360° Coverage : When It Comes To Real Estate Bubbles, China's Got Nothing...

2 Updates
When It Comes To Real Estate Bubbles, China's Got Nothing On Brazil

When It Comes To Real Estate Bubbles, China's Got Nothing On Brazil

Jan 19 2014, 3:06am CST | by

World investors may be worried about China’s real estate bubble. But only one country surpasses that market’s housing boom, and that’s Brazil. Whether it’s because of the new mortgage market and low...

Filed under: news

 
 
 

34 weeks ago

When It Comes To Real Estate Bubbles, China's Got Nothing On Brazil

Jan 19 2014, 3:06am CST | by

World investors may be worried about China’s real estate bubble. But only one country surpasses that market’s housing boom, and that’s Brazil.

Whether it’s because of the new mortgage market and low interest loans available to Brazilians earning more money, or just a plain old over-stretched housing bubble, the roof has blown off Brazil’s housing market. Anyone who has bought a home in Brazil is smiling wide with its increased valuation. Anyone trying to buy a home has surely been priced out of a market or two over the last five years.

The sober Bank for International Settlements — the Central Bank of the world’s Central Banks — said this week that over the last five years no market on earth was hotter than Brazilian housing.

In fact, Brazil home prices rose a whopping 121.6% from 2008 to 2013, more than housing prices in Hong Kong.

Hong Kong housing prices rose 101.4% in that same period.

Brazilians have been paying more for housing than most other emerging markets, including big and richer global city-states like Singapore (62.5%).

Brazilians that bought homes during or slightly after the crisis have seen their housing values soar since.

The Bank (BIS) examined housing markets in 50 countries,  using local real estate indices measuring average prices per square foot and average new home price.  For Brazil, BIS used Central Bank indices that weigh housing prices in 11 major cities, including Rio and São Paulo, far and away the costliest cities in the country.

The biggest boom occurred right after the financial crash in the U.S. in 2008 and lasted well into 2011. Housing prices were rising on average of 20% in those cities.

In 2012, Brazil’s housing market began to cool. And now, while prices are still going through the roof, they are not going through it as fast, or making as much noise. Still, a 9% increase in 2013 is nothing to suggest a bubble is popping.

In the last 12 months, prices rose around 7%, according to the study. In the last six months, they’re up 4.6% as Brazil’s economy remains sluggish.

Liam Bailey, a senior researcher at Knight Frank, told Estado de Sao Paulo newspaper on Friday that Brazil’s overheated real estate market actually made it a bit less attractive. He likes Dubai and big cities throughout Turkey for foreign real estate buyers.

“Brazil is still a market for local investors,” Bailey said.

The Hottest Real Estate Markets On Earth

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hi ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Ebola epidemic spiraling out of control: Obama
Washington, Sep 17 (IANS) The Ebola epidemic in West Africa is "spiraling out of control" and posing a potential threat to global security, US President Barack Obama warned Tuesday.
 
 
NASA to make major announcement about spacecraft contracts
Washington, Sep 17 (IANS) US space agency NASA said Tuesday it will make a "major announcement" regarding the awarding of contracts to build commercial spaceships that will send the country's astronauts to space soil by 2017.
 
 
Chip in to enhance links, president tells Indians in Vietnam
Ho Chi Minh City, Sep 16 (IANS) The Indian diaspora in Vietnam can play a "significant role" as a "bridge" in deepening relations between the two countries, President Pranab Mukherjee said Tuesday.
 
 
Ho Chi Minh City's rise as economic hub marvellous: President
Ho Chi Minh City, Sep 16 (IANS) Lauding the perseverance and success of the people of Vietnam, President Pranab Mukherjee Tuesday expressed admiration at how Ho Chi Minh City has transformed into a prosperous regional economic hub.
 
 
 

Latest from the Network

Ebola epidemic spiraling out of control: Obama
Washington, Sep 17 (IANS) The Ebola epidemic in West Africa is "spiraling out of control" and posing a potential threat to global security, US President Barack Obama warned Tuesday. "If the outbreak is not stopped now...
Read more on Business Balla
 
My son has taught me about patience: Hilary Duff
Los Angeles, Sep 17 (IANS) Actress Hilary Duff can't really remember life without her two-year-old son Luca and says he has changed her completely. The "Chasing the sun" singer credits Luca, her son with estranged...
Read more on Celebrity Balla
 
Scottish minister insists of using pound even if gets independence
Edinburg, Sep 17 (IANS) Scottish First Minister Alex Salmond Tuesday insisted that an independent Scotland could not be prevented from using the pound. In an interview with Sky TV news, Salmond reiterated his desire...
Read more on Politics Balla
 
Portman 'honoured' to be face of Dior
Los Angeles, Sep 17 (IANS) Actress Natalie Portman says it is an "honour" to front campaigns for Dior and is constantly excited about working on new projects with the Parisian label. The "Black Swan" star, who has...
Read more on Celebrity Balla
 
Eva Mendes and Ryan Gosling cried after baby's birth
Eva Mendes and Ryan Gosling burst into tears after she gave birth to their daughter. The couple, who have been dating since September 2011, were reportedly overcome with emotion upon welcoming their first child into the...
Read more on Celebrity Balla
 
P Diddy buys $40 million LA mansion
P. Diddy has snapped up a new $40 million mansion. The rapper - real name Sean Combs - has reportedly closed escrow on a sprawling European-style villa in Holmby Hills, Los Angeles, close to where Michael Jackson died....
Read more on Celebrity Balla
 
Victoria Beckham's family will work in boutique
Victoria Beckham plans to get her family to work in her new boutique. The British fashion designer, who has four children, Brooklyn, 15, Romeo, 12, Cruz, nine, and Harper, three, with husband David Beckham, insists she...
Read more on Celebrity Balla
 
Snoop Dogg posts and deletes homophobic slur
Snoop Dogg allegedly posted a homophobic slur on Instagram and Twitter. The 'Sweat' hitmaker - real name Calvin Cordozar Broadus - reportedly shared a derogatory message alongside a photograph of two men lying in bed...
Read more on Celebrity Balla
 
US does not rule out sending ground troops to Iraq
Washington, Sep 17 (IANS) Martin Dempsey, chairman of the US Joint Chiefs of Staff said Tuesday that US ground troops could be called into battle against the Islamic State (IS) in Iraq and Syria if circumstances...
Read more on Politics Balla
 
69th session of UN General Assembly begins
United Nations, Sep 17 (IANS) The United Nations General Assembly (UNGA) started its 69th session at the UN Headquarters in New York Tuesday. Sam Kahamba Kutesa, Uganda's foreign minister who was elected president of...
Read more on Politics Balla