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UK asking price discounts falling
The average property for sale in the UK is discounted by 6.05% but by almost 10% in some areas, the lowest figures since 2010. Rotherham has the most properties that sell for less than the asking price at 43.6% while the largest discounts are in Blackpool, according to new research from online property portal Zoopla But despite the lower discounts on offer, some 31% of properties currently on the market for sale have had their price reduced at least once since originally being listed. And that equates to over £2 billion of reductions in total have been made from houses and flats currently on the market across Britain. The top 10 areas with the highest percentage of properties with reduced asking prices are all in the north of England, with more than two fifths of all properties listed. After Rotherham the next location with the highest number of discounts is Preston at 43.2% and then Barnsley at 42.3%. After Blackpool the next location with the largest asking price reductions is Manchester at 8.3%) and Bradford at 7.9% while in London it is 7.4% with typical discounts in the capital city can exceed £75,000. Looking at London in more detail, the neighbouring boroughs of Merton at 28.7%, Richmond-upon-Thames and Croydon, both at 27.3%, have the highest proportion of reduced properties for sale, but those looking for the largest reductions will find them in Havering, a borough soon to benefit from Crossrail, where the typical property price discount is 10.45%. At the top end of the national market, more than a fifth of properties valued over £1 million have been reduced since originally coming on to the market, at an average discount of more than £185,000. ‘Buyers may be disheartened by the decrease in the typical discounts on offer but can take cheer from the fact that almost a third of houses are listed today below their original asking price,’ said Lawrence Hall of Zoopla. ‘This means that despite ever increasing house prices, there is still room for some good, old-fashioned negotiating. On the flip side, vendors can be pretty confident of achieving close to their initial asking price. Zoopla has a unique feature on its website that allows potential buyers to track original asking prices and subsequent reductions,’ he added. Continue reading
Residential rents in Australian cities grow at slowest pace on record
Over the past month residential rental rates in Australian cities have increased at their slowest pace on record, the latest data shows. Sydney and Hobart have seen the strongest rental growth over the past year, according to the data from the May CoreLogic RP Data index report which, according to the firm indicates a disconnect between demand and supply. The data also shows that rents in Perth, Darwin and Canberra have dropped by 4.5%, 5.5% and 0.6% respectively and overall combined capital city rental rates increased by just 0.1% in May. Combined capital city rental rates are recorded at $488 per week and on a quarterly basis they have increased by 0.6% and by 1.5% over the past 12 months, down from and annual increase of 2.2% a year ago. The report also shows that with home values growing faster than rents, gross rental yields continue to edge lower. ‘Sydney stands out as seeing strong population growth which is creating more demand for accommodation in the city,’ said index report author Cameron Kusher. Although Sydney and Melbourne recorded low rental yields, Kusher said that investors in these two cities are clearly not targeting rental returns. ‘It appears to be purely a capital growth play and likely to remain this way, at least for the time being,’ he added. For a more balanced approach to property investment he recommends investors look to markets like Brisbane or Adelaide which currently appear to be more financially attractive, however buyers should not expect value growth to match that of Sydney or Melbourne any time soon. According to Kusher, the annual rate of rental growth is now the slowest on record. He said the sluggish rental appreciation can likely be attributed to the ongoing boom in dwelling construction across Australia's capital cities accompanied by record high participation in the housing market from investors. Continue reading
A strong pound is encouraging British investors to buy abroad, it is claimed
A strong currency in the UK is encouraging property investors to buy real estate abroad with some 46% keen to take advantage of the current state of the Pound, new research suggests. The survey has found that 23% of respondents are considering buying property abroad in the next 12 to 18 months due to the stronger economic climate for business and residential lettings in foreign countries. The study, commissioned in the aftermath of the Conservatives securing a majority in the recent general election, shows how a combination of financial factors are persuading property investors that now is the time to seek opportunities abroad for higher returns. Almost a quarter (23%) of respondents are considering buying property abroad in the next 12-18 months due to the stronger economic climate for business and residential lettings in foreign countries. The poll commissioned by FXcompared Intelligence, the research division of money transfer comparison site FXcompared, also found that Conservatives winning the general election is also a significant factor with 20% stipulating this as a prime reason for buying abroad. Other key influences include easier access to mortgage funding, cited by 22%, while some 16% said changes to UK Stamp Duty and property tax, 14% access to pension funds and 12% better mortgage deals abroad. The poll also asked what type of properties investors were interested in and found that 19 are looking to invest in multiple properties at one location, while the same number think coastal locations offer the best return on investment. Also 25% are now focusing on bigger properties as they seek to capitalise on the current opportunities in the market especially as a stronger pound has made it more affordable. Better weather is still the main lifestyle factor when considering foreign property ownership, mentioned by 48%, but 42% said it was how easy the location of the property is to reach while 21% mentioned finding an up and coming area. ‘With unprecedented opportunities for overseas buyers given the low euro, property investors believe they can get more bricks and mortar for their money abroad. 'Over the next 12 to 18 months we could see a trend among residential and commercial property investors, focusing heavily on major European countries such as Spain, Portugal, Italy and France,’ said Daniel Webber, managing director of FXcompared. ‘Aside from the financial reasons for pursuing foreign property ownership, lifestyle choices are still playing a big role too, with better weather and transport links major factors when choosing where to buy investment property,’ he added. Continue reading
