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Demand could push up prices in popular parts of Spain
Enquiries from international buyers for property in Spain have reached record breaking levels at a time when prices are still falling but demand could push up values in popular areas. Spanish property portal Kyero, which lists more than 200,000 homes from 3,000 estate agents, said it has had its busiest ever quarter and properties prices from €50,000 to €100,000 are proving most popular. The firm’s latest quarterly report shows that 28% of all enquiries were for properties at €100,000 or less and they are also proving popular with domestic buyers. The report also suggests that prices could start rising because of the demand. Valuations company Tinsa has released data which shows that a total of 35 popular locations have seen price rises between the first quarter of 2014 and the same period in 2015. The previous year saw just four of those areas register price increases. The upward movement indicates that those seeking properties in the €50,000 to €100,000 range might soon have to up their budget in order to get what they are looking for. The Kyero research confirms that Spain's coastal areas are some of its most popular with second home buyers looking for a holiday home with easy access to beaches. Alicante, home of the Costa Blanca, is the most popular province, according to the Kyero report with 31% of all enquiries focusing on that region. Malaga was the second most popular area, accounting for 15% of total enquiries. ‘Spain's beaches offer some fantastic, family friendly holidays and many of those buying here want to own a property within a short walk or drive of at least one beach. Apartments are by far the most popular choice, accounting for 39% of all enquiries during the last quarter, 10% ahead of villa enquiries,’ said Kyero founder Martin Dell. ‘Many families like the idea of owning an apartment that comes with a shared swimming pool that the condominium company maintains. It's less hassle and expense than owning a villa with its own pool,’ he added. The Kyero report also reveals that it is three bedroom properties that command the most interest, with 32% of all enquirers looking for properties of that size. Two bedroom properties came a close second, with 30% of total enquiries. Meanwhile, the Tinsa data shows that overall the average price of new and used homes declined by 1.1% in the first half of 2015 compared to the same period of 2014 but the Mediterranean Coast and Islands standing have performed better. Prices in the Balearic and Canary Islands increased by 4.4% in the first six months of the year, while prices on the Mediterranean Coast increased by 1.8% in the same period. The biggest falls in prices have been seen in cities with declines of up to 3.7%. Since the peak of the market in 2007 average property prices have fallen by 41.8%. The Mediterranean Coast is the area where values have been adjusted most, with an… Continue reading
Average residential rents in Australian capital cities falling
Residential rental rates in Australian capital cities fell by 0.2% last month, down to $487 per week, but are up 1.1% over the past 12 months. It is the slowest annual rise in capital city rents recorded by the CoreLogic RP Data monthly rental report since date was first gathered in December 1995. The firm’s research analyst Cameron Kusher said that the sluggish pace of rental appreciation continues to be attributed to the ongoing boom in home construction across Australia’s capital cities accompanied by record high participation in the housing market from investors. A breakdown of the figures shows that Sydney and Hobart have recorded the greatest increases in weekly rents and over the past three months rents are lower in all cities except for Sydney, Melbourne and Canberra. The report says that Sydney and Melbourne are recording relatively stronger rental growth despite a large surge in new supply and high levels of investment purchasing. Sydney and Hobart also recorded the greatest annual increases in weekly rents while rents in Perth, Darwin and Canberra continue to decline. With home values growing faster than rents, gross rental yields are at a record low level and continue to edge lower, the report adds. Continue reading
UK mortgage lending still down compared to a year ago
Home lending levels recovered in May compared to April, but were still down compared to a year ago, the latest figures from the Council of Mortgage Lenders show. First time buyers saw a decline in lending volumes compared to last year, but up slightly on the previous month while home mover lending saw a similar trend with volumes up slightly on April but down year on year. Home owner remortgage activity also declined compared to the previous month and compared to the same period last year. However, buy to let lending continues to grow year on year, mainly driven by remortgage activity and also saw a slight month on month increase due to higher buy to let house purchase lending activity. ‘House purchase lending in May was slightly up on the previous month, suggesting the market might be waking up after a subdued first quarter,’ said Paul Smee, director general of the CML. ‘Activity has broadly been down on last year but we expect it to rise in the summer months as, with historically low interest rates and a competitive lending environment, borrowing conditions are relatively favourable. But we cannot ignore the continuing affordability constraints caused by high house prices relative to earnings which will work in a contrary direction,’ he added. The CML report also shows that, as previously reported, gross lending in May was £15.9 billion, up from £15.8 billion in April but down from £16.8 billion in May last year. Under normal circumstances, a slight increase in the number of loans to first time buyers in May would be a sign that their prospects are on the rise this summer. But Patrick Bamford, director of mortgage insurance Europe for Genworth, pointed out that average deposits have risen significantly over the last year, not just because of rising house prices, but because the squeeze on affordability is disadvantaging buyers without a sizable amount of cash to put towards a house purchase. ‘For many would be home owners, especially those without the Bank of Mum and Dad to fall back on, saving more than 5% is simply not a realistic aim. Despite more high loan to value (LTV) products being available at lower rates, market pressures are preventing lenders from offering these products to those buyers who traditionally rely on this type of loan,’ he said. ‘In order to drive a genuine recovery of the high LTV market, the government needs to introduce a permanent system of private mortgage insurance to accompany its planning reforms. First time buyers will only be able to access affordable homes if we make affordable mortgages permanently available to them,’ he added. However, the CML figures also shows that competitive mortgage rates mean first time buyers are paying a record low proportion of their monthly income to service the capital and interest rate payments of their mortgage. This is the lowest level since the CML began tracking this in 2005. Continue reading
