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Demand for UK commercial property surges, latest analysis shows
Demand for commercial property in the UK is growing close to its fastest pace since 1998 and, along with a surge in investment, reflects the widening economic recovery, according to the latest survey. In the first quarter of 2015 the UK saw its 10th consecutive quarterly acceleration of demand for commercial properties, with 46% more respondents seeing greater interest, the commercial market report from the Royal Institution of Chartered Surveyors (RICS) shows. Occupier activity is now at its highest since 1998, highlighting a more broadly balanced economic expansion, says RICS and overseas buyer enquiries are 34% more compared to 17% in the fourth quarter of 2014. In the investment market, enquiries also increased significantly, with 49% more surveyors seeing more prospective investors, continuing the trend of rising demand which began towards the end of 2012. The survey also reveals that availability is falling with 38% more surveyors seeing fewer commercial properties on the market and RICS says that the impact of these tighter market conditions on rental expectations has resulted in them edging upwards to the highest headline level reading since 1998. This is particularly apparent across the industrial and office sectors, while retail rental expectations continue to lag behind. Looking ahead respondents expect, the office sector to perform most strongly with London leading the way despite increasing concerns over the valuation of prime property in the capital. Significantly, there is also increasing confidence that the more upbeat mood will impact on secondary space with rents and capital projections positive in all locations. According to Simon Rubinsohn, RICS chief economist, the strength of the latest commercial property survey suggests that the underlying momentum of the economy will continue to accelerate through the course of this year. ‘What is particularly encouraging is that a better tone to the results is visible in all parts of the country and increasingly in secondary as well as prime space. Given that these indicators have historically provided a strong steer as to the performance of the economy two to three quarters out, it is hard not to be encouraged by the conclusions of this report,’ he explained. Mark Bladon at Investec Structured Property Finance, said that the lack of supply is also having an impact on investment strategies with more investors looking at alternative opportunities in the search for more attractive yields. ‘Student accommodation has long been viewed as an alternative asset class but Investec believes it could be now be viewed as mainstream. We are also seeing consolidation in other alternative property sectors such as serviced apartments and retirement living, where yields are higher,’ he pointed out. ‘For momentum to continue, or for the alternative sectors to reach their full potential, the financing market will need to remain nimble and innovative in the face of these shifting trends,’ he added. Continue reading
Miami real estate market continues to be popular with US and overseas buyers
The Miami real estate market, one of the most popular in the nation with international and domestic buyers, continued to gain momentum in March with sales growing strongly. The latest data shows that single family home transactions registered double digit growth year on year and existing condominium sales rose despite an increase in new condo construction. The figures from the Miami Association of Realtors reveal that single family home sales are up 10% compared with a year ago. This comes on top of a record 2014. While condo sales were up 4.2% year on year. ‘Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy. Buyer demand in Miami properties is leading to more sales and higher sale prices,’ said Christopher Zoller, the association’s 2015 residential president. The report points out that single family home prices remain at affordable 2004 levels despite more than four years of consistent year on year increases. Condo prices has seen 45 months of growth in the last 46 months. Prices are also seeing growth. The median sale price for single family homes increased 10.6% to $260,000 in March 2015 from $235,000 in March 2014. The average sale price for single family homes increased 3.2% to $473,677 last month from $459,102 during the same time period last year. The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago. The average sale price for condos increased 5.8 percent to $398,994 from $377,290 in March 2014. Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand, the association says. The median number of days on the market for single family homes sold in March 2015 was 54 days, an increase of 14.9% compared to the same period in 2014. The average percent of original list price received was 94.6%, down a negligible 0.3% from a year earlier. The median number of days on the market for condominiums sold in March 2015 was 60 days, an increase of 1.7 percent compared to the same period in 2014. The average percent of original list price received was 93.5% a 0.7% decrease. In Florida as a whole sales of existing single family homes were up 24.6% over March 2014, according to Florida Realtors while condominium sales were up 13.7% compared to March 2014. The statewide median sale price for single family existing homes last month was $190,000, up 9.2% from the previous year, according to Florida Realtors. The statewide median price for townhouse condo properties in March was $152,000, up 8.6% over the year ago figure. Miami sees twice the national average of cash buyers, representing 54.2% of sales in March 2015, down from 60.5% in March 2014. Nationally, just 24% of all national housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash… Continue reading
Cornwall is top spot for holiday homes in England and Wales
Some 165,000 people in England and Wales have holiday homes with Cornwall the most popular location for this type of second property, new research shows. Indeed, the county in the south west of England has over 10,000 holiday properties, according to a new analysis from Direct Line’s SELECT Premier Insurance. That means Cornwall has 6% of the nation’s holiday homes and according to estate agents its 300 mile coastline makes it the top holiday home hotspot. In second place is Gwynedd in Wales with 7,784 or 4.7% of holiday homes with its proximity to Snowdonia National Park adding to its attraction, followed by North Norfolk with its sandy beaches and salt marshes, which has 4,842 or 2.9% of holiday homes. South Lakeland with 4,684 holiday homes, East Lindsey with 4,472, Pembrokeshire with 4,310, the East Rising of Yorkshire with 4,059, South Hams with 3,738, Scarborough with 3,687 and Kings’ Lynn and West Norfolk with 3,539 complete the top 10. Across England and Wales there are almost 1.6 million people who have a second property in a different area to where they live permanently and 11% of these are used as holiday homes with the remainder being used for purposes such as work, or accommodation for student children. According to Nick Brabham, head of SELECT Premier Insurance, holiday homes are very valuable to owners as they are often a place to relax and spend quality time with loved ones. ‘This time is often limited, which means it is essential to keep the property and its contents in top condition all year round,’ he added. Peter Olivey a partner at Cornish based estate agents Cole, Rayment & White in Padstow, explained that Cornwall ticks a number of important boxes for second home owners with its coastal location and abundance of activities. ‘It’s a true holiday haven without the hassle or cost of going abroad. The local property market here is competitive but with a number of new developments springing up and mortgage rates much lower than they have been, there’s still plenty of opportunity for prospective buyers,’ he said. Continue reading
