Tag Archives: real estate
Prime central London price growth falls as stamp duty change effect persists
Annual price growth in the prime central London property market fell to 1.3% in September, the lowest rate since October 2009, the latest data to be published shows. Annual price declines were in excess of 3% in some markets in the west of the city as higher stamp duty introduced towards the end of last year is still having an effect, according to a new analysis report from Knight Frank. Month on month prices fell by 0.1% and an east/west divide around Hyde Park has emerged. The firm’s data also shows that new prospective buyers declined by 34% but viewings only fell by 4%. However, sales volumes in September rose from August and were on track to match September 2014. Rising transaction costs appear to have sparked a flight to quality, according to Tom Bill, head of London residential research at Knight Frank. ‘Activity has certainly increased following a subdued summer period as buyers came to terms with an increase in stamp duty and a July Budget that curbed exemptions surrounding resident non-doms,’ he said. ‘Furthermore, some high quality stock has come onto the market, which has driven demand. However, rising supply is not uniform across prime central London and there is not yet clear evidence that new demand will keep pace with any supply increase,’ he explained. He believes that part of the reason why new applicant levels are down is a growing trend among buyers to find the right property on the internet before registering. ‘Underlying demand remains strong but buyers have become more circumspect and stringent in their requirements due to the stamp duty increase. Demand is particularly strong for properties in the best condition and on a prime floor, street or square,’ said Bill. ‘So, while the anticipated gear change materialised as summer moved into autumn, there was no sense the market is entering full-blown recovery mode after what has been a subdued 2015,’ he added. Continue reading
Switzerland has seen sustained prices growth but it now slowing due to cooling measures
Switzerland has seen sustained levels of residential property market growth between 2008 and 2013 with house prices up 28%, the opposite of what has happened in many other European markets. Economic expansion, low interest rates, growth in real wages and immigration of wealthy individuals have all supported housing demand. The strengthening Swiss franc also raised their price in comparison to other currencies, according to a new analysis from international real estate firm Savills. However, price growth is now slowing, amid government efforts to cool the market by introducing stricter lending requirements. ‘The decoupling of the Swiss franc with the euro has seen its value appreciate and make Swiss exports more expensive, slowing the economy in general. Foreign buyers with Swiss franc denominated mortgages have been especially hit,’ said Yolande Barnes, director of world research at Savills. The report points out that Switzerland has one of the world’s strictest citizenship systems. Qualification requires 12 years of permanent, legal and notated residency, fluency in one of the official languages and integration into Swiss culture and community. On top of this Switzerland introduced new quotas for European Union citizens in 2013. Foreign buyers are also heavily restricted on residential property purchase with just 1,500 permits released a year, although the rules vary significantly by Canton. In Geneva the emphasis is on the rental market with some 80% of the population of the city doing so and the rental market is strongly pro-tenant, the report explains. ‘Geneva is an expensive city in which to live and there is especially strong demand for city centre apartments which are in short supply,’ said Barnes. Demand is fuelled in part by employees of the finance and business services sector on generous relocation packages, the report shows. Property prices in Geneva have grown 55% since 2006, compared to 27% across Switzerland. ‘These rates of growth are echoed in the rental market. High prices have put property purchase and even rent out of reach of many locals in Geneva, which counts itself alongside Zurich and Zug as one of the most expensive locations in the country. Each day 90,000 workers commute from neighbouring France to the city, a number that has doubled over the last decade,’ Barnes explained. ‘For those who can afford it and, non-nationals who can obtain a permit to purchase, Geneva offers attractive property in a safe, secure environment. The most desirable property enjoys lake or mountain views,’ she added. The report also looks at what is happening to property prices in the Swiss Alps which attract second home buyers from across the globe. The Swiss Alpine resorts of Gstaad, St Moritz, Zermatt and Verbier are among the world’s most exclusive, and expensive, with ultra-prime prices ranging from €20,000 to €30,000 per square meter. The report explains how these resorts have diversified beyond skiing to cater to many of the other demands of the super-rich. Designer shopping, Michelin starred restaurants and polo are all part of the offer. These… Continue reading
UK architects report that private housing sector workload is falling
Overall workload for architects in the UK is rising but the private housing sector workload has fallen, according to the latest data from the Royal Institute of British Architecture (RIBA). Practices have reported that their overall workload is growing at an annual rate of 8% and that current staffing levels are 6% higher than they were a year ago. All regions in the UK returned positive balance figures, with practices in the North of England the most optimistic with a balance figure of +48 and practices of all sizes remain upbeat about work prospects. But, after a record high forecast in June, July 2015 saw a significant note of caution with the RIBA Future Trends Workload Index falling sharply to +22, down from +44. The private housing sector workload forecast fell to +23 in July 2015 from +39 in June while the commercial sector workload forecast saw a moderate fall down to +13 in July 2015 from +19 in June. The data also shows that the public sector workload forecast dipped slightly to -1 in July from +2 in June with practices expecting little medium term change in public sector expenditure levels within the built environment. The RIBA Future Trends Staffing Index also declined +12 in July from +20 in June, however, the employment market for salaried architects remains very positive and 98% of respondents expected their staffing levels either to increase or to stay the same over the next few months. Small and medium sized practices are still confident about increasing their staffing levels with balance figures of +6 and +42 respectively. However, large practices are more likely to be actively appointing new staff, with a balance figure of +67. ‘Despite the fall in our headline index, it is important to state that our forecast remains firmly in positive territory. This drop seems largely to have been driven by some loss of confidence by our practices in the medium term outlook for work in the private housing sector, especially in London and the South of England,’ said RIBA executive director members Adrian Dobson. ‘Private housing has been the main driver of increases in architects’ workloads in the last couple of years, so this is a development that we will be monitoring closely in the next few months. It is too early to say if this is a definitive trend and the crucial autumn period will give a better indication of the prevailing sentiment,’ he explained. ‘Our participating practices continue to suggest that the majority of firms are seeing solid growth in workloads, though there is significant pressure on fee levels and profit margins on projects typically remain tight, constraining salary levels,’ he added. He pointed out that future Bank of England interest rate rises may yet dampen activity in the key private housing and commercial sectors. But with the current low inflation environment looking set to continue this seems to remain a relatively distant prospect at present. The overall economic environment for architects… Continue reading
