Pit Stop

This Formula 1 racing season is contested on 17 different circuits scattered out across the globe. The tournament has a huge impact on the host destination. The event typically attracts thousands of racing enthusiasts, including many high net worth individuals, which is beneficial to the country’s economy, and generally spurs the construction of various new infrastructure, including upgraded airports, new roads, and greater residential supply, which is significant. And we are off.

Property in Australia
The first race of this F1 season is traditionally held at Albert Park in Melbourne, after moving from the Adelaide Street Circuit in 1995, which had played host to the annual event for a decade from 1985.

Much like F1 team Renault’s lack of progress this season, the Melbourne property market has stalled over the past year. The average price of a home in the city has depreciated by almost £18,000 to an average of around £233,000, according to data compiled by the Australian Property Monitors group.

The Australian government’s decision to extend the first homebuyers grant of between £4,5000 and £14,200 until October, has boosted demand for property in the city, and should help towards the medium-term recovery of the country’s residential sector.

Property in Malaysia
Some people claim that the Sepang venue in the capital of Kuala Lumpur, which was built on a 260-hectare swamp, may be literally sinking. The same cannot be said for the Malaysia property market.

At the beginning of the year, Homes Overseas identified Malaysia as the number one destination in which to invest in property. Although prices have slowed in the short-term, following a couple of years of robust capital growth, we are sticking to our guns and tipping this destination. The medium-term property investment fundamentals look sound.

The Malaysian government has abandoned rent controls and eased foreign ownerships laws.

Property in China
The Chinese Grand Prix takes place at the Shanghai International Circuit. Demand for property in the city is racing ahead, following a sharp slowdown in 2008. The volume of new homes sold in the city is up 97% year-on-year, according to the latest statistics released by Shanghai Uwin Real Estate Information Services Co.

Recent sales have been primarily driven by surging credit and by stimulus policies, such as tax cuts.

Nationally, average property values in China’s 70 medium and large cities have depreciated by 1.1% year-on-year, according to the National Development and Reform Commission.

Many experts believe that the bottom of the market could be just around the next turning.

Property in Bahrain
Race winners at this event, held in Sakhir, Manama, are banned from spraying champagne on the podium. Drivers instead are provided with a local non-alcoholic cocktail called warrd - a blend of pomegranate, bitter orange and rosewater.

But the Bahraini locals may need a stiffer drink than Warrd, if R Lakshmanan, chief executive of mortgage lender, Sakana Holistic Housing Solutions’ projection of a 25% annual property price fall this year proves accurate.

The country’s housing market is now feeling the effects of the global financial crisis, with very few homes currently selling.

Property in Spain
Drivers are generally in for a bumpy ride at the Circuit de Catalunya, Montmelo, in northern Barcelona, but no way near as turbulent a journey as Spain’s housing market has had to endure over the past 18 months or so.

Spanish property values are in freefall. Sales levels have fallen on the back of weaker demand, much of which has been deterred by bad publicity, featuring a string property scandals, corruption, dubious legislation, not to mention a severe oversupply of homes.

Nevertheless, the distressed state of the country’s housing market means that there they may never be a better time to buy property in Spain, with bargains galore available.

Property in Monaco
The race at Monaco, the signature event of the F1 racing season, oozes the wealth and grandeur of the principality.

At an average of around £33,000 per square metre, property in Monaco is the most expensive in the world, with very few homes available for under a £1million.

The Monagasque property market has not really been affected by the global economic dowturn. Prices have generally been appreciating at an annual rate of close to 10%, due mainly to a severe shortage of homes.

Property in Turkey
The Turkish Grand Prix is held in Istanbul, where the Turkish property market is holding up well despite the global economic turmoil.

The Turkish economy and housing market is actually now in a healthier state than it was in 2001, when the exchange rate system collapsed, causing banks and financial institutions to go bust.

Property prices have appreciated nationwide, on the back of significantly higher international demand.

The most popular places to in real estate include property in Istanbul, property in Dalaman, property in Altinkum, property in Fethiye, property in Bodrum, property in Belek, and property in Antalya.

Property in Britain
Much like the fast past pace of the Silverstone track, the speed of property price declines in the UK over the past 18-months has been rapid, following a decade of strong capital growth.

The squeeze on credit markets has seen demand for homes fall drastically year-on-year, causing double-digit price falls across Britain.

However, rather optimistically, the last few months has seen some encouraging data relating to the property market. The annual rate of house price falls has slowed.
 

See Also:   Marc Da-Silva