News
Average price of a home in Auckland reaches new all-time high
The average price of residential property in Auckland, New Zealand, increased to a new all-time high of $822,148 in May, a month on month rise of 2.2%. Indeed, since February prices in the city have now increased by 10% and sales are also strong, according to the latest data from real estate agent Barfoot & Thompson. The data also shows that the median price in May at $750,000, a fall of $3,500, or 0.5% compared to April but since February the median prices has increased by 9.2%. In May sales activity was extremely strong with sales numbers up over those for April by 14.5% and buyers have continued confidence in the market, according to Peter Thompson, managing director of Barfoot & Thompson. ‘Buyers are mindful that prices are at an all-time high, but the combination of a sound economy, low mortgage rates and a housing shortage gives them confidence prices are not on the verge of retreating,’ he added. He pointed out that measures announced in the May Budget had no impact on market activity. ‘If the budget initiatives are to have any influence they are likely to show up in June’s activity,’ he added. With sales in May at 1,225 it was the third month in a row that the firm sold more than 1,000 homes in a month, a milestone that was never achieved in 2014. The firm experienced a major listing drive in April and early May, and through this achieved 1,740 new listings in May, the highest number in a May for eight years. ‘As a consequence of high sales in May by month end we had only 3,060 properties on our books. There have been only two months over the past 16 months when we have ended the month with a lower number of properties,’ said Thompson. Sales of properties for in excess of $1 million attracted strong buyer interest and the firm sold 362 properties in this high end category, the second highest number on record behind March’s 420. However, property sales for under $500,000 at 163 were, for the third consecutive month, below the number of $1 million sales. Continue reading
Men are from Mars, women from Venus, housing style poll finds
When it comes to relationships it is well known that men and woman have very different ideas but now research suggests they also have different priorities when it comes to choosing a home. When it came to buying their dream home some 14% of men wanted a cinema/screening room and 12% wanted a wine cellar. In contrast, 24% of women rated an AGA oven and 18% wanted a kitchen island, according to research from real estate firm Strutt & Parker. The top ideals when it comes to moving from women were being near a good schools, access to shops and amenities, a short commute to work and wanting more space as well as being close to family and friends, the poll of buyers, sellers and tenants also found. But men’s top list for reasons for moving home were tax changes, retirement, pension support, a smaller home, the political environment and mobile telephone coverage. While both sexes agreed that a traditional British home was what they wanted, certain styles scored much more highly with women than men including a loft style, simple Scandinavian, classical French and exotic Indian. On the other hand, 1950s/60s/70s retro was preferred by men. Men preferred stark, grand, imposing and cool characters for their home while women were more attractive to a quirky, creative, calm and relaxing ambiences. When it comes to outside space, men are far more interested in living on or near water than women, and homes with sporting facilities such as a gym, pool and tennis were also more popular with men, although more women were keen on equestrian amenities. When looking at a managed apartment block or unit, men tended to be far keener on convenience and practical amenities. Having a porter or doorman, in-house cleaning services, car sharing, banquet services and refrigeration drop off storage were all far more popular with male respondents. For females, it was important that pets were allowed and disabled accessibility was also a priority. Environmental features appeared to be of more importance to men than they were to women. Code Level 5 ratings, renewable energy, living walls, grey/potable water and green roofs were all markedly more popular with male respondents. ‘Our overall analysis points towards elements such as broadband connectivity and access to amenities being very important for buyers. However, men and women appear to have a slightly different interpretation on what these might mean,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘When referring to private rental, for example, for men amenities and services might mean concierge services and grocery drop off, for women it might mean ability to bring pets and disabled accessibility,’ she explained. Continue reading
Prime central London rents adjust downwards, latest analysis shows
Annual residential rental value growth in prime central London eased to 3.4% in June, reflecting a positive but hesitant mood in the lettings market, a new report suggests. While June marked the twelfth consecutive month of annual growth, demand has been inconsistent ahead of an expected seasonal upturn in the summer as companies digest the outcome of the general election. In similar fashion to the sales market, the prime central London lettings market is in a period of adjustment following an election result that few predicted, according to the report from international real estate firm Knight Frank. The report also reveals that prime gross yields remained at 2.96% for the second month running and high stock levels in some areas means setting realistic asking rents has become more important. ‘One example is high stock levels in some areas, the result of landlords having waited for clarity around the result of the vote before deciding whether to let their properties,’ said Tom Bill, head of London residential research at Knight Frank. ‘The health of the prime central London lettings market is linked to that of the UK economy and some perceive it to be on a firmer footing under a majority Conservative government, which has caused stock levels to rise,’ he explained. ‘Properties for sale are also moving across to the lettings market, the result of some vendors choosing the rental option after a post-election spike in prices failed to The result of higher stock levels is that prospective tenants are shopping around to a greater extent than before, which means setting realistic asking rents has become increasingly important,’ he added. However, the picture is mixed across different markets and there is a shortage of family houses in areas including Kensington and St John’s Wood, as more families opt to rent due to affordability constraints in the sales market. The report also points out that the impact of the election on decision making by large financial institutions over whether they remain in the UK will also have a bearing on demand in the second half of 2015. For example, some banks are reviewing whether to stay against the background of an in-out European Union referendum as well as a wider debate surrounding the merits of the bank levy and plans to claw back bonus payments. Continue reading
