Property investment demand is slowing around the world as risk-averse buyers elect to ride out the credit market turmoil, but for more aggressive and cashed-up investors willing to take risk, the crisis may also present golden opportunities, analysts say.
'It's time to consider buying in Europe, which now offers plenty of good opportunities, particularly in Berlin,' said Michael Lorenz, a lawyer who specialises in consulting and advising clients about investment opportunities in Hong Kong, Europe and Southeast Asia.
Price declines and the weakening euro now provided a good buying opportunity for Hong Kong investors, Mr Lorenz said.
The Hong Kong dollar appreciated to HK$9.6906 per euro last Saturday from a low of HK$12.4246 on July 14, which means the local currency has now strengthened 22 per cent against the euro in just three months.
This meant a unit paid for in euros would now be 20 per cent cheaper than it might have cost last quarter, Mr Lorenz said.
The average price for an apartment in Berlin now is Euro2,395 per square metre, offering an annual yield of 4.93 per cent, while Frankfurt apartments are being sold at an average of Euro2,958 per square metre and yield 5.3 per cent, data from online property research house Global Property Guide shows. An apartment in Paris costs about Euro9,329 per square metre and yields 4.39 per cent.
Mr Lorenz conceded that the outlook for the global economy was troubled and the sector would inevitably be affected by the financial crisis, but the expected impact would not be as bad as many feared.