Tag Archives: french
Capital city property prices up just 0.5% in June with five seeing values fall
There was a 0.5% rise in capital city dwelling values in June with Sydney, Melbourne and Hobart recording another substantial rise but five cities recorded falls. Higher dwelling values across Australia’s two largest capital cities continued to push the CoreLogic Hedonic Home Value Index to new record highs, with dwelling values across the combined capital cities rising by 0.5% in June to be 8.3% higher over the past 12 months. The June results continued to show a rebound in housing market conditions after CoreLogic reported weaker results for the final quarter of 2015 when the combined capitals’ index was down 1.4%. However, the pace of capital gains in June was substantially lower than the April and May results when CoreLogic reported a 1.7%, and 1.6% month on month lift in capital city dwelling values. ‘The monthly growth rate reduction is likely to be very much welcomed by state and federal government policy makers and regulators who may be concerned about a sustained rebound in capital gains,’ said CoreLogic Asia Pacific research director Tim Lawless. He pointed out that home values in Sydney have been rising for four years, and have increased by a cumulative 59% over this time frame. Melbourne dwelling values have been rising for the same length of time and have moved 41% higher over the growth cycle to date. The combined capitals’ headline result was driven by a strong 1.2% rise in Sydney dwelling values, and a 0.8% gain across Melbourne’s housing market. Hobart values also showed strong conditions with dwelling values moving 1.8% higher over the month. A breakdown of the figure shows that in Sydney prices increases 1.2% month on month, 6.8% quarter on quarter and 11.3% year on year to a median price of $780,000 while in Melbourne they increased by 0.8%, 3.5% and 11.5% to $587,500. In Hobart growth was 1.8%, 1.9% and 6.2% to a median price of $341,500. In Brisbane prices fell 0.1% month on month but were still up 2.2% quarter on quarter and 5.3% year on year to a median price of $475,000 while in Adelaide they fell 1.3% month on month but were up 0.8% quarter on quarter and 2.2% year on year to $420,000. In Perth prices have fallen across the board, down 0.8% month on month, down 3% quarter on quarter and down 4.7% year on year to $505,000 with a similar story in Darwin with a month on month fall of 1.6% a quarter on quarter fall of 2.5% and a year on year fall of 1.1% to a median price of $510,000. Canberra is seeing prices fall for the first time in over a year. Values were down 1.1% month on month but still up 2.6% quarter on quarter and 3.9% year on year to a median price of $560,000. ‘While the higher rates of capital gains in Sydney and Melbourne can be tied back to strong economic conditions, and high rates of population… Continue reading
Prime London property market prices down 0.2% in second quarter of 2016
Pre referendum uncertainty triggered further small price falls in the prime housing markets of London in the second quarter of 2016, according to the latest research. It also slowed growth in regional markets dependent on London buyers, according to the research report from international real estate adviser, Savills. A marginal 0.2% fall in the three month period prior to the referendum left average prime London values down 0.7% year on year and 1.4% below their pre December 2014 level, when stamp duty rates on high value homes were increased. Falls were most pronounced in prime central London where prices fell 1.4% in the quarter. This left values in London’s most exclusive markets on average 3.9% down year on year and 8% below their peak in the third quarter of 2014. Weakened sentiment and a slowing of the London market also impacted the prime regional markets, resulting in small quarterly price falls of 0.4% in the suburbs. Property in the inner and outer commuter zones around London saw marginally positive price growth in the quarter limited to just 0.2% and 0.9% respectively, as the market slowed in response to a lack of urgency amongst buyers. ‘There have been conflicting signals in the market in the period post referendum, which suggests the impact of a vote to leave the European Union will only become clear over coming months as the market finds its level,’ said Lucian Cook, head of UK residential research at Savills. ‘Falls in sterling have prompted some international buyers to re-enter the market, while there has also been a fair share of speculative bids from those hoping to secure a bargain. Against this context, sellers have generally taken a pragmatic approach around pricing without having to slash their expectations,’ he explained. ‘Prime regional markets are at a different stage in their cycle, having been slower to recover peak 2007 values, and therefore appear to have been less affected by pre referendum uncertainty,’ he added. Continue reading
French market not affected so far by Brexit vote
The decision by the UK to leave the European Union does not seem to have dented the French real estate sector with mortgage rates still low and currency differences still positive. Indeed, the vote coincided with a further drop for French mortgage rates to all time historic lows. These ultra-low long term fixed rates have in effect nullified the changes in exchange rates for British buyers and offer the opportunity to lock in long term value, according to John Luke Busby, private clients director at French Private Finance. He pointed out that a French repayment mortgage can now be found in the region of 2.15% fixed for 20 years nationally and perhaps down to 1.55% in Paris for some profiles. ‘This means that over a 20 year fixed rate mortgage period British buyers are now still ahead versus the highs of the pound against the euro last year,’ Busby said. ‘It is important to note that we have not had any withdrawals or cancellations on the basis of the referendum result from any of our ongoing applications. Whilst there will clearly be reflection around making new investment decisions in the French market for some UK buyers, investors from around the world are continuing with their purchases in France,’ he explained. ‘This trend is particularly noticeable in Paris where prices are starting to increase again, after a lull, and for investors earning in Dollars the euro is substantially cheaper. US dollar holders can now benefit from the double whammy of a strong currency and ultra-low interest rates,’ he added. Busby believes that overall there seems to be a quiet confidence emerging around the future of the UK economy whatever the result of the negotiations in Brussels or the UK Parliament. ‘There is confidence that, as of today, we remain in the EU so to all intents and purposes it is business as usual,’ he said. He also pointed out that all of the tax treaties relating to property are independent of EU membership for the British, who remain the largest non-resident buyers of French Property. Many regions in France are now starting to see growth in property prices, which herald larger gains once the EU economy can get going again,’ Busby added. ‘The mixture of the romance of French property ownership combined with soft property prices and ultra-low interest rates still conjure a compelling purchase proposition which is hard to ignore over the long term,’ he concluded. Meanwhile, one of the largest sellers of French property to British buyers has reported a 21% rise in sales in the first six months of 2016. Leggett Immobilier also says that since the referendum result enquiries have remained high with over 1,000 enquiries coming into the sales support team in the past seven days. Coupled with this Leggett Immobilier have had 34 offers accepted in the past week, a figure which is well above the weekly average. The firm’s figures show a 21% rise… Continue reading
