Tag Archives: middle-east
Residential rental prices falling in Australian capital cities
Weekly rents increased by a mere 0.2% in Australian capital cities in March but overall they are down 0.2% year on year, the latest rental index shows. In the last 12 months Melbourne recorded the biggest increase in rental rates at 2%, followed by Sydney at 1.4%, Canberra at 1.2% and Hobart at 0.3%. Rents fell by 11.5% in Darwin, by 8.4% in Perth, by 1% in Adelaide and by 0.7% in Brisbane. The March Rental Review from CoreLogic RP Data analysts also shows that house rents averaged $489 per week in March 2016 while unit rents were $469 per week. Over the past month, house rents have increased by 0.1% and unit rents by 0.4% and over the past three months, house rents rose 0.5% compared to a 0.9% rise in unit rents. The March results show that recent rental increases are likely to be seasonal which is further highlighted by the fact rents are lower over the year. Over the past 12 months, house rents were 0.5% lower while unit rents increased by 1.5%. ‘It is important to note that a much higher proportion of total unit stock is rented compared to housing stock. We have been tracking the annual change in capital city rents since 1996 and this is the first time we have seen rental rates falling,’ said research analyst Cameron Kusher. ‘The extra accommodation supply, as a result of the current building boom, along with the recent record high levels of investment purchasing is adding substantial new dwelling supply to the rental market at a time when the rate of population growth is slowing from quarter to quarter. Furthermore, wages are increasing at their slowest annual pace,’ he explained. He also pointed out that the results also highlight a swift easing in rental market conditions over the past year. ‘We’ve attributed this ease to a variety of influences such as falling real wages, excess rental supply in certain areas and lower rates of population growth which have impacted on demand for rental accommodation,’ said Kusher. He explained that with dwelling approvals recently at record highs, construction activity set to peak over the next 24 months and many new properties still to settle, the rental demand weakness is expected to persist. ‘In all probability, there won’t be much scope for landlords to lift rental rates given current conditions have given greater negotiation opportunities to those in rental situation,’ he added. While rental rates remain at record highs in Sydney and Melbourne, rents are lower than their previous peaks in all remaining capital cities. Rents in Brisbane are down 0.9% from peak, down 1.2% in Adelaide, down 12.8% in Perth, down 0.1% in Hobart, down 15.6% in Darwin and down 7.4% in Canberra. Continue reading
First time buyers boost UK housing market activity
The UK housing market has reported healthy growth in March, on the back of a surge in first time buyer activity, new research shows. There has been a lot of talk about buy to let buyers flooding the market to beat Aprils extra stamp duty deadline, but the latest figures from Connells Survey & Valuation show that first time buyer activity in March jumped 15% compared to March 2015 and 41% compared to February 2016. In March, the total number of valuations carried out rose 8% year on year and grew by 21% month on month and this was primarily due to the first time buyer sector posting strong monthly and annual growth figures. Indeed the figures show that there was a dip in buy to let activity in March. Corporate services director John Bagshaw believes first time buyers figures have been aided by an increased uptake of Government plans designed to assist the bottom of the market. ‘The Help to Buy scheme has become more widely recognized and used by those who need a little help getting the capital together to fund a mortgage for a first home. Equally, more first time buyers are taking advantage of special first time buyer discounts on certain properties, which has helped those on lower incomes step onto the ladder,’ he explained. Remortgagors and home movers have also seen a significant boost in valuation activity in March. Total remortgaging volumes were up 25% month on month and up 33% year on year. ‘Those seeking to move up the property ladder are making solid strides this month. With home values high and continuing to increase across all parts of the country, albeit at an uneven pace, many property owners may view it as a good time to either upscale to something bigger and better or downsize and enjoy the surplus capital,’ said Bagshaw. ‘The remortgaging sector has also enjoyed an energetic March. The rates of growth have come down somewhat from what we were seeing in previous months, as those looking to remortgage to fund a second home take a step back to re-assess and absorb the stamp duty changes,’ he pointed out. ‘But with the average mortgage rate still very low and no Bank of England rate rise on the horizon many are taking advantage of the bargain rates in order to release capital on their home or switch to a better mortgage deal,’ he added. The stamp duty changes, which became effective on 01 April impacted the buy to let market in March. Valuation activity in this sector dropped by 27% between February and March 2016, as well as dipping by 36% compared to the same month a year ago. ‘The buy to let market has endured a turbulent month but we expect this to be a short term tumble, with investors adopting the standard kneejerk reaction to legislative changes by proceeding cautiously. This is particularly true for a tax increase like the stamp duty… Continue reading
Demand for UK property fell by 5% in first quarter of 2016
Property demand across the UK as a whole fell by 5% in the first quarter of 2016 to 39% overall but demand is still up 9% compared to the same period in 2015. London’s outer boroughs and commuter belt continue to outperform the rest of the country where property demand is concerned, according to the hot stop index from estate agent eMoov. With demand at 72%, the London Borough of Bexley remains the hottest spot in the UK once again while Bristol at 68% climbs from third to second and Bedford at 66% was up four places to third. Cambridge and Watford, both at 62%, remain in the top 10 but have dropped down the rankings and outside the top five while Medway at 63% and Milton Keynes at 61% appear in the top 10 at fifth and ninth. Aylesbury at 63% also returns to the top 10 in sixth for the first time since the start of 2015. With demand currently at 65% Ipswich is placed in the top 10 for the first time to take fourth place and the report suggests that a direct commute into Liverpool Street of just over an hour is making the town more popular with London workers searching further afield for affordable property. Aberdeen with demand at 15% is one of the lowest cities on the list but it has seen a 50% increase over the last quarter so that property demand has returned to the same level as this time last year and the city is now off the bottom spot. At 27% Durham is the second biggest climber over the last three months and has also seen the biggest increase in demand over the last year across the whole UK at 90%. Second biggest climber year on year is North Lanarkshire in Scotland with a 67% growth in demand, followed by Barnet up 57%, Sandwell up 56%, Bolton up 45%, Gloucester up 42% and Manchester up 40%. Aberdeen’s shift up the table means it is now only the fifth coldest spot in the UK. Now at the bottom are the London boroughs of Westminster and Kensington and Chelsea, both at 12%. ‘It is interesting to see that despite the rush ahead of April’s stamp duty deadline, the UK market as a whole has cooled during the first half of the year. Although it’s undoubtedly a seasonal influence due to the festive period, it would seem that those looking to push through a second home or buy to let purchase, didn’t have the overall demand impact that many thought they would,’ said the firm’s chief executive officer Russell Quirk. Continue reading
