Tag Archives: housing
London prime rental market see strong demand, new research reveals
London’s prime rental markets of London saw annual growth of 1.4% on the back of strong demand for one and two bedroom flats over the past three months in particular, new research shows. Similar rental growth of 1.3% has been seen for prime properties in the commuter zone, however a significant value gap remains, with the average pound per square foot less than half of that in prime London, according to the report from Savills. In London, strong demand for smaller properties resulted in the highest quarterly rental growth in prime central London, prime North London and East of City locations, albeit from different tenant groups. ‘As is typical at this time of year, when the University year begins, wealthy international students drove the demand most evidently in prime central London due to the proximity of world class universities,’ said Lucian Cook, director of residential research as Savills. ‘In contrast, young professional sharers or couples are drawn to less expensive prime locations such as Canary Wharf, Wapping or Islington. This reflects the fact both areas provide easy access to the financial services centres of Canary Wharf and the City, as well as the emerging tech centres in East London,’ he pointed out. ‘As a result of a younger generation driving prime rental growth, landlords may have to be prepared to adapt to their changing requirements. Being able to compete with new build developments which provide on-site facilities such as a concierge will become increasingly important, particularly in PCL and in the East of City where our data shows the largest proportions of renters under the age of 29 choose to locate,’ he added. Among 30 to 60 year olds, Hampstead and St John's Wood in the North West and areas such as Fulham and Richmond in the South West have more appeal. Although rental growth here has been weaker over the past year than in the student/sharer markets, families continue to be attracted to the stock on offer and relative value for money achievable, particularly in the South West where the average pound per square foot is just £29, the lowest across all prime London. The research also shows that across London's commuter belt, the strongest annual growth was seen in the outer commuter zone, with average rents rising 2.5%. Cambridge, Farnham and Winchester, all particular favourites with families, saw the highest growth, due to their popularity for schooling and easy access to London. Regardless of location, since the peak of the prime rental market in 2008, three bed properties have seen the strongest growth with average rental values across the prime commuter zone 3% above their peak. However, over the past three months, one and two bed properties have seen the strongest growth, at 1.3%. This has been driven partly by young sharers unable to afford to buy, but the most significant factor is young professionals relocating for work as the economic recovery outside of London continues to strengthen. ‘As demand for rental properties continues to grow due to affordability… Continue reading
Property value growth in Australian capital cities flat in September
Residential property values across Australia’s capital cities were virtually flat over the month of September, according to the latest RP Data CoreLogic Home Value Index. There was a 0.1% rise in values over the month which translates into a 2.9% capital gain over the third quarter of 2014. However, the flat result for September masks the fact that five of Australia’s capital cities recorded a fall in values over the month whilst only Sydney with growth of 0.8%), Brisbane with a rise of 0.7% and Adelaide up 0.9% recorded an increase in dwelling values over the month. The September quarterly was once again driven by exceptionally strong conditions across the Sydney and Melbourne markets where the quarterly capital gain rate was 4.1% and 3.7% respectively. Additionally, Adelaide recorded a solid increase in values over the September quarter, posting a 3.1% capital gain. Brisbane was up 0.6%, Darwin up 1.4% and Canberra also up 1.4%. But Perth saw a fall of 0.6% and Hobart was down 1%, the only two capital city markets to record a decline in values over the September quarter. Values are now 9.3% higher over the 12 months to the end of September 2014, with every capital city recording an increase in dwelling values over this period. Sydney values are driving the growth trend, increasing by 14.3% over the past year. The data shows that a substantial gap exists between Sydney and the next best performer, Melbourne, where values increased by 8.1%. Darwin was the third strongest performer over the past year with a 7.1% capital gain, followed by Brisbane at 6.4% and Adelaide at 5.8%. Hobart values were 4.6% higher over the past 12 months while in Perth values were 3.2% higher. Canberra recorded the lowest rate of annual capital gain at 1.7%. Despite the ease in capital gains over September, other indicators remained strong over the first month of spring. Auction clearance rates continued to beat the 70% mark week to week while volumes across RP Data real estate agent and valuation platforms remained strong which indicates heightened levels of industry and mortgage market activity. According to RP Data’s research head Tim Lawless, more listings are entering the market place as the weather warms up. He said that the big test for the housing market will be whether additional stock is absorbed by an increase in buyer numbers. ‘The annual rate of appreciation in dwelling values has actually been moderating since reaching a peak in April this year. The fact that the annual trend of capital growth has been trending lower is an important factor to note as it highlights that the rate of capital gain is no longer accelerating,’ he explained. ‘Even though housing market conditions remain very buoyant, we have been seeing the 12 month trend drifting lower since peaking at 11.5% in April. A moderating annual trend, as well as the relatively flat September result, is likely to be welcome news to policy makers and potential buyers after the… Continue reading
Americans more confident about the nation’s housing market, new research shows
Overall Americans are more confident about the housing market than at the start of the year, according to the latest Zillow Housing Confidence Index. The index increased to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents in 11 of the 20 major metro areas surveyed. The ZHCI, sponsored by Zillow and developed by Pulsenomics, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The headline index is comprised of sub-indices which measure prevailing market trends and buying/selling conditions, expected changes in home values, home affordability, the value of home ownership and, household home buying plans and attitudes toward the social value of home ownership. But the analysis also reveals that consumers’ expectation is for more modest home value growth going forward are this is in line with Zillow's predictions for slower home value growth over the next year. The Zillow Home Value Forecast, which predicts home value growth of 3.1% through next August, is down from 6.6% over the past year. The report also shows that overall, housing confidence is higher among home owners than renters, likely owing to historically high rents and favourable home buying conditions. An analysis of data within the 10,000 completed survey questionnaires used to calculate the ZHCI reveals that younger renters are upbeat about their future home buying prospects. Among renters aged 18 to 34 some 82% said they were confident or somewhat confident that they will be able to afford to own a home someday, compared to 64% of those aged 35 to 49 and 48% of those aged 50 to 64. Then younger age group were also far more optimistic about future home value appreciation with 33% saying that they expected home values to rise more than 6% per year over the next decade, compared to 21% of the middle age group and 15% of the older age group. ‘It's heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today's renters by necessity are tomorrow's buyers,’ said Zillow chief economist Stan Humphries. ‘Cynics might argue that these results represent no more than youthful exuberance, or perhaps some naiveté, but that's missing the point. We need this generation to be confident and wanting to buy, regardless of the difficulties they face,’ he explained. ‘And there are difficulties, including saving for down payments in the face of high rents and high student debt burdens, uncertain job prospects among younger workers and limited entry-level home inventory. But optimism is a necessary first step, and indicates a desire among a very creative generation to find creative solutions that will enable them to achieve home ownership,’ he added. The report suggests that in some respects, younger potential buyer’ views toward housing may be more conventional than older generations. Some 65% said they agreed with the statement that owning a home is necessary to living a good life and is central to the American dream, compared… Continue reading
