The current global crisis being faced by governments worldwide has provoked various responses to help remedy the situation. The real estate sector is seen as key to consumer and business confidence and has been subject to various degrees of governmental interventions.
The an on-line property research house.Global Property Guide report the latest efforts employed by governments:
In the US, the authorities are seeking a US$700 billion “mother of all bailouts” package to purchase almost all of the country’s bad mortgage debt in an effort to unfreeze the nation’s credit markets.
In the year to end-Q2 2008, house prices in major US cities fell 15.4% (18.9% in real terms) from a year earlier, according to the Case-Shiller house price index. It was the sixth consecutive quarter that the house price index dropped year-on-year.
In the UK, the stamp duty exemption has been raised to £175,000 from £125,000 for houses purchased from September 2008 to September 2009. The government also unveiled a £1 billion package to assist first time home buyers and households struggling with their mortgage payments. In Sept. 2007 Northern Rock, one of UK’s largest lenders was bailed by the Bank of England.
In the year to end-Q2 2008, house prices in the UK fell 6.33% (9.77% in real terms) from a year earlier, according to Nationwide.
In Spain, the government released a €3bn rescue package. Certain real estate investment companies were given tax breaks to rent out unsold new homes for a fixed period.
In the year to end-Q2 2008, house prices in Spain rose 2.00% (a fall of 2.49% in real terms) from a year earlier, according to official statistics (which are widely believed to understate the problem).
In Ireland, the 2009 budget will include a “stimulus package” providing assistance to first-time homebuyers.
During the year to end-Q2 2008, house prices in Ireland fell 9.65% (13.92% in real terms), according to official statistics.
In South Korea, the government is set for tax breaks and easing restrictions on construction.
In the year to end-Q2 2008, house prices in South Korea rose 4.94% (a fall of 0.88% in real terms), according to official statistics.
Thailand and Indonesia are mulling the relaxation of foreign ownership limits to lift their housing markets.
These interventions are highly unusual however these are highly unusual times
