Investment
Property sales in Auckland, New Zealand, see steep fall at end of 2015
Property prices in Auckland, New Zealand, remained stable last month but there was a significant fall in the number of sales compared to those in November and a year ago. The average sales price for December at $869,492, down 0.8% on November's record average price while the median price rose to an all-time high of $800,000, up 0.6% on that for November, according to data from Barfoot and Thompson ‘From a price perspective, the market was rock steady but sales data for the final month of 2015 is sending mixed messages as to where the market will head in 2016,’ said Peter Thompson, the firm’s managing director. The data reveals that sales for the month at 796 were 19.3% lower than in November, and it was the lowest number of sales in a December for four years. December's sales were also the lowest in any month for the past 22 months. While in December new listings at 757 were down 555 on those in November, Thompson explained that this level of decline is quite normal and they were the highest in a December for four years. ‘The factor most likely to impact on January sales was the extremely low number of listings at the end of December which, at 2431, was down 25.2% on those in November, and the lowest number for any month for more than 20 years,’ he said. ‘With a growing population and the number of new builds failing to keep pace with demand, competition for properties is likely to remain strong in the first quarter of 2016. January's sales data is always influenced by the summer holiday period, and it is likely to be the middle of March, when February's sales data is available, that a clearer understanding of prospects for 2016 emerge,’ he pointed out. ‘What is clear, however, is that with so few properties on the market, now is an excellent time to list,’ he added. The figures also show that in December some 278 properties sold for in excess of $1 million and a further 202 for in excess of $750,000. Sales of properties in the under $500,000 price category at 44 made up 5.5% of all sales. In 2015, the average sale price of homes for the full year was $817,096, an increase of 14% on that for 2014 and 25.8% over 2013's average sales price. The median price for 2015 was $755,333, some 17.4% higher than 2014's median price and 30.5% higher than that for 2013. Continue reading
UK house market showed no end of year let up as prices rose 1.7%
House prices in the UK increased by 1.7% in December, showing none of the traditional end of year slowdown, the latest index figures show, prices now set to keep rising in 2016. The data from UK lender the Halifax, also shows that year on year prices have risen by 9.5% and were up 1.6% quarter on quarter, taking the average price to £208,286. However, the quarterly rate of change remained below 2% for the second successive month and was at its lowest values during 2015. But the annual rate of change remained in the 8% to 10% range throughout the year. The Halifax report also points out that the monthly house price pattern seen during the second half of 2015 has fluctuated and the quarter on quarter change is a more reliable indicator of the underlying trend. Newham in London recorded the biggest rise in house prices among major UK towns and cities over the past year, according to separate recent research by the Halifax. The average house price in the London borough was 22% higher than in the previous year and nearly double the 12% increase in London as a whole. Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. ‘There remains, however, a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale,’ said Martin Ellis, Halifax housing economist. ‘This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices,’ he added. According to Rob Weaver, director of Investments at property crowdfunding platform Property Partner, the fact that house price growth was 1.7% in the traditionally quiet month of December underlines the upward pressure on prices caused by the supply and demand imbalance. ‘With such extreme supply side issues, prices look set to move in only one direction throughout 2016. December may well have set a precedent for the year ahead. There will naturally be regional variations throughout the year but overall the trajectory of the UK property market will be upwards,’ he said. ‘As ever, London and the South East are likely to outperform due to the exaggerated supply issue and overall demographic in that corner of the country. The significant house price growth seen in Newham reinforces how the balance of power in the capital has moved from the centre to the peripheries, where gentrification, regeneration and infrastructure improvements are driving price rises,’ he explained. Jonathan Hopper, managing director of Garrington Property Finders, said that overall 2015 ended much as it began with demand outstripping supply in many areas and the resulting tension driving up prices. But he also pointed out that the start of 2015 was hampered by caution as some sectors of the market paused to see what would happened with the general election, for example, but there are no such… Continue reading
Index shows Spanish property prices rose by 1% in 2015
Nationally residential property prices in Spain increased by 1% last year with the market having bottomed out and now on the way to recovery, new index figures suggest. The data from appraisal company Tinsa shows that the overall rise in prices was boosted by an increase of 2% in the regions of Catalonia, Madrid, and the Balearics. It is the first time since 2007 the Tinsa index has end the year higher than it started. The index, based on the firm’s own figures relating to new and resale properties, shows that prices rose the most in Catalonia with growth of 5.3%, followed by Madrid up 3.3% and the Balearic Islands up 2.7%. But not all regions did well. Prices fell by 8.5% in Navarre and by 4.3% in Murcia. The Tinsa report pointed out that there are considerable regional variations. ‘It’s important to remember the market is tremendously heterogeneous and evolves at different speeds according to area. Prices are rising in some areas, but still falling in others,’ the index report says. Some 21 provinces and 15 provincial capitals saw price increases in the final quarter of 2015 compared to the same quarter in 2014 but there were falls of more than 5% in nine provinces and 10 capitals. The firm expects 2016 to be a year of stabilising prices rather than a sudden recovery. ‘Prudence invites us to interpret rising prices in terms of stabilisation. The incipient change in the trend is based on market values currently at minimums, so a progressive normalisation of the market can mean large percentage change increases, which can be expected to moderate in the coming months,’ the report adds. Mark Stucklin of Spanish Property Insight believes this will be the case. He forecasts prices to rise by a fraction but showing no signs of taking off. He also pointed out that figures from another appraisal company, Sociedad de Tasación (ST), show that new property prices rose 2.9% in the course of last year, the first time that has happened since 2007, and up from a fall of 2.2% a year ago. The data also shows that new home prices rose 6.2% in Madrid and 4.8% in Catalonia and the firm reports rising sales, especially demand from overseas buyers. Meanwhile, the latest data from property portal Idealista shows that the fall in prices in the second hand homes market moderated in 2015 with values down 0.7% in the final quarter of the year. The Balearic Islands led the way with year on year price growth of 3.3%, followed by the Canary Islands up 1.9% and Madrid prices up 1.6%. However prices fell 6.4% in Extremadura, 6.6% in Castilla La Mancha and 6% in Asturias. Continue reading
