Tag Archives: city
Edinburgh property market seeing strong demand and steady price growth
The residential property market in Edinburgh is experiencing high demand, especially at the middle to high end of the market, new reports show. The long term picture is one of steady growth. A comparison of property prices by agents Strutt & Parker shows that in March 2015, the month leading up to the introduction of the new Land and Buildings Transaction Tax (LBTT), and March 2016 reveals a 26% fall in average value. In March 2015 prices averaged £320,466 but in March 2016 this was down to £237,226, much of which has been put down to the distortion caused in the market by LBTT last year. However, the average value in March 2016 is significantly up on the average price in March 2014 which was £209, 624 and March 2013 when it was £200,744, indicating a steady upward trajectory in property prices. ‘The drop in average value simply serves to underline the huge spike in sales before the introduction of LBTT in April last year and it highlights the importance of experience when interpreting housing market trends,’ said Blair Stewart, head of Edinburgh City Residential Sales at Strutt & Parker. ‘It is not surprising that the 2016 average property price is less in comparison. It is more important to look back over the last three years during which time, taking 2015 out of the equation, we can see a steady rise in the city's average property price,’ he pointed out. In March, there were 247 sales in Edinburgh of which 225 were £300,000 to £750,000, 13 in the £750,000 to £1 million range and nine at over £1 million, up from 159 in February and 146 in January but down from 363 in March 2015, again underlining the surge in sales before the introduction of LBTT. ‘The high volumes and associated lower values in Edinburgh are partly reflective of a surge in the purchases of investment properties before the LBTT surcharge was introduced at the start of April. In general, additional and investment properties are lower in value, which is illustrated by both the jump in transactions and drop in average value,’ Stewart explained. ‘Correspondingly, we have noticed an adjustment in the average sale prices of the properties we are selling in Edinburgh change from around £780,000 in 2015 to approximately £600,000 in 2016. However, these figures also show a strong performance in the market in the first months of 2016 and I am confident we will see that continue into the summer,’ he added. He also pointed out that behavioural changes following two tax regime changes in a year are still playing out so a true picture of the market will become clearer over the next six months once there can be an analysis of figures which have not been distorted by either LBTT or the additional 3% surcharge on additional homes introduced this April. Agents CKD Galbraith is also reporting that demand for middle to high end residential property in Edinburgh city… Continue reading
Prime commercial property rents seeing steady growth in UK
Rental values for UK prime commercial property grew by 1.4% in the first three months of 2016, matching the post-crisis high of 1.4% in the fourth quarter of 2015. They were boosted by the strong performance of offices, retail warehouses and industrial property, rents across the board sustained the highest level of growth since 2007, according to the latest CBRE Prime Rents and Yields Monitor. Prime Industrial property led the way, with rental growth increasing to 2% in the first quarter, the third steepest quarterly increase the sector has seen since 2001, the data also shows. Yields remained flat at 6%, resulting in a capital value growth of 2.1%. Rental growth was largely attributable to the London market, where demand for industrial space has been robust. In the London industrial sector, rental and capital value growth was by 3.9% in the first quarter alone. The prime office sector also drove up the UK average, with rental growth of 1.8% and capital value growth of 1.7%. The healthy performance was mirrored across the UK, with every region exhibiting either rising or steady rental growth over the first three months of the year. The main growth hotspot was in the West Midlands which saw rental and capital growth of 4.7%, as commitments around HS2 and a growing trend for ‘north shoring’ increased demand for office space in the region. Prime central London offices again showed significant growth of 2.6% across both rents and capital values. The capital also contained most of the nation’s hotspots. Prime offices in the City saw its highest rental growth in six years at 4.6%, while London Docklands saw increases of 5.4%. ‘The sustained health of the office sector shows that businesses remain confident about the UK’s economic prospects, despite the looming European Union referendum vote. London and in particular the City, is seeing sustained rental growth, mostly driven by larger space users committing early prior to key lease events,’ said Chris Vydra, head of City Leasing, CBRE. Overall, UK yields remained relatively flat in the quarter, up slightly from 5.3% to 5.4%, but remaining on a par with the average level for 2015. Retail warehouses saw the highest yield growth, resulting in an average fall of 0.8% in capital values. Continue reading
Prime property prices in New York driven by strong demand and limited supply
A global powerhouse, domestic and international wealth has fuelled the expansion of New York’s prime residential real estate markets, according to a new analysis report. New York is one of the most diverse, globally connected and high performing cities in the world and alongside London, it stands apart from any other city as a true global powerhouse, says the prime residential report from international real estate firm Savills. It points out that as a world leader in financial services, technology and media, New York hosts a large number of global company headquarters, is an important centre of education and a tourism destination. Download the full PDF report > > The sheer diversity of factors in the city’s success make New York’s residential real estate highly sought after, from the international wealthy seeking a foothold in a global city through to local young families realising the appeal of urban living. It explains how strong occupier demand and limited supply has pushed up prices so affordability is a growing issue for many. However, although costly by US standards, prime New York residential real estate is still relatively good value by global levels . For example, prime property prices in New York are 35% less than London and 61% below Hong Kong. But prices are rising, up by 42% from $1,200 per square foot in 2008 to $1,700 per square foot in 2015. The longest established prime residential markets are in Manhattan on the Upper East Side and Upper West Side, bordering Central Park. The Upper East Side is known for its large, classic New York apartments, while the Upper West Side is a somewhat more relaxed and accessible alternative. Together, these two large neighbourhoods accounted for 38% of all $1 million plus transactions across Manhattan and Brooklyn in 2015, and 47% of all $5 million plus transactions in 2015. The report explains how the generation of new wealth in the city has pushed the prime markets into new neighbourhoods. The Financial District saw 385 deals over $1 million in 2015, more than 10 times the 35 deals recorded in 2005. Harlem, Williamsburg and Park Slope all saw increases of a similar magnitude and even Downtown Brooklyn, a market where no deals over $1 million were seen in 2005, recorded 64 such deals last year. At the upper end of the prime market, Chelsea, Greenwich Village, Tribeca and Midtown have all seen rapid growth in the number of $5 million plus sales. From just a handful each in 2005, all these neighbourhoods recorded more than 50 in 2015. This comes as new condominium stock is delivered to appeal to the super prime market, the report says and price growth has been especially apparent in Midtown where many super prime condo schemes are concentrated. The average sales price here rose by 193% to $3.8 million in the 10 year period. New York’s prime residential market is dominated by two property types: cooperatives and condominiums (condos). Condos have… Continue reading
