Echo to invest €1.3bn in Poland

New Eurostar rail links to open up French property markets

New mortgage law will boost Turkey’s property market

Residential properties in Bulgaria are decreasing in profitability

China attempts to cool its property market

Canada plans bridge to Detroit

Panama; a new trade and business hub?

Residential prices in Penang hit new highs

New mortgage law will boost Turkey’s property market

The introduction of a new mortgage law in Turkey will help to boost the country’s property market, according to website Mortgage Introducer.

The website said that investors will now be able to take out a mortgage over a term of up to 30 years from January 2008. Currently, buyers can only apply for short-term mortgages.

A recent improvement in economic conditions in the country has allowed the government to loosen mortgage regulations and open up the market to more property buyers, providing opportunities for buy-to-let investors looking to capitalise on property.

Jane Griffiths of Mortgage Introducer said: “The current economic climate in Turkey is strong and actively favours foreign investment in the property market, while most experts predict Turkey is now sitting on the brink of a property boom.”

Principal International, a property investment firm, recently claimed that Turkey is becoming more popular with investors looking to break away from the traditional hotspots of Spain and France.

Residential properties in Bulgaria are decreasing in profitability

Profitability of residential real estate deals in Bulgaria has decreased significantly since 2002, according to Creditex.

Krasimir Goumnishki, a Creditex representative, said that the rate of return has declined from around 9% in 2002 to just over 4% as the market moved into an oversupply of residential and holiday developments. This is also now applicable in all of Sofia’s residential districts.

At the moment, retail properties afford the highest annual yield on the real estate market of around 12-14%, followed by logistics and industrial properties with 7-8%.

Echo to invest €1.3bn in Poland

Echo Investment is planning to invest in 38 new commercial projects in Poland at a cost of €1.3bn for the sale and lease of around 630,000sqm of property.

New Eurostar rail links to open up French property markets

The development of France’s high-speed rail network is opening up potential new property markets for UK buyers. Earlier this month, the new TGV East service from Paris to Strasbourg cut travel times by nearly half between the two cities. This will increase property prices not just in Strasbourg itself but at other stops also including Reims and Colmar.

Planned improvements to the network in Brittany, the south-west and the south are likely to have a similar impact on the housing market in places such as Lorient, Narbonne and Angoulême.

Meanwhile, in the London, the switch from Waterloo to St Pancras station in November 2007 is likely to reduce the Eurostar journey to France by around 20 minutes. The service within France now covers most of the country including to the west into Brittany, the south-west, the south and parts of the centre east of the Massif Central. It is possible to travel from Paris down to Marseille on the Mediterranean coast by train in just three hours.

Panama; a new trade and business hub?

Panama has awarded a US$750m (£380m) property development deal to UK-based firm, London and Regional Properties, to convert a US military base into a business park, according to the Panamanian Government.

The project, described by London and Regional as ‘one of the world’s largest development deals’ aims to transform the 4,950 acre (2,000 hectare) former Howard Air Force Base as Panama bids to transform itself into the ‘Singapore of the Americas’.

“We are looking at $405m in investment during the first phase, followed by three more phases taking the total to $750 over eight years”, said a government spokesperson.

Panama took control of dozens of U.S. military installations in 2000 after the United States, which built the Panama Canal, pulled out of the country under a 1977 agreement.

Disagreements in Panama about how the bases should best be used have meant that many of the red-tiled, concrete buildings have remained empty, decaying in the intense tropical heat and rain.

Panama aims to develop its strategic position at the geographical centre of the Americas to become a trade and business hub similar to Singapore in Asia.

Residential prices in Penang hit new highs

Residential property prices in Penang, Malaysia, which hit new highs last year, are still soaring according to the National Property Information Centre’s (NAPIC) housing price index.

Lim Ewe Tatt, chief operating officer of Henry Butcher Malaysia, said: “Property prices in Penang are still rising and will breach last year’s all-time high record. The reasons for the surge have to do with the implementation of infrastructure projects, such as the second link and the Penang Outer Ring Road (PORR) under the Ninth Malaysia Plan (RM9) for Penang. 

“The strong demand for residential properties can be attributed to the buoyant stock market since the beginning of 2007, the abolition of the real property gains tax, and the influx of foreign buyers from neighbouring countries. The prices have increased by 10%-20% since two years ago.”

According to the NAPIC report, terraced houses and high-rise units are the type of properties that are in demand in the current market. Tatt said Tanjung Bungah, Batu Ferringhi, Relau, Teluk Kumbar, Batu Maung, and Balik Pulau were areas where new residential projects were sprouting.

China attempts to cool its property market

China is worried that a property bubble could destabilise its booming economy and has announced a series of measures to cool its real estate sector.

The government initially focused on curbing land supply but this resulted in pushing up prices. Since then it switched the focus to cooling demand.

In May, China’s central bank said it will raise both interest rates and bank reserve requirements. On 11 June, China’s commerce ministry issued new rules making it harder for foreigners to invest in residential property, partly by making them obtain land use rights before developing projects.

On 18 June, China’s banking regulator said it had punished the branches of eight banks for extending loans that were illicitly used for property and stock market investments.

Despite these efforts, property prices rose 6.4% from a year earlier in May, compared with a 5.4% rise in April, according to the National Development and Reform Commission.

An influx of an estimated 8m people into Chinese cities each year, combined with rising incomes, is fuelling demand for property.

Canada plans bridge to Detroit

Transport Canada has said it is providing C$400m (£188m) for an access road to kick start a P3 bridge project between the province of Ontario in Canada and Detroit in the US. The project - Detroit River International Crossing - will cost between US$500m and US$1bn and will span the Detroit River.