Words: Ashley Rigg
Published: 11th January 2011
*Media declares open season on Spain
The British and American media have begun the New Year with an avalanche of negative press stories on the Spanish property market.
In the US, the Wall Street Journal
reports on a cheery prediction from survey of 154 real estate professionals. Apparently 77% believe Spain will be the worst performing property market in 2011 with the best performers the UK, France and Germany.
In the UK, both the
Guardian and the
Telegraph use the official figures
we reported in early December to declare a record breaking drop in sales in the autumn of 2010. The numbers are supported by reports from portals Idealista.com and Falicismo.com which show dropping prices in almost every region of Spain.
A major cause of the problem is high asking prices and both newsapapers call on British vendors to have the courage to reduce their prices to kick start transactions.
Barbara Wood, a buying agent acting for Brits on the Costa del Sol tells The Guardian:
"Discounts of 20% are way too little. Few sellers have the guts to advertise an asking price close to what they will actually take, so buyers have to wade through masses of property with daft asking prices."
Interestingly, the newspapers do not call on the Spanish government to improve pricing transparency. If it published actual sale prices, vendors would have much more incentive to bring prices down to realistic levels.
Source: Global edge
User Comments
Not too much problem in Sotogrande. Signs of property sales movement here and many private owners showing signs of realism. Our problems have always been the new developers asking inflated prices for property and the private client then following price trend. Not too many developers left now!
Paul Bristow,
Bristow Property Group
"Interestingly, the newspapers do not call on the Spanish government to improve pricing transparency. If it published actual sale prices, vendors would have much more incentive to bring prices down to realistic levels."
Only the buyer and seller actually know the real price paid as apparently many times the registered sale document is 'inaccurate'. When the Govt issues the registered sale statistics they look foolish compared with the actual sale values.
Campbell,
Survey Spain RICS Network
At Wisemovetospain.com we have found that here on the Costa Tropical in Granada, properties that are realistically priced are selling. This means we are selling at prices of 50% of the top asking price. Considering the top asking price was probably 20% too expensive at the time, this represents discounts from top market values of 30%. This is the same as in the United States, France and in some parts of the UK. Germany never experienced the same kind of bubble so has not experienced the drop. The onus is on the agent to guide the client on the price. If the client will not move then withdraw the property and concentrate on your other properties. Spain has a different demand structure than northern Europe...there is only so long people will delay there decision to purchase there dream holiday or retirement home in the sun.
Nick Westby,
Wise Move To Spain