Tag Archives: budget
Economic crisis not affecting interest in Greek property, it is suggested
Estate agents are seeing a steady stream of enquiries about property in Greece, especially at the high end, but prospective holiday home buyers might want to adopt a wait and see approach due to the current financial crisis in the country. One agent seeing demand is Chestertons International which has found that so far the property market has proved to be stable and in particular, the island of Mykonos continues to grow in popularity. ‘If clients are not looking primarily for investment but want to own a second lifestyle property, then Greece continues to offer everything that it has always had to offer. If, however, clients are looking for future investment they will need to take into account both the economic environment and the ultimate currency that Greece might use,’ said Neville Page director of International at Chestertons. He explained that it is currently difficult to predict the final outcome of the negotiations between Greece and its European partners, but opinion seems to be becoming polarised between either Greek remaining in the Eurozone or re-establishing its own currency. ‘If Greece remains in the euro we would be very optimistic about property markets in the short term, particularly with the currency fluctuations in the euro we have seen in 2015, meaning new UK based investors can get more for their pounds,’ Page explained. ‘In the event that Greece was to adopt a different currency, there would be the strong risk of devaluation in the short term. However, this could provide a buying opportunity for the brave investor who recognises the enduring long term appeal of Greece,’ he added. Louise Reynolds, director of overseas property agency Property Venture, believes that if Greece introduces a new local currency, in all likelihood it would depreciate immediately. ‘The International Monetary Fund (IMF), has in the past predicted Greece would need a devaluation of at least 20% against the Eurozone average, just to balance its current account. Such devaluation would increase Greek competitiveness, but would have huge legal ramifications with regard to the existing debt owed to Europe and the IMF,’ she said. ‘The danger lies with the capital flows, which are the biggest unknown. The world’s central banks will do their utmost, as they did during 2008, to prevent financial meltdown or contain the damage through a range of mechanisms such as bank capitalisation, foreign currency swaps, and potentially capital controls,’ she added. She thinks property buyers in Greece and home owners may want to make sure they have access to money in an international bank, given the capital controls in place. ‘If Greece leaves the Eurozone, it is likely that savings in the state-controlled banks would be converted into local currency which are likely to be worthless. It is also likely that a mortgage could be converted into local currency so mortgage holders could benefit if there is a devaluation-effect,’ she added. Those who already own property have seen lettings… Continue reading
Annual price growth in England and Wales slower but prices set new high
House price growth in England and Wales is at a two year low but the average price at £278,849 is a new high, according to the latest index figures. However, annual property price growth slowed to 4.1% in June, the smallest yearly rise since August 2013, says the LSL house price index. But whereas London has been leading house price growth, the reverse is now happening. London ranks only seventh in the regional breakdown with annual price growth down to 1.8%, well down from the 20.7% recorded in July 2014. Sales are also strong, up 15% in June and the firm says that buyers have come back with a vengeance after a lull in the run up to May’s general election. The data also shows that month on month property prices were up 0.3% and overall home values are on average £10,980 higher than a year ago. And overall excluding London and the South East annual price growth is 4.4%. Adrian Gill, director of Reeds Rains and Your Move estate agents, said that sales in June were above the seasonal uplift typically expected at this time of year. ‘This new buoyancy in activity levels bodes well for property market in the coming months. It’s clear the general election distorted the usual tide of the market, with many buyers waiting until afterwards to complete on their purchases,’ he explained. ‘In the first half of 2015, sales are 13% lower than the same period last year. But June’s sharp upward spike shows the start of this calibration back to firmer territory, as confidence in the political landscape solidified with a majority government,’ he added. He explained that it is a slowing of prices at the top end in London that is pulling down the overall average and the lower rungs of the ladder are still dynamic. In the cheapest London borough Barking and Dagenham house prices have risen 15% over the past year. Overall, the lowest priced boroughs across the capital have seen annual price jumps of 10.1% on average, compared to steadier 2.8% year on year rises in the most expensive London locations. ‘It is the pricier south of the country which has seen the most significant slowdown in sales with the volume of properties sold in London and the South East 15% lower than 2014 levels. But healthier activity levels in the North, Yorkshire and Wales should help to balance out some remaining regional disparities in price growth,’ said Gill. ‘It’s encouraging that we’re seeing livelier activity where prices need to get back onto their feet as there are still some pockets of Wales, the North and Yorkshire where house prices are lower than 12 months ago,’ he added. He also explained that with borrowing cheaper than ever, wages recovering, and government schemes and incentives to lean on, buyers’ purchasing power is stronger than it has been for a long while. ‘As a result of this positivity, higher… Continue reading
Price of Manhattan apartments reach new record high
The average price of an apartment in New York’s sought after Manhattan sector reached a record US$1.9 million in May, the latest research data shows. This was up from US$1.8 million in the previous month while the total number of sales was virtually unchanged at 876 for the month, according to the report from City Realty. The firm says that May was the priciest month in NYC real estate history with Downtown seeing the most expensive sales. Overall the average price of a condo was uS$2.5 million and the average price of a co-op was $1.4 million. There were 367 condo sales, up from 365 in the preceding month, and 509 co-op sales, down from the 515 recorded in April. The top sale was for a 12th floor unit in the Soho condominium The New Museum Building, at 158 Mercer Street. The 7,837 square foot apartment, which has five bedrooms and five bathrooms, sold for US$34 million, or $4,338 per square foot. The second highest sale was for a 6,000 square foot penthouse unit in the condominium at 737 Park Avenue which sold for US$32.7 million, or US$5,440 per square foot. The third top sale was a four bedroom co-op at 778 Park Avenue that sold for US$28.5 million. Downtown was the highest-grossing region in Manhattan, with $323 million in condominium sales. Midtown was the second highest grossing area, with $227 million in sales. Downtown also had the highest price per square foot at US$1,982, which was virtually unchanged from the prior month, and the Upper East Side had the second highest at US$1,788. Continue reading
