Property owners in Malta are up in arms about what they claim is an unfair new redemption scheme for real estate leased from the government.

Owners of properties leased out from the Joint Office, currently subject to a ground rent redemption scheme, claim to have been prevented from applying for the scheme for four years, with the result that they might now lose up to 25% of the property value.

The government scheme was introduced in 2002, and described as a ‘concession’, encouraging tenants of leased government property to become full homeowners. Under this scheme, tenants were encouraged to redeem the ground rent against a small payment; but the conditions of the scheme were changed last month in order to clamp down on abusive property speculation.

However, thousands of property owners who tried to use the scheme have been told that their applications could not be handled for bureaucratic reasons. Now, under new rules, they stand to pay a potential tax of 25% on the total property value.

These new conditions, which are intended to discourage property speculation, provide for a charge of 25% of the total sale price should the property be sold within five years of ground rent redemption. After that, the percentage paid drops by 5% every five years.

Edward Bonello, communications co-ordinator for the Finance Ministry, confirmed the situation. ‘If the premises are sold after redemption within the first five years, the payment of 25% takes place. If the premises are sold after five years, no percentage has to be paid to the government, unless the sale is done for redevelopment purposes. In this case, the scale of percentages according to the lapse of time from redemption of ground rent comes into effect,’ he said.

Originally the scheme was limited only to properties transferred to the State from the Church after an agreement in 1991. In 2004, it was extended to apply to all government-leased properties; but soon after its implementation, a number of such residential properties were sold for inflated prices within days of ground rent redemption, to be converted into apartment blocks.

The government was appalled that some speculators made tens of thousands of euros from the scheme and many of the properties were turned into blocks of flats.

It remains unclear, however, why up to 3,000 of the 5,000 owners to apply since 2004 were turned down.

The real estate market in Singapore is escalating with sales increasing tenfold in February compared with the previous two months, according to official figures.

A total of 1,323 new homes were sold, contrasting starkly with the 108 units and 131 units sold in December and January respectively, the figures from the Urban Redevelopment Authority show.

Many of the sales were concentrated in three major projects with the Caspian, Alexis and The Quartz selling 517, 293 and 168 units respectively.

‘Their main selling points were attractive pricing and proximity to MRT stations. Caspian also benefited from the government’s imminent plans to develop business and recreational facilities in Jurong East while The Quartz is almost ready for occupation as it is expected to receive its temporary occupation permit in April,’ said Li Hiaw Ho, executive director, CB Richard Ellis.

The property consultant and advisory company expects demand for new homes to continue and is predicting sales of around 1,800 to 2,000 units in the first quarter of 2009.

Analysts are also expecting more sub sales of condominiums and private apartments in Singapore. According to DTZ the completion of projects will put pressure on real estate investors with weak holding power to offload their properties.

With official estimates projecting that another 10,488 units are slated for completion in 2009, the number of sub-sales is set to increase as investors or speculators who had bought their properties under the Deferred Payment Scheme exit the market.

Under the DPS, investors need to pay the first 10 to 20% of their property purchase and then defer paying the rest until the project has achieved TOP status.

So investors or speculators who have yet to secure financing or those with weak holding power are expected to offload their properties most likely at a loss.

The number of repossessed properties in Singapore have risen 18% and are expected to increase significantly in 2009 and 2010, according to analysts.

The deteriorating economy and rising level of retrenchments are having a spillover effect on Singapore’s property market with auctioneers witnessing an increase in repossessed properties, according to Colliers International.

The number of repossessed properties put up for sale by banks and financial institutions rose 18 % from the fourth quarter of 2008 to the first quarter of 2009. Colliers is warning that this number is just the tip of the iceberg and is expected to go up further in the next two years.

‘We can expect to see a more significant number for repossessed properties in the later part of the year or in 2010. This is due to the general lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,’ said Grace Ng, deputy managing director and auctioneer of Colliers International.

