Tag Archives: markets
New home loans falling in Australia, latest data shows
New home loans in Australia saw a further decline in February from the high levels of late 2015, according to the latest report from the Housing Industry Association. Despite a growth in the total number of owner occupier loans, excluding refinancing, new home loans fell by 6.5% month on month and were 2.7 per cent lower than a year earlier. During February the number of loans for the construction of new dwellings eased back by 1.9% in seasonally adjusted terms, while the number of loans for the purchase of new dwellings fell by 15.4%. Compared with a year earlier, loans for dwelling construction were down by 2.8% and there was a 2.6% decline in the number of new dwelling purchase loans over the same period. However, HIA senior economist Shane Garrett said that it is important to remember that new home lending volumes are still high by historic standards. ‘The decline in new home loans during January and February is consistent with our view that new home building will moderate during 2016 from last year’s record highs even though the number of new home starts this year is still likely to be one of the highest on record,’ Garrett explained. ‘While the markets that have risen on the recent wave of construction are likely to continue to perform in the near term, there is a risk that markets which didn’t fully participate in the boom may find this more painful,’ he pointed out. ‘It is vital that state governments are prepared to step in and offer support to our industry as required over the next few years,’ he added. Compared with a year earlier, the number of loans to owner occupiers building and buying new homes in the three months to February 2016, increased most strongly in the Northern Territory with growth of 37.4%, followed by growth of 20.2% in New South Wales and 9.3% in Victoria, New home lending volumes also rose in South Australia by 4.7%, in Queensland by 3% and in the Australian Capital Territory by 2.5% but over the same period, lending volumes fell in Tasmania by 33.1% and in Western Australia by 20.4%. Continue reading
British buyers returning to French property market
There is a renewed optimism in France’s residential property market which has led to a significant upturn in sales, according to a new analysis report. A new analysis points out that a more stable economic outlook in the country, which is still popular with overseas buyers, has filtered through into buyer sentiment. The latest data from international real estate firm Knight Frank shows that sales in France doubled between 2014 and 2015, whilst enquiries from prospective buyers increased 87% year on year. It also points out that the figures from the Notaires de France, backs this up, with the most up to date statistics showing sales across the country have increased by 12.5% year on year. The analysis also points out that with favourable mortgage rates of around 2.3%, prices stabilising in most prime markets and the euro weak against both the pound and the US dollar, buyer confidence has strengthened. But this confidence is price dependent. Sales volumes are strongest within the €1 million to €5 million price bracket but transactions above €5 million are slow. According to Mark Harvey, head of Knight Frank’s French department, two indicators underline the extent to which the market has shifted in the last two to three years. Firstly, the performance and convergence of France’s prime prices and secondly excess supply is being absorbed. ‘Not only have prices reached their floor in the majority of France’s key second home markets, but all of our five regions saw prices shift within a range of only 5%five percentage points. For several years we saw a marked disparity between France’s strongest and weakest markets, this has now all but disappeared,’ he said. ‘The excess supply that was evident for several years in areas such as Gascony and Provence has now largely been absorbed back into the market. Add to this the slow recovery in house building it is possible that when prices start to pick up they could do so relatively quickly due to limited stock levels,’ he explained. Another key factor for the recovery of France’s property market is that British buyers are back. The British own more second homes in France at 69,000 than in any other European country. ‘Given the lifestyle on offer, France’s proximity and the currency advantage in recent years it is perhaps no surprise that the British are active once more and represent a key source of demand in all of our markets,’ said Harvey. He also pointed out that equipped with a strong dollar, American buyers are also increasing in number, particularly in Paris and parts of Gascony, whilst Evian continues to be in favour with high net worth buyers from the Middle East, drawn to its lakeside living and easy access to The Alps. Demand from domestic buyers has also strengthened. ‘Faced with lower purchasing power abroad, a more positive political sentiment, cheap finance and good value, particularly in Paris, French buyers are seeking a slice of their capital’s real estate,’ Harvey explained. ‘Across France interest… Continue reading
Brexit threat should not hamper Brits buying in France
British people looking to buy a property in France this year are being urged not to worry about the vote on the UK staying in the European Union due to take place in June. There have been scare stories about what might happen if the UK leave the EU bit according to agents in France very little is likely to change. Indeed, they are reporting an uptick in inquiries which suggests that in reality potential buyers are not worried. According to Trevor Leggett, chairman of Leggett Immobilier which has agents across France, there has been no slowdown in demand from UK purchasers and activity is 40% higher than 12 months ago which was a record year. ‘Our view is that even if the vote was to leave the EU there would be little in the way of substantial change. The polls suggest it will be tight but tipped towards an In vote,’ said Leggett. According to Sextant French property even if the public vote to leave the EU nothing would happen suddenly. There would be a period of negotiations over benefits, pensions and healthcare which might affect expats but not necessarily second home owners. The firm has just reported a record year with an estimated 800,000 sales made in 2015, and buyers are making the most of current market conditions which include favourable exchange rates, low mortgage rates and low prices. ‘A Brexit would not stop you from buying your dream house across the Channel. Nany non-EU buyers from as far flung destinations as Australia and China already buy in France undeterred. The Brexit uncertainties lie largely in tax arrangements, obtaining mortgages and the potential weakening of the pound,’ said a Sextant spokesman. ‘Tax arrangements will depend on negotiations in the grace period following the referendum, though happily double taxation agreements will remain unchanged, ensuring you will never be taxed twice on your income,’ he explained. ‘In the short term run up to the referendum certainly, the pound could drop as uncertainty and instability will always disturb the markets to some extent. Once an outcome has been reached, we can hope that the markets have enough confidence to begin to level out,’ he added. For British people living in France there may not be much change. If the UK votes to leave it is highly likely that it will become a member of the European Economic Area (EEA). Iceland and Norway are already members. EEA membership could also result in retention of the European Health Insurance Card (EHIC) card and thus access to healthcare at the same rate as currently. The UK has never been part of the Schengen agreement of totally free border control so nothing would change. ‘Whichever way the UK votes, at Sextant we don't believe British interest in buying French property will be dampened, nor do we believe that the dream will become unattainable or unviable,’ he concluded. Continue reading
