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Residential building land prices rise in Australia
There is a growing divide between demand and available supply in vacant residential land in Australia as land price rise and detached house building peaks, according to a new report. The number of residential land sales fell by 11.8% over the year to the December 2014 quarter while in contrast, the weighted median residential land value increased by 2.8% and was up by 6.3% over the year. The data from the latest HIA-CoreLogic RP Data Residential Land Report provided by the Housing Industry Association, also shows that the increase in the weighted median value was driven primarily by Sydney, with significant growth also evident in Perth and Melbourne. ‘As with all aspects of this housing cycle, there are wide divergences in land market conditions around the country this is clearly evident across the six capital cities and 41 regional areas covered in the report,’ said HIA chief economist Harley Dale. ‘There is insufficient shovel-ready land in some markets and this is placing undue upward pressure on residential land values. Construction of detached houses looks to be peaking for the cycle, but there is unrealised demand out there because of that lack of readily available and affordable land,’ he explained. Overall the price of residential land per square metre increased in Sydney, Melbourne and Perth in the December 2014 quarter, with Sydney remaining the country’s most expensive land market by some margin. Across regional Australia, the most expensive residential land markets are the Gold Coast and the Sunshine Coast in Queensland, and the Richmond-Tweed region in New South Wales. The least expensive markets can be found in the South East region of South Australia, and the Mersey-Lyell and Southern regions of Tasmania. According to CoreLogic RP Data research director, Tim Lawless, the number of vacant residential land sales has been trending lower since the middle of 2013 and concurrently, median land prices have been rising to new record highs. ‘The opposing trends are a clear sign that demand is outweighing supply which is pushing land prices higher. Higher land prices ultimately lead to less affordable homes. It is the high cost of vacant land which significantly contributes to the increasing cost of housing. Ideally we should be seeing more land brought to the market and sold during this period of low borrowing costs,’ he added. Meanwhile, the latest Australian Bureau of Statistics housing finance figures show that the number of loans to owner occupiers (excluding refinancing) declined modestly in February although the number of loans to those purchasing and building new homes increased slightly. The number of loans to households building or purchasing new homes increased by 2% in February, a relatively positive result against a backdrop where lending to households purchasing existing homes eased back modestly. The number of loans to owner occupiers buying established homes, excluding refinancing, fell by 0.9% in February to a level 4.9% weaker compared with the same time a year ago,. According to… Continue reading
Buyers and sellers in UK nationwide not put off by election jitters
The UK property market has seen a surge in buyer and seller activity despite reports of election uncertainty with average prices up 0.9% month on month, latest index shows. It takes the average price in March to £206,726, according to the index from haart estate agents, the highest on record and prices are up 5.6% annually. New buyer demand increased 22% month on month and sellers are not being put off by the election with homes for sale up 27%. The data also shows that London property prices have moved out of negative territory, increasing 0.3% annually and 6.7% on the month after falling in February. This takes the average price in the city to £492,119. ‘Our advice to both buyers and sellers has been to enter the property market before heading to the ballot box in May, if they are considering doing so this year,’ said Paul Smith, chief executive officer of haart which has a network of over 200 branches nationwide. ‘History tells us property prices tend to take a swing upward after a general election and even for those current homeowners upsizing, the increase in price on their new home will be greater than any gains made through sitting tight in their current property,’ he explained. ‘Our latest data indicates that prospective buyers and sellers have put their ducks in a row and are entering the market in high levels this spring, undeterred by the whispers of market uncertainty. This in turn has driven up UK property prices by almost 1% in a single month and 5.6% annually,’ he pointed out. Continue reading
NLA launches new landlord accreditation scheme
The National Landlords Association (NLA) has launched a new initiative to enable tenants to check if their landlord is accredited. The National Register of Accredited Landlords aims to provide a quick and simple look up for tenants to check whether their landlord is accredited and is open to every accredited landlord and accreditation scheme. NLA chief executive officer Richard Lambert said the organisation wants to raise the profile of accreditation and highlight those who are committed to best practice. Landlord accreditation is regarded as a way of improving standards and practice in the private rented sector through education and professional development. The NLA currently works with over 65 local councils and five universities across England as their accreditation partner, and the NLA scheme is recognised by another 50 local authorities. The NLA is also an accreditation partner for the London Rental Standard, working closely with the Mayor of London’s Office on establishing the initiative last year and the Register supports the NLA’s 2020 Vision to persuade all its members to become accredited by the end of the decade. ‘Accreditation is a badge of knowledge and competence that landlords should shout about. We should be encouraging tenants to check their prospective landlord and find out whether they have reached accredited status,’ said Lambert. ‘There’s more pressure on improving standards in the private rented sector than ever before and we’re trying to lead the way for landlords to become accredited, which is a huge challenge because currently there’s no fundamental need to do so,’ he explained. ‘However, too often the landlord community is unfairly tarred with the brush of illegality or incompetence shown by just a minority of the industry, which isn’t an accurate picture of private renting,’ he pointed out. ‘We want accredited landlords to put their details on our new Register so they can set themselves apart, and for tenants to have a quick and easy look up for peace of mind that they can rely on their landlord,’ he added. The NLA has written to all the existing accreditation schemes and providers, calling on them to support the Register by agreeing to verify those landlords who register as members of their schemes. Continue reading
