Tag Archives: lending
Buyers of prime country property in Ireland favour Cork and Wicklow, a new report shows
Cork and Wicklow are the most popular rural locations for country home buyers in the €1 million plus price bracket in Ireland, new research shows. According to the analysis from property consultants Savills Ireland, this suggests that many of those seeking the benefits of country living are also looking to remain within arm’s reach of major cities, be it for shopping and entertainment purposes, prestigious schools or access to good road links and international airports. Indeed, Savills sales data support this view, with a disproportionate number of transactions located in Dublin and neighbouring counties, and along national arterial routes. The report also highlighted that while domestic buyers account for a majority of Savills country homes sales, the single biggest deal in each of the last three years was a cash purchase from the UK or the United States. In addition, Savills noted a greater level of interest from American applicants, many of whom are looking to purchase a piece of family heritage here in Ireland. High net worth individuals from the United Arab Emirates and the Far East are also now beginning to show an interest in the Irish market. ‘Buyers at the top end of the price spectrum highlight location as a top priority. However, this group tends to be on the lookout for much grander homes with secondary accommodation and staff quarters, overlooking water, with 100 or more acres of mature parklands and, in many cases, adjoining equestrian facilities,’ said Harriet Grant, Savills head of country homes. Grant also reported that, unsurprisingly, some 85% of Savills country homes sales over the last three years have been cash transactions. ‘Typically, country homes buyers are not reliant on mortgage finance,’ she pointed out. ‘In reality, a trophy estate will only ever be attainable to a small minority, not only because of the higher price point, but also due to running costs. Therefore, it is little surprise that such a high percentage of Savills country homes sales over the last three years have been cash transactions,’ Grant explained. She added that deals that are being financed with a mortgage tend to involve existing home owners trading up and are generally smaller in value, averaging €520,000 in 2015, compared with almost €1 million for cash buyers. Continue reading
Housing affordability improves in Australia and new starts at record high
Housing affordability across Australia experienced improvement during the first three months of 2016, according to the latest affordability report. Affordability improved by 2.7% quarter on quarter and was 0.4% more favourable than the same period a year earlier, the data from the report by the Housing Industry Association shows. Aggregate capital city housing affordability was 4.1% more favourable during the quarter, while regional markets experienced 0.1% improvement. ‘The national median dwelling price fell during the March 2016 quarter and this was the main factor behind the improvement in affordability during the first quarter of the year,’ said HIA senior economist, Shane Garrett. ‘Had it not been for the shock increase in variable mortgage interest rates late last year, the improvement in affordability would have been even better. Earnings growth has been held back by slack in the economy, and this situation has also worked against improving affordability,’ he explained. ‘At the end of the day, the most durable way of improving affordability lies in facilitating the supply of affordable new housing more effectively. Planning delays, land supply shortages and the heavy tax burden are all making the achievement of housing affordability much more difficult,’ he added. A breakdown of the figures show that the largest improvements in affordability were in Sydney with a rise of 8.9%, Perth up 4.9% and Darwin up 4.4%. Affordability also saw improvement in Hobart with a rise of 2.9% and Melbourne where it was up 2%. However, affordability worsened in Brisbane with a fall of 1.2%, was down 0.2% in Adelaide and down 0.3% in Canberra. Meanwhile, the latest data from the Australian Bureau of Statistics show that the number of dwellings approved rose 0.6% in March 2016, in trend terms, and has now risen for four months in a row. Approvals increased in the Australian Capital Territory by 18.9%, in Western Australia by 1.1%, in Queensland by 0.8% and in Victoria by 0.2% in trend terms. Dwelling approvals decreased in the Northern Territory by 18.1%, in Tasmania by 1.5%, in New South Wales by 0.3% and in South Australia by 0.1% in trend terms. In trend terms, approvals for private sector houses rose 0.3% in March. Private sector house approvals rose in Victoria by 1.7% but fell in South Australia by 0.8%, in Western Australia by 0.7% and in Queensland by 0.2% Private sector house approvals were flat in New South Wales. In seasonally adjusted terms, dwelling approvals increased 3.7% with private sector house approvals up 2.6% while private sector dwellings, excluding houses, rose 6.7%. The value of total building approved fell 0.9 per cent in March, in trend terms, and has fallen for eight months. The value of residential building rose 0.4% while non-residential building fell 3.9%. Final ABS results for 2015 confirm that last year was the strongest ever for new home building activity with over 220,000 new homes beginning construction, an 11% rise on 2014 with which the previous record for… Continue reading
Parts of prime property market in London hit by economic uncertainty
Some areas in London’s prime property market are experiencing falls in demand from international buyers for reasons of global economic uncertainly, according to a new analysis report. But this is making way for emerging markets in the capital city’s prime sector which are currently outperforming central London, according to the report from property buying agency Black Brick. This comes at a time when overall London’s housing market is set to see increased demand with the population forecast to grow to 10 million. The report suggests that continued local opposition to new developments and limited brownfield sites for new homes developers in London will struggle to meet building targets which will leave the rental sector to take up the slack. Prices currently vary considerably in the prime market with locations in Knightsbridge and South Kensington seeing prices fall but emerging prime areas such as Islington and the City and Fringe have performed strongly. The reason is straightforward, according to Camilla Dell, Black Brick managing partner. ‘Those areas dominated by international buyers have suffered from falls in demand as a result of global uncertainty around falling oil prices, sanctions on Russia, and the slowdown in the Chinese economy, among other factors,’ she said. ‘Conversely, those parts of London, where demand is driven by domestic buyers, have benefited from the perennial shortage of supply and the strong recent performance of the UK economy,’ she explained. ‘In addition, recent changes to taxation have reduced the appeal of more expensive properties; investors seeking attractive rental yields and the prospect of capital appreciation have been pushed towards properties below £2 million, which tends to lead them away from traditional prime areas in West London,’ she added. Dell also pointed out that this complex picture has two related implications for buyers; the first is that they need to cast their nets more widely when carrying out a search; and the second is that they need to consider areas of which they might not have much knowledge. ‘The upshot is that we’re seeing considerable interest from investors in parts of London they aren’t familiar with and they need a buying agent that not only offers broader geographical coverage, but also brings extensive knowledge of emerging prime locations,’ Dell said. ‘In a market that’s going up, it’s hard to make a bad decision, but in a market like this, good guidance is really important,’ she concluded. Continue reading
