Tag Archives: london
Demand for smaller units remains robust in Hong Kong property market
The new build residential real estate market in Hong Kong remained robust in December with small to medium sized units continuing to be sought after, the latest property market report shows. Overall during 2014 some 63,807 residential sales were recorded according to the Land Registry, an increase of 25.9% from 2013 and the first rebound since 2011 after cooling measures were implemented. The report from international real estate firm Knight Frank also shows that luxury residential sales over HK$10 million or above rebounded by almost 50% year on year, to reach a total of 7,778 sales in 2014. The firm points out that this robust trend has extended into 2015 when developers remained active in launching new projects, particularly small to medium sized units. The report also says that in order to tackle Hong Kong’s housing shortage, the government has proposed to increase private home supply to 19,000 units per year in the coming decade. ‘Despite this increase, we still expect to see mild growth of up to 5% in mass residential prices this year,’ the monthly report says. ‘Meanwhile, the potential interest rate rise in the United States and the continuing implementation of government cooling measures are expected to suppress the price growth of luxury flats,’ it explains. ‘More landlords will put their apartments up for lease instead of selling, resulting in an increase in rental supply which will drag down luxury residential rents,’ it adds. The report also records that the office leasing market was quiet in December, traditionally the slowest time for the market. Grade A office rents remained stable while year on year they are up 2% in major business districts in Hong Kong, up 5% on Hong Kong Island but down 6% in Kowloon. Sales were down 37% in 2014 compared with 2013, according to official figures but sentiment increased towards the end of the year driven by demand for large office space from end users motivated by cost savings. ‘In 2015 we expect we expect to see this trend continue with increased demand, not only from large banks and insurance companies looking to own their own offices in Hong Kong, but also from small to medium sized firms seeking to buy their own work space to reduce occupation costs,’ the report explains. ‘Looking forward we expect Grade A office rents in CBD areas to remain firm or experience a modest increase of up to 5% in 2015 given the limited supply and sustained demand,’ it continues. ‘Meanwhile, rents in non core districts should remain stable in 2015 with supply abundant, especially in Kowloon East where about three million square feet of new Grade A office space is scheduled for completion this year,’ it adds. Continue reading
Compensation package for home owners on UK high speed rail route confirmed
A package of compensation and assistance for property owners along the London to Birmingham High Speed 2 rail route (HS2) has been confirmed by the UK government. With immediate effect owner occupiers of homes and small businesses between generally 60 metres and up to 120 metres from the line in rural areas can submit an application to HS2 Ltd to purchase their property at the full, unblighted value under the voluntary purchase scheme. This is the value of the property as if there were no plans for HS2. As an alternative to the voluntary purchase scheme, these eligible property owners will also have the option to accept a cash offer of 10% of that same value and stay in their homes and businesses. Transport Secretary Patrick McLoughlin said that this will support people who want to remain in their community. Those beyond the 120 metre boundary but within 300 metres of the line in rural areas will, following Royal Assent of the Phase One HS2 Hybrid Bill, be able to apply for a home owner payment ranging from £7,500 to £22,500, which will enable them to share early in the benefits of the railway. Eligible owner occupiers living any distance from the line of route can now apply to the Need to Sell (NTS) scheme, which also pays the unblighted value to people with a compelling reason to sell their property, but who have been unable to do so, other than at a substantially reduced price, due to HS2. The criteria for the NTS scheme is more relaxed than the exceptional hardship scheme (EHS) it replaces and, unlike the EHS, will consider applications from those who may not need to move immediately. HS2 Ltd has also launched a residents’ charter to help ensure that residents are treated in a fair, clear, competent and reasonable manner. The Residents’ Commissioner overseeing the charter is Deborah Fazan who has considerable experience as a commissioner and property advisor on transport and construction schemes. In her new role, she will ensure that HS2 Ltd meets its commitment to the communication standards and personal support set out in the new charter. ‘This comprehensive package of compensation and assistance is looking after those people who live along the HS2 route while balancing our responsibilities to the taxpayer. People at the heart of this vital new railway will also benefit from HS2 Ltd’s new residents’ charter and the appointment of the Residents’ Commissioner, who will ensure that the commitments in the charter are upheld,’ said McLoughlin. Simon Crowther, HS2 Ltd’s land and property director, said it is important that those living near to the railway are able to easily access the financial assistance that the government is offering. ‘The residents’ charter sets out our commitment to making that happen. We will be working closely with the new Residents’ Commissioner to deliver the standards required, ensure that people are treated fairly and help them understand what they are entitled to,’ he… Continue reading
Landlords warned not to rely on good capital gains in UK buy to let sector
Landlords’ confidence in capital gains has almost trebled over the last two years, according to the leading landlord association in the UK. It has risen from 18% to 52% over the last two years but the survey by the National Landlords Association (NLA) also shows that 32% of landlords say they might not be able to meet their mortgage repayments if interest rates were to rise in the near future. Despite the survey findings the NLA is talking down capital gains prospects and has warned against relying on capital gains as a primary investment strategy. The warning comes after the Financial Times recently reported the estimated capital growth of private rented housing stock to be of £177 billion over just the last five years. ‘It certainly feels like a great time to be looking at buy to let a means of additional income but you cannot simply rely on the prospect of capital gains as an investment strategy,’ said Carolyn Uphill, NLA chairman. ‘A lot is being made of capital growth but landlords must remember they are in the business of providing homes for people. It’s a risky investment and the prospect of capital gains is only realised if and when the property is sold,’ she explained. ‘With house prices levelling off and inevitable rises to interest rates as the economy improves, anyone considering investing in buy to let should think carefully before taking the plunge. This means planning for the long term and looking to sustainable yields, not hoping for a windfall in capital appreciation,’ she added. The news comes as the NLA launches the second part of its latest campaign; Rent, Risk Resolve, which aims to highlight the potential risks of rising interest rates. To accompany the campaign the NLA has produced a guide on how to prepare for rising interest rates. Continue reading
