Tag Archives: yahoo
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
Fringe of prime emerging property markets in London expected to lead growth
Prime property prices in emerging locations in London showed a small rise of 1.3% in the second quarter of 2015 and are down slightly by 0.84% compared to the same period in 2014, new data shows. Demand in South West London continued to be driven by sales, mainly flats, below the £937,500 threshold, following changes to stamp duty at the end of 2014, according to the latest quarterly report from real estate firm Douglas and Gordon. In contrast, larger houses priced above £1.3 million in emerging prime were muted, compounded by the stamp duty issues and mortgage market concerns. In some areas, such as Battersea and Battersea Park, some prices were down 10% year on year. Clapham and Southfields led price increases in the sector, up 3.5% and 3.9% respectively. A weaker second half in 2014 means that for these areas prices have caught up to where they were 12 months ago. Rental growth was also strong, up 1.7% in the quarter, continuing the areas robust performance during a difficult year in the sales market. However, this growth is expected to slow once the sales market picks up. Overall total returns, capital and rental growth, remain attractive for professional investors in emerging prime and capital values are expected to climb 10% in the next 12 months. ‘Whereas there is some evidence of a post-election bounce, unsurprisingly many are taking their time to make decisions and a continuation of the anticipated bounce needs to be tempered with a dose of realism,’ said Ed Mead, the firm’s executive director. He expects the market for more expensive family homes to remain firm in the next 12 months due to the prospect of a mansion tax that affecting the market before the election now no longer there. But he pointed out that volumes are still very thin and the firm’s emerging prime index is only back to where it was 12 months ago. His prediction is for fringe areas to perform best as buyers search for new up and coming areas to buy in. Continue reading
