Tag Archives: dubai
Home lending in UK fell in August but experts say it is a normal seasonal trend
Lending to first time buyers, home movers, home owner remortgage and buy to let borrowers in the UK in August but levels are still higher than a year ago, the latest data from the Council of Mortgage Lenders shows. Bob Pannell, CML chief economist said that this is a normal seasonal trend, with August typically less strong for mortgage completions and the underlying picture is of improvement in lending levels on a year by year basis. ‘Seasonal factors pushed all categories of lending lower in August compared to July. However, the mortgage market continues to see year on year growth, and we expect this to continue over the coming months,’ he added. A breakdown of the figures shows that lending fell by volume and by value for the first time since April this year. However, this was the third consecutive month that lending for house purchase increased year on year by volume and by value. Pannell pointed out that it was the highest house purchase lending activity level for the month of August since August 2007. However, volume levels this month were still only 60% of what they were in August 2007. Overall in August, home owner loans for house purchase accounted for 57% of gross lending, the same as in July, while remortgage activity accounted for 21% compared to 24% in July. Home owner loans as a share of gross lending have increased since the New Year while remortgage activity has edged down. Buy to let lending as a proportion of total gross lending remained at 17%, a consistent level since the beginning of the year, but up from 13% in the same period last year. First time buyers accounted for 44% of total house purchase lending volumes, a much higher proportion than pre-crisis levels of 30% of the number of loans for house purchase and it was the highest monthly first time buyer lending level by volume and by value in the month of August since 2007, but the number of loans was only 78% of the August 2007 levels. The proportion of first time buyer gross household monthly income in August to service capital and interest payments stayed the same month on month at 18.5%, but remained considerably lower than 19.7% in August last year, and much lower than the most recent high of 24.8% in December 2007. This was the highest home mover lending level by volume and by value in the month of August since 2007, although this month's volume levels are still only 51% of the volume levels in August 2007. Home movers spent 18.1% of their monthly gross household income to pay capital and interest repayments, up slightly on last month but down on the same period last year. Like first time buyers, this is still much lower than the most recent peak of 23.8% in December 2007. Remortgage activity dropped month on month in August 17% by volume and 18% by… Continue reading
Prime residential development land prices in Asia slowing
The price of prime residential development land in Asia slowed to 1.1% in the first half of 2015, down from 3% in the previous six months, but prime office land increased to 3.6%, up from 2.5%. The latest prime Asia development land index from international real estate firm Knight Frank also shows that Phnom Penh in Vietnam recorded the strongest increase in both prime residential and office land price. Prime residential and commercial land prices surging by 14.1% and 9.7% respectively. The report says that foreign investment continued to fuel strong performance in the residential sector but growth decelerated in the second quarter, suggesting that prices are peaking and the momentum will likely moderate in the second half of the year. Land sales in China plummeted by 54.8% year on year at a time when local governments in the country reduced land supply and maintained aggressive pricing as this is their main source of revenue. ‘As a result, developers in China face a double whammy of high land prices and weak sales. With the recent stock market crash, their ability to raise capital is further restricted. Anecdotally, more developers are partnering other firms to pool financial resources and pursue an asset light strategy,’ the report explains. ‘However, there is a silver lining as a recent survey conducted by China Household Finance and the Survey Centre registered signs of capital leaving the stock markets for the housing sector in the second quarter of 2015,’ it says. ‘Against this backdrop, along with a nascent recovery in the residential markets, land prices rose moderately in Beijing, Shanghai and, to a lesser extent, Guangzhou. Moving forward, land prices will continue to be supported by these factors,’ the report adds. Both residential and commercial land enjoyed robust capital appreciation in Hong Kong. The report explains that in addition to the existing healthy demand extra cooling measures, such as a lower maximum loan to value ratio and debt servicing ratio introduced in February 2015 targeting the mass residential market appeared to have channelled demand to the luxury sector. Office space continued to see strong leasing demand from financial institutions amid limited supply. Demand for land is set to increase when the ASEAN Economic Community (AEC) gets underway at the end of this year. The report explains that as a result of a freer flow of goods, services and skilled labour could encourage the movement of industries, driving demand for both commercial and residential space. In Bangkok, the price index for office land stalled in the first half of 2015 as developers turned their attention to the luxury condominium market, where continued capital appreciation afforded them higher profit margins. Even so, the prices of residential land grew at a slower but more sustainable pace. Jakarta saw a similar deceleration in price index movements. The economic slowdown has hurt both business and consumer confidence in the country, according to the report. ‘In addition, the government lacks the room to manoeuvre,… Continue reading
Dubai Property has Some of the Worlds Highest Rental Yields
Dubai is home to some of the world’s highest gross rental yields, meaning now could be the perfect time for an investor to snap up some quality real estate in the emirate. This is according to Global Property Guide, which … Continue reading
