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Property sales up 14.5% in Scotland in last quarter of 2015 and prices up 1.6%
Residential property sales in Scotland increased by 14.5% in the final three months of 2015 compared to the same period in 2014, the latest official data shows. Prices increased too, up 1.6% to £167,734, with the highest price rise recorded in Inverclyde at 13.1%, according to the figures from the Registers of Scotland (RoS). ‘As well as a significant increase in the volume of sales this quarter, prices have reached their highest since RoS began compiling quarterly statistics in 2003. Combined, this indicates a more robust and active property market,’ said RoS commercial services director, Kenny Crawford. The highest percentage rise in volume of sales was recorded in Midlothian, with an annual increase of 30.2% compared with the same quarter last year. The City of Edinburgh recorded the highest volume of sales, up 21.4% while the largest drop was in Aberdeen City with sales down 12%. The highest average price is in Edinburgh where values have increased by 3.2% year on year to £233,255, while the largest fall was in Dumfries and Galloway, a drop of 9.9% to an average of £130,275. The total value of sales across Scotland registered between October and December increased by 16.3% to just under £4.83 billion, the highest value of sale for any quarter since the second quarter of 2009. Edinburgh remained the largest market with sales of just under £824 million for the quarter, an increase of 25.3% on the previous year. East Ayrshire recorded the highest increase in value with sales of over £66 million, up 33.9% and Aberdeen had the largest decrease in overall market value, down 13.6 to over £273 million on last year. All property types showed an increase in sales volumes, with flats showing the biggest increase at 18.4%. In terms of prices, flats were the only property type to show an increase in average prices, up 0.6% to £130,679. Detached, semi-detached and terraced properties all saw decreases in average prices of 0.3%, 1.4% and 3.5% respectively. Simon Brown, partner and head of residential sales at CKD Galbraith, pointed out that the Scottish property market as a whole has endured many changes over the last year and more are to come. ‘The 3% levy on second homes being introduced in April will no doubt bring a flurry of property sales to the market to beat the deadline as well as impact house prices as buyers of buy to lets will seek to pass on the extra purchase costs by reducing the price they are prepared to pay,’ he explained. ‘Demand for prime property at the top end of the market looks set to continue, especially in Edinburgh and the surrounding areas. Generally, the Scottish property market is demonstrating healthy growth with good quality properties selling quickly and some very encouraging signs for the year ahead especially as we approach the prime Spring selling period,’ he added. Michelle Grant, investment director at Grant Property, believes that the figures are… Continue reading
Rural land prices in the UK set to fall in 2016, says RICS
Rural land prices in the UK are expected to fall throughout 2016 due to a global drop in crop prices, according to the latest report from the Royal Institution of Chartered Surveyors (RICS). Some with 34% more rural surveyors expect to see prices drop than rise which could make rural property more attractive to non-farmers. Across all farming sectors, demand for rural land is expected to fall over the next 12 months. While in the last half of 2015, the only areas where demand for land grew were the North East and South East of England. Land yields remained relatively stable over the second half of the year at 1.8%, from 1.7% previously, while arable and pasture land rents fell by 4.5% and 4% respectively over the course of the year. The RICS data shows that 25% of rural land sales are to non-farmers such as people starting up cottage industries. This is up from 18% in the first six months of 2015 and it is a trend that is strongest in the south east of England where sales to non-farmers stood at 32%. The data also shows that property developers accounted for just 1%, a decrease of 2% in the second half of 2015. While saes to individual farmers fell from 62% to 57%. The report explains that this comes at a time when commercial and residential property prices in towns and cities are continuing to rise and this is likely to make rural land increasingly attractive to those outside traditional farming communities. Already, a quarter of all countryside land is being purchased by non-farmers, so called lifestyle buyers or hobby farmers and RICS expects this trend to increase. ‘Start-up businesses do not have to be confined to the trendy streets of East London, Britain’s countryside has a great deal to offer young entrepreneurs. Market conditions appear to be encouraging a wave of new types of rural business, and help must be given to support this trend further if our countryside communities are to thrive,’ said RICS chief economist Simon Rubinsohn. ‘New entrants to farming businesses continue to face barriers, but at RICS we are currently working with the Fresh Start Land Enterprise Centre (FSLEC) who are developing a pilot matching service for potential land entrepreneurs, helping to bring together those looking for new opportunities in agriculture with those who have land and rural real estate to let,’ he pointed out. Continue reading
New home building in Australia saw strongest ever year in 2015
New home building approvals in Australia recorded their strongest ever year during 2015, up 13.7% compared to 2014, according to the latest data from the Australian Bureau of Statistics. But they fell towards the end of the year, down by 4% in the final quarter of the year, although there was variation according to housing type. In 2015 as a whole approval for flats increased by 30.2% but for detached houses they fell by 1%. Shane Garrett, senior economist for the Housing Industry Association pointed out that last year a total of 232,078 new homes received approval for construction, well above every calendar year on record. ‘New home building has been a crucial support to economic growth over the past two years, particularly in light of the mining investment downturn. The challenge during 2016 will be manage the transition to lower volumes of new home building in an orderly fashion,’ he said. The ABS data shows that approvals decreased in December in the Australian Capital Territory by 21.9%, by 3.1% in Western Australia, by 0.8% in Tasmania, by 0.4% in New South Wales and by 0.4% in South Australia. They but increased by 1.8% in the Northern Territory, by 1.6% in Victoria and by 1.1% in Queensland in trend terms. In trend terms, approvals for private sector dwellings excluding houses fell 0.1% in December. In contrast, approvals for private sector houses rose 0.1%. Private sector house approvals rose in Queensland by 0.8%, in Victoria by 0.7% and South Australia by 0.5% but fell in Western Australia by 1.8% and in New South Wales by 0.2%. The seasonally adjusted estimate for dwelling approvals rose 9.2% in December following a 12.4% fall in November. The rise in December was driven by apartments. The value of total building approved rose 0.2% in December, in trend terms, after falling for four consecutive months. The value of residential building rose 0.1% while non-residential building rose 0.4%.The volume of new home construction in Australia has fallen for the third month in a row with data for November 2015 also showing that new homes sales are falling. The new home sales report from the Housing Industry Association (HIA) says that a confluence of factors is driving a decline in leading indicators of new home construction. ‘The lagged effect of slowing population growth, an up-tick in variable mortgage costs, over reach on the part of APRA’s credit controls, and an easing in property price growth in Sydney and Melbourne are all in play,’ said HIA chief economist Harley Dale. Continue reading
