Tag Archives: real-estate
Global property prices up 4.7% year on year led by Hong Kong, latest data shows
Global house prices have increased by a median of 4.7% year on year led by Hong Kong, Turkey, Ireland, Sweden and Australia, a new international report shows. Overall prices have increased in 21 of the 26 countries tracked by the Economist House Price Index but growth does vary from nation to nation. The growth is topped by Hong Kong with annual price growth of 20.8%, followed by Turkey with a rise of 18,8%, Ireland up 13.4%, Sweden up 10.3% and Australia up 7.5%. At the bottom end of the index the country with the biggest annual drop in property prices is Greece with a fall of 5.9%, Singapore down 3.7%, Italy down 3.3%, China down 2.4% and France down 2.3%. All other countries has seen annual price growth according to the index which measures national affordability by comparing prices to the long run average of their relationship with rents and income. In Hong Kong prices have now doubled in five years despite seven separate round of cooling measures being introduced but with little effect. The latest, in March this year, reduced the average loan to value ratio for new mortgages from 64% to just 52%. But the index report suggests that in practice it is China’s recent stock market crash is likely to be a bigger dampener on demand as mainland investors put off new purchases. Meanwhile, China’s own housing market, it is one of only five in the index where prices are falling, but the report points out that prices are falling at a slower rate than before. The government has been trying to boost the market over the past 10 months, cutting interest rates by 1.4% and relaxing rules on down payments. Prices are now rising on a monthly basis in many cities including Beijing and Shanghai. The report points out that in the United States annual growth of 4.7% shows the real estate market is well into recovery. Some cities are seeing strong growth such as San Francisco with prices up by 10% in the year to July and up by 75% since 2009. Other countries’ housing markets are already well above fair value and the report reckons that houses are more than 30% overvalued in six markets, including Canada and Australia, with the UK the most supply constrained of this group where demand is outstripping the number of properties coming to the market. It points out that in the UK although prices have risen by 35% since their trough in January 2009, house building is failing to respond. Just 140,000 homes were completed in the year to March 2014, some 25% below the long term norm. Continue reading
Sales to first time buyers in UK jump almost 10% month on month
The number of sales made to first time buyers in the UK increased in September by 9% compared to the previous month, according to the latest data from the National Association of Estate Agents (NAEA). Buyers taking their first step on the housing ladder accounted for 29% of all sales compared to 20% in August, the highest since May this year when sales to the group made up 29% of total sales. ‘It’s obviously very positive to see that the number of sales being made to first time buyers has risen this month. We saw an average nine sales going through per branch in September, which means that for each branch, around three sales were made to the group,’ said Mark Hayward, NAEA managing director, . ‘We’re seeing a whole range of new competitive mortgage products coming on to the market, which is likely to be encouraging first steppers to take the plunge, as well as the fact that the ‘impending’ interest rate rise has now been pushed back to next year at the very earliest,’ he explained. ‘However, in order to ensure there is enough affordable housing on the market for first time buyers we need the issue of supply and demand to be addressed in a big way. Until substantial numbers of new houses are built, we won’t see every first time buyer reach the bottom rung of the ladder,’ he added. The NAEA monthly report also shows that the number of house hunters registered per estate agent branch dropped in September, following a period of high and unsustainable demand in July and August. On average, there were 342 prospective buyers registered at each NAEA member branch in September. This is a drop of 16% from the 408 recorded in August, and a 26% drop from July when demand reached an 11year high with average 462 house hunters per branch. The number of properties available to buy dropped marginally to 37 per member branch in September. This followed a huge fall in the availability of housing stock the month before, when the number of properties available fell from 55 in July to 38 in August, a decrease of 31%. ‘If we could just get supply and demand to meet in the middle, the housing market would be functional again as it’s a real issue across the market at the moment. Developers are struggling to secure planning permission and labour is in short supply. This means that the army of house hunters looking to buy has out-grown the number of housing available at a rapid rate, and it’s completely unsustainable,’ Hayward pointed out. He explained that the introduction of the Housing and Planning Bill announced last week is good news, however, it includes an extension of the Right to Buy to Housing Association properties, which should help to increase supply in the housing market as homes that are… Continue reading
Docklands and surrounding area in London seeing mini property boom
London’s soaring technology, creative and financial industries are fuelling a mini property boom in locations such as Canary Wharf, Docklands, Greenwich and Blackheath, it is claimed. Property prices rising in some parts such as Blackheath increasing more than 50% faster than during the downturn, according to a new report from lettings and estate agents Chestertons. Prices rose in the first half of the year by 2.6% in Greenwich, 3.4% in Canary Wharf and Docklands 14.4% in Blackheath, according to Land Registry data, while Canary Wharf sales din the first nine months of 2015 were 7% higher than in the corresponding period of 2014. Meanwhile, development is soaring, buy to let investment is booming and many landlords are capitalising on the fierce demand for corporate lets, which can typically realise up to 50% more rental income than standard tenancies. ‘Sustained price growth makes Docklands and slightly adjacent areas such as Greenwich and Blackheath an ideal investment. London has now overtaken New York as the world’s undisputed finance capital, fuelling a jobs boom and a vigorous corporate rental market,’ said Cory Askew, area Director for Chestertons in North and East London. ‘Developers are piling in and the banks continue to provide favourable buy to let finance. With all of these components are in perfect harmony, the residential market here is thriving. We have seen a marked increase in buy to let investor registrations this year. It’s not hard to see why, as surely no other asset class can offer anywhere near these returns,’ added Skew. According to Bradley Bartlett, head of corporate and relocation services at Chestertons, the rising demand for residential property in these areas is being powered by London’s reinvigorated financial sector. ‘Areas such as Greenwich and Blackheath, with plenty of outdoor space and good transport links, are becoming hotspots for workers looking for a comfortable commute to the City or Canary Wharf. And with the current jobs boom, demand for corporate-standard property has never been higher. Our department has seen demand rise by almost a quarter year-on-year, and there’s no sign of the frenzy abating,’ he explained. ‘With a significant number of development sites between Greenwich and Canary Wharf currently under construction, we wait to see what the longer term effects are on the rental sector. There’s no supply crunch at present, but if this surge in demand continues in the coming parts of London’s east end will be set to rival Silicon Valley. In the mid to long term this will surely push rents upwards,’ he added. Continue reading
