Real Estate Investor Magazine South Africa July 2014 | Page 49

REI Offshore
GLOBAL HOUSE PRICE INDEX
The Knight Frank Global House Price Index Q1 2014
The Global House Price Index has risen for eight consecutive
quarters, recording annual growth of 7.1%, but the rate of price
growth slowed in the first quarter of 2014 to 0.6%, compared
to 1.2% in the previous quarter. For the first time since 2008, no
country recorded an annual price fall in excess of 10%.
Dubai, still topping the annual rankings, recorded price
growth of 27.7% in the year to end March but only 3.4% in Q1
of 2014. The turnaround in the US, Australian and Icelandic
housing markets is evident - all three now appear in the top
ten rankings for annual price growth, alongside key emerging
markets such as China, Turkey and Brazil.
The bottom ten rankings are dominated by Eastern and
Southern Europe, where house prices are still in decline but
at a slower rate, even in the weakest housing markets such as
Croatia, Cyprus and Greece. Singapore and Japan are the only
non-European countries in the bottom 14 rankings.

Valuable Input

Andrew J. Taylor
Vice Chairman
Henley & Partners
The only prudent approach to
investing in property overseas
is to first determine the risk
factor of the investment
climate in the country under
consideration. Thorough
research prior to investing
is critical, particularly in
countries and cultures that
are unfamiliar.

www.reimag.co.za

Frank Knight expects the index’s performance strengthen
again in the second quarter. All eyes will remain on central
banks - not to see when interest rates rise but the speed and
extent to which they do.

George Radford
Director of Africa
IP Global

James Bowling
CEO
Monarch&Co International

When investing offshore, focus
on asset appreciation and a
strong yield. To identify these
markets, remain focused on
the actual numbers - look
at markets where there is
a historic track record of
consistent growth and avoid
highly volatile markets.

Citizenship Investment
Programmes have opened up
opportunities for investors to
become members of the EU
and enjoy the various benefits
that entails. Investors looking
into these programmes should
use the services of a reputable
company with a solid track
record and the necessary
expertise.
July 2014 SA Real Estate Investor

47