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New home building in Australia reaches record high but stamp duty also up
New home building in Australia bounced back in the second quarter of 2015 but overall all home owners are paying more in property tax, new figures show. The number of detached houses beginning construction held steady at a relatively high level, while a rebound in multi-unit dwelling commencements provided the overall lift to reach the highest level for any quarter on record, according to the figures from the Australian Bureau of Statistics. The figures show there was a 0.7% increase in detached home commencements while others, predominantly multi-unit dwellings, jumped by 19.2%, driven by a surge in the state of Victoria. The state recorded over 9,000 multi-unit commencements, which is a record high. In the 12 months to March, almost 205,000 new dwellings were commenced, the first time the 200,000 mark has been breached. According to the Housing Industry Association (HIA) leading indicators suggests that the number of commencements in the June quarter will be even higher. ‘When we get the final result for the 2014/2015 fiscal year it is likely to show more than 210,000 new dwellings were commenced during the year,’ said HIA economist Geordan Murray. A breakdown of the figures show that new home starts increased by 1.9% in New South Wales, by 18.8% in Victoria, 20.9% in Queensland and by 12% in the Northern Territory. But elsewhere, there were sizable declines, most notably in South Australia where the strong result in the December quarter was reversed by an 18% fall. They were down 4.8% in Western Australia, 14.7% in Tasmania and down 14.4% in ACT. However, the HIA is warning that for the whole of the housing market the burden of stamp duty payable on house sales is becoming more of a burden, especially for new builds. Its latest Stamp Duty Watch analysis shows that the property tax has increased across the country. In New South Wales, Victoria and the Northern Territory, the typical stamp duty bill now amounts to over $20,000. Stamp duty bills have increased particularly sharply in NSW and Victoria since late last year, according to Shane Garrett, HIA senior economist. ‘Clearly, stamp duty is a major impediment to housing affordability. It is a particularly onerous tax on new housing. In many instances stamp duty is paid multiple times as transactions occur during the new dwelling’s life cycle. This is one example of the inequitable tax treatment of new housing relative to existing property,’ he explained. ‘Independent research conducted for HIA last year provided compelling evidence of the benefits to Australian living standards and economic growth from the replacement of stamp duty with more efficient, broad based revenue raising measures,’ he added. The highest tax on a typical home is in the Northern Territory at $23,128, followed by New South Wales at $22,490, Victoria at $21,790, Western Australia at $17,053, ACT at $16,350, South Australia at $15,080, Tasmania at $8,735 and Queensland at $5,950. Continue reading
Average property prices in Scotland up 3.5% year on year
Average property prices in Scotland increased by 3.5% to £167,765 in the second quarter of this year compared to the previous year, according to the latest data from the Registers of Scotland. It means that the average price of a home is now at its highest for this quarter since Registers of Scotland began compiling quarterly statistics in 2003. The highest rise was 10.1% recorded in West Dunbartonshire, taking the average price to £120,822, while Edinburgh recorded the highest average at £237,286, a rise of 4.4% compared with the same quarter the previous year. The largest percentage fall in price was in East Renfrewshire, with a drop of 7% taking the average price to £216,565. Sales of property across Scotland increased by of 1.6% on the same quarter the previous year, the highest volume of sales for this quarter since 2008. Glasgow saw the biggest rise in the number of sales with an increase of 17.6% compared to the same period in the previous year. This increase brought Glasgow above Edinburgh in terms of volume with 3,035 residential house sales compared to 3,002 in Edinburgh. This is the first time that the volume of Glasgow sales have exceeded those in Edinburgh since quarter four of 2012. Aberdeenshire sae the biggest decrease in the number of sales with a fall of 18% as in Aberdeenshire, and the total value of sales across Scotland increased by 5.1% compared to the previous year to over £4.14 billion, the highest value of sales for this quarter since 2008. Edinburgh was the largest market with sales of over £712 million for the quarter, an increase of 6.4% on the previous year. West Dunbartonshire recorded the highest increase in value with sales of over £45 million, an increase of 27% compared with the same quarter last year. In terms of type, flats showed the biggest increase in average house price in this quarter, up 4.7% to £133,790. Semi-detached properties also showed an increase of 1.8% on the previous year. Meanwhile detached and terraced properties saw decreases in average house prices of 0.2% and 0.3% respectively. Semi-detached properties and flats both showed an increase in sales volumes, with flats showing the biggest increase at 6.9%. Detached and terraced properties showed a decrease in sales volumes with terraced properties showing the biggest decrease of 3.7%. Property consultancy, CKD Galbraith, said that its own research shows a similar pattern and Simon Brown, partner and head of residential sales at CKD Galbraith, said it is an encouraging picture for the Scottish property market as a whole which has witnessed steady growth over the first half of 2015. ‘The market has improved somewhat post-referendum and we have witnessed a surge in viewings being conducted, the numbers of prospective buyers registering with us and the number of properties coming onto the market, all highlighting a real boost in market confidence both from sellers and buyers alike,’ he explained. ‘We believe this will continue as… Continue reading
Top waterfront homes in UK cost an average of 70% more, new index shows
Prime waterfront properties in the UK are worth up to 70% more than their inland counterparts on average, with the South West commanding an extra 91%, according to new research. Private slipways have the potential to push the premium up to as much as 118%, according to Knight Frank’s latest Prime Waterfront Index which measures the potential value uplift for prime homes with a view of water compared with similar properties located further inland. The index data shows that the South West offers the potential for the most added value with a premium of 91%, followed by the South East at 44% and East Anglia at 41%. The premium is 27% in Wales and 33% in Scotland. The report points out that the South West has the longest coastline of any English region and boasts some of the country’s most expensive waterfront properties, with Sandbanks, Rock and Salcombe some of the prime hotspots. ‘Amenities are also a crucial factor for many buyers and having direct access to water is something many people are prepared to pay a premium for. Private slipways are considered the most valuable feature, pushing up the waterfront premium up by as much as118%,’ said Oliver Knight of the firm’s residential research team. The index report also reveals that properties with a private mooring or pontoon can see the waterfront premium rise to 106% and 105% respectively, while jetties and private beach access can add up to 91% and 86%. In terms of location types, homes situated on estuaries command the largest uplift of up to 96% compared to a similar property inland. Prime harbour side properties enjoy an uplift of up to 91% due to their rarity and prime coastal properties are worth up to 67% more. Heading away from the sea, lakeside homes are 40% pricier than their waterless equivalent, and being situated next to a river can add up to 67% to the value of a prime residential property. ‘Our data suggests that interest in UK waterfront properties extends beyond these shores with individuals from all over the world searching for a waterfront home in the UK last year,’ explained Knight. Indeed, the data shows that excluding the UK, where the majority of web searches originated, this was led by potential buyers in Europe and Asia Pacific. Continue reading