The majority of repossessed properties are in the residential sector with 77% in this category. Over half of these were apartment or condominiums and the rest were terraced or detached houses. The majority were at the lower end of the market which is an encouraging sign, according to analysts.

‘It is a positive sign that we are only seeing a small number of residential properties in the prime districts being put up for mortgagee sale. This could mean that the highest echelon of the society has yet to succumb to the badly-embattled financial market,’ Ng added.

Colliers International expects bank default cases to rise and the number of properties put up for mortgagee sale to continue growing as more retrenchments are expected in 2009.

The popular Thai resort of Phuket experienced a marked decrease in the number of overseas property investors buying on the island with the forced closure of its airports due to public disorder last year playing its part.

An analysis of the situation by CB Richard Ellis has uncovered a significant drop in real estate transactions, fewer property launches and an increase in the number of projects being cancelled.

In its latest report it confirms that five years of a rising property market came to a halt in the last quarter of 2008. But Phuket is unlikely to suffer a property crisis like that seen in Spain, which also relies heavily on foreign property investors, analysts say.

‘In many ways the Phuket property market is a foreign driven market located on a Thai island. The bulk of visitors, hotel guests and property buyers are all foreigners,’ said David Simister, Chairman of CB Richard Ellis (Thailand).

‘While the slowdown, exacerbated by the forced closures of the airports became apparent in December when the numbers of bookings, tourists and traditional buyers of Phuket property all declined sharply, we do not expect the Phuket market to follow Spain or Florida into a headlong crash, as there are fundamental strengths to Phuket which differentiate it from other global resort markets,’ he explained.

Among these fundamental differences is the fact that most completed projects in Phuket have sold out almost all of their units, leaving limited supply. The CBRE report shows that, of a total of almost 3,000 villa units in completed projects, 89% have been sold out. Figures for the condominium sector are similar, where 92% of just over 2,000 units in completed projects have been sold out.

Also further growth in supply will be curtailed by project delays and cancellations, which may prove to be positive for the island in the long run, Simister added.

CBRE had estimated 1,700 condominium units would be completed in 2009, but that is now unlikely as a number of projects have been delayed due to slower take-up rates. In the villa market, its research has identified over ten projects with more than 450 units that went on hold or were delayed during the final quarter of 2008 alone. Around a quarter of all upscale hotel rooms under development are now on hold as well.

‘In the long-term we remain bullish on this market, since we believe that buyers of luxury and high-end properties tend to make choices based on lifestyle and not primarily on pricing,’ said Simister. ‘That being said, it is unlikely that demand for these high-end properties will recover before the global economy improves,’ he added.

While Phuket is not immune to the global property downturn, the luxury end of the property market has continued to do well, according to real estate experts.

A recovery in the property market in Dubai is unlikely this year with some analysts predicting further steep falls in real estate prices.

The latest analysis from UBS Bank predicts that house prices in Dubai could plunge by up to 70% from their peak levels in 2008.

Analysts said that the real estate sector in Dubai will face a substantial glut next year while demand will continue to be weak as many of the expatriates who drove the property boom in recent years are losing their jobs and are returning home.

‘In our view, we are still in relatively early stages of the property downcycle in UAE, and we believe risk-reward profits are not yet compelling for investors to consider market re-entry, hence, continued price declines are expected,’ said UBS.

UBS expects the average house price in Dubai drop to about Dh500 per square foot this year, compared to its peak of Dh1,850 in the fourth quarter of 2008. Prices have already fallen by 25% cent to about Dh1,400 per square foot.

It also predicts a further decline in Dubai’s expatriate population which will fall by 8% this year and 2% in 2010. ‘We would not be surprised to find Dubai residential vacancy rates reach between 25% and 30% by the end of 2010,’ it said in its report.

Property investors in Dubai who find that the development projects they have invested in are cancelled by the state’s real estate regulators will receive a full refund, it has been revealed.

The Real Estate Regulatory Authority has confirmed that under Law No 9 of 2009, which provides a sliding scale of refunds, if a government review shows the project has been officially cancelled all cash paid by buyers will be returned by developers upon termination of the contract.

