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Capital city property prices down, but expected to be short lived blip

After an increase in values of 3.8% over the first four months of the year, prices in key Australian cities fell 0.9% in May, according to the latest residential index. The CoreLogic RP Data Home Value Index recorded its first month on month fall since November last year and it comes at a time when values have been trending higher. According to CoreLogic RP Data head of research, Tim Lawless, the growth has been driven by exceptionally strong housing market conditions in Sydney, and to a lesser extent in Melbourne and he expects May’s dip to be short lived. ‘Other market indicators are also pointing to stronger conditions for the Sydney and Melbourne housing markets with auction clearance rates remaining at or close-to record highs throughout May along with low advertised stock levels across the largest cities, particularly for Sydney,’ he said. ‘The negative May result is likely due to a natural correction from the previously strong month on month results. Added to this is the market stimulus due to lower interest rates, and a well-received federal budget in May, all of which are likely to keep momentum going in the market,’ Lawless explained. The May indices results also marks the three year anniversary for the current growth cycle which commenced at the end of May 2012. Since that time, Lawless noted that capital city dwelling values have increased by 24.2% with Sydney values rising a significant 39.3% since values bottomed out in May 2012. Melbourne dwelling values have seen the second highest rate of growth over the current cycle, increasing by 22.4% while in Darwin, values are 18.3% higher. Perth values are up 13.2% followed by Brisbane at 10.6%, Adelaide at 9.9%, Canberra at 8.3% and Hobart at 7.7%. ‘While every capital city has seen some level of capital gain over the growth cycle to date, the past 12 months’ performance has been more diverse. Dwelling values are down by 2% in Darwin and 1% lower in Hobart, while Perth is narrowly avoiding an annual correction with dwelling values up by just 0.7% over the past year,’ Lawless said. At the same time, he added that lower interest rates and high levels of investor interest have fuelled a rebound in the annual rate of dwelling value growth across Sydney and Melbourne where dwelling values are 15% and 9% higher respectively over the past 12 months,’ he pointed out. Both Sydney and Melbourne are also seeing their strongest economic conditions, coupled with the highest levels of new housing supply, particularly in the new apartment sector and according to Lawless the higher supply levels are likely to be a primary reason why unit values are rising at a much slower pace than house values in Sydney and Melbourne. ‘The pace of growth in unit values across Sydney is about half that being recorded across the detached housing sector, with house values up 16.4% over the year compared with an 8.8% rise in unit values,’ said Lawless. In… Continue reading →

Posted on June 2, 2015 by tsiadmin | Posted in Investment, investments, London, News, Property, Real Estate, Shows, Taylor Scott International, TSI, Uk | Tagged , , , , , , , , , , , | Comments Off on Capital city property prices down, but expected to be short lived blip

Research finds millions of older UK home owners want to downsize

There are millions of family homes in the UK that are under occupied and where the owners would like to downsize, according to new research. In the so-called last timer buyer market, some 5.3 million properties are under occupied and of these 3.3 million would like to move, says the analysis released by Legal & General and the Centre for Economics and Business Research (Cebr). These last time buyers are sitting on the equivalent of 2.6 million family homes, representing 10 years of housing supply based on Government targets or 20 years based on current housing completions, the report says. As such, the LTB market owns 7.7 million spare bedrooms and a total of £820 billion of housing wealth, set to reach £1.2 trillion in 2020. Some 32% of these older home owners considered downsizing in the last five years but only 7% actually did. The most common reason for considering downsizing by over 55s is that their property no longer meets their needs. Many older home owners allow inertia to keep them in their current home which is no longer fit for purpose and which is expensive to maintain. This is a particular issue for older home owners, many of whom don’t work, the report suggests. Many of the over 55s and 63% of those with at least two spare bedrooms do intend to move, but all too often, they leave it late. More than half believe that it will be best to wait until they are over 70 before moving, and a quarter will wait until 80. ‘This is an overlooked sector of the residential market. Given its scale and the receptiveness of this demographic to the possibilities of downsizing, it presents a powerful tool for addressing the housing supply issues this country faces. By failing to target this key demographic with good value, purpose built housing for those aged 55 plus, Government and industry alike are missing an important trick,’ said Paul Stanworth, managing director of Legal & General Capital. The report points out that the UK suffers from a chronic undersupply of age specific housing. Demos, among others, has noted that only 2% of the UK's housing stock is retirement property, housing just 1% of the 14 million Britons in their 60s compared with around 17% living in retirement accommodation in the United States. All too often, this leads to older people living in homes that do not suit their needs, with moves often forced by circumstance rather than being a positive choice. According to Bill Hughes, managing director of Real Assets at Legal & General Investment Management, bringing about multi-faceted financial and social benefits, the provision of safer, well designed accommodation that meets the needs of older people would not only ease pressures on the health and social care system, but free up savings locked up in housing for other uses, boost the UK economy and bring significant wellbeing outcomes for older people. The research found that the… Continue reading →

