I've been curious for years that there is so little discussion, writing, conversation etc about real estate markets in other countries. As a participant in the real estate market -- as I guess, actually, is everyone else who exists in 4-dimensional space -- I have been curious about how it all happens in other countries. How does housing actually get built in Switzerland? What is the permit process like in Japan? How does one find an apartment in Rio? etc etc. and etc. And then finding so little discussion of the subject, I have been curious at the next level: why so little cross-cultural discussion? Is it simply too banal -- while at the same time drawing upon too much expertise -- to be available to most journalists?
Anyway, here's a discussion of Australian lesson for UK property, which, living as I do in a very hot market -- Seattle -- has resonance for me.
After taking off in 1996 the Australian housing market has boomed, much like ours, moving well above its long-term relationship with average earnings and undergoing a similar buy-to-let craze as Britain's.
Their economy is growing, likes ours, and unemployment is at its lowest for decades while interest rates are still relatively low. One crucial difference: Australian house prices, without any obvious trigger, have started to fall and rather rapidly.
Government officials, who dread the prospect of a housing crash ahead of next year's election, prefer to point to the Netherlands and Ireland, where booms have not ended in tears and house prices have stopped going up, rather than started going down.
So they are hoping the Australian experience is one that won't sail round the world and lap up on Britain's shores.
Or Seattle's.
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UPDATE, from Alexandra in the Ukraine:
I don't know the *actual details* of real estate buying/selling/planning/building in Kyiv, but I can share some observations:
1. Lots of new construction in Kyiv--both downtown and in some outlying areas. I can see a half dozen construction cranes from my children's bedroom.
2. There is talk of building single-family homes with a "normal" mortgage set up. People would make payments to a certain bank account, and when 1/3 of the total price was in the account, construction would begin. Monthly mortgage financing/payments after that would be similar to the States, from what I understand. These would be in townhouse/duplex style homes in a bedroom community that's only about 20-30 minute metro ride from the center.
3. The apartment buildings I'm seeing finished right now, from the outside, look much prettier and less "communist" than the ones built even 5-10 years ago.
4. Investing in Ukraine is tricky. Great growth potential, but very complicated and risky.
5. There were no mall-type shopping complexes that I was aware of when we moved here 2 1/2 years ago. A few months ago I was searching for a particular item, and went to 5 in one day. (Two were underground.)
Just some observations you might find interesting. . .