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Rental prices in Spain fall for 34th month in a row
Rental values in Spain are continuing to fall with the latest figures showing that average rents fell by 0.4% in January compared to the same month of 2015, the 34th month in a row of declines. The data from the National Statistics Institute (INE) shows that rents fell in all regions except in Galicia where they increased by 0.3%, the Balearic Islands and Catalonia both up 0.1%, ad were static in Murcia and Navarra. The most significant fall in rental prices were in La Rioja where they were down by 2% while in Castilla y Leónand Castilla-La Mancha rents fell by 0.9%, were down 0.8% in Madrid and Extremadura and down 0.7% in Asturias and Valencia. The regions of Andalucía and Aragón registered the same rate of decline as the national average at 0.4%, while in Cantabria rents fell by 0.3% and the Canary Islands, the Basque Country and Ceuta all recorded declines of 0.2%. But in the buying and selling market the news is more positive with the INE data showing that the Spanish housing market grew by 11% last year after bottoming out in 2014. There were 318,055 home sales last year, the first time sales have risen above 300,000 a year, and following 260,000 in 2012 and 2013. But sales are still considerably below the 700,000 recorded before the global economic downturn in 2007. In terms of percentage growth, the housing market expanded by 11% last year, after rising 4% in 2014, and according to Mark Stucklin of Spanish Property Insight this suggests that the market has finally turned around. The crash in sales started back in 2008, and declined in five of the six years between 2008 and 2013, with dramatic double digit falls in most of those years. However, looking just at December, sales were up 8% year on year, meaning the market expanded every month in 2015, the first year that has happened since the crisis began. There were 77,865 new home sales registered last year, and 276,267 resales, meaning that resales were 78% of the market, down from parity as recently as 2013. ‘The new homes market has failed to recover as quickly as resales in part due to a lack of new developments on offer, though sales may start to recovery this year as more new projects come on stream,’ Stucklin explained. Of the selected regions most of interest to foreign buyers, Barcelona’s property market increased the most last year, up by 20%, but new home sales fell 20% while resales were up 32%. This was followed by Cadiz province, Las Palmas in the Canaries and the Balearics all up 15%. Indeed, all regions were positive with the exception of Huelva, home to the North Western end of the Costa de la Luz, also known as the Spanish Algarve, where they fell by 2%. ‘The Spanish property market now looks to be on a growth path after years in crisis. Sales growth was particularly… Continue reading
High property land prices in Australian capital cities bringing sales down
There is strong evidence of intensifying supply constraints in the residential land market in Australia, especially in the country’s state capital cities. The number of residential lot sales fell by 2.7% in the third quarter of 2015 while median lot prices rose by 4.2%, according to the report from the Housing Industry Association and real estate analytics company CoreLogic RP Data. The index report explains that the tightening of market conditions was concentrated in the capital cities, where prices increased by 5.4% but the number of lots transacted actually fell by 4.5%. According to Shane Garrett, HIA senior economist, with the Australian population now over 24 million for the first time, the report provides a sobering indictment of how land supply policy is not keeping pace with the housing needs of a growing population. ‘The combination of strong land price growth yet declining transaction volumes are hallmarks of a market constrained by supply bottlenecks. Ineffective land supply policy will limit Australia’s long term growth potential and erode competitiveness by forcing costs up,’ he explained. ‘The key supply side issues like planning delays, efficient infrastructure provision and the mammoth taxation burden on new housing need urgent attention. Otherwise, living standards for Australia’s 24 million residents will never reach their full potential,’ he added. According to CoreLogic RP Data research director Tim Lawless, the number of vacant land sales has been trending lower since reaching a recent peak over the June quarter of 2014, with the median land price continuing to push higher despite lower volumes. ‘Buyer demand across the vacant land market has remained strong, which is why prices are rising on lower sales, however, as land prices rise it is likely block sizes will have to reduce in order to maintain an affordable price point for buyers,’ he said. He pointed out that median lot prices have risen across every capital city over the past 12 months except for Adelaide where they fell by 1%. The tight supply of land across Sydney has seen median land prices rise by the most of any capital city over the past year, up 22.8% compared with a weighted average across the capitals of 10.7% growth. ‘Despite having the most expensive housing and vacant land, Sydney is currently showing the second largest median lot size amongst the capital cities at 537 square metres. Somewhat counterintuitively, the median land area has historically been the smallest in Adelaide, with the September quarter data showing a median lot size of just 375 square metres,’ Lawless said. Continue reading
Female property professionals in UK still paid less than men
Salaries for UK property professionals have continued to rise at an average increase of 7.1% in 2016 but there is still a gender pay gap, according to the latest survey, with men earning £7,000 a year more than women. The survey from the Royal Institution of Chartered Surveyors (RICS) and Macdonald & Company shows that male property professionals earn £57,509 a year compared to their female counterparts on £45,689. It means that the gender pay gap has closed slightly from 27% last year to 25.9% in 2016, the discrepancy is evident across all age groups and is most acute for those aged 18 to 22 where the difference in average salary is 28.7%. The report also says that competition for talent continues with the average salary increase awarded to respondents who moved employer in the last year reached 16.2%, while the average increase received by respondents under 30 jumped by 12%. Bonuses awarded to entry level candidates jumped by 79% this year and employees at this level are also most likely to move job and of those who indicated they are likely to look to change roles this year 35% are relatively inexperienced, compared to 19% last year. ‘The fact that 64% of respondents reported a rise in salary will offer cold comfort to the many women in the sector, especially those at entry level, who are once again confronted with a significant gender pay gap. The industry must urgently take action to create a more balanced workforce that attracts the best talent if it wants to remain competitive,’ said RICS equalities manager Justine Wallis-Leggett. ‘We can achieve this by introducing inclusive working practices such as flexible working. These are key to employee engagement, and in an increasingly competitive market, employers cannot afford to create working environments that only serve the needs of a small majority of the workforce,’ she added. She pointed out that RICS has launched an Inclusive Employer Quality Mark which asks employers to put inclusivity at the heart of what they do, and aims to support them in sharing best practice. ‘We would urge all firms to put their money where their mouth is by signing up. Until there is a true commitment to change within the sector, we will continue to see results like these and the subsequent drift of talent away from our sector,’ Wallis-Leggett explained. Looking at the picture across the UK, those working in greater London continue to earn, on average, the most at £65,050 and command a premium of 20.8% over the South East and 52.2% over Ireland. The majority of the rest of the UK have indicated only a slight growth in average annual salaries, with the greatest growth seen in Scotland with a rise of 2% and the Midlands up 1%. RICS qualifications continue to show their merit with a FRICS earning £69,885 in comparison to a non RICS counterpart at £43,905, while those with… Continue reading
