Tag Archives: london
Demand for office space in London remained in quiet first quarter of 2016
Demand for office space in London remained robust through the traditionally quiet first quarter of 2016 with 3.1 million square feet leased by companies, a new report shows. This was marginally below the 10 year average of 3.2 million but despite fears that economic headwinds and the possibility of the UK leaving the European Union could dampen demand, according to the analysis from global real estate advisor CBRE. The largest deal in the first quarter of the year saw Thomson Reuters acquiring 315,400 square feet in Canada Square in the Docklands, lifting overall take-up for the quarter. The data from the report also shows that the amount of office space currently under offer remains unchanged from the previous quarter at three million square feet, having been above the 10 year average of 2.8 million square feet since the beginning of 2014. It explains that the development response has so far tracked demand, with supply increasing by 2% over the course of the quarter to stand at 12.2 million square feet, some 17% below the 10 year average. ‘Between a weak outlook for global economic growth and an upcoming vote on EU membership, businesses have had to contend with a heightened level of uncertainty,’ said Emma Crawford, head of Central London Leasing at CBRE. ‘That demand for office space has remained so resilient speaks volumes for London’s ongoing attractiveness as a global hub for those companies hoping to lay down roots or expand their footprint in the capital,’ she pointed out. ‘Whilst the high level of space under offer is particularly encouraging, we anticipate a more subdued second quarter as the referendum vote gets closer. We will be on course for a rebound in leasing activity in the second half of the year provided the UK votes to remain in the EU,’ she added. Continue reading
Residential sales in Hong Kong up 45% month on month, prices down
Residential sales in Hong Kong increased by 45% month on month in March from their lowest level in 25 years, reaching 17,106, according to the latest data from the Land Registry. The rise was attributable to a number of primary project launches after Chinese New Year and a reviving resales market, with some flat owners willing to cut prices, says the latest market analysis from international real estate firm Knight Frank. As a result, prices fell further, with official figures showing that home prices had decreased for five consecutive months, for a cumulative decline of 11%. But the market continued to polarise, with the luxury sector remaining relatively resilient, it explains. Reported landmark deals of the month included an en-bloc transaction at South Bay Close in Repulse Bay for HK$668 million, or about HK$30,000 per square foot and a unit in Cluny Park in Mid-Levels West, which sold for over HK$53,000 per square foot, the highest price in the development. With potential buyers expecting increasing supply and a further drop in home prices, residential sales are expected to fall to around 50,000 units this year. ‘Although luxury home prices overall are expected to drop 5% this year, prices of super luxury houses and apartments should remain firm. Mass market prices could drop up to 10% in 2016,’ the report says. In the prime office market a lack of available space continued to limit Grade A leasing activity, the report also shows. To avoid high rents in Central, some firms with a long presence in the area relocated to non-core areas as they became increasingly cost conscious, the report explains. It also points out that high office rents in Central have been supported by a lack of supply rather than strong demand as office leasing demand from both domestic and overseas firms has weakened in recent months. The Kowloon Grade A office leasing market saw a number of relocation deals involving insurance sourcing companies in March. Office rents in Kowloon East, however, have been under increasing pressure from the increasing supply coming on line, the report says. ‘Despite the economic uncertainties in Hong Kong and the mainland, office rents in decentralised areas could drop 5% in 2016 due to abundant supply in the pipeline. This polarisation trend is expected to continue until the new supply is absorbed and the market regains balance,’ the report adds. It also says that notable declines in retail sales and visitor arrivals continued to put pressure on retail property rents and adds that the retail property landscape will continue to evolve to cope with the downturn. Continue reading
Majority of people in Ireland think house prices will continue to rise in 2016
Three out of four people in Ireland expect house prices to rise over the coming year according to a new property consumer sentiment survey. Some 20% of those surveyed said they expected prices to remain static while just 4% said prices will fall, according to the research from property website MyHome.ie. One in four of those surveyed said they planned to purchase a property in the next 12 months while just under a third said they had no plans to purchase a property and 41% said they were undecided. While the largest proportion, 47%, said house prices would increase by up to 5%, some 25% said they would increase by between 5% and 10% while 4% said they would increase by more. According to Angela Keegan managing director while the findings reflect growing consumer confidence, it was clear the Central Bank’s new lending rules were having a major impact on the market. She pointed out that 51% said the planned Central Bank review of its lending rules would make them consider holding off on a purchase for the time being while 28% said they didn’t have the funds to pay a deposit. ‘When we asked people for the factors which they believed would influence participation in the housing market, over 40% said lowering the deposit required, 38% said more stock coming on the market and 35% said confidence in the overall economy,’ she explained. ‘So really these figures support what we are hearing from estate agents on the ground. First time buyers, particularly in Dublin, are struggling to meet the new deposit and 3.5 times loan to income ratio laid down by the Central Bank last year. In the survey 13% of respondents said their application for a mortgage had been refused, which is quite high,’ she added. She believes that while the CBI measures were necessary to curb runaway inflation the supply part of the equation has continued to deteriorate and this has led to an increase in rents and the first priority of the new government should be to address this issue before putting a comprehensive housing plan in place. The research also shows that three bedroom houses remains the most sought after property type at 47%, followed by the four bedroom at 33% and the two bedrooms at 17%. Almost half of respondents, 45%, said that a garden was the most important feature in a home, followed by 22% opting for an open plan kitchen on 22% and 20% off street parking. The preference for a second hand house versus a new build was two to one. Proximity to schools or crèches was the most important amenity for 27% of respondents, followed by good public transport network for 23% and proximity to extended family for 18%. Continue reading
