Tag Archives: middle-east
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
More people in UK want to buy a home but are concerned about rising prices
More people dream of becoming home owners in the UK with new research showing 73% aspire to owning a property, up from 65% four years ago. However some 78% of aspiring home owners are concerned about the availability and quality of homes, up 6% from last year, and house prices, the ability to get on the property ladder and saving for a deposit continue to top the nation’s list of housing concerns Overall the 2016 home owner survey conducted by YouGov for the HomeOwners Alliance and BLP Insurance suggests that the housing crisis is deepening as concerns mount about the availability and quality of homes. While the desire to own is rising, the ability of first time buyers to get on the housing ladder and saving for a deposit remains the top concerns nationally, at 82% and 80% respectively. On top of this, the proportion of aspiring homeowners who say that the availability of housing is a serious problem has increased to 78%, up from 72% last year. Aspiring home owners are also increasingly concerned about the quality of housing, with 60% saying it is a serious problem. The survey shows that the housing crisis is most acute in the capital, as Londoners head to the polls to elect a new mayor. However, there is a noticeable drop in concern about the rates of stamp duty, in the wake of the government’s reforms of the stamp duty system. Concern about negative equity has slumped among the UK overall to 44% from 64% two years ago, as house prices have continued to rise. ‘Despite government initiatives aimed at helping home owners, the housing crisis is deepening across the country, with ever more non-home owners wanting their own home, and ever greater concern about the lack of housing,’ said Paula Higgins, chief executive of the HomeOwners Alliance. ‘Many government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses. Until the government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of homeownership crushed,’ she added. According to Kim Vernau, chief executive of BLP Insurance, the current situation is a critical juncture for the construction industry and housing market. ‘The government urgently needs to speed up the delivery of new homes for aspiring first time buyers. Tenures of all types are required across the country and affordable housing and social housing should also be a priority,’ he said. ‘Balancing these competing demands is a challenging task, particularly given the shortage of labour skills that we are currently witnessing in the construction industry. This is likely to get worse in the absence of key initiatives to help address this critical issue and the new Housing and Planning Bill and threat of… Continue reading
French property market set to see growth in 2016
Enquiries into French property are up by 60% in the first quarter of 2016 compared with the previous year, the latest data shows, with steady growth predicted for the rest of the year. Figures from the FNAIM, the national association of French estate agents, show that a record breaking 800,000 older properties were sold in 2015. The annual analysis of the French property market from Home Hunts suggests that there was a large resurgence of British buyers last year. It says that it was a good a year for negotiations due to a combination of flexible property prices, low interest rates and favourable currency pairings Overall the prime property market on the Riviera is booming, boosted by price falls inland, and an increase in sales in coastal locations, such as Cannes and Saint Tropez, the report says. It predicts that the prime markets on the Riviera, in Paris, Toulouse, Bordeaux and parts of Provence and the Alps are due to see price rises throughout 2016. While the upcoming referendum in June on the future of the UK in the European Union could have an effect on British buyers' confidence in the market, the firm reports that so far there hasn't been much of a noticeable effect. ‘While the market continues to improve, June’s EU referendum will certainly unsettle certain British clients, but, if there is a Brexit, I don’t believe it will greatly impact those buying property overseas,’ said Tim Swannie, Home Hunts director. ‘So far it does not seem to have affected British buyers’ appetite for French property. The pound has lost a little strength compared to last year, but it is still comparatively high if you look at it over the past five to six years, so British buyers can still really make the most of their budgets,’ he added. However there are also many Dutch, Belgian, German, Scandinavian, Swiss, American and Middle Eastern buyers active in the market and the report points out that the new LGV (Ligne à Grande Vitesse) train line which will connect Bordeaux with Paris in 2017 means that property in the area is increasing in value. Similarly, the TGV now runs from London to Marseille and areas of Provence are becoming more popular as a result. Looking ahead the report suggests which areas of France are likely to be good buys. It says that on the popular Riviera locations such as Biot, Opio, Roquefort-les-pins, and Chateauneuf de Grasse could prove popular as buyers are now getting more for their money. In neighbouring Provence areas such as Bormes-les-Mimosas and Carqueiranne are described as offering excellent value for money. In the south west of the country, another location popular with British buyers, Cahors, Saint-Cirq-Lapopie, and Figeac currently offer better value than the Dordogne, while in Languedoc the city of Beziers is in an area undergoing a facelift and housing stock is starting to move. The report also says that Paris saw increased sales in 2015, particularly in November… Continue reading
