Tag Archives: china
Stamp duty change and Brexit result in falling prices in prime central London
Prime central London property prices fell again in the first quarter of 2016 but transaction levels increased marginally, according to the latest index to be published. Overall the market was notably quieter during due to a combination of the uncertainty surrounding the European Union referendum and a slowdown following a boost in the first quarter ahead of stamp duty changes in April. The market has also been influenced by higher stamp duty for high value properties, according to the report from real estate firm JLL which adds that potential buyers adopted a wait and see attitude ahead of the referendum vote. Since the vote to leave the EU, and the subsequent weakening of sterling, several international buyers have been more active although a good deal of uncertainty remains, especially in terms of the medium term outlook, the report says. However, the fact that the vote is now in the past also seems to have encouraged a few more domestic buyers back into the market. The number of properties on the market has increased again during the second quarter as vendors fail to sell or elect not to sell at prices unacceptable to them. This additional choice and bargaining power for purchasers is contributing to both the scale of price falls and the slowdown in transactions. ‘Given recent uncertainty it is unsurprising that prices have weakened again. On average prices have fallen by 3.3% in the year to quarter two, but they have also declined in every quarter since the first quarter of 2015 as a variety of influences have impacted on confidence and switched the balance of power in favour of buyers,’ said Neil Chegwidden, residential research director at JLL. The data also shows that prices slipped by 0.9% in the second quarter of 2016 having fallen by 1.1% in the first quarter and price falls over the past year have been greater for higher value properties although large lateral flats continue to hold their value better than other large apartments or houses. On average prices have declined by 6% over the 18 months to the second quarter of 2016 with higher value property prices down by an average 10% and prices have fallen across all price ranges during quarter two and over the last year. The sub £2 million market continues to be the most resilient. However, prices have fallen in each quarter since the first quarter of 2015. On average prices in the sub £2 million bracket have fallen by 2.6% over the 12 months. Meanwhile, prices in the £2 million to £5 million market have been declining for 18 months now, with prices down 2.9% during the year to the second quarter. Prices in the £5 million to £10 million price bracket and the £10 million plus market have been impacted most notably by the stamp duty changes. Prices have dropped by 4.4% in the year to quarter two in the £5 million to… Continue reading
More affordable houses to be built at key London regeneration site
The Mayor of London has approved plans for the first major housing development at the Old Oak regeneration site in West London, after intervening to boost the number of affordable homes in the scheme. The Oaklands development will see 605 new homes built, together with a nursery, health centre and commercial space. A target of 50% affordable housing has been agreed for the development, following an intervention by the Mayor Sadiq Khan to boost the number of affordable homes through investment and a profit-sharing mechanism. Old Oak and Park Royal has the potential to deliver 25,500 new homes and 65,000 jobs over the next 30 to 40 years, as well as becoming the key transport interchange for Crossrail and HS2. ‘The development marks a significant step in realising the huge potential of this part of the capital. I am pleased that we have been able to increase the proportion of genuinely affordable homes as part of our ongoing efforts to fix the capital's housing crisis,’ said Khan. ‘The scale and ambition for this development shows London is very much open for business. Despite the uncertainty caused by the UK's vote to leave the European Union, it remains clear that developers and investors see long term potential in our city,’ he added. According to Neil Hadden, chief executive at Genesis Housing Association, the redevelopment at Oaklands in one of Hammersmith and Fulham's most important regeneration sites. ‘We will now be able to provide hundreds more affordable homes for Londoners on a once derelict site. Partnerships such as the one we have with Queens Park Rangers Football Club (QPR) enable us to invest, not only in building new homes, but in developing new communities. We will now be able to provide hundreds more affordable homes for Londoners on a once derelict site,’ he added. QPR co-chairman Tony Fernandes said the firm is committed to bringing forward other development sites in Old Oak as soon as possible to create the homes that London desperately needs. Of the 242 affordable homes, half will be for social and affordable rent, with the other half being for shared ownership. The application was approved by the Old Oak and Park Royal Development Corporation, the organisation that has planning control over the Old Oak regeneration site, on July 13, 2016. The project will also include a new link road into Old Oak which could unlock further development north of the Grand Union Canal. The initial application from Queens Park Rangers Football Club and their development partner Genesis Housing Association proposed 200 affordable homes or 33% of the total. The scheme has now attracted GLA Affordable Housing Grant Funding to raise the number of affordable homes to 242, some 40% of the total with a review mechanism to ensure that any surplus profit as the scheme is implemented will be used to provide more affordable units up to 50%. Continue reading
High end home prices keep rising in mainland China despite cooling measures
Luxury home prices in major mainland cities in China continued to rise in the second quarter of 2016 despite government cooling measures, according to the latest real estate market report. In Shanghai, where non-residents are restricted from buying homes, sales decreased 20% quarter on quarter but as a key safe haven asset class, luxury homes were still sought after, says the report from international real estate firm Knight Frank. In Beijing some 257 new luxury homes were sold, up 38% quarter on quarter, driven by booming supply and demand in the traditional peak season. In Guangzhou, where market recovery became slower, sales fell over 20% and inventory level fell 11.7% due to a lack of new supply. The report says that the Hong Kong market remained polarised, with super luxury homes popular with billionaires, but other homes recording price drops because of an anticipated increase in supply and a potential interest rate rise. In Taipei, the new administration did not emphasize curbing measures, which encouraged developers to launch new projects. Enquiry levels for luxury homes surged, but buyers were deterred by the high property tax, which dragged down sales to only 30% of the volume a year ago. Overall prices and rents remained stable amid the low interest rate environment. ‘In the short term, curbing measures are expected to remain in first tier mainland cities but luxury home prices are set to rise, propelled by high premiums in recent residential land sales,’ the report explains. It predicts that luxury home prices could fall 5% to 10% in Hong Kong and stay steady in Taipei for the rest of the year. Meanwhile, in the commercial sector mainland Grade-A office markets remained active. In Shanghai, rents rose and the vacancy rate fell, driven by strong demand, with core business districts seeing satisfactory leasing performance. In Beijing, rents continued to climb, although the vacancy rate edged up slightly with six new projects completed. Guangzhou was relatively quiet, with minor increases in both rents and prices. The sales market saw transaction volume drop over 40% quarter on quarter and in Hong Kong, leasing activity was slow on Hong Kong Island due to the low availability of space and weaker demand from the mainland, while Kowloon East remained active, boosted by strong relocation demand from tenants on Hong Kong Island. In Taipei, the letting market performed well with a good absorption rate, most notably in Xinyi District. Overall rents and prices remained steady. Looking ahead, a huge amount of new supply is likely to impose upward pressure on vacancy rates in Shanghai, Beijing, Guangzhou and Taipei, the report suggests. But it explains that the shift from Business Tax to Value-added Tax on the mainland is likely to reduce the tax burden and benefit the absorption of office space. Continue reading
