Tag Archives: australia
Canadian property prices and sales both continue upwards, latest index shows
National home sales in Canada rose by 0.7% from September to October and prices were up 7.1% year on year, according to the latest data from the Canadian Real Estate Association. It is the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009. ‘Low interest rates continued to support sales in some of Canada’s more active and expensive urban housing markets and factored into the monthly increase for national sales,’ said CREA president Beth Crosbie. ‘Even so, sales did not increase in many local markets in Canada, which shows that national and local housing market trends can be very different,’ she added. According to Gregory Klump, CREA chief economist, while the strength of national sales activity is far from being a Canada-wide phenomenon, it extends beyond Vancouver, Calgary and Toronto. ‘Sales in a number of B.C. markets have started to recover from weaker demand over the past couple of years. They have also been improving across much of Alberta, where interprovincial migration and international immigration are reaching new heights,’ he explained. Actual (not seasonally adjusted) activity in October stood 7% above levels reported in the same month last year. October sales were up from year ago levels in about 70% of all local markets, led by Greater Vancouver and the Fraser Valley, Victoria, Calgary, and Greater Toronto. Combined sales in these five markets account for almost 40% of national sales activity, and nearly 60% of the year on year increase in national sales. Actual (not seasonally adjusted) sales activity for the year to date in October was 5.2% above levels in the first 10 months of 2013 and 2.5% above the 10 year average for the same period. The house price index increased by 5.51% year on year in October. Price gains have held steady between 5% and 5.5% since the beginning of the year. A breakdown of the data shows that year on year price growth accelerated for two storey single family homes, townhouse units and apartment units in October. By contrast, price momentum slowed further for one storey single family homes. Two storey single family homes continue to post the biggest year on year price gains at 6.94%, followed closely by townhouses at 5.83%, and one storey single family homes at 4.75%. Price growth for apartment units remains comparatively more modest at 3.51%. Price growth varied among housing markets tracked by the index. As in recent months, Calgary saw the biggest increase at 9.47%, Greater Toronto saw growth of 8.3% and Greater Vancouver was up 6.03%. Prices were up between 1% and 2.5% year on year in the Fraser Valley, Victoria, and Vancouver Island, flat in Saskatoon, Ottawa, Greater Montreal, and Greater Moncton, and down 3.4% in Regina. The actual (not seasonally adjusted) national average price for homes sold in October 2014 was $419,699, up 7.1% from the same month last year. The national average price continues to be pulled upward by sales… Continue reading
Annual residential rents up 1.3% in Australia, but cities show differing rates
Annual rental rate for houses and apartments in Australia increased by 1.3% in the third quarter of 2014, according to the latest data to be published. In the capital cities, house rents remained flat at 0% growth while rental rates for units increased by 2.4%, the RP Data quarterly rental review also shows. According to RP Data national research director Tim Lawless, investors entering the rental market need to be aware that rents aren't rising anywhere near the pace of capital gains which is pushing rental yields lower, particularly in Sydney and Melbourne where values have increased the most at a time when rents aren't doing comparatively much at all. For houses, Darwin currently holds the highest weekly median rental rate at $660 followed by Sydney $525, Canberra $480, Perth $462, Brisbane $400, Adelaide $350, Melbourne $390 and Hobart at $330. For units, Darwin once again emerged as the most expensive market on the rental rate front by recording the highest weekly median rental rate for the quarter at $550 followed by Sydney $500, Perth $450, Brisbane $390, Canberra $383, Melbourne $370, Adelaide $300 and Hobart $275. Lawless noted that while detached house rents remained unchanged across the combined capital cities over the quarter, this cannot be said for each individual city. Brisbane is only city where rents remained unchanged. A breakdown of the data shows that Melbourne saw 2.6% rise, Darwin and Hobart both saw growth of 1.5%, Adelaide was up 1.4% and Sydney by 1%. Perth saw rents fall by 2.7% and Canberra a fall of 2%. RP Data analysts reported that over the third quarter of 2014 capital city rental rates for both houses and units remained unchanged. Across the combined capital cities, rental rates for houses were recorded at $430 per week, while median weekly rental rates remained at $420 for units. On a national level house rents also remained steady over the three months to September at $400 per week, while for units, rents fell by 1.3%, down $5 over the quarter to $390 per week. Across the unit market, none of the capital cities recorded a rise in rents over the September quarter and the majority of cities saw rents remain steady over the three months. Canberra rents fell by 3.2% to $383 per week and Hobart rents fell by 1.8% to $275. ‘The performance of rental markets are diverse, however the common theme is that generally the rate of capital gain is outpacing the change in weekly rents which is driving rental yields lower,’ said Lawless. ‘This is happening at a time when investment demand is at record levels and trending higher, which highlights that most investors are focussing on capital gains and ignoring the low yield scenario. The softer rental conditions are likely the result of the surge in investor related activity which is seeing more rental supply hit the market,’ he added. Continue reading
Residential development land growth in England and Wales moderates
Residential development green field land prices in England and Wales rose by 0.2% in the third quarter of the year but the growth rate is moderating. According to the latest figures from Knight Frank the annual increase in the third quarter of the year was 3.7%, down from the 5.6% annual rate of growth in the second quarter of 2014. The firm says that while the appetite for the best sites is still strong, rising material costs and a shortage of skilled labour is starting to weigh on prices. Prices in London are still advancing faster than the rest of the country, the average annual rate of growth for sites in prime central London slowed from 18.9% to 18.7% in the third quarter. ‘While house price growth is starting to slow, there is still room for more growth in development land, especially in commuter zones around London and other key cities,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘However the disparity between the best sites and those that are compromised may become more entrenched and competition for good development sites remains strong throughout the country. But there is no doubt that developers are becoming more selective about the sites they consider,’ she explained, adding that this has been reflected by a slight slowing in sales volumes in recent months. Mirroring the trend in house prices, there has been a ripple effect from central London, with sites in key commuter towns close to the capital proving the most alluring for developers. ‘While planning remains a thorny issue for developers and house builders, these concerns have been somewhat overshadowed of late by the rising cost of construction and the difficulties in sourcing workers with suitable skills to build out sites,’ said Gilmore. ‘Shortages of material have contributed to rising prices, and this, a well as the shortage of labour, can be dated back to the financial crisis, when construction activity all but ground to a halt,’ she pointed out. ‘The very moderate growth in house building in the years following the zenith of the financial crisis were not enough to power up the industry for the sharp rise in activity seen over the last 18 to 24 months. So the delivery of materials and a workforce with the necessary skills is now proving problematic,’ she added. The report also shows that there has been a sharp rise in the number of respondents to the RICS survey saying that labour shortages and rising material costs are limiting levels of construction activity. These factors are now starting to weigh on development land prices, with developers being cautious about future material and labour costs in such an environment. ‘While the rising cost of materials will directly impact margins, difficulties in accessing suitable labour could add to the length of time that elapses before units can be sold, which will also, in turn, push up costs,’ said Gilmore. ‘As a result, buyers are applying downward pressure to offers for development land…. Continue reading
