Tag Archives: london
UK prices up almost 10% year on year, latest index data shows
UK house prices increased by 1.1% between September and October and re up 2.8% quarter on quarter and 9.7% year on year, the latest property index shows. This means that the average house price is now over £200,000 at £205,240, according to the Halifax index data and the report says that house price optimism remains high. The 1.1% monthly rise followed a previous month’s fall of 0.9% and the market is up and down with the quarterly figures being more reliable in terms of indicating overall trends, according to Martin Ellis, the Halifax’s housing economist. He pointed out that house prices over the three months from August to October with growth of 2.8% were higher than in the preceding three months and the quarterly rate of change increased from September’s 2% and was a little above the 2.5% average over the first nine months of the year. Some 68% of Britons expect average property prices to be higher in 12 months’ time with just 5% expecting it to be lower, according to the latest quarterly Halifax Housing Market Confidence Tracker. The Halifax report also points out that figures from HMRC show that home sales increased again in September. UK home sales increased by 1% between August and September, to 106,030. This was the second successive monthly rise. Sales in the three months to September were 4.4% higher than in the preceding three months. Mortgage approvals are also on an upward trend despite falling in September. The volume of mortgage approvals for house purchases, a leading indicator of completed house sales, increased by 4% between the second and third quarter of the year despite a 2.5% decline in September. Approvals in the three months to September were 10% higher than in the same three months last year. However, supply remains at a record low. New instructions by home sellers declined in September for the eighth successive month. This contributed to the stock of homes available for sale remaining at record low levels. ‘Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015. Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity,’ said Ellis. ‘The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices,’ he added. Rishi Passi, chief executive officer of Oblix Capital, believes growth on this scale isn't sustainable. ‘Wage increases and low inflation are bolstering household finances, helping to take some of the sting out of these increases,’ he said. ‘The diminishing prospect of an interest rate rise also means lenders are continuing to offer historically attractive rates to the market, which is good news for first time buyers and developers alike,’ he added. Continue reading
Residential property market in China picked up in third quarter of 2015
The residential property market in mainland China picked up gradually in the third quarter of 2015 amid a series of favourable policies such as cuts in interest rates, relaxed restrictions on foreign purchase and an easing of housing provident fund loans. Luxury home prices rose further in first tier cities including Beijing, Shanghai and Guangzhou, where the markets continued to clear inventories, according to the latest Greater China property market report from international real estate firm Knight Frank. It says that the favourable policies will continue to benefit first tier cites, but are less effective in lower tier cities with high inventory levels and weak demand. ‘With Chinese and Hong Kong’s stock market volatility and concerns over an interest-rate hike in the US, Hong Kong’s luxury home buyers tended to wait and see, while secondary landlords were also firm on asking prices, resulting in declines in home sales, rents and prices in the luxury market,’ it explains. It points out that more residential properties are scheduled to complete next year, which will impose further pressure on luxury home rents and prices. In Taipei, amid the government’s regulatory measures, luxury home transactions declined. Landlords became more inclined to hold and rent out their residential assets, leading to increased leasing supply. Nevertheless, luxury residential rents and prices remained stable during the third quarter and the outlook is one of polarisation. The report says the market will be affected by cooling measures, the launch of a combined property and land tax and market expectations. ‘Premium residences in the downtown area will have prices remaining firm, while non-prime luxury homes will experience downward pressure on prices,’ it adds. For the commercial market, the report says that Chinese stock market volatility coupled with growing fears of a slowdown in domestic economic growth, led to a slower pace of corporate expansion, hence weighting on Grade-A office rents in major mainland cities. On the other hand, the People's Bank of China has actively cut interest rates and the reserve requirement ratio since the beginning of this year, aiming to release liquidity in the financial system and ultimately to boost the economy. Grade-A offices prices in Beijing, Shanghai and Guangzhou rose as investing in such properties became increasingly attractive in such a low interest rate environment. With the completion of more Grade-A office buildings in the cities, rents are expected to face further downward pressure in the future. Hong Kong's Grade-A office market recorded strong performance. With sustained office demand from mainland financial institutions but a lack of supply in core business areas, the vacancy rate fell sharply and companies had to rent at higher rental costs. Due to extremely low availability and high rents in core areas, some firms shifted to more cost effective offices in non-core areas where supply was abundant. This trend is likely to continue next year, the report says, with further growth in office rents in core areas. In Taipei, over 80,000 square meters of Grade-A… Continue reading
International tenants dominate top end of central London prime rental market
International tenants and low stock levels are key features of the current prime central London lettings market, especially at its uppermost levels, according to the latest analysis report. Domestic tenants, including students and middle ranking pied-a-terre seeking business commuters, tend to dominate the rental market price band of £300 to £1,000 per week, according to the review from prime lettings specialist E J Harris. But the £1,000 to £4,000 per week price band is characterised by bankers and corporate tenants and above £4,000 per week the market is dominated by ultra-wealthy visitors from Russia, Africa, the Middle East and Asia. Using research from their own client database, local market intelligence and drawing on wider industry figures, the firm has produced a guide to top addresses, tenant profiles, typical apartment/house sizes for different rental price brands across the prime sector. It found that rental values have increased by 1% in prime central London over the past three months, achieving an average gross yield of 2.92% and the average rent per square foot in is currently £54. Tenants seeking rental properties on the market for £300 to £500 per week in prime central London can expect to find one bedroom apartments, providing 300 square feet of accommodation, typically located in Shepherd’s Bush, Holland Park and Bayswater. Tenants in this price brand are normally individuals or young couples aged 25 to 35 who looking for a pied-a-terre in the capital or young graduates who have landed their first job. Stock in this price brand is currently down 10%. Those searching for homes available to rent for £500 to £1,000 per week can find one or two bedroom apartments, providing 700 to 900 square feet of accommodation. Tenants will typically find a wider choice of properties available at that price range in Notting Hill, Marylebone and East Mayfair where the district borders Oxford Street. Tenants with this price brand are often students from wealthy families, whose parents are willing to pay their entire rent and deposit up front in order to secure the property they want. This price bracket also includes European and American corporate tenants who are relocating to London, and are typically couples with children or young single professionals. Stock within this price band is also currently down 10%. Tenants looking to spend £1,000 to £2,000 per week can expect to find two bedroom apartments offering 1,000 to 1,500 square feet of living space and situated in Mayfair, Belgravia or Marylebone. Typically, tenants searching for properties at this level are socialites seeking luxury pads or corporate tenants relocating to London, usually for a three-year stay. Stock in this price band is currently up 5%. E J Harris reveal that tenants able to spend £2,000 to £4,000 per week will find two and three bedroom luxury apartments situated in Belgravia, Mayfair or Knightsbridge. The typical profile of tenants seeking homes at this price range are CEO’s and… Continue reading
