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Opportunities for property investors despite the gloomy headlines

While the headlines scream that house sales are their lowest levels since records began in 1978 it is perhaps good news for bargain hunters.

The Royal Institute of Chartered Surveyors admits there are still opportunities. 'With demand so low, would-be-buyers are negotiating from a position of strength. Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains,' said spokesman Jeremy Leaf.

The latest figures on prime country property in the UK from property consultants Knight Frank show an overall decline but there are static and even rising prices in Northumberland and parts of Scotland.

Prices in the prime country house market fell by 3.9% during the second quarter of 2008, the most severe quarterly price fall since the Knight Frank index began in 1995 and three consecutive quarters of price falls mean that annual growth is now negative, at 2.8%.

However parts of Scotland and the North of England seem immune from the falls seen elsewhere. Price rises of under 1% were recorded in both the Lothians and the West Coast, while values remained static in Northumberland and the Borders. Viewings and instructions have also increased north of the border in recent months, suggesting that this resilience may continue, according to Knight Frank.

'The mortgage-driven market, up to £1m, is undeniably weak, but properties priced at more than £4m are still in demand and attracting offers above asking prices. We are still seeing competitive bidding for 'best in class' houses,' said Rupert Sweeting, Knight Frank's Head of Country Department.

'The other bright spot is farm and land sales. There is no sign of demand slackening and rural land prices continue to increase dramatically,' he added.

When it comes to foreign property investors remain confident according to David Stanley Redfern. Almost $20bn (£10.2bn) of real estate funds are to be launched this week as equity raising for property investment shows no sign of slowing, said head of international research Liam Bailey.

Most of the money is going to emerging economy countries where value is to be had, in particular Asian and eastern European markets. 'This is yet more proof that the credit crunch is having a positive effect on emerging markets and on property investment therein,' he said.

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