Tag Archives: growth
Hong Kong is most expensive city to buy a home, Singapore top for rent
Hong Kong remains the highest value residential city in the world with average apartment prices at $1,501 per square foot, according to the latest global research. Singapore comes in second, averaging $919 per square foot in a city where 90.8% of the population are owner occupiers, the data from the 2016 Global Living Review from […] The post Hong Kong is most expensive city to buy a home, Singapore top for rent appeared first on PropertyWire . Continue reading
US Farmland Price Growth Slowest Since 2010
21.10.2013 Growth in US farmland prices fell to its lowest in more than three years, sapped by weaker crop prices, which are prompting farmers to cut back on machinery purchases too. A farmland price index compiled by Nebraska-based Creighton University fell to 50.9 this month, the lowest reading since January 2010. The figure, down from 54.0 in September, was only just above the 50.0 level which indicates no growth at all, with figures below that meaning falling prices, and comes as the market enters its key autumn sales period. Prices are already falling in some major agricultural states, including Illinois, Kansas, Nebraska and North Dakota, which suffered a particularly steep decline in its farmland market. However, values are still rising – albeit at relatively slow rates – in the likes of Missouri and Iowa, the top corn and soybean producing state, where 80 acres of land sold last week for $17,600 an acre, which Hardin County Savings Bank claims is a record. ‘Major impact’ Ernie Goss, the Creighton economist behind the survey, attributed the market’s deceleration to “weaker agriculture commodity prices”, with “poor weather” contributing to fall-offs in states such as North and South Dakota, where early snowfalls are viewed “likely to spill over into the broader economies”. Todd Douglas, chief executive of a South Dakota bank, said that the “record snowfall in the western part of the state is estimated to have caused up to 25,000 cattle deaths which will have a major impact on producers in the areas hit hardest by the storm”. The pullback in agriculture sector prosperity was also evident in an index figure for agriculture machinery which came in at 44.6, its lowest since March 2010, and indicating market shrinkage. “[Machinery] sales are declining and inventories are growing as farmers pull back on their purchases of big ticket items,” Professor Goss said. ‘Much slower pace’ Professor Goss forecast continued softness in the farmland market compared with 2011 and 2012, when annual price growth reached 20-30%. “Clearly, farmland price growth and cash rent expansions in the months ahead will not be as healthy as has been experienced in the past couple of years,” he said. Indeed, bankers questioned by the university forecast rises of 2.5% in farmland cash rents over the next 12 months, down from an expectation of 9.3% when surveyed six months ago. “Bankers clearly expect farmland prices and rents to grow at a much slower pace over the next year,” he said. agrimoney Continue reading
Farmland Price Growth Flattens Across Mid-South And Southeast In Second Quarter; Outlook Is Stable
The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Madison, WI, September 06, 2013 –( PR.com )– The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Non-irrigated cropland values rose at an estimated 6.3% year-over-year pace, down from 7% in the first quarter. Irrigated tracts increased at an 8.2% annual pace, unchanged from the previous quarter. Pasture values were up 2.4% from a year ago, also virtually even from the 2.5% 12-month rate through the first quarter. The survey, conducted from June 15, 2013 through August 14, 2013 was based on 102 responses from appraisers, property managers, lenders, real estate brokers and landowners located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri and Tennessee. Farmers and investors expect cropland values to remain stable through the third quarter, despite declining crop commodity prices. Low interest rates continue to support land values. However, with the Federal Reserve expected to begin tapering 10-year Treasury note purchases in coming months, mortgage rates are already starting to notch up. A sustained increase in interest rates would put pressure on further land price appreciation. In addition, strong returns from the stock market—the S&P 500 Index has generated an 18.3% total return year to date—continue to compete for the attention of investors. Farmland Values Survey participants estimated that non-irrigated cropland across the region was worth an average $3,141 per acre in the second quarter of 2013. Irrigated cropland values averaged $4,477 per acre. Pasture values averaged $2,239 per acre. On an individual state basis, non-irrigated cropland values ranged from a high of $4,925 per acre in Missouri to a low of $2,479 per acre in Georgia. Irrigated cropland values ranged from a high of $6,833 per acre in Missouri to $3,556 per acre in Alabama. Pasture values ranged from a high of $2,900 per acre in Florida to $1,771 per acre in Arkansas. Cash Rents Cash rent increases for cropland and pasture continue to lag land price inflation across the region. Rents on non-irrigated cropland averaged $114 per acre, ranging from an average $69 per acre in Georgia to $213 per acre in Missouri. Irrigated cash rents averaged $199 per acre across the region, and ranged from an average $135 per acre in Alabama to $328 per acre in Florida. Pasture rents averaged $36 per acre, ranging from $24 per acre in Florida to $78 per acre in Tennessee. Rent income yields, which are calculated by dividing gross cash rent by land value, offers insights into the relative pricing of land tracts regionally. Across the Mid-South/Southeast, non-irrigated tracts are estimated to be generating a 3.6% rent income yield; irrigated tracts 4.4% and pasture 1.6%. Market Outlook With farm crop prices continuing to contract, survey panelists remain cautious in their outlook for both cropland and pasture values, forecasting that prices would remain stable though the third quarter. Respondents are most optimistic for irrigated cropland tracts, where 35% expect prices to increase, while 64% look for no change. Buyer demand for irrigated tracts appears strongest in Missouri and Louisiana where 67% and 60%, respectively, of respondents look for irrigated land values to continue rising. Interest in non-irrigated tracts appears strongest in Missouri, where 80% of respondents forecast higher prices. Contact Information Mercator Research LLC Michael Fritz 312-725-0559 Contact www.farmlandinvestorcenter.com Continue reading
