such as Poland and Slovakia are slow. There is also good demand for dollar markets such as Mexico.
In fact the currency play is a big issue for many investors now.
The key difference between the market now and 2/3/4 years ago is the level of knowledge that exists with potential clients in terms of buying property overseas. No doubt that's due in part to websites such as this one and the level of coverage of the issue in the media.
No more than the economy itself (and to qoute Mr. Hobbs) we are making the transition from a boom market to a mature one.
Those companies who have operated a sustainable business model over the last number of years will thrive and prosper.
In fact the currency play is a big issue for many investors now.
The key difference between the market now and 2/3/4 years ago is the level of knowledge that exists with potential clients in terms of buying property overseas. No doubt that's due in part to websites such as this one and the level of coverage of the issue in the media.
No more than the economy itself (and to qoute Mr. Hobbs) we are making the transition from a boom market to a mature one.
Those companies who have operated a sustainable business model over the last number of years will thrive and prosper.
Hi TRMA, have you bought yourself in a place like Egypt? I just think that the huge amount of units being built in 'the sun' is unsustainable, the constant search for the 'next big thing' and 'the new Spain/South of France etc. etc. is a bit old at this stage. I know you were looking for answers about the current market from other agents but I would be interested to hear your opinion on places like Egypt, are they in your opinion (excuse the pun) a bit of a pyramid scheme?
Would I buy in Egypt - yes. But only in a frontline beach development and only in a development that I knew would be managed on an ongoing basis. That rules out 90% of the projects under construction in Egypt. I wouldn't buy in Sharm El Sheikh due to the leasehold issue with title deeds and its lack of character but I would happily buy in Hurghada as it's freehold and I believe the market there has great potential. When looking at a destination for an overseas property purchase you need to find it's USP. In Egypt and in particular Hurghada it is scuba diving. A number of developments are now specifically targeting this market.
Care to explain how you can substantiate such a claim so?
I would have the same opinion regardless of the profession - which is that people within a profession under strain will always try to see the silver lining. It helps keep them sane, and it helps keep them positive. Especially when that profession is in sales.
I would expect all people involved in property to say that it's a good time to buy property. To say anything else would be madness!
So I wasn't being a cynic. Just a tad skeptical!
As for what you were saying yourself, TRMA - that properties 30-50k are selling well - I would strongly suspect that these type of properties aren't being bought by well seasoned investors. The mood of the market is cautious at present. Investors are waiting till the dust settles. That is the opinion of someone not involved in the business!
I agree that the lower priced properties are being bought by people primarily as a low priced bolt hole in the sun with rent and appreciation as value added. I also agree that the market is cautious among the professional investment community.
However, there are investors out there who are making make hay on the dollar/euro conversion rate by buying now in dollar markets. These investors seem to have high liquidity as opposed to access to credit
However, there are investors out there who are making make hay on the dollar/euro conversion rate by buying now in dollar markets. These investors seem to have high liquidity as opposed to access to credit
True, and I imagine there are investors looking at the UK for the same reason.
O
OverseasCafe
Guest
Word from within the industry is that the Irish aren't buying very much because banks have, essentially, stopped lending. Because much of the boom was based on borrowed money, when this particular well dried up so did property purchase. Until banks loosen the purse strings again we're unlikely to see a sustainable market for agents, most are struggling at the moment.
Just because the prices are low relative to other markets (Spain/France etc.) doesn't mean that they are going to appreciate. They are possibly over priced relative to their local market conditions.
Lobby, the point I'm making is that the reason people buy at these prices is it represents value compared to established markets like Spain/Portugal. The primary reason for the purchase of the property is as a low priced holiday home with the secondary consideration being rent/appreciation that may accrue.
It's my belief that "residential tourism" is a sperate sector in a country's property market with different fundamentals underscoring it. If we take Egypt and in particular Hurghada as an example-
Two one bedroom apartments each 60sq/m within 100 meters of each other.
Apt 1 is in a "residential tourist development" with pool, restaraunt, minimall, concierge service, on site management/rental service etc.
Apt 2 is in a standard town apartment block primarily poulated by Egyptian professionals
Now, property investment norms would suggest that price per square meter of these apartments shjould be roughly the same but that cant be the case due to the amount of value added features in Apt 1
It's my belief that "residential tourism" is a sperate sector in a country's property market with different fundamentals underscoring it. If we take Egypt and in particular Hurghada as an example-
Two one bedroom apartments each 60sq/m within 100 meters of each other.
Apt 1 is in a "residential tourist development" with pool, restaraunt, minimall, concierge service, on site management/rental service etc.
Apt 2 is in a standard town apartment block primarily poulated by Egyptian professionals
Now, property investment norms would suggest that price per square meter of these apartments shjould be roughly the same but that cant be the case due to the amount of value added features in Apt 1
Why would investment norms suggest these should be worth the same?
They are two totally different products - as you say.
My point is that the absolute monetary value of an apartment is absolutely no indication of its "value" - good or bad.
I agree that the price of the property doesn't indicate it's value. Only research by the client will tell them if it consitutes value relative to the locality. Ultimately the market will dictate the price of properties in Egypt and other emerging markets - the same yardstick as in established countries