last month Spain was named one of the world's most overvalued housing markets.
last month Spain was named one of the world's most overvalued housing markets. A report in The Economist claimed Spanish homes are overvalued by more than 43%, and said this compared with just under 30% for Britain, 20% for Ireland and -12% for Germany (ie, the market in Germany is "undervalued"). It reckons home prices should reflect the rents that tenants pay, so its index calculates the ratio of prices to rents in 20 economies. Spain was the fourth most overvalued after Australia, Hong Kong and France.
But, writing on his Spanish Property Insight website, Mark Stucklin says: "You have to take these figures with a pinch of salt as far as Spain is concerned." The problem, he says, is they are based on official figures which "significantly understate the true extent to which prices have fallen. Spanish prices have fallen much further than this index suggests ... If you want to know what's going on in the residential property market, a much more revealing figure is the collapse in planning approvals, down by 90% since 2006".
0 comments:
Post a Comment