by jbs120409 c3 — December 7, 2009—Over 80 percent of countries surveyed saw a rise in distressed sales in the commercial property market for the third quarter of 2009, according to the Global Distressed Commercial Property Monitor (November 2009) from RICS (Royal Institution of Chartered Surveyors). RICS surveyed members and other real estate executives in 25 countries across the globe.
The biggest pickup in distressed sales was reported in South Africa, followed by the U.S., Portugal and France, but the pace of increase moderated across the majority of markets compared to the second quarter. However, China, Hong Kong and Brazil reported a decline in the number of distressed properties coming onto the market.
Looking ahead, real estate professionals expect the number of distressed properties coming onto the market to increase into the fourth quarter across 19 of the 25 countries surveyed. Russia, U.S., Spain and Ireland are expected to see the biggest rise, with New Zealand, Italy, Malaysia and Germany next in line. However, surveyors are more optimistic in Brazil, Hong Kong, and India and expect fewer distressed property listings in these countries.
RICS members work on both sides of any distressed property transaction. Consequently, the survey asked surveyors whether the level of interest from specialist funds in distressed properties was increasing. Levels of interest rose across 18 out of 25 countries and at a faster pace than the previous quarter, with China, Russia, Australia, India and the Ukraine leading the way.
RICS says that distressed property listings are likely to become a bigger feature of global property landscape in the coming year as loan refinancing and improved pricing in some markets provide a window of opportunity for banks to manage down some of their property loan exposure.
