2010 - A year of two halves

The best thing about 2010 was that, for most of us, it was better than 2009.

Tough trading conditions continued in most markets with overseas property transactions volumes still way off their 2006 peaks. Lead volumes were significantly down on the highs of the boom but tight mortgage markets also resulted in more tyre kickers with many agents reporting they were working “twice as hard for half the money”. In May we asked: Are timewasters the new overseas property segment?

A year of two halves

For many property markets, 2010 began stronger than it finished. Real estate prices in the UK, Cyprus and Spain for example all beat gloomy expectations staging a mini-recovery in the spring and early summer.

However, a perfect storm of rising supply and falling demand hit the Spanish and UK property markets hard this autumn.

It was a similar story in Cyprus where sales jumped before falling back again.

France was one of the only major European markets to buck this trend, with prices relatively stable supported by the relatively robust mortgage market.

Europe: The year’s big news story

Arguably the biggest story of 2010 was Europe. The Irish and Greek bailouts threatened the whole existence of the euro. We made our views on the subject very clear.

Spain: Oblique and overvalued

Spain topped the Economist’s list of the world’s most overvalued housing markets , although the figures it used are the official ones, which are generally regarded as inaccurate and over-inflated.

More worryingly, new accounting rules are poised to force banks to dump distressed inventory onto the market which could cause prices to dip significantly next year. On a positive note, a change in the market should reduce the practice of banks undercutting and undermining the business of local agents.

Changing UK buyer market

British buyers continued to buy but in much lower volumes than in the boom years. Many agents with the “right products” reported success at the large overseas property exhibitions, Property Investor & OPP Live and A Place in the Sun Live

However, others struggled. The main winners were the agents and developers with completed properties in established locations, close to the UK.

Strong buyer markets

In August, we wrote about how to spot the best buyers markets. Equity release from a strong domestic housing market was one of the key conditions. Markets that fell into this category in 2010 included Russia, China, Australia, Sweden, Brazil and Israel.

Fractional

Once hailed as the future of the overseas property industry, fractional found some success in France and Cyprus while a new resale offering launched in Spain.

However, in terms of the overall market, fractional sales have still not lived up to the hype. We upset a number of fractional industry professionals with this article and offered some ideas to boost sales here

Changing marketing landscape

The big marketing story of the year was Google’s launch into the property portal market. After testing in Australia in 2009, Google launched in the UK in June, but despite much fanfare failed to make the expected impact.

The overseas property portal market consolidated further as the top two players strengthened their grip although a new service from ex-Realestate.com.au chief Simon Baker may give them a run for their money in the longer term.

Arguably, the most interesting marketing story of 2010 was a survey which revealed agents under-use the best marketing channels.

Controversy

There was no shortage of controversy this year. Spain embarked on its biggest ever anti-corruption trial in Marbella whilst another petition was launched against MRI as more people took legal action against defaulting developers.

In Dubai, one of the industry’s most successful agents petitioned to Queen for help in over-turning his prison sentence for bouncing cheques

While in Cyprus, a property developer was jailed for extorting money from a buyer in a case which is the subject of a TV documentary early next year.

In the UK, Harlequin Property forced a national newspaper to apologize over a poorly-researched and damaging article.

Most popular

As well as our analytical articles, we published a number of lighter stories which ironically were more popular than the more serious ones. Here are top three:

1. Eight agents in hospital after motivation day goes wrong
2. Portal owner hits jackpot as Russian spy story goes global
3. Agent uses hypnosis to boost property sales

To a prosperous 2011

I hope you’ve enjoyed reading Global edge. On behalf of everyone here, I would like to wish you and you loved ones a happy Christmas and prosperous New Year.

Ashley Rigg, editor, Global edge.

Source: Global edge

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