Tag Archives: europe
Property registrars in Spain report annual price growth of 5.12%
Spanish house prices have increased at their fastest rate since the downturn, up 5.12% in the 12 months to the end of June, the latest index report shows. This is up from 2.65% in the previous quarter, according to the data from the Property Registrars which also shows that quarter on quarter price increased by 2.8%. The latest rise in price growth means that prices are down 29% nationally since the peak of the market, but there are considerable regional variations. The recovery in the Spanish property market is limited to the most popular areas where houses are in demand such as Madrid, the Balearics, the Canaries, Catalonia, and the Valencian Community and the report points out that this is reflected in prices. It points out that sellers and buyers are adjusting their expectations accordingly. In more and more areas buyers who have been adopting a wait and see attitude whilst prices fell are now entering the market. Registrars are not expecting prices to surge but the report does suggest the recovery is well underway, supported by factors such as low interest rates, improved housing affordability, better mortgage conditions, and a sustained foreign demand for property in Spain. They expect moderate price growth and the report points out that a sudden surge would be unhealthy for the market. 'Now more than ever rational decision making is needed to avoid the errors of the past, which came at such a high cost to the economy and society,' the report says. The regional aspects of the market can also be seen in the latest price data from real estate portal Hogaria which shows that overall prices on its lists increased by 0.15% in July compared to June but year on year prices were down 4%. But 29 provinces saw prices increase which suggests that the recovery is there and the market is more stable than it has been. The provinces where prices dropped most in July were Toledo with a fall of 1%, Guadalajara down 0.9%, Lugo down 0.8%, Ciudad Real down 0.7% and Almeri down 0.6%. Cuenca led the growth with a price rise of 1.2%, followed by Sta. Cruz de Tenerife at 1%, Valencia also at 1%, Madrid at 0.9% and Cádiz also at 0.9%. Continue reading
Sydney again leads home value growth in Australian capital cities
Property values in Australian capital cities increased 0.3% in August with Sydney seeing the highest growth at 1.1% compared with the previous month. The latest home value index from CoreLogic RP Data also shows that there were considerable variations in the performance of the housing market from city to city. Values increased by 0/7% in Adelaide and by 0.3% in Darwin but flat month on month in Melbourne and Brisbane. The remaining capital cities recorded a month on month fall in values. While the August results indicate a slowdown in the rate of appreciation in dwelling values, the quarterly figures highlight just how strong the housing market has been over the past three months with combined capital city dwelling values 5.3% higher over the three months to the end of August. Values across Melbourne were 8% higher over the rolling quarter, and Sydney values were up 7.4%. CoreLogic RP Data head of research, Tim Lawless, said that both cities have seen dwelling values trend substantially higher than other capitals, where the third highest growth rate over the three month period was Brisbane, which showed an increase in values of 2.2% While the three largest capital cities, together with Hobart, have all recorded growth in dwelling values over the past three months, half the nation’s capital cities have recorded a fall in values. Darwin recorded the most substantial decline in values with a fall of 3.2% over the three month period, while Perth values were down by 1.5%, Canberra values were 0.8% lower and Adelaide values lower by 0.1%. With the lower month on month growth rate, the annual rate of appreciation also slipped to 10.2% per annum, from 11.1% last month. According to Lawless, the annual rate of growth highlights how strong Sydney housing market conditions have been. Sydney dwelling values are 17.6% over the past year, and since the beginning of 2009, Australia’s largest capital city housing market has recorded a cumulative capital gain of 76%. Using the median house price from January 2009 as a base, the typical Sydney home owner has seen the value of their home increase by approximately $309,000 since the beginning of 2009. The only cities where dwelling values declined over the past 12 months have been Darwin with a fall of 4.6%, Perth down 1.8% and Canberra down 0.9%. ‘Darwin and Perth have certainly felt the brunt of the downturn in resources investment while conditions in Canberra have been improving but remain volatile. We expect the softer housing market conditions in Perth and Darwin are likely to persist over the coming year,’ Lawless explained. Unit values have recently shown a higher rate of growth city house and unit values than detached houses, with values rising 0.8% over the month compared with a 0.3% rise in house values. The rolling quarterly rate of growth was also higher for units at 6.7% compared with 5.1% across the detached sector. Lawless pointed out that it has generally been the case throughout… Continue reading
Core UK regional city markets see office rental growth, latest data shows
Growth in prime headline office rents has continued across the UK’s regional property markets with an average increase of 4.3% in the year to June 2015. The growth has been seen across the core eight markets covered by the index from property consultants JLL and reflects a solid outlook for demand and tight supply of new space. The firm says that headline rents are expected to continue on an upward curve with average growth of 2.9% per year in the core regional markets over the period from 2015 to 2019. ‘Sustained levels of occupier demand combined with the decreasing availability of Grade A office supply has contributed to healthy rental growth with year on year increases witnessed in all bar one of the core eight cities,’ said Jeremy Richards, dead of national office agency at JLL. The data shows that Manchester and Leeds saw the most significant increases with rents up by 6.5% year on year to £33 per square foot and by 6% year on year to £26.50 per square feet respectively. According to JLL’s research report office take up across the regional markets reached 3.8 million square feet in the first half of 2015 and is forecast to exceed last year’s full year total of 7.3 million square feet, well ahead of the 10 year average of 6.6 million square feet. The figures also reveal that Manchester and Birmingham dominated activity in the first half of the year accounting for 677,000 square feet or 18% and 650,000 square feet or 17% of take up respectively. The falling supply of good quality office space remains a key theme according to JLL. Available office space across the core markets stands at 19.5 million square feet with an average overall vacancy rate of 8.2%, down from 9.1% over the year. The Grade A vacancy rate is just 2.4% on average, with Leeds and Cardiff the lowest at 1.5% and 1.3% respectively. JLL’s report shows that total pre-leasing jumped sharply in the first six months of the year to 837,000 square feet across 14 transactions in comparison to 138,000 square feet across five deals in the whole of 2014. Some 5.36 million square feet is currently under construction speculatively across the core cities in 58 schemes, which compares to just 3.3 million square feet in the first half of 2014. ‘Partly aided by pre-lets, the development pipeline is now responding to the supply issue with Manchester accounting for the greatest volume of speculative development activity at 875,000 square feet,’ said Richards. Office investment volumes across the core cities hit £1.9 billion, well up on the £1.5 billion traded in the first half of 2014. Domestic investors accounted 74% of investment volumes with the weight of money targeting the regions continuing to place inward pressure on prime yields, which now range between 5% and 5.25% for the largest regional cities,… Continue reading
