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Planning consent for new homes in New Zealand up 24% annually
The new build property sector in New Zealand is growing with planning consents up 24% in July compared with a year ago, the latest data shows. Overall there were 2,824 new dwellings consented nationally, the highest number since march 2005, according to the figures from Statistics New Zealand. It was boosted by apartments and town houses, flats, and units and Waikato led the growth with consents up 40% while Auckland saw growth of 31%, well above the national average. The total value of consents for all buildings in July 2015 was $1.4 billion, with some $976 million for residential buildings and $455 million for non-residential buildings. The data also shows that over $4 billion worth of building work was put in place in the June 2015 quarter, up nearly 8% on the June 2014 quarter, the highest quarterly value recorded in the 50 years since the series began, and represents almost $900 worth of building work per person. 'The value of both residential and non-residential building work increased overall. In Auckland, residential work grew, while in Canterbury most of the growth was in non-residential work,' said Statistics New Zealand business indicators manager Neil Kelly. After removing price changes and seasonal variations, the overall volume of building activity increased 1.6% following a 1.8% increase in the March 2015 quarter. Within this, the volume of non-residential work increased 5.2% while residential work fell 1%. The volume trend for non-residential building activity reached a new high in the June 2015 quarter, exceeding levels last seen in the March 2006 quarter. Meanwhile, the residential building activity volume trend is still 8% lower than the June 2004 quarter peak. The overall building activity volume trend grew to a level last seen 10 years ago in the June 2005 quarter, the previous series peak. Continue reading
UK sees strong month on month price growth, latest index shows
Residential property prices in the UK increased by 2.7% between July and August and are up 9% compared with a year ago, according to the latest index figures from the Halifax. The data from the lender also shows that on a quarterly basis, from June to August, prices were 3% higher than in the previous three month period. It is the biggest monthly price rise since May 2014 when it was 3.8% but the index report points out that monthly movements can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend. The index report also shows that buying still cheaper than renting. The average monthly costs associated with buying a three bedroom house in the UK for a first time buyer was £666 in June 2015, some 8% or £56 lower than the typical monthly rent paid on the same property type at £722 a month. With the price of a typical first time buyer home rising by 8% over the past year, the difference between the cost of owning and the cost of renting has narrowed from £85 to £56 over the past year. 'The underlying pace of house price growth is strong. The shortage of second hand properties for sale on the market is resulting in upward pressure on house prices,' said Martin Ellis, Halifax housing economist. 'At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand. Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short term,' he added. However, according to Rob Weaver, director of property at residential investment platform Property Partner, for many people, weak supply and the resultant price growth have become an almost insurmountable barrier to getting on the property ladder. 'With supply so low, consumer confidence healthy and mortgage rates still at record lows, strong price growth is a trend that can only continue in the months ahead. If prices carrying on rising at this rate, even many haves will become property have nots,' he said. 'House price growth in August hit its highest level in 16 months, as the number of homes being marketed fell to record low levels. Sellers are just not coming to the market and no-one really has an answer to how to tempt them back,' he explained. 'We are in danger of seeing the days of free wheeling price growth, and we know where that ended up. There needs to be a focus on creating more supply, because without properties coming to the market, prices will continue to grow and the market will continue to become more and more volatile,' he added. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, believes that price growth is being driven by a curious mixture of strength and starvation. 'Britain's economic strengths of wage growth, low inflation and bullish sentiment, are… Continue reading
Apartments near Royal Parks in central London attract high price premium
The selling prices of apartments situation on roads surrounding the five central Royal Parks in London have increased by 172% in the last decade, new research has found. This is compared to prices for other prime properties in London that are not close to this prestigious group of green space that include Regent’s Park, Kensington Gardens, Hyde Park, Green Park and St James’ Park. Hyde Park, which stretches across central London, has seen the greatest rises. Between 2013 and 2014 alone, the premium commanded by properties in close proximity to the park was 23.8%, according to the Parkside premium Report by Dataloft. 'London as a city is rightly proud of its green spaces, which define the centre of London and provide more outside public space than New York, Paris or Tokyo. The Parkside Premium Report mirrors our experience of the market,' said Gary Hersham of Beauchamp Estates. He explained that living next to a park is increasingly a priority for many buyers in the prime London property market.'In 2012, for example, an influx of super luxury developments pushed the premium for living parkside to 32% over other prime central London areas,' he said, adding that close proximity to a Royal Park is a pre-requisite of many high net worth individuals purchasing in London. Hyde Park, in the borough of Westminster, is the most sought after park to live close to. The south side of Hyde Park, driven by key sales in developments such as One Hyde Park and 4-5 Princes Gate, has reportedly achieved sales values of up to £9,000 per square feet and in doing so set record prices in London. The report notes that the north side of Hyde Park has achieved values of around £3,500 per square feet. The north side of the park also has less of a gap between parkside properties and the surrounding areas when compared to the south, with a 43.2% premium to live parkside for the north versus a 67.7% premium for apartment properties on the south. Hersham pointed out that the rise in the premium for parkside properties boosted by UK domestic buyers. Some 26% of those living around Hyde Park also own another home and 38% are within the UK. The report also shows that apartments by the five central London Royal Parks have commanded a premium of 20% in the year 2014/2015, compared to just a 5% premium in 2005. The most marked jump in price premiums for living parkside was between 2006 and 2007, with an 11% rise in premiums. This can be explained by the myriad of luxury developments launched that year such as One Hyde Park, which reportedly set the world record for a penthouse selling price. The report also looks towards the future of this sector of the property market. 'The report shows beyond all doubt the difference that being situated next to a Royal Park can… Continue reading
