TSI
Sales and prices falling in Hong Kong, latest analysis report shows
Residential sales increased by 2% month on month in Hong Kong in May, but transactions are down 11% year on year, the latest Land Registry figures show. But with developers offering deeper discounts and more incentives, a number of primary projects received a positive market response, according to the latest market analysis from international real estate firm Knight Frank. It points out that prices have dropped for seven consecutive months by a cumulative 11%, according to provisional figures from the Rating and Valuation Department. Mass residential prices led the decline, losing 11% in the period, while luxury residential prices dipped 8%. The report suggests that clouded by a potential US interest rate rise in June and abundant upcoming supply, residential land prices continued to edge down. A domestic site in Pak Shek Kok, Tai Po was sold last month for an accommodation value of HK$3,620 per square foot, down about 20% from eight months ago when the adjacent site was sold. However, the super luxury sector remained strong, indicated by a Shenzhen buyer’s acquisition of a 9,212 square foot luxury house at Gough Hill Road on The Peak for a reported HK$2.1 billion approximately, a record price for the city. Knight Frank expects more mainland buyers to return to the market in the future and points out that a number of primary projects are scheduled for release in June, hoping to reach the market before a possible US interest rate rise. ‘While the government restated in May the continued implementation of cooling measures, we do not consider the sales rebound in the past two months an indication of a general market recovery,’ the report says. ‘We maintain our forecast of a 5% to 10% drop in the luxury segment and up to a 10% drop in mass residential prices,’ it adds. Continue reading
Second step buyers might struggle for deposit moving from flats to homes
Almost half of second time buyers in the UK have no plans to save for a deposit to buy their next home as they believe the equity in their current property will pay for their deposit, new research shows. Some 44% plan to rely on equity but the growth in house prices has outpaced flats over the last 10 years potentially leaving buyers short when they look to move up the ladder, according to the study from price comparison site uSwitch. However, over the past decade, prices for terraced, detached and semi-detached properties have risen by 21% while flats have increased by 15% over the same time period. First time buyers often buy a flat and then look to move up to a house. The research found that the widest disparity in growth rates between flats and houses can be found in Preston where the difference is 16.5%, Colchester 10% and York 9%. At the other end of the spectrum, flat owners in Aberdeen, Wolverhampton and Milton Keynes have seen their property prices increase in price more than local houses at 10%, 3.5% and 1.7% respectively. With 62% of second steppers looking to buy a house, the firm suggests that they should consider starting to save now to avoid a falling into a deposit deficit. The study also showed that 61% of second time buyers haven’t saved anything towards the big upfront costs such as stamp duty, surveying costs or removal costs which can amount to almost £12,000. ‘Second steppers have been lulled into a false sense of security by rising house prices. In some parts of the country houses have far outstripped flats and so if you are looking to move up the property ladder you need to carefully plot your next steps,’ said Tashema Jackson, money expert a uSwitch. ‘Whatever your situation, plan ahead to find out what you can afford and how much you need to save. Don’t just take the first mortgage offered to you, consult a range of providers to find the best deal for you as this will help prevent paying over the odds,’ Jackson added. Continue reading
Number of retired people renting in UK soars in last four years
The number of people living in private rented accommodation in retirement in the UK has soared by more than 200,000 in the last four years, according to a new poll. Overall, the survey from the National Landlords Association (NLA) shows that the proportion of retired private renters has grown by 13% since 2012 as more and more people turn to the private rented sector. Some 17% of the retired private renting population live in the South East, the area with the highest proportion across the UK. However, just 3% live in London which is the area with the smallest proportion area across England and Wales for renting in retirement. There are almost four times as many retired renters in the North West at 15% compared to the North East at 4% and twice as many retirees rent property in the West Midlands at 8% compared to the East Midlands at 4%. However, the proportion of landlords who let to retired renters has almost halved during the same timeframe, with 9% of landlords saying they currently let to retirees compared to 19% in 2012. The findings suggest that it could become harder for those approaching retirement to find suitable rented accommodation in the future, especially in high demand areas, according to Carolyn Uphill, chairman of the NLA. ‘More and more people are turning to private rented housing at every stage of their lives, including in retirement. Landlords appreciate the stability and assurances often provided by older households, but are finding it increasingly difficult to build businesses around the needs of potentially vulnerable tenants,’ she explained. ‘Successive cuts to the welfare budget, uncertainty about pension provisions, and the devastating impact of the Government’s tax changes are likely to mean that private landlords will soon be unable provide homes in high cost areas like Central London for anyone without a well-paying job,’ she pointed out. ‘As the proportion of retired renters continues to grow there’s a real worry that homes won’t be available in the private sector, forcing people to look further afield, leaving communities they have known and contributed to for decades,’ she added. Continue reading
