Tag Archives: portugal
Property prices in Australia up 0.3% in February
Property prices in Australian capital cities increased by 0.3% in February, taking the annual rise in values to 8.3%, the latest index data shows. Sydney again recorded the largest increase at 13.7% year on year followed by Melbourne at 7.4% and Brisbane at 5.9%, according to the CoreLogic RP Index. In contrast, dwelling values have increased by less than 4% in every other capital city over the year. The data also shows that since the beginning of the growth cycle in June 2012, dwelling values have moved 22.6% higher across the combined capital cities. According to Tim Lawless, head of research, this demonstrates the heat emanating from the Sydney market with values up 34.8% cumulatively over the cycle to date across Australia’s largest capital city. Lawless pointed out the latest month on month results show a moderation in the rate of dwelling value growth compared with the December and January figures. The monthly rate of growth slowed from 1.3% in January and 0.9% in December, however the growth trend remains strong, particularly in Sydney and Melbourne. ‘The slower rate of capital gain in February may come as a surprise to some who were expecting lower mortgage rates to instantly propel the pace of home value growth higher. We are already seeing the effect of lower mortgage rates, with auction clearance rates surging to the highest levels we have seen since 2009 and valuation activity reaching new record highs based on daily averages over the second half of February,’ said Lawless. ‘Despite the flurry of activity, it will likely take some time to see this flow through to a higher rate of capital gain. We might not see the lower interest rate environment stimulate the housing market as much as it has in the past,’ he explained. ‘Weaker jobs growth, higher unemployment, declining affordability, low rental yields and political uncertainty are all factors that could dent consumer confidence and provide some counter balance to the rate cuts and quell any additional market exuberance,’ he added. The report also says that there is evidence of compressed rental yields continuing across each of the capital city markets. A year ago the gross rental yield for a capital city dwelling was averaging 4.3% but by the end of February the typical gross yield has been eroded down to just 3.7%, due largely to the consistent high rate of dwelling value growth relative to rental growth. According to Lawless, over the current growth cycle to date, capital city dwelling values have risen at more than three times the pace of weekly rents. ‘The bi-product of such strong capital gains and relatively weak rental growth is that rental yields are being forced lower and lower,’ he said. In Melbourne, the yield profile is the lowest of any capital city with the typical Melbourne dwelling showing a gross yield of just 3.3%. Sydney isn’t far behind with a gross dwelling yield of 3.6%. However, Lawless noted that if Sydney dwelling values… Continue reading
House prices rise in Portugal for first time in five years
House prices in Portugal increased in January as the country’s economy expands and the unemployment rate falls, according to the latest monthly market survey from the Royal Institution of Chartered Surveyors. It is the first time that prices have increased since the RICS/Ci survey was launched in 2010 and comes at a time when buyers demand is increasing. RICS says that improving employment is being reflected in rising new buyer demand and for over 12 months now, new buyer enquiries have been in positive territory and national confidence has reached a series high of +32. It also says that the outlook for sales volumes is strengthening and sales expectations are more elevated than at any other point in the survey’s four year history. The Portuguese economy expanded for the first time since 2010, albeit modestly, with average annual GDP growth of 0.9%. After a three year period in which GDP contracted by nearly 6%, a recovery does now appear to be emerging. The rate of unemployment has fallen by nearly 2% over the past 12 months and now stands at 13.4% having reached a peak of 17.7% in early 2013. The report describes the emergence of a recovery in house prices, supported by a consistent rise in confidence but also points out that in the lettings market, rents are still falling for now, although survey respondents’ expectations point to a more stable trend on the horizon. In the sales market, buyer demand continued to increase, with the pace of improvement accelerating slightly over the month. Meanwhile, sales continued to rise, extending an uninterrupted positive run dating back to February 2014. Moreover, respondents’ sales expectations are more elevated than at any other point over the past four years. Looking ahead, prices are expected to continue to rise over the next three months but RICS explains that a sustained run of positive data will be needed before it is in a position to talk about a genuine recovery. At the regional level, prices are now rising in both Lisbon and the Algarve, but remain more or less stable in the Porto market. In the lettings sector, tenant demand continues to rise gradually and the number of new landlord instructions is diminishing. However, rents are still falling for the time being, although respondents do expect a flatter trend to emerge in the coming months. ‘Even though the volume of new credit is still low, it has been reported by several real estate agents that banks are now more positive about the market,’ said Ci spokesman, Ricardo Guimaraes. ‘Some already have commercial campaigns, announcing lower spreads. This might be the element that was missing to broaden out the recovery that was primarily located in Lisbon,’ he added. According to RICS senior economist, Josh Miller, the Portuguese housing market reached an important milestone in January with prices rising for the first time since the country’s bailout programme. ‘Whether this trend can be sustained depends on the broader economic recovery…. Continue reading
Good start to the New Year for property markets in England and Wales
House price growth in England and Wales has slowed to a 10 month low but there are signs of prices climbing in January. Prices are up 0.3% compared to December 2014, taking the average house price to £277,857, according to the latest LSL house price index. On an annual basis average prices are up 7.5% but when London and the South East is excluding from the figures the year on year price growth for the rest of the country is 4.5%. Property prices in the North are experiencing the biggest boost at the start of the year and the strongest sales growth is in the North and Yorkshire which seems to be due to a surge in demand from first time buyers. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that January’s 7.5% annual growth is the smallest yearly improvement for 10 months and represents a deceleration from 8.9% in December as house price inflation continues to flag. ‘After some recent price falls, average property values haven’t taken any steps forward from where they stood in November and what we’re seeing is a far cry from the marathon of monthly increases that set off this time last year,’ he said. ‘In a reversal of fortune, London is leading this slowdown. The capital has long been the propeller driving forward growth, but after cruising ahead at full speed in 2014, the London property market has run aground momentarily,’ he added. Indeed, average London house prices experienced the biggest drop during December at 1.1%, but Gill said this is just a symptