Property Pricing - Brazil and China

This is interesting about land prices in Brazil.  There are reports that a significant proportion of the capital fleeing Europe is going into buying Brazilian farm land.  Similar to the ongoing land rush in Africa, land and agricultural production are fast becoming investment alternatives.

["Farm"] for Sale in Caceres (Brazil)

BRL5,638,500 |  €2,137,253  |  £1,963,601  |  US$3,135,350 (Approximate currency conversions supplied by ) This ["farm"] for sale in Brazil is located in the town of Caceres, Mato Grosso. The current asking price is BRL 5,638,500. For more information regarding this ["farm"] opportunity please fill in the small form situated on the right side of the page and you will be contacted shortly. Ref 464442  Town Caceres  Region Caceres  Province Mato Grosso  Type Land/Ruins Category Re-Sale   Listed 950 days ago Innovative investment strategies offering 25% annualized returns regardless of market conditions   Find out more >> Land/Ruins Description SOLD Farm with 1.700 formed hectares in braquiarao pastures, plain land with a loamy soil, a lot of wood, good of water, 1 main house, 4 workers house, electric power, 1 large tent for machines, 1 corral, saw, 20 pastures divisions. Now the property has 2.500 ox. Enquire for Details. This property is 2100.00 hectares. This property is in the state of Mato Grosso and in the city of Caceres. Our agents in Brazil will be happy to arrange a visit for you too this property and several others we have in the area.

Who knows where it will end.  

I continue to be of the mind that the value-debt-credit relationship is bust and that this will result in massive deflationary pressures in the short-medium term (Fears Rise in Europe Over Potential for Deflation) - I listened to a commentary the other day about indicators of the potential for the Vancouver housing market to crumble - in this person's view it was going to be when cracks started showing in Chinese housing market.  As others, I believe the 'speculative' prices in Vancouver are a direct function of Asian investment on steriods.

Yesterday a report identified Beijing and Shanghai each having a terrible beginning to May (first two weeks) new home sales , down 52% and 64% respectively.  The result was also showing up in USD denominated bonds on Chinese Real Estate with yields climbing unexpectedly.  The Shanghai exchange is in a full fledged "technical" bear market down almost 30% from the high (Aug 09) and almost 60% from Nov 08 high.  (China Real Estate Bubble Bursts in Bond Market: Credit Markets)  Who knows where the next steps will take us, where it will end.