Tag Archives: asia
Prime London lettings market sees growth cool
The London prime rental market is starting to cool after a year of record breaking growth with rents either plateauing or seeing slight growth for a third quarter in a row. The latest data report from Benham & Reeves Residential Lettings reveals that this follows a frenzied 2015 which saw unprecedented growth for the first two quarters before finally slowing as the market paused to absorb the changes. Many parts of prime central London saw rents fall, reflecting a trend which has seen demand increase in the inner suburbs, according to the report. It explains that as demand from wealthy non-nationals wanes in the run up to the referendum in June on the UK’s future in the European Union and currency controls put in place by foreign governments, the demand for luxury property in Belgravia, Knightsbridge, Chelsea and surrounding areas seems to have peaked. However, it is still anticipated that the fall in Sterling's value will make prime central London more attractive over the coming months so this decline is likely to be temporary. Rental growth in the inner suburbs continues as the domestic market gains further confidence. Wandsworth saw strong growth as did most of the trendy parts of east London. There is also demand for rental properties in Notting Hill, Bayswater, Queen's Park and Kensal Rise where larger homes offer comparative value. North London, particularly Colindale, Golders Green and Hampstead Garden Suburb that have seen the most substantial growth. This was widely anticipated as rental growth had been supressed in recent quarters while Crossrail works closed the Northern Line interchange at Tottenham Court Road. With the station now fully open, rental demand in these areas has seen a resurgence, the report points out. ‘This is a much needed pause for breath after such huge gains in rental values. Unfortunately for tenants, this pause may only be temporary,’ said Marc von Grundherr of Benham & Reeves Residential Lettings. ‘With increasing restrictions on buy to let, more amateur landlords will be exiting the market, leading to a drop in supply in the face of a growing population. Over the long term, rents will inevitably go up,’ he added. Continue reading
Property market activity soars in England and Wales in March due to stamp duty change
Property sales in England and Wales have seen their strongest March for nine years with transactions up 30%, some 80,000 home sales, the latest index data shows. House price growth also accelerated, up 6.9% year on year and 0.6% month on month, taking the average price to £291,650, the figures from the Your Move house price index also shows. It means that a typical home is now worth £18,745 more than a year ago. When London and the South East are left out of the calculation prices were up 5.1%, suggesting that the market is still strong outside these two growth areas. Indeed, the London market saw the fastest growth of any region as house prices rose 8.2% or £44,548 year on year. Bath and North East Somerset saw the largest March pick-up in property prices, climbing 5.3% or £18,603 month on month According to Adrian Gill, director of Reeds Rains and Your Move estate agents, the impending stamp duty rise for additional properties that was introduced at the start of April helped March record the strongest homes sales for the month since 2007. ‘The surge was widespread across England and Wales. This goes beyond any normal seasonality, with second home and buy to let investors rushing to beat a bigger tax bill,’ he explained. Overall some 73% of local authorities in England and Wales experienced a monthly upswing in home values, the highest proportion of areas seeing positive property price rises since July 2014. ‘This will be welcome news for homeowners, who now have a fantastic opportunity in the current sellers’ market. The pervasive shortage of homes on the market is still driving up values, as buyers have to compete for each available property. If they are going to make it easier to get a foot on the property ladder, the Government will have to double down on its help to first time buyers, or let up on landlords,’ said Gill. He also pointed out that after a bit of a downturn over the winter months, the London property market is growing again with prices up 8.2% higher than a year ago. ‘The lift in London’s house prices seems steep. But we’re actually in a much calmer position than previous years, with the current rise still well below London’s record 20.6% year on year growth, established in July 2014,’ Gill said. He also pointed out that the growth in London property values means it is once again pulling away from the rest of the country, with London and the South East now dragging up national house price growth by 1.8%, double the rate seen at the end of 2015. ‘As a result, we’ve returned to a two speed housing market, as growth in the rest of the country is easily outpaced by London and the South East. But it’s not all about London, as house prices are still advancing in the Northern cities, with the average… Continue reading
New home loans falling in Australia, latest data shows
New home loans in Australia saw a further decline in February from the high levels of late 2015, according to the latest report from the Housing Industry Association. Despite a growth in the total number of owner occupier loans, excluding refinancing, new home loans fell by 6.5% month on month and were 2.7 per cent lower than a year earlier. During February the number of loans for the construction of new dwellings eased back by 1.9% in seasonally adjusted terms, while the number of loans for the purchase of new dwellings fell by 15.4%. Compared with a year earlier, loans for dwelling construction were down by 2.8% and there was a 2.6% decline in the number of new dwelling purchase loans over the same period. However, HIA senior economist Shane Garrett said that it is important to remember that new home lending volumes are still high by historic standards. ‘The decline in new home loans during January and February is consistent with our view that new home building will moderate during 2016 from last year’s record highs even though the number of new home starts this year is still likely to be one of the highest on record,’ Garrett explained. ‘While the markets that have risen on the recent wave of construction are likely to continue to perform in the near term, there is a risk that markets which didn’t fully participate in the boom may find this more painful,’ he pointed out. ‘It is vital that state governments are prepared to step in and offer support to our industry as required over the next few years,’ he added. Compared with a year earlier, the number of loans to owner occupiers building and buying new homes in the three months to February 2016, increased most strongly in the Northern Territory with growth of 37.4%, followed by growth of 20.2% in New South Wales and 9.3% in Victoria, New home lending volumes also rose in South Australia by 4.7%, in Queensland by 3% and in the Australian Capital Territory by 2.5% but over the same period, lending volumes fell in Tasmania by 33.1% and in Western Australia by 20.4%. Continue reading
