Prices fell in 17 European countries during the third quarter of 2010, including Britain, Italy, Portugal and Spain, according to the Knight Frank Global House Price Index. Prices fell furthest in Greece during those three months, by 2.9 per cent.
International buyers are purchasing mainly in established holiday home markets, such as the Swiss Alps, southern France, southwest England and the Italian region of Tuscany, says James Price, partner at Knight Frank. 'People are going back to the tried and tested areas.'
In Britain, Hong Kong buyers are benefiting from falling property prices and the weakness of the pound, which helps the Hong Kong dollar stretch further in that country's housing market.
Hong Kong investors have bought fractional shares of holiday homes in Scotland. In such a scheme, each owner has an equal share of the property and time that can be spent there.
Twenty-four fractional shares of apartments at The Residences at Pittormie in Scotland were sold to Hong Kong buyers last month. Located at St Andrews, fractional owners of this scheme's 20 two- and three-bedroom apartments are entitled to play on the town's golf course. Each apartment will have a maximum of 24 owners. Fractional shares are available at prices starting from HK$1.25 million. Apartments can be bought as whole units.
Tom Lawrence, chairman of Eden Club, which is developing The Residences at Pittormie, says his company is negotiating sales of an additional 12 fractional shares to Hong Kong investors. 'It's the ideal solution to second home investment,' Lawrence says. 'Instead of owning and paying for a home you only use a few weeks a year, you can own the time you will use.'