Tag Archives: london
Property prices in Ireland fall month on month for first time since January
Residential property prices in Ireland fell by 0.1% in June, the first monthly fall since January, but are still 6.6% higher than a year ago, according to the latest official figures to be published. This compares to a 0.2% rise in May with the data showing that price growth has slowed considerably from the 10.7% annual rise recorded in June 2015. The figures from the Central Statistics Office (CSO) also show that in Dublin property prices decreased by 0.7% in June and were 4.5% higher than a year ago. House prices decreased by 1% but are still 5% higher compared to a year earlier while apartment prices were 0.5% lower when compared with the same month of 2015. However, the CSO points out that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of properties in the rest of Ireland increased by 0.5% in June compared with an increase of 0.4% in June of last year and were 8.6% higher than in June 2015. It means that house prices in Dublin are 33.5% lower than at their highest level in early 2007 while apartment prices in Dublin are 41.8% lower than they were in February 2007. Overall property prices in Dublin are 35.6% lower than at their highest level in February 2007. The price of properties in the rest of Ireland is 35.4% lower than their highest level in September 2007 and the national index is 33.3% lower than its highest level in 2007. The CSO will launch a new Residential Property Price Index (RPPI) for Ireland in early September 2016 which will replace the existing monthly RPPI. ‘The new RPPI will be based on Stamp Duty returns made to the Revenue Commissioners matched with other administrative data. It will now cover all market purchases of houses and apartments by households, both cash and mortgage based transactions,’ said a CSO spokesman. ‘The new RPPI represents a significant methodological improvement over the existing RPPI based on mortgage data from the credit institutions as it includes cash purchases, higher quality source data and more detailed locational characteristics in the price model,’ he added. Continue reading
New home planning approvals up in London quarter on quarter
The number of planning application approvals for new homes in London increased by 46% in the second quarter of 2016 compared to the previous quarter, the latest data shows. Some 6,310 new homes were approved out of a possible 8,280 that could have been permitted across the quarter, a 76% approval rate, according to the London New Homes Monitor from estate agents Stirling Ackroyd. However, approvals and decisions fell year on year. The second quarter of last year saw 8,063 new homes, out of a possible 10,662, granted permission but this was down to 6,311 allowed in the second quarter of 2016. ‘London has had a tough time lately, as Brexit injected a dose of uncertainty into the property market. In spite of this, the number of new home approvals improved in the run up to the result,’ said Andrew Bridges, managing director of Stirling Ackroyd. ‘There may still be an impact to come but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns and London could emerge a winner,’ he added. The most approvals were in Westminster at 1,720 new homes with 99% of all new home applications received approved, the highest rate in Greater London while Newham recorded the lowest approval rate across London, rejecting 92% of potential new homes applications. ‘Westminster is soaring ahead in terms of approvals and applications, but these are unlikely to be affordable for the typical Londoner. Many in the capital are left feeling let down as affordability drives them further away from a home of their own,’ Bridges pointed out. Bridges believes more needs to be done with research by the firm suggesting that there is space for up to 570,000 new homes in London in the next 10 years and he added that a more efficient planning system would help. ‘Planning reforms are still on the government agenda for now and they need to stay there. Overall, more resources and time need to be committed to achieve the number of new homes London needs. Having a new home can transform lives and London has always been an aspirational city,’ he concluded. Continue reading
City property price index reaches record high in Australia
Property prices in Australian capital cities increased by 0.8% in July, a new record high, with values now 6.3% higher than the first seven months of the year, the latest published data shows. However, while overall values are still rising, four of Australia’s eight capital cities recorded a fall in dwelling values over the month, the CoreLogic July home value index also shows. Simultaneously, the rate of growth across the combined capitals aggregate index slipped back a notch after bouncing higher in April and May. The annual rate of growth, which hit a recent peak at 11.1% across the combined capitals index in October last year, is now tracking at 6.1%, the slowest annual rate of appreciation since September 2013. Sydney and Melbourne have also seen the annual rate of growth slip back to below 10% with the July indices showing a respective 9.1% and 7.5% capital gain over the past 12 months. Previously both Sydney and Melbourne’s capital gains peaked higher with Sydney reaching a peak rate of annual growth in July last year when dwelling values were rising by 18.4% annum and when Melbourne values were increasing by 14.2% per annum over the 12 months ending September last year. Darwin and Perth remain as the only two capital cities to record a negative movement in dwelling values over the past year with prices in Darwin down 7.6% and Perth values falling by 5.6%. July marks the 50th month of the combined capitals growth cycle, which commenced in June 2012. Over the cycle to date, capital city dwelling values have risen by 38.3% and according to CoreLogic head of research Tim Lawless this demonstrates the strength in the Sydney and Melbourne growth trend with dwelling values across the two largest capitals recording a cumulative 61.3% and 42% over the cycle to date. Hobart, where the growth trend has recently accelerated, has been the next best performer with values rising 17.6% over the growth cycle followed by Brisbane at 17.4%, Adelaide at 14.3% and Canberra at 12.4%. ‘The recent moderation in the rate of capital gains should be viewed as a positive sign that growth in dwelling values may be returning to more sustainable levels. However, the growth trend rate is still tracking considerably faster than income growth resulting in a deterioration of housing affordability,’ said Lawless. ‘Using Sydney as a case in point, the Australian National University estimates that Sydney household incomes have grown by approximately 4.5% per annum since June 2012 while dwelling values are up 12.1% per annum,’ he added. Continue reading