It is hoped that the law, which becomes binding soon, will provide clarification over the termination of sale and purchase agreements for off plan units. There has been concern about the number of investors who have been keeping up with payments to developers who have failed to start construction because of the global economic downturn.

According to legal firm Lovells if RERA confirms the cancellation then the buyers will get a full refund.

‘Law 9 will provide significant guidance to the real estate market and will clarify the uncertainty on terminations and damages,’ said Mohammad Kamal, Head of Real Estate Middle East at Lovells, who was part of a Rera working group that helped draft the new rules.

‘Rera will apply the law and give directions to developers on what steps to take,’ Kamal added.

The new law contains a sliding scale that spells out the rate of investor compensation to be paid by developers based upon the amount of construction completed. Currently over 800 projects are being examined by government inspectors across Dubai to determine the progress of each development.

Under the new law all terminations must be served through the Dubai Land Department and the purchaser shall be given 30 days to rectify a breach.

If the project is 80% complete the buyers forfeits 100% of cash paid to date; if it is 60% completes the buyer loses 40% of the purchase price; if it is less than 60% complete the buyer forfeits 25% of the purchase price, under the sliding scale.

If construction has not yet started the buyer forfeits 30% of the amount paid to date but if the development is officially cancelled by RERA the buyers will get a full refund.

Turkey’s overall popularity has risen considerably over the last few years. And golf is becoming an increasingly important driver in attracting tourists, and indeed property purchasers, to Turkey - and it was crowned Best Golf Destination of the Year in Europe by the International Association of Golf Tour Operators (IAGTO) in 2008.

Only a short flight from the UK and Situated outside the Euro-zone, astute players are now realizing that world-class golf in the Mediterranean doesn’t just mean Spain and Portugal. The country’s Mediterranean climate means that Turkey is forging a reputation as a popular location for those looking to take golf holidays, and the Turkish government is keen to tap into the golfing market as it understood golf tourism is a way to sustain and develop Turkish tourism.

The Turkish Golf Federation has grand plans for 100 courses countrywide in the next 15 years, up from just 17 today with the construction of international class courses well underway. Big names in the world of golf design are already active in the country, driving up the quality of design and facilities. Golf in Turkey has been centered on Istanbul and Antalya’s Belek, with its 14 courses, is definitely the place to lead the country. However, Bodrum now has 3 courses open, with 4 more planned for the area. This has encouraged development to meet the demand for quality accommodation from golfers, be it for rent or purchase. In the Tulza area, for instance, the first of two classically designed 18-hole golf courses opened earlier this summer at the Vita Park Golf Club, with the second course due to open in 2009. There are a number of residential developments surrounding the courses offering affordable property to purchase.

Laurence Kaye of Alternative Travel, a specialist Turkish golf travel operator has stated that Turkey appeals to British golfers thanks to its pleasant Mediterranean climate, with ideal playing conditions throughout the year. Ahmet Agaoglu, chairman of the Turkish Golf Federation (TGF) predicted a brighter 2009, despite the global economic crisis. “I believe 100,000 to 125,000 golf tourists will visit Turkey in 2009, which means 400,000 to 450,000 rounds.”

Dominic Whiting, editor of the Buying in Turkey guide, concludes, “Turkey has really made its mark as a global tourism destination in recent years and it is keen to continue in this vein, attracting even more visitors and offering world class golf courses and facilities along with exceptional value real estate is a further step in that direction.”

Rich with red coral usually found in the Red Sea and 60 diving points, the town of Ayvalik in Balikesir district on Turkey’s north-western Aegean coast has opened for the season, offering underwater opportunities for divers and undersea photographers.

According to the Hürriyet newspaper, Ayvalik is one of Turkey’s most important spots in terms of its diverse flora and fauna, which make it a competitor of the Red sea and the Publication, underlined the importance of the red coral in the area’s tourism value.

