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Prime London lettings market sees demand exceed supply post-election
The prime London lettings market has experienced a complete shift this month from a quiet lull before the election to a mass influx of new applicants registering since polling day. The latest market report from agency W.A. Ellis, part of the JLL Group, indicates that while the mid-term break is normally a quiet period this year the firm has seen a 20% increase in tenancies starting year on year with the seasonal student market in full swing and demand exceeding supply. However, Lucy Morton, director at the firm, pointed out that when trying to secure accommodation for the start of the school year in September, few landlords will agree to their property sitting empty until then so it may be necessary for students to wait until July or August before starting their search, or take their chosen property now in order to secure it. ‘Our market share in super prime continues to rise month by month with huge success in the super prime sector of the London lettings market recently,’ she explained. This included a six bedroom house in Herbert Crescent with a guide price of £8,950 per week and a seven bedroom house in Justice Walk with a guide price of £8,500 per week. ‘This time last year we informed you of Mayor of London Boris Johnson’s launch of the London Rental Standard (LRS). People differ in opinion as to whether this scheme has been a success or not, however, the Mayor’s office has pointed to figures showing 331 lettings agents managing an estimated 121,000 properties have already signed up. We fully support the initiative,’ added Morton. Continue reading
Miami real estate market continues to be busy, latest data shows
Miami is continuing to be one of the busiest real estate markets in the United States with the latest data showing that median sales prices for all housing types rose in April. The data from the Miami Association of Realtors also shows that single family homes have seen their most robust sales since December last year. ‘The continued stability in Miami’s job market and low interest rates are improving buyer confidence. Not only are we seeing more single family home sales in Miami, but we are seeing more homes and condos listed as seller confidence grows,’ said Christopher Zoller, the association’s residential president. Single family home transactions, which set an all-time Miami annual record in 2014, increased 8% year on year in April while existing condominium sales, which posted the second best year in Miami history last year despite an increase in new condo construction, fell by 6.8%. Single family home prices, which again increased in April, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in April 2015, marking 46 months of growth in the last 47 months. The median sale price for single-family homes increased 7% to $260,000 in April 2015 from $243,000 in April 2014. The median sale price for condominiums increased 3.1% in April to $199,000 from $193,000 a year ago. The data also shows that the average percent of original list price received for single family homes was 94.6%, down a negligible 0.1% from a year earlier. The median number of days on the market for single family homes sold in April 2015 was 43 days, equalling last year’s figure. The average percent of original list price received for existing condominiums was 93.1%, a 0.5% decrease. The median number of days on the market for condominiums sold in April 2015 was 63 days, an increase of 14.5% compared to the same period in 2014. Cash deals represented 51.9% of Miami’s total closed sales in April 2015, down from 59.3% in April 2014. Nationally, just 24% of housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash buyers continues to reflect South Florida’s ability to attract international buyers. Condominiums comprise a large portion of Miami’s cash purchases as 65.8% of condo closings were made in cash in April compared to 35.7% of single family home sales. Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of April increased 6.1% year on year and active listings remain about 60% below 2008 levels when sales bottomed. Inventory of single family homes decreased 2.5% while condominium inventory increased 10.9%. At the current sales pace, there is a 5.1 month supply of single family homes, a year on year decrease of 7.8% and there is a 9.1 month supply of condominium inventory, an increase of 17.7% from 7.7 months in April 2014. A… Continue reading
Slowdown has led to boost for Spain’s long term property rental market
The economic downturn has led to a significant rise in the number of people renting a home in Spain for the long term with strong demand from nationals and foreign residents, new data shows. Overall the Spanish rental sector has doubled in the last five years, according to the data from the country’s National Statistics Institute and figures also shows that yields are up to 7.6% for long term lets. Indeed, improving yields has prompted many investors to turn to Spain as the next buy to let destination of choice with data from Idealista showing that yields have increased from 4.7% a year ago, to 5.3% currently. Popular tourist areas, such as Las Palmas de Gran Canaria offered returns of up to 6%. A modern, one bedroom apartment with sea view can be rented out for €700 per month, while a spacious three bedroom townhouse with sweeping views of the bay and port costs from as little as €145,000. Nor is it just tourist areas that offer strong returns. The highest yielding area, according to the Idealista figures, is the Catalonian regional capital of Lleida, where returns have reached 7.6%. A two bedroom, three bathroom, high spec apartment with balcony there can be picked up for €207,800. The news that Spanish rents rose for the first time in seven years in the first quarter of 2015 is further attracting the interest of buy to let investors with their eye on solid returns. According to Fotocasa, the average price of rental accommodation rose by 2.8% during the first quarter of this year, to €6.96 per square metre per month. Added to all of this is the surge in demand from tenants, with the size of the rental sector more than doubling from 7% just over five years ago to 16.6% in 2014, according to figures from the National Statistics Institute's Continuous Household Survey. ‘The past few years have seen a significant increase in the number of people in Spain looking to rent property on a long term basis,’ said Martin Dell, Director of Kyero.com, the portal which lists property sales, holiday rentals and long-term rentals. He added that Kyero's long term rentals site has experienced strong demand, from Spanish nationals and from foreign residents, while the firm’s sales site has received interest from investors looking to build up buy to let portfolios while property prices remain low. While more than half of rented homes house foreign tenants, Spanish nationals are increasingly looking to rent due to the flexibility that doing so provides. Following nearly a decade of high unemployment, the Profile of the Tenant in 2014 study has revealed that labour mobility is the main reason that many opt to rent a property rather than purchase one. The same study provides an interesting insight into the average tenant, who is aged between 35 and 44 years old, married and with a university education. They are professional tenants with families. Some 22% are looking to rent due… Continue reading
