Tag Archives: real estate
Recovering UK economy boosts prime rental values in the South East
Prime rental values in the Home Counties in England rose by 1.9% between April and June, driven by the recovering UK economy and an increase in rental demand from corporate tenants. Annual rental growth stands at 4% as corporate demand makes the spring and summer months the most active as families relocating for work look to move before the start of the new school year. And while corporate demand is not back to the same levels seen before the financial crisis, it has stepped up notably, according to the latest index from real estate firm Knight Frank. Between April and June, corporate tenants made up some 47% of all tenancies commenced across the Home Counties, up from 29% during the comparable period in 2014. In the area, which comprises the counties of Berkshire, Buckinghamshire, Essex, Hertfordshire, Kent, Surrey, and Sussex, quarterly rental growth for one bedroom properties was 0.4% compared to 1.5% for four bedroom homes. Corporate demand came from a range of industries in the three months to June, including the oil and gas, technology and pharmaceutical sectors, as well as from finance workers, according to Oliver Knight of the firm’s residential research team. ‘Additionally, there is anecdotal evidence to suggest that corporations are also stepping up their budgets which has translated into more competition for larger properties. This is certainly reflected in stronger rental growth being recorded in larger properties than smaller ones in the second quarter,’ he said. He also pointed out that demand for prime rental properties in the Home Counties continues to be widespread, with some 47% of tenants coming from outside of the UK between April and June, led by tenants from North America. ‘Tenants relocating from the US are often most active during the first half of the year, with many looking to complete moves ahead of the American and International school term starting in August,’ explained Knight. A breakdown of the figures show that overall 53% of tenants are from the UK, 27% from North America, 7% from both South America and Europe and 3% from both Asia Pacific and Africa. The index report also shows that the number of potential tenants, both corporate and private, registering with Knight Frank lettings agents so far this year rose by 7%, compared to the same period last year. The number of applicant viewings was 24% higher over the same time, which Knight said is an indication that activity should continue to be robust in the coming months. Continue reading
Price of Manhattan apartments reach new record high
The average price of an apartment in New York’s sought after Manhattan sector reached a record US$1.9 million in May, the latest research data shows. This was up from US$1.8 million in the previous month while the total number of sales was virtually unchanged at 876 for the month, according to the report from City Realty. The firm says that May was the priciest month in NYC real estate history with Downtown seeing the most expensive sales. Overall the average price of a condo was uS$2.5 million and the average price of a co-op was $1.4 million. There were 367 condo sales, up from 365 in the preceding month, and 509 co-op sales, down from the 515 recorded in April. The top sale was for a 12th floor unit in the Soho condominium The New Museum Building, at 158 Mercer Street. The 7,837 square foot apartment, which has five bedrooms and five bathrooms, sold for US$34 million, or $4,338 per square foot. The second highest sale was for a 6,000 square foot penthouse unit in the condominium at 737 Park Avenue which sold for US$32.7 million, or US$5,440 per square foot. The third top sale was a four bedroom co-op at 778 Park Avenue that sold for US$28.5 million. Downtown was the highest-grossing region in Manhattan, with $323 million in condominium sales. Midtown was the second highest grossing area, with $227 million in sales. Downtown also had the highest price per square foot at US$1,982, which was virtually unchanged from the prior month, and the Upper East Side had the second highest at US$1,788. Continue reading
Property prices near London’s Olympic park outperform rest of the country
Property prices in areas surrounding the Olympic Park in London have increased by £1,500 per month since London won the bid in July 2005, new research shows. This rise is more than twice as fast as seen in the rest of England and Wales and these areas have also outperformed the rest of London since September 2012, according to an analysis by Lloyds Bank. The average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,191 in July 2005 when the Games were awarded, to £378,884 in March 2015, an increase of 84% or £172,693, which is equivalent to a monthly increase of £1,476. In comparison in the rest of England and Wales property values grew on average by 41% over the period from £185,672 in July 2005 to £261,962 in March 2015. The analysis report says that recent price performance in areas surrounding the Olympic Park also compares favourably with London as a whole. Since the end of the Games in September 2012 the average price in the 14 East London areas has outperformed London with an increase of 33% compared to 25% in the capital as a whole. Over the same period average property values in England and Wales grew by 12%. In the past year, house prices in the 14 areas closest to the Olympic Park rose by 13%, from £334,123 in March 2014 to £378,884 a year later, compared to 10% in London. Stratford, where the Olympic Park in located, recorded the largest price growth in the past year, at 22%, followed closely by Plaistow and Walthamstow both at 21%. ‘When London won the bid to host the 2012 Olympic Games many within the organising committee saw this as the perfect opportunity to regenerate the East London area. A decade on, the impact of major investment is there for all to see such as improved rail and tube networks, a high class retail environment and the gradual conversion of the Olympic sites into residential homes,’ said Andy Hulme, Lloyds Bank mortgages director. ‘The improved attractiveness of living is this area of London has resulted in rising property values. Since July 2005 average house price in the 14 areas closest to the Olympic Park has increased at more than twice the average rate in England and Wales. And, since the end of Games in September 2012 price growth in this area has outperformed London as a whole,’ he added. The research also shows that since July 2005 five of the 14 areas close to Olympic site have seen their average price rise by over £200,000. Dalston has recorded the largest increase at £285,800, followed by Shoreditch at £261,054, Clapton at £244,591, Bethnal Green at £233,076 and Homerton at £220,761. Six other areas recorded price increase of at least £100,000 including Walthamstow at £170,006, Leytonstone at £167.559 and Bow at £136,683. Eleven of these areas now have an average house price of over… Continue reading