Kemal Çalışkan, diving instructor and owner of a diving centre, explained “The red coral, believed to have taken its color from the mineral-rich Mountains by the shores of the Red Sea, may spread in seas with warm climates.” He added that the red coral creates an attractive underwater view of the Aegean and that many tourists visit the district to see the coral and to take pictures.

5,000 divers were hosted by four diving centers in Ayvalik alone Last year, “The number of foreign divers increases every day,” Aykan noted, divers from France, Holland and Sweden come to the district to dive, said Aykan, adding that the number is approximately 500 each month.

In addition to the underwater flora and fauna, other factors which make Ayvalik attractive to diving enthusiasts are the plentiful ness of diving points with depths fit for every level [of diver]. There is always a spot available to dive, even in bad weather conditions and many diving points that would be available for use 12 months a year. Ayvalik Mayor Hasan Türközen said they are aiming to promote the area’s value and Ayvalık’s unique diving track to the foreigners. Türközen said that their goal is to increase diving tourism by better promoting the undersea riches.

Because of its rich architectural heritage, Ayvalik attracts all kinds of visitors, not just diving enthusiasts. The town is a member of the European Association of Historic Towns and Regions. The town is surrounded by the some of Turkey’s oldest olive groves, attracts gourmands who want to escape the Turkish kebabs with its healthy, tasty and authentic cuisine, reports BalkanTravellers. com.

Meidin Holding, the Abu-Dhabi based property investment firm, has announced its plans to invest Dh.6bn in two projects in Umm Al Quwain.

This includes development of a Dh.4.5bn Amwaj Resort, which includes residential and commercial units, a hotel, and a large shopping mall. The project houses 1820 apartments in two residential towers, a 408 room hotel, and a shopping mall spread across 30,365 square meters and 588 car parking space.

The second project is a shopping mall spread across 2.7mn space, namely the Delma Mall, to be opened in Musaffah shortly. This is worth Dh.1.5bn. The Chairman of Midein Holding, Omair Saoud Arrar Al Dhaheri, said that the construction of the projects will be funded by the company’s own resources, and it will not seek funds from the banks, as it would make the projects more expensive under the current situation.

Amwaj has already received a strong investor response, with 70 percent sales achieved, majority of which are from expats.

The hotel too will cater mostly to western tourists, as Umm Al Quwain has a calm and serene environment, away from the busy city life, and several tourists come here to enjoy the natural beauty and serenity of the place, Al Dhaheri said.

Apart from these projects, the company is currently building a fifty storey commercial tower at the Dubai Square.

Leading Dubai-based property developer, Hydra Properties, has issued fresh contracts to its buyers offering easy payment options. The initiative follows complaints lodged by buyers about delays in construction and the unfair price hikes on their purchases. The firm also plans to double its customer services staff strength.

Last month, a group of 50 investors, who joined together to form an action group, put forward their grievance to the company, claiming that prices have risen by 15 percent, despite the drop in construction costs and softening of housing prices.

Hydra argued that it was operating within the law and emphasized on the fact that the investors had been kept aware about the progress of the project ever-since the signing of contracts.

The Clause 12.8 of the contract states that the Landlord has the ability to make adjustments to the sale price of the property with respect to the rise in costs such as exchange rates of foreign currencies, inflation, accrued interest (if any), materials etc., or any other matters affecting the cost of the property.

It has now been learnt that Hydra is preparing contracts which would require purchasers at Hydra Village to pay 2.5 percent every two months till the completion of project in 2011, as against the earlier plan which requires them to pay 10 percent every three months until completion during the course of this year.

Hydra is also modifying a penalty clause which levies Dh.500 per day for late payers. This is now Dh.100 for 15 days and Dh.500 per day after that. Hydra will also pay buyers Dh.1000 a month, if it is more than six months overdue in delivering a project.

The Sales and Services Manager at Hydra, Ahmed Khalil, said “We are revising our contract to create a fair balance of the rights of Hydra and the investor.”

The company is also planning monthly construction progress reports and a quarterly publication that would focus about the happening within the company.