Navigation

All categories

Archives

Property Hotspots

Currencies Direct May 14th 2014 - < 1 minute read

British property is overvalued by around 30 per cent, but it’s not the only country where rising house prices are pulling clear of earnings and rents, according to the latest research from the The Organisation for Economic Co-operation and Development (OECD).
 
The UK rates as one of the nations offering the poorest value when buying a house, as prices “significantly exceed long-term averages relative to rents and household incomes”. Expat hotspots like Australia and New Zealand are also seeing prices climb well above wages and rents.
 
In fact if you’re considering moving to the land of the long white cloud, it’s worth pointing out that prices there are overvalued by 70 per cent when compared to rents, according to the OECD’s research. House prices in New Zealand are 32 per cent ahead of earnings.

Commonwealth countries generally performed poorly, with houses in Canada also selling above the average. In Europe, Belgium, France, Norway and Holland all offered poor value for home buyers.

The good news is there are a lot of top expat destinations in the opposite corner. Greece and Portugal offer some of the best value, with prices in the two countries undervalued by almost a fifth when compared to the cost of renting. Greece’s property market remains under pressure as prices have fallen by around seven per cent in the last year. Values in Ireland are also below earnings and rental rates.

Italy and the US offer ‘fair value’, with prices broadly in line with rents and earnings by the OECD’s measurements.

If you or your customers have snapped up a property bargain let us know – email newsletter@currenciesdirect.com

Written by
Currencies Direct

Select a topic: