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will the CDA property price bubble bust?

Posted by old_nice_room - Created: 14 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by apu - 14 years ago

Totally agree with St George.

The estate agents are there to make money, 5% to 9% of the sell price.  In England the figure is nearer 1%. Why is there such a big difference, god only knows.

No matter how nice he/she is, they are working for the seller.

Everytime the agent sees the buyer, he sees a pot of gold.

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Posted by Spidey-189686 - 14 years ago

ONR,

It was only tongue in cheek, I`m all for your healthy debate.

Is there room for a snowball effect? Do you mean, is there room for a price tumble? I`m sure there is but it is pretty unlikely to be huge as the other comments have said. The CDA is so built up now that it is impossible for a huge number of new properties to flood the market. The area continues to grow in popularity with people from all over Europe not just the UK. With regards to the UK, the pound may be low at the moment but people have made so much in the UK over the past few years on property that they are looking to invest their money in that place in the sun, that goes for people all over Europe (and beyond).

With regards to your point about friends having made crazy profit on the last 2-3 years, that is not just here, that is all over Europe. The UK house boom has been amazing. People have taken their money out of the volatile stock exchange and invested in good old steady property, people are now slowly dipping their toes back into the stock market but they do not want to get burnt. There will be a stage in the next year or so where property prices drop (marginally) everywhere, or at least, in a large percentage of Europe as people start to plough money back into stocks and shares but I think some places will be hit a lot more severely than others and I think the Cote D`azur will be quite safe compared to many other parts of the EU

Apu,

My mate with the batcave is neither English or French, he is neither human nor animal, he is a mysterious hero. He made a lot of cash selling his penthouse in Gotham (he still has the cave there) and felt like blowing it on a summer pad so he could wear tights and blast his motor up and down the croissette with his camp chum looking for crimes to solve.

Never far away

Spidey

 

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Posted by stgeorge-182529 - 14 years ago

There was a sudden property price hike around the six months preceeding the introduction of the Euro - it was supply and demand with the Dutch, Italians , Brits and Scandanavians , in particular , offloading hard currency on secondary residences etc. This was followed by euphoria for some and nightmares for others as the real estate Agents swung into action , fooling foreigners into thinking this would be their last opportunity to obtain a bargain ! Serious mistakes were commited together with a complete incomprehension of the French bureaucratic processes when negociating for properties - I like to call this 'The Year in Provence' syndrome ! Thanks to this website and information garnered from various people who have concluded satisfactory transactions , the postings relating to devious practices on the part of Notaires, Agents , Solicitors and associated bodies , seem to be on the wane , which possibly indicates ' you can't fool all of the people , all of the time ' !!

Certainly in Nice , there is no sign of a drop in values - rather a certain stability , but still on the gradual increase. The Port of Nice area , for instance was  the ' place to buy' - and if you were thinking about it and haven't swung into action , then you're probably too late to get anything at a reasonable price.

However , about twice a year there are magazines which are published such as L'Express or Le Point , which give the average cost per Sq. metre you will expect to pay in the various towns on the CDA , be it old property or unbuilt and purchased from architects drawings . Then there is the Coup de coeur which you must have as its just what you imagined and you don't care how much you pay , and the apartment which requires serious renovation , but you live abroad and don't know anyone capable of doing the work without ripping you off !

I'm no expert in this domain, but from my observations up and down the coast , I would say there is very little chance indeed that the property prices will drop , that it's never a good time or a bad time to buy ( apart from seasonal fluctuations) and the best time to view a property of any description is when its pissing down with rain and  the vendor is that depressed that a deal can be struck - always remember that the Estate Agent is not your friend , never will be,and is only there for the deal - some are better at it than others !!

stgeorge

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Posted by apu - 14 years ago

Spidey,

Your mate with the over priced batcave in Cannes.  Why did he end up paying more than the market value? Is your mate French or English or another foreigner?  Who advised him to pay that price?

Looking forward to your reply!

Thanks, Apu

 

 

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Posted by old_nice_room - 14 years ago

hey spider, just trying to get a health debate going...

as to your question, "Are you currently priced out of the market and are hoping to create a snowball effect which will lead to tumbling prices?"

i would like to think that my pen (well keyboard in my case) is mightier than the sword...but that would be me flattering myself and this angloinfo forum...

i just want to know the true opinions of this forum... i accept it will always be subjective...

anyway as you mention, do you think there is room for a snowball effect in the housing market?

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Posted by Spidey-189686 - 14 years ago

ONR - Have you had a bad experience with an estate agent in the past? Have you recently bought an overpriced property? Have you had your fingers burned in the past? Are you currently priced out of the market and are hoping to create a snowball effect which will lead to tumbling prices?

There seems to be a hidden agenda somewhere

A mate of mine (can`t say who) bought his batcave (secret location - close to Cannes) over a year ago but has never really settled there. He recently got it valued by three different agencies, all of whom gave him a figure lower than he had paid, seems that there`s not a massive market for that type of place. Just goes to show, the markets not on the up in all areas. The poor guy is now in negative equity and is beginning to panic, he may even have to lay off his trusty sidekick!

Never far away

Spidey

 

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Posted by old_nice_room - 14 years ago

all the replies are from people that have money to earn by artifically creating turnover of houses...

Monaco Max, i can give you phone numbers of people that have been pestered into selling...i know two families that have sold in antibes and valbonne and are now renting..at a great profit +50% of price paid 2/3 years ago...

As I am living in the, cadre d'or, in central nice, every week we get mail asking and encouraging us to sell...

Nice seems to be a city of restaurants that does pizza and pasta and estate agents....

Currently Sophia Antipolis is full of home owners awaiting the next round of jobs cuts....

Also SirLurkalot, A large percentage of the buying in Valbonne, Antibes and Central Nice is done by Brits and Italians, the local french have been priced out of the market...

 

 

old_nice_room

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Posted by Monaco Max-189694 - 14 years ago

Speaking as an estate agent, I feel that it must be said that the property market remains solid on the CdA. It goes without saying that it is hardly the glory days of two or three years ago, never the less I for one am still seeing a steady turn over of property. As far as the price of property is concerned, you will find that the agent on the CdA has alot less to do with the fixing of a value on a property for sale as, for example in the UK. The most likely reason for odd rises in asking prices like this, is the (often misconcieved) value placed on a property by the owner. Over valuation by vendors is not an issue unique to the CdA, but one that every estate agent around the world will be familiar with, and is usually fueled by stories of friends of friends who recieved enormous offers for their properties (NB its always a friend of friend). The simple truth is that property no matter were it is, is worth what ever a person is willing to pay for it. The job of a good estate agent is to ensure that the final asking price for a property is as close to market value as possible, even if (as is often the case) you find yourself advising the lowering of asking prices. In my opinion the real estate market is not about to collapse, as it has an almost inexhaustable supply of people wishing to relocate here, which when coupled with caps on new development in many areas will ensure the market remains stable. I do admit that certain areas are likely to witness a minor reajustment to prices, but looking at the CdA as a whole I can only see prices going one way.

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Posted by attila-183479 - 14 years ago

O_N_R........Do not forget that there are a number of factors at play here. The ageing population means that there are more Europeans, not just Brits coming up to retirement age, and looking to the CDA for a pleasant 'third age' in the sun......many of these are not affected by the state of the £.. Dutch, Belgians, Germans, Scandinavians etc.etc..

Plus, the fall in the £ has been more than offset by UK property price inflation.......with prices in the UK, way above their equivalents in France. So a long answer to your question........NO prices are not likely to fall, but then again as a villa owner myself, I have to declare something of a vested interest!!!!!!!

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Posted by SirLurkalot - 14 years ago

That's a curious reaction.

Estate agents make most of their money through turnover.  They want to get houses changing hands.  If the price is 5% more or less that's not a big deal for them: they want to get the deal done and get quantity of transactions.  It is of course in the seller's interests to get high prices, but the agents are more interested in getting deals done than extracting the very last euro from the buyers.

So if you think prices are going up and up, to see agents marking up the price of properties again should be a sign of strength, not weakness.

Oh, and remember far more transactions around here involve French people than Britons.