Posted on June 2, 2015 by tsiadmin | Posted in Investment, investments, London, News, Property, Real Estate, Shows, Taylor Scott International, TSI, Uk | Tagged , , , , , , , , , , , | Comments Off on Research finds millions of older UK home owners want to downsize

Wealthy buyers increasingly attracted to Barcelona real estate market

Barcelona is attracting more wealthy real estate investors thanks to a reputation as a luxury lifestyle destination, it is claimed. Rich property buyers are looking to expand their portfolios beyond traditional property hotspots such as New York, Paris and London and are increasingly spending sums of €10 million and above. Agents Luca Fox International Properties said that affluent buyers are attracted by the lifestyle which has seen Barcelona transform itself into a prosperous, global city since the Olympic Games in 1992. The city is also regarded as a leading gastronomic hub with 23 Michelin starred restaurants, drawing in entrepreneurs and businessmen from all over the world, as well as some big name celebrities including Rolling Stones guitarist Ronnie Wood, who bought a property in 2013. Singer Shakira and FC Barcelona footballer Gerard Pique are currently building a home in the city’s outskirts, providing an additional glamorous vibe to this already buzzing coastal city and last year saw the launch of Barcelona’s superyacht marina, ideally positioned in the heart of the city and which regularly welcomes Roman Abramovich’s fleet of yachts. Barcelona’s fashion brands such as Desigual and Zazo and Brull have encouraged major international chains to make the city a key part of their strategy for flagship store openings in Southern Europe. There is also a growing number of tourists visiting the city. ‘Barcelona is a very seductive city. Progressive, creative and constantly re-inventing itself, it has always attracted a discerning, creative crowd but now we are seeing new wave of very wealthy investors, who recognize the city’s global appeal as well as its growth potential,’ said Lucas Fox co-founder Alexander Vaughan . ‘A number of high profile industry leaders, businessmen and personalities such as Ronnie Wood have chosen to buy through Lucas Fox in recent years and, as Barcelona continues to establish itself as one of the world’s leading cities, we believe this trend is set to continue,’ he added. Even at the lower end of the market buyers are spending more, according to a survey carried out at the recent Madrid International Property Show (SIMA). ‘Compared to previous years they have a bigger budget and foresee fewer difficulties in financing their purchase,’ said Eloy Bohua, managing director of Planner, the show’s organisers. The survey found that compared to the previous show a year ago the percentage of people looking for property at the cheapest end of the scale up to €150,000 has dropped from 36.5% to 22.1%. At the other end, those looking for property priced at over €300,000 have gone from 12.8% to 21.6% while 29% are searching for property between €150,000 and €210,000, and 28.3% between €210,000 and €300,000. Continue reading →

Posted on June 2, 2015 by tsiadmin | Posted in Investment, investments, London, News, Property, Real Estate, Shows, Taylor Scott International, TSI, Uk | Tagged , , , , , , | Comments Off on Wealthy buyers increasingly attracted to Barcelona real estate market