According to the RICS Global Distressed Property Monitor Q1 2010, Ireland and the US are set to see the biggest rise in distressed sales.

The research report stated that “real estate professionals expect the number of distressed properties coming onto the market in the second quarter of 2010 to increase across 19 of the 25 countries surveyed.  Respondents in Ireland and the US expect to see the fastest growth in activity followed by Scandinavia, New Zealand and Hungary.  The UK has also seen deterioration in sentiment with the net balance of those expecting distressed sales to rise moving from 14 percent to 42 percent. However, there is positive news from Hong Kong, Australia, China and India where agents expect distressed sales to decline.”

“In the first quarter, 17 out of the 25 countries surveyed reported an increase in distressed sales, a marginal improvement on the 18 countries reporting three months earlier. The largest growth in distressed sales was reported in the US, followed by the Republic of Ireland and the UAE. However, the pace of increase moderated across the majority of markets with the UAE a notable exception,” explained the report.

Henry Li, Chairman of RICS China said,” Due to worries over ever increasing residential prices, and financial risks facing by commercial banks, the PBC and the central government have issued a series of tighter monetary policies in Q1 2010 with the aim of encouraging a more balanced development for China real estate market. Although China reported a decline in the number of distressed properties hitting the market in Q1 2010 according to RICS Global Distressed Property Monitor, given increasing borrowing costs in China, the risk of rising distressed property listings in China may still exist.”

Denys Kwan, Member of External Affairs and Public Concerns Committee, RICS HK, commented,” The average number of distressed properties for sale in Q1 was approximately 150 per month in these 3-months period. This figure is expected to stay more or less the same level for going into the next quarter of 2010.”