Tag Archives: finance
Scotland sees strong rise in property sales in third quarter of 2015
Residential property sales in Scotland increased by 6.5% in the third quarter of 2015 and the total value of sales by 6% compared to the same period in 2014, the latest index data shows. This is the highest volume and total value of quarterly sales in Scotland since 2009, according to the figures published by the Registers of Scotland. The highest rise in volume of sales was recorded in West Lothian, with an annual increase of 23.1% compared with the same quarter the previous year while Aberdeenshire saw a drop of 13.5%, the steepest fall. The data also shows that Edinburgh was the largest market with sales of over £805 million for the quarter, an increase of 6.2% on the previous year. But prices have dipped slightly. The average property price in the quarter was £169,397 a drop of 0.5% compared to the previous year. Semidetached properties showed an increase of 2% to £159,854 on the previous year while detached, terraces and flats saw decreases in average prices of 0.9%, 3.1% and 2.4% respectively. Overall the Scottish property market is demonstrating healthy growth and stability with good quality properties selling quickly, according to Simon Brown, partner and head of residential sales at CKD Galbraith. ‘These are very encouraging signs for the final months of year and moving into 2016. Success in the current market comes down to a number of key ingredients: sensitive pricing, demand for high quality property and effective marketing,’ he added. Michelle Grant, investment director at Grant Property, believes that the outlook for the market continues to be positive. ‘This signals growing confidence and has created a more competitive environment for buyers and investors,’ he said. ‘Glasgow and Edinburgh are proving particularly popular with most properties selling for more than the Home Report valuation, on some occasions up to 15% more. It is also not uncommon to be bidding against up to eight to 10 people for a property in sought after areas of the capital,’ he pointed out. ‘From a buy to let perspective we are experiencing 100% occupancy eight out of 12 cities in which we operate with high levels of demand from tenants. This is great news for investors looking to secure assets with long term yield prospects,’ he added. Continue reading
US housing market likely to see more pressure on prices
Housing starts in the United States rose in September, driven by the multifamily sector, but completions are not matching that hot pace, especially for lower end homes. With demand rising but supply in the form of completions slowing, there will be more pressure on home prices to rise, according to the latest analysis report from real estate firm CoreLogic. The implications are likely to be particularly felt at the low end of the property market due to the Federal Housing Administration’s decision in January to cut mortgage insurance premiums by 50 basis points, it points out. Overall starts are up 18% since last September, driven by multifamily, which saw strong growth of 29%, the data shows. Completions, though, the number of units actually delivered, rose by only 8% year on year, or less than half the jump in starts. Multifamily is the driver in this sector too, up 20% from September of last year. ‘The number that should give the market pause, though, is the completions on one-unit structures, both attached and detached. They are up only 3% and they are the most important segment to look at. They significantly lag the one unit structure starts number which were up 12% year on year,’ the report says. ‘Since it takes six months to deliver a house after ground breaking, completions is the actual new supply that is ready to be sold. What that means for home sales is definite upward pressure on home prices,’ it explained. The report also points out that since the FHA made its premium cut, the prices for lower end houses have jumped and the FHA is a big presence in the low end market where houses typically sold for 75% or less than the median. As of August, real prices for lower end houses have jumped 10.4% relative to a year ago. Prices for higher end homes have been up as well, but only half as high at 5.2%. The lower end prices, which had been up in a narrow range of around s7% the last half of last year, really took off starting in January. ‘The real trend to watch here is if one unit completions will rise to match what is a re-acceleration of demand on the low end. If demand for homes to buy outstrips supply, prices will inevitably rise even higher,’ the report concludes. Continue reading
Rents in prime Home Counties market in UK down 0.8% in third quarter
Prime rents in the English Home Counties fell by an average of 0.8% in the third quarter of 2015 despite robust activity levels but are up 4.1% year on year, according to the latest data. The prime rental market in these counties around London, tends to be very seasonal and the three months leading up to September are often among the busiest of the year as tenants look to complete moves before the new US and UK school terms start in August or September respectively. This year was no exception, according to the index report from international real estate firm Knight Frank, with the number of tenancies agreed in the three months to September 54% higher than over the preceding three month period. But while activity levels have been robust, rising stock levels across the prime market, have meant that some landlords have been willing to reduce asking rents slightly in order to remain competitive, according to research executive Oliver Knight. ‘As ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period,’ he said. ‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector. The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries,’ he added. He pointed out that the market continues to attract international tenants with some 38% of new renters across the prime Home Counties market coming from outside of the UK between July and September in Ascot, Cobham and Esher where corporate tenancies are more prevalent this rises to 51%. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor. Continue reading
