The US and Japan are predicted to see the largest rise during Q1 2010 of distressed properties coming on to the market, according to a survey by the Royal Institute of Chartered Surveyors (RICS).

Of the 25 countries in the survey, 18 saw increases in Q4 2009 in the number of distressed properties coming onto the market compared to the previous quarter, with the US, Japan, China, Germany and the UAE expected to see the fastest growth, whilst Brazil, India, Hong Kong and Australia will see less distressed property.

Oliver Gilmartin, RICS’ senior economist, said: "It is the major real estate markets of the world, namely the US and Japan, where agents expect the strongest growth in distressed sales in the first quarter of 2010. Significantly, whilst the US is seeing ongoing rises in interest from specialist funds, Japan is not the recipient of the same level of investor appetite for distressed property assets.
"With longer term borrowing costs set to move upwards over the course of 2010, there is the risk of a renewed increase in distressed property listings. As banks return to better health, it is critical that more aggressive foreclosure behaviour doesnt prompt a second down leg in markets which appear to be regaining some composure.”