Real Estate Investor Magazine South Africa March 2013

FINANCE BY COLLEEN MAY Median Property Prices Global diversification F or investors, the race is on to find the best property investment opportunities the world has to offer. Investors generally look to acquire a property portfolio that has a combination of short and long-term opportunities in a variety of different countries therefore diversifying their investments and minimalising their risk. It has been suggested that during a l l stages of the property cycle, diversifying by adding international property to a property investment portfolio can significantly increase returns and decrease risk. Below are the median property prices for offshore property, which will give you an idea of average property prices. previous year and 54.4% from its peaks, and if they do not substantiate the claim that Dublin is doing much better, perhaps amend the claim. New Zealand Property Prices – average USA • In Auckland Area, the average sales price soared 7.2% to NZ$575,797 (US$472,073) • In Wellington Area, the average sales price rose 2.3% to NZ$445,679 (US$365,394) • In Main Urban Areas, the average sales price increased 6.1% to NZ$478,404 (US$392,224) • The nationwide average sales price is now NZ$428,308 (US$351,153). The case for global diversification over the long term is strong. In a boom, a bust, or even in a long period of similar conditions, an investor with global real estate assets would have significant improvements in risk adjusted return and increased returns overall. Ireland Globally, the increasing attractiveness of property and greater capital mobility have made cross-border investing more popular. This has also been aided by the increasing accessibilit y to f inance for non-foreign nationals in many countries. The market in Ireland’s capital, Dublin, is much healthier. Dublin’s average asking price in June 2012 was €214,000, quite close to the average of €217,000 being asked in December 2011. By taking advantage of lags in timing in the different property and economic cycles, an investor can insulate a portfolio from some of the domestic ups and downs. Many people feel that international property is out of reach. There are also practical challenges to cross border investment for example, culture, currency, tax and legal jurisdictions. As finance becomes more easily available the foreign markets are becoming increasingly accessible to small and medium investors. 62 March 2013 SA Real Estate INVESTOR The national average asking price for residential properties fell to €172,000 in Q2 2012, 53% below the 2007 peak of €366,000, according to Daft.ie. The asking price index fell by 13.9% during the year to June 2012. In Dublin City Centre, the average asking price was down by 10.2% to €167,172 during the year to Q2 2012, 59.3% down from the peak. West County Dublin had the sharpest y-o-y fall, with average asking prices down by 19% to €165,598, 56.8% lower than its peak. North County Dublin’s average asking price was €207,850, 14.2% lower than the previous year and 52.9% down from the peak. In South County Dublin, the average asking price was €328,959, 11.3% lower than the Median home prices rose in three of the four regions in December. The Northwest saw its price rise to $231,600 up from $229,800. The new price was also up 5.3 % from the year before. In the Midwest, the median home price increased to $144,800, up from $141,600, and it rose 12.3 % from December 2011. The South saw prices appreciate to $161,100 in December, up from $156,700 in November. Prices were up 11.0 % from the previous year. In the West, prices fell slightly to $239,900, down from $244,600 in November, but prices were still up 17.3 % from December 2011. Canada Province – Canada province – average house average house prices 2012 prices December December 2012 Ave House Price 12 Mnth Change British Columbia $498,000 - 3.0 % Ontario $369,000 + 3.6 % Alberta $363,000 + 4.8 % Quebec $274,000 + 3.6 % Saskatchewan Province $284,000 + 9.6 % Newfoundland / Labrador $289,000 + 11.5 % Manitoba $250,000 - 3.7 % Nova Scotia $205,000 - 8.8 % Prince Edward Island $165,000 + 28.6 % New Brunswick $151,000 - 1.4 % Canadian Average $353,000 + 1.6 % RESOURCES Global Property Guide www.reimag.co.za

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