Tag Archives: finance
Property prices down in Cyprus, but decline is slowing
The residential property market in Cyprus is still struggling despite the island’s economy showing signs of stability in the third quarter of 2015, with sales volumes low. Across Cyprus house prices fell by 0.5% and apartment prices by 0.4%, according to the latest index from the Royal Institution of Chartered Surveyors (RICS). The biggest drop was in Famagusta where apartment prices fell by 1.2% and in Limassol where house prices fell by 3.2% while house prices were down 0.3% in Nicosia. However, the RICS index report points out that the rate at which prices are falling has slowed in most cities across Cyprus and there were few sales overall due to the prevailing economic conditions although the volume was higher year on year. In addition certain locations such as Paphos, Larnaca and Famagusta are showing signs of stability where the housing markets are progressively bottoming out. The RICS index also shows that on a quarterly basis rental values increased by 0.3% for apartments, 1.5% for houses and 2.6% for offices while retail units saw a fall of 1.1% and warehouses a fall of 0.1%. Compared to the third quarter of 2014, rents dropped by 1.5% for flats, 0.5% for houses, 4% for retail, 2.5% for warehouses, and 0.2% for offices. Areas that had dropped the most early on in the property cycle now nearing or at the trough and Paphos and Famagusta are showing some signs of price stability. Paphos is the only place with positive returns in all asset classes when compared to the third quarter of 2014. At the end of the third quarter of 2015 average gross yields stood at 3.9% for apartments, 2% for houses, 5.2% for retail, 4.3% for warehouses, and 4.5% for offices. The parallel reduction in capital values and rents is keeping investment yields relatively stable and at low levels compared to yields overseas, the RICS report says, adding that it suggests that there is still room for some re-pricing of capital values to take place, especially for properties in secondary locations. Meanwhile, the latest monthly data from the Department of Lands and Surveys, shows that sales increased across Cyprus apart from Larnaca where they fell by 1%. Sales in Nicosia were up 64%, in Paphos up 30%, in Limassol up 28% and in Famagusta up 4%. But it must be remembered that sales volumes are low. There was a total of 463 sales contracts recorded covering residential, commercial and building plots. However the Land Registry data also shows that during the first 10 months of the year sales are up 8% compared with the same period in 2014 with 3,993 transactions completed. Continue reading
Top end of prime central London property market still seeing low activity
Buyers in the prime central London property market are still cautious with the £5 million plus sector seeing particularly low activity levels, according to new research. There is an increasingly polarised market in this sector where growth is still being seen at the lower end and high end sales are limited in volume, according to the latest statistics covering the third quarter of 2015 from Strutt & Parker. ‘Whilst some commentators are predicting falls in values across the market, we believe these positions are being disproportionately impacted by the £5 million plus segment of the PCL market, which has experienced particularly low activity levels in 2015,’ said Stephanie McMahon, head of research at Strutt & Parker. A total of 720 properties were sold during the third quarter of 2015, a fall of 3.7% compared to the same period last year. Compared to the five year quarterly average, the total volume of transactions were 17% down and flats remain the preferred purchase, accounting for nearly 57% of . The research also shows that the downturn in price growth in 2015 has reduced the number of these properties entering the market as discretionary vendors are willing to wait for prices to recover. This is matched by increased buyer caution as Stamp Duty reforms, an accumulation of recent tax revisions aimed at high net worth property owners, and a strong pound, have discouraged foreign investors from entering the UK market. Overall, this has resulted in investors taking longer to make decisions and considering alternatives. These trends look set to continue for the remainder of 2015 with the ultra-prime segment likely to show zero and in some cases negative growth. However, sellers placing properties on the market that are sensibly priced and good quality will continue to do well. ‘Since the summer break, increasing activity in PCL shows that buyers and tenants are making the most of relative aligning of asking prices. There is no doubt that confidence is on the up and the considerable tax changes of the last few years are now being regarded as the new norm,’ said Charlie Willis, head of London residential at Strutt & Parker. The data also shows that there were 3,936 property lets agreed in PCL during the third quarter of 2015, which was just 1.9% below the five year quarterly average. Zoë Rose, head of London lettings at Strutt & Parker, explained that the PCL lettings market has experienced a slowdown, particularly affecting the three and four bedroom mid-market. ‘That said, demand for one and two bed properties from young professionals remains robust and uncompromising. Properties that are well presented continue to rent successfully,’ she added. ‘The prime London markets have slowed over the past 12 months with the spate of intervention from the government, combined with a strong pound. The coming year brings further uncertainty with the Mayoral election and lobbying around Brexit,’ McMahon pointed… Continue reading
Not all estate agents ask about neighbours when selling a house
Only 40% of estate agents ask people selling their home if they have issues with their neighbours at a time when issues from next door can knock thousands off the price of a property, new research shows. It is clear that not all estate agents want to ask the question when it comes to neighbourly problems and 10% rely solely on the purchasers’ solicitor or conveyancer to investigate existing issues with neighbours. The research from Churchill Home Insurance also found that according to estate agents the most contentious disputes are over communal space. Over half, 56%, of the estate agents surveyed identified this as the major issue while 10% said it was noise and 8% boundaries. Dogs and anti-social behaviour were also cited. Some 14% of estate agents highlighted cases where the seller had to drop the price of a property because of issues with neighbours. The average price drop was 3.8%, around £7,000 in England and Wales and £6,400 in Scotland. Churchill’s research also reveals that 20% of estate agents ask sellers if they have had issues with their council and 15% of these would pass this information on to the prospective buyer. As such, it is vital that prospective buyers ask the right questions to ensure they get all of the information they require to make an informed purchase, the firm said. Buyers are relying on their solicitors or conveyancers to investigate issues with potential new neighbours. The conveyancing process can unravel any open disputes or circumstances that could lead to disagreements, but the subjectivity of loud music or an aggressive neighbourhood dog means these checks may not capture potential day to day problems. ‘Buying a property is one of the most expensive decisions many of us will ever make. As such, we are well within our rights to be informed about issues that may affect our buying decision,’ said Martin Scott, head of Churchill Home Insurance. ‘Buyers should ask their estate agent to disclose as much as information as they can about the property, seller and neighbours to help the buyer make the right decision,’ he added. He also pointed out that since the demise of the Property Misdirection Act in 2013, estate agents are required under the Consumer Protection from Unfair Trading regulations to reveal any negative issues about a property, if known to them, which may affect the buying decision. If an estate agent has been made aware of a nightmare neighbour or previous council disputes, they are obliged to inform the buyer. Withholding information that could affect the buying decision could land estate agents in hot water. They may be subject to legal action and fines of up to £5,000 and/or two years in prison. Churchill says that buyers should not be afraid to ask questions and when they meet the estate agent or seller they should specifically about issues such as past/ongoing disputes and the… Continue reading
