Investment
New homes sales in Australia up by over 3% in January, led by detached properties
New home sales in Australia increased by 3.1% in January with detached properties leading the growth, according to the latest report from the Housing Industry Association. Detached house sales were up by 5.8% while the sale of multi-units dropped by the same amount but there was quite considerable regional variation. Detached house sales increased by 7.9% in Queensland, by 7.3% in Western Australia, by 5.5% in Victoria, by 4.2% in New South Wales, and by 1.3% in South Australia. Meanwhile, the latest data from the Australia Bureau of Statistics shows the number of homes approved fell by 1% in January, continuing a 10 month decline. Approvals decreased in January in the Australian Capital Territory by 11.3%, in the Northern Territory by 9.5%, in New South Wales by 3.5%, in Western Australia by 1.8% and in Tasmania by 1.7%. But they increased by 1.3% in Victoria, by 0.3% in South Australia and by 0.1% in Queensland. Also in trend terms, approvals for private sector houses rose 0.1% in January, while approvals for private sector dwellings excluding houses fell 2.3%. The value of total buildings approved fell 1.8% in January, in trend terms, and has fallen for seven months. The value of residential building fell 2% while non-residential building fell 1.3%. According to HIA chief economist Harley Dale once the current pipeline is exhausted, new home construction activity will soften. ‘This year will be another healthy one for detached house and multi-unit construction, but we won’t surpass the heights of 2015,’ he said. ‘The new home building sector is crucial to Australia’s economic prospects in 2016 and should continue as a mainstay of domestic economic activity. That is provided policy considerations and debates underway now don’t have adverse consequences for confidence towards housing,’ he added. Continue reading
Planning permission for new homes in the UK increased by 6% in 2015
The number of planning permissions for homes in the UK have increased by 6% year on year taking approvals in 2015 to the highest level since 2007. The data released by the Department of Communities and Local Government also shows that number of major applications being processed swiftly by local authorities is also at an all-time high with a record 81% decided within the required time. According to an analysis of Glenigan data published at the same time permission was granted for 253,000 homes during 2015. Government figures show that as well as rising numbers of planning permissions for homes, the number of permissions granted overall between October and December 2015 was 4% greater than a year earlier, with councils granting 92,000 decisions. ‘We’ve brought the housing market back from the brink with more than 700,000 new homes delivered since 2010 and a further one million granted planning permission,’ said Planning Minister Brandon Lewis. ‘These figures are further good news for hard working families and first time buyers wanting to achieve their dream of home ownership with constructions rates up and plenty of homes in the pipeline,’ he pointed out. He added that the reformed planning system and National Planning Policy Framework cut more than 1,000 pages of guidance to around just 50, simplifying the process for obtaining planning permission whilst maintaining safeguards for the countryside. The government is currently moving ahead with its landmark Housing and Planning Bill, which will help deliver on its ambition to build a million more homes. Measures include new affordable Starter Homes and a new legal duty will be placed on councils to guarantee the delivery of Starter Homes on all reasonably sized new development sites, and to promote the delivery of Starter Homes in their area. There will also be permission in principle for sites identified in plans and brownfield registers to give certainty around the sites that are suitable for housing, while protecting the green belt while planning reforms to support small builders will require councils to ensure they have permission shovel ready plots to match the local demand for custom build. Figures released recently as part of the English Housing Survey showed that more than a decade long decline, starting in 2003, in the number of people owning their home has been turned around with more than 14 million owner occupiers in the country last year. Continue reading
Spanish market remains stable with demand up from foreign buyers
British buyers have contributed the most to a steady growth in overseas buyers demand for property in Spain as the housing market remains stable. According to figures from the College of Property Registrars more than one in 10 properties sold in Spain is now bought by a foreign buyer, including expats and non-residents. Foreign demand as a percentage of the market was 13% last year, fractionally down from 13.5% the year before and foreigners bought 46,000 homes in Spain last year, 12,000 in the last quarter alone. Overall foreign demand was up 11% last year, and 12% in the last quarter, whilst local demand grew by only 7% in the last quarter. British buyers were once again the biggest group of buyers by a large margin with 9,956 acquisitions last year, some 21% of foreign demand last year, followed by the French with 4,116 or 9%, and the Germans with 3,445 or 7%. According to Mark Stucklin, of Spanish Property Insight, what is remarkable is how much British demand surged in the last two quarters of the year, which was not the case with other nationalities. Russian demand declined steadily throughout the year. He said that in both cases the change was influenced by exchange rates, with the Pound strengthening and the Rouble weakening. ‘The big story from last year’s foreign sales figures was the 81% increase in British demand compared to the year before. The British are clearly back to being the dominant force in foreign demand, though not yet as dominant as they were in the boom years,’ Stucklin explained. ‘Low Spanish property prices, down around 50% from the peak, plus a stronger Pound are no doubt fuelling British demand,’ he said but pointed out that fears of the UK leaving the European Union following the forthcoming referendum vote in June creating uncertainty about the UK’s future in Europe, and a weaker Pound in the short term, could encourage British buyers to sit on the sidelines for the next few months. ‘So don’t be surprised if British demand is significantly down in the first quarter of this year when the figures come out,’ he added. At the other end of the scale Russian demand was hammered last year, down 43%, thanks to serious economic problems at home pushing the Rouble down around 16% in the last year, and 50% in the last 3 years, leaving many Russians much poorer. Although the market is recovering in Spain there are still signs that pries and sales are up and down. The latest data from property portal Idealista shows that the average prices of a home in Spain fell by 0.9% in February to €1,583 per square meter. Year on year prices were down 0.8%. Only two of Spain’s regions registered increases in the average price of property with the Canary Islands up 1.5% and the Balearic Islands up 0.3%. In Galicia the prices remained stable, while the biggest declines registered were those… Continue reading
