TSI
Global office leasing environment set to be competitive in 2016
The leasing environment in key global office markets is highly competitive with rents on prime spaces up by 3.6% year on year in the first quarter of 2016. This is despite heightened financial market volatility and global economic across the 95 major markets covered by the JLL Global Office Index which also shows that quarter on quarter rents increased by 0.6% compared to 1.3% in the fourth quarter of 2015. With the world’s major real estate markets appearing to be back on track following a cautious start to the year, business sentiment is improving and corporate activity is expected to ramp up over the course of 2016, according to the report. It suggests that leasing volumes are projected to broadly match those of 2015 and adds that there is some upside potential of up to 5% while strengthening global occupier demand through 2016 and tight supply will drive continued rental increases. Overall JLL forecasts prime rental growth of around 3% to 4% for the whole of 2016. A breakdown of the figures show that the Americas Index saw quarterly rental growth slow to 0.3% in the first quarter, down from 0.8% in the previous quarter. The report says that declines in Latin America and Canada weighed on relatively stronger gains in the United States. In Asia Pacific, quarterly rental growth decelerated to 0.6% from 1.1% in the fourth quarter of 2015 as overall growth was encumbered by lacklustre economic conditions in several tier one markets. Europe saw rental growth moderate to 0.6% quarter on quarter from 1.0% the final quarter of 2015 although general sentiment continued to be positive and no markets registered quarterly rental falls. The Middle East and North Africa Index rose by 2.7% during the first three months of 2016 but this was compared with the 7.4% in the previous quarter and rental growth was confined to Dubai while all other markets were stable over the quarter. While 2016 is expected to represent the peak of the global office development cycle, completion levels are still well below the previous peaks seen in 2001 and 2008, and the global vacancy rate is projected to remain generally stable over the rest of the year, the report explained. Office leasing volumes in Asia Pacific were up 7% year on year in the first quarter of 2016 and the region is expected to outperform with growth of 10% to 15% for the full year, supported by robust outsourcing markets and the sustained strength of domestic occupiers in China. Sydney is forecast to be the region’s top rental performer in 2016, while Singapore is likely to see further declines and economic uncertainty and supply pressures are anticipated to result in more moderate overall regional rental increases in 2016. In Europe, occupier leasing activity is anticipated to continue to hold up in 2016. The report says that most markets have joined the rental growth cycle, and a longer period of steadier rental growth… Continue reading
Average house prices in British seaside towns up over 30% in 10 years
House prices have increased by 32% across British seaside towns over the past decade, amounting to £440 per month, according to the latest research. The annual Halifax Seaside Town Review revealed average house prices have grown from £166,565 in 2006 to £219,386 in 2016, equivalent to an average increase of £440 per month. Scottish seaside towns dominate the list of areas with the greatest price growth, with seven of the top 10 located in Aberdeenshire, which for much of the period has been well served by growth in the oil and gas sector. Fraserburgh has seen the greatest house price growth with a rise of 139%, from £63,540 in 2006 to £151,719 in 2016, equivalent to a monthly increase of £735. In Macduff, average property value doubled from £66,226 to £133,567 or 102%, followed by Peterhead up 95%, Cove Bay up 94% and Newtonhill up 91%. Brighton recorded the greatest increase in value outside of Scotland with prices up 59% from £214,863 to £341,235 over the decade. Other seaside towns in England with the best price performance include Whitstable in Kent up 53%, Shoreham on Sea in West Sussex also up 53%, Leigh on Sea in Essex up 52% and Truro in Cornwall up 50%. Despite the growth of property values in Scottish seaside towns over the past 10 years, nine of the 10 most expensive seaside towns in Britain are on the South coast with eight in the South West. The most expensive seaside town is Sandbanks in Poole, where the average house price is £664,655. Sandbanks knocked Salcombe off the top spot, a position which Salcombe, in the South Devon Area of Outstanding Natural Beauty, has had since 2010. Other most expensive seaside towns located in the South West include Padstow with an average price of £443,396, Dartmouth at £401,361 and Fowey at £379,003. Aldeburgh in Suffolk at £439,379 and Lymington in Hampshire at £426,112 are the most expensive seaside towns outside the South West. ‘Seaside towns are highly popular places to live, offering sought after scenery, weather and lifestyle which no doubt come at a price. They also attract those looking for holiday properties, which add upward pressure on house prices, which our research shows have increased by an average of £440 per month since 2006,’ said Martin Ellis, housing economist at the Halifax. Despite the price performance nine of the least expensive seaside towns are in Scotland. There is a marked difference in price at top and bottom end of the scale, with the least expensive town Port Bannatyne on the Isle of Bute at £77,132. Seven of the least expensive are in western Scotland, including Girvan at £91,912, Campbeltown at £91,938 and Saltcoats at £93,479. Newbiggin by the Sea in Northumberland at £81,259 is the least expensive seaside town in England. The research found 11 seaside towns in total with an average price below £100,000. ‘Over the 10 year period, coastal towns north of the border… Continue reading
Prices rise in Dublin but fall elsewhere in Ireland
Residential property prices in Ireland increased overall by 7.1% in the 12 months to April 2016 and were up by 0.3% month on month, the latest official figures show. This compares with no change in March and an increase of 0.6% recorded in April of last year, according to the data from the Central Statistics Office (CSO), and the market is still open to some volatility with prices rising in Dublin but falling elsewhere. In Dublin residential property prices increased by 1.6% in April and were 4.6% higher than a year ago. Dublin house prices increased by 1.9% in the month and were 5% higher compared to a year earlier. The data also shows that Dublin apartment prices were 1.1% higher when compared with the same month of 2015. However, a CSO spokesman said it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland decreased by 0.6% in April compared with an increase of 0.3% in April of last year. Prices were 9.5% higher than in April 2015. It means that house prices in Dublin are 33.1% lower than at their highest level in early 2007 while apartments in Dublin are 41.5% lower than they were in February 2007 while overall prices in Dublin are 35.2% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 35.8% lower than their highest level in September 2007. Overall, the national index is 33.3% lower than its highest level in 2007. John McCartney, director of research at Savills, pointed out that price growth in Dublin has accelerated steadily over the first four months of the year, as predicted by the firm. ‘Price growth slowed in Dublin last year as tighter mortgage lending forced people into renting. However, this slowdown was always going to be temporary. The shift to renting has forced up rents, attracting investors who are now scrapping to buy properties and driving up prices. As this continues the Dublin market may become increasingly like London with expensive properties, many of which are owned by investors,’ he explained. He said that with tighter mortgage lending introduced in February 2015, many people were priced out of the Dublin market and bought properties in Wicklow, Meath and Kildare. This drove strong price increases in those counties last year, but he added that this has diminished their attractiveness, and increasingly, families are weighing up the cost savings against the longer commute and choosing to stay renting until they can assemble the deposit to buy in Dublin. Looking ahead, Savills says Dublin house price inflation will heat-up further in the coming months. ‘The only thing preventing stronger inflation in today’s figures was the strong growth recorded 12 months ago. However, prices slowed sharply from last May, meaning that next… Continue reading
