Tag Archives: french
City property values in Australia decreased gradually during 2014, latest index shows
Residential property values in Australian capital cities increased by 0.9% in December to take the annual increase to 7.9%, the latest index data shows. Values rose in all cities except for Darwin where they fell by 0.6% and Canberra where they were also down by 0.6% while values were unchanged in Sydney, according to the CoreLogic RP Data Home Value Index. Over the final quarter of 2014, capital city home values increased by 1.6% with Perth, Sydney and Brisbane recording the greatest quarterly gains at 2.8%, 2.3% and 1.8% respectively, while values fell in Darwin by 1.7% and in Canberra by 3.4%. However, despite the positive result across most cities, the annual rate of capital gain across Australia’s capital city housing market has continued to slow. The capital gain on houses compared to units was higher, with house values gaining 8.4% over the calendar year compared with a 5.1% increase in unit values. According to RP Data senior research analyst Cameron Kusher, detached housing remains in high demand despite the higher price point. ‘Based on the median price across the combined capital cities, houses are attracting a $100,000 premium over apartments,’ he said. He also pointed out that the slowing annual growth rate is further evidence that the housing market is losing some steam with combined capital city home values increasing by 9.8% over the 2013 calendar year compared to a more moderate 7.9% increase in 2014. Based on the December results, the annual rate of capital growth has continued its moderation which has been ongoing since April 2014. After the annual rate of combined capital city home value growth peaked at 11.5% over the 12 months to April 2014, the rate has now slowed to 7.9% in December 2014 which means that combined capital city home values have increased at their slowest annual pace since October 2013. At an individual capital city level, the annual rate of home value growth is now lower than its recent peak. Kusher said this would tend to suggest that peak value growth has now passed. ‘We would anticipate that the rate of growth will continue to slow through 2015 despite the low interest rate environment,’ he explained. Although home value growth has been recorded at 7.9% throughout the 2014 calendar year, the rate of growth has varied between a fall of 0.6% in Canberra to an increase of 12.4% in Sydney. While Canberra was the only city to record an annual fall in home values, Melbourne was the only city other than Sydney to have recorded annual value growth of more than 5% at 7.6%. Looking at the different segments of the market based on dwelling values, the broad middle 50% of capital city suburbs have recorded the greatest value rise over the past year. The most affordable 25% of capital city suburbs have recorded a gain of 7.7% compared to 8.5% across the middle 50% of suburbs and 7.8% across the most expensive 25%. The index… Continue reading
UK retail property market needs to take online shopping into account in 2015
A dwindling supply of well-located retail property stock in the UK will continue to drive South East and London rental growth, which will be factored into pricing by investors, according to a new analysis. Well-placed good secondary retail assets with solid demographics, will sell well and overall schemes with the broadest consumer appeal will thrive at the expense of the poorer quality ones, says the latest UK retail property market outlook 2015 report from Knight Frank. Key attributes could be the quality of tenant mix and accessibility, although the out of town market has moved steadily towards fun shopping, the report suggests. ‘As we have seen with high streets and shopping centres, the best out of town parks now provide an increased focus on a strong leisure and catering offer aimed at prolonging dwell times and boosting expenditure, the report explains. One potential cloud on the horizon, with the growth of online sales bringing store networks under ever increasing scrutiny, is the forthcoming rush of lease expiries will provide retailers with an unprecedented opportunity to reduce property costs by downsizing their portfolios. ‘This is likely to reinforce the polarisation already being seen in the market, with secondary/weaker schemes suffering at the expense of the better schemes, bringing with it greater divergence in investment performance. That said, while the rise of online shopping may result in smaller store portfolios, the growth in click and collect is helping to maintain the importance of the store,’ the report adds. Knight Frank predicts that omni channel retailing will become the dominant norm in 2015. Occupiers will need to implement in store technology advancements in order to keep the consumer engaged and enhance the customer experience. Retailers should embrace strategies in which mobile, online and in-store experiences should complement, rather than compete with, one another. The firm also predicts that the first half of 2015 is likely to be dominated by uncertainty surrounding the general election. However, retail sales will receive a boost from a buoyant labour market, lower inflation on the back of the fall in oil prices. Slower but still positive house price growth will continue to support strong consumer confidence. But the retail market continues to be driven by structural change due to the growth of online shopping and profit margins for bricks and mortar retailers will continue to be squeezed by non-store sales and an increasingly internet savvy population. The news that the Chancellor in his Autumn budget will cap the inflation linked increase in business rates to 2% and undertake a full review of the structure of business rates is welcome news to the retail sector, according to the report. ‘However, fundamental changes need to be implemented going forward especially with consumer’s increasing preference to shop and buy online rather than in store,’ it adds. Continue reading
Ski property market in French Alps likely to be boosted by low interest rates
With snow finally arriving across the French Alps a flurry of interest is expected in ski property, especially since interest rates offered by lenders in France are so low. Rates below 3% were available in 2014 and the beginning of 2015 may herald even lower rates in France as the long term outlook for growth in Europe remains weak, according to John Busby, private clients director of French Private Finance. He pointed out that the TEC 10 index dropped below 1% for the first time in December, hitting 0.86%. ‘It is worth stressing again that this is now the rate investors will receive when lending to the French Government for a 10 year period. Hopefully this drop will continue to make it through to retail mortgage rates and so buyers will continue to benefit, said Busby. He also pointed out that it seems that the controversial social charges of 15.5% which were added to French capital gains and rental income tax are in fact illegal under European law and many people who sold a property during 2014 are now making cases to reclaim the tax which they have overpaid. ‘This is also reassuring news for those looking to buy over the busy ski property season,’ added Busby. According to Francois Marchand, general manager at Erna Low Property, the ever lower interest rates offered by the French Banks and a weakening Euro versus the Sterling has triggered earlier property searching by clients in the French Alps. ‘Enquiries from savvy investors are up 20% year on year since the end of the summer. Site visits have been taking place since the beginning of September,’ he said. He explained that over the past 12 months, many exciting new developments have appeared in the French Alps with a few new hot spots for investors for example Châtel, part of the Portes du Soleil ski area. Erna Low Property has sourced a few new property developments ready for this ski season or for next December 2015 with leaseback options. Les Gets, also part of the Portes du Soleil and a short drive from Geneva Airport, having been short of new property developments for sale for a few years, due to a need to upgrade the draining systems and water supplies, now has a greater variety of new properties for sale. Tignes les Brevieres has long been popular for its flexible leaseback investment with the British market, with direct access to the world renowned Espace Killy ski domain and in the same ski area, La Plagne has a new leaseback property investment, ski-in ski-out, of fully furnished apartments ready in December 2016. ‘Over the past two years, we have experienced a great increase in activity levels, the winter season has started in the middle of summer for us, which is something we last saw in 2008,’ said James Ross, sales manager at Erna Low Property . ‘It appears that the French Alps is enjoying a renaissance as a favourite… Continue reading
