Emerging Real Estate Trends
The ever-shifting tides in the economy and unemployment play havoc with most middle class wage earners and are considered among the most significant contributing factors to people’s frustrations today. In spite of this, some segment real estate markets are not only thriving, but booming.
It is known that for every seller, there is a buyer. According to one report in the Wall Street Journal, major cities such as New York and Vancouver, British Columbia are gaining popularity among wealthy individuals seeking tax shelters or investment opportunities. This trend is becoming globally evident.
When pricing ratios do not align, a “housing bubble” is created which thus creates a global real estate market ripe for wealthy foreign investors. According to a story in the New Yorker, the capital of wealthy individuals from some emerging markets, such as the Middle East, Russia, China and Latin America, is being invested globally in big city real estate markets, creating construction booms and driving up real estate prices.
In an effort to understand and explain this phenomenon, real estate trends that displayed a sudden steep rise in housing prices were studied for the 50-year period between 1950 and 2000. Real estate economists speculate that one of the contributing factors to these trends is simply that over time, wealthy and high earning individuals have a tendency to assemble, making rich cities even richer.
This trending does not align with basic housing price assumptions, the expectation being that they reflect the median income of an area. This does not appear to be the case in the emerging global real estate markets. Many current homeowners welcome this trend as a positive effect to the increase in value of their homes. The fact that wealthy foreigners are intentionally overpaying in an effort to protect their own interests is driving prices out of reach for many people who work or live in those cities.
The two worlds are quickly becoming conflicted across the globe. Wealthy foreigners who have spent their lifetime saving money do not want to stand by and let the euro-crisis destroy their hard work. The locals wonder how long it will be before their real estate is swallowed up and sold off, leaving them nowhere to go. Investors are constantly seeking buildings to purchase and sell off, while the locals are simply trying to go home. In light of this new trending, the whole world is anxious and carefully monitoring developments and changes within the real estate arena.
New Launches Review will provide you with the latest real estate trend in Singapore.