Tag Archives: asia
Shard creating a mini property boom in SE1 area of London
London's Southbank around the Shard, which includes riverside Southwark, Borough and parts of Bermondsey, is experiencing a mini property boom, it is claimed. This is being driven by extensive regeneration, infrastructure improvements and residential development, drawing in young professionals and experiencing rapidly rising prices, according to letting and estate agents Chestertons. The firm’s latest market report points out that prices in the SE1 postcode have risen by 106% in the five years since the lowest point of the downturn, surpassing pre-crash prices by and far outstripping the London average increase over the same period, which is 51%. It suggests that the Shard development has proved a beacon for commercial regeneration, attracting investment and jobs to the area, while the number of new homes in the area, coupled with ongoing improvements to London Bridge station, is attracting young professionals, many of whom work in the booming tech, creative and financial services industries. ‘The residential sales market has not been without its challenges this year, the number of transactions has fallen slightly in fact when compared to 2014, and we've seen slower price growth than last year. But owners are still enjoying average sales values in SE1 that are 70% above their pre-global recession peak in 2008,’ said Matt Johnson, sales manager in the Tower Bridge office of Chestertons. ‘When it comes to the new homes sector, however, there's no sign of a slowdown. Coming into the final quarter of the year, a total of 2,916 homes in 21 schemes were under construction and a further 4,146 homes in 22 schemes had planning permission,’ he added. The report shows that One Tower Bridge (Berkeley Homes), NEO Bankside (Native Land) and One Blackfriars (St George) have all achieved strong off-plan sales. Investors have also been very keen to buy partly due to the rising demand from young professionals moving to the area. Indeed, according to Laura Kitts, lettings manager at Chestertons Tower Bridge, the lettings market in SE1 has really picked up in 2015, displaying continuous signs of growth and confidence. ‘Tenant demand was nearly 8% higher in the first three quarters of the year compared to the corresponding period of 2014, and the number of homes available for let was up by more than half. The wider choice of lets available hasn't dampened rental growth, either, with the average rents on new tenancies having risen by around 5% over the past year alone,’ she said. Continue reading
US homes sales tumble but partly due to change in time frames rather than demand
Existing home sales in the United States fell considerably in November to the slowest pace in 19 months, according to the latest monthly report from the National Association of Realtors. However, some of the decrease was likely because of an apparent rise in closing time frames that may have pushed some transactions into December, the report says. It shows that all four major regions saw sales declines in November with total existing home sales down 10.5% to a seasonally adjusted annual rate of 4.76 million in November, the lowest since April 2014. After last month's decline, the largest since July 2010 at 22.5%, sales are now 3.8% below a year ago, the first year on year decrease since September 2014. According to Lawrence Yun, NAR chief economist, multiple factors led to November's sales decline, but the primary reason could be an anomaly as the industry adjusts to the new Know Before You Owe rule. ‘Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales. However, signed contracts have remained mostly steady in recent months, and properties sold faster in November. Therefore it's highly possible the stark sales decline wasn't because of sudden, withering demand,’ he explained. Yun believes that while estate agents are adjusting accordingly to the Know Before You Owe initiative, the main result so far has been the need for longer closing times. According to NAR's Realtors Confidence Index some 47% of respondents in November reported that they are experiencing a longer time to close compared to a year ago, up from 37% in October. ‘It's possible the longer time frames pushed a latter portion of would be November transactions into December. As long as closing timeframes don't rise even further, it's likely more sales will register to this month's total, and November's large dip will be more of an outlier,’ Yun pointed out. The index also shows that pries are still rising. The median existing home price for all housing types in November was $220,300, 6.3% percent above November 2014 and the 45th consecutive month of year on year gains. Total housing inventory at the end of November decreased 3.3% to 2.04 million existing homes available for sale and is now 1.9% lower than a year ago. Unsold inventory is at a 5.1-month supply at the current sales pace, up from 4.8 months in October. NAR president Tom Salomone said that real estate agents worked hard to prepare for Know Before You Owe. ‘We knew there would be some near term challenges as the industry continues to adapt. Nonetheless, an early trend of longer lead times to closings is cause for concern,’ he commented. He added that the NAR will continue to work with the Consumer Financial Protection Bureau to ensure as little disruption as possible to the business of real estate. The latest data also shows that properties typically stayed on the market for 54 days in November, a decrease from… Continue reading
Number of rural estates sold in Scotland doubled in 2015
Despite challenges facing the rural property sector in Scotland, including political and economic uncertainty, more than double the number of rural estates sold this year compared with 2014. Research from real estate firm Savills reveals quality and diversity of field sport and conservation were the main drivers for purchase in 2015, with viewers coming from the length and breadth of the UK, the Middle East, the US, Belgium, Sweden and the Netherlands. ‘The estate market has shown a significant increase in activity this year, despite the publication of the draft Land Reform Bill in June,’ said Evelyn Channing, a Director in Savills Edinburgh office specialising in the sale of rural estates. The figures show that so far this year, some 20 estates totalling 118,000 acres have sold or are under offer at an accumulative asking price of £63 million, more than double the number sold in 2014 but equivalent to 2013. ‘Almost a third of the estates sold this year were launched prior to 2015. Last year’s referendum resulted in a quieter market in 2014 and deterred many potential sellers from coming to the market,’ explained Channing. ‘Savills has handled over a third of the estates sold on the open market this year. Around 50% of our buyers have been British, in contrast to the past few years when the majority of purchasers were from overseas,’ she added. The research also suggests that in the current climate, buyers appear to be taking comfort in being in competition with others on the open market. Savills estimates that only 15% of sales in 2015 were conducted privately, considerably less than in previous years. ‘No market thrives on uncertainty, and there was a sense of trepidation from buyers, sellers and indeed selling agents at the start of the year, with minds being focused on the ‘what if’s’ of Land Reform,’ Channing pointed out. ‘However, the way ahead has become significantly clearer in recent months and we are anticipating the return of confidence in the estate market in Scotland will lead to further increased activity in 2016,’ she concluded. Continue reading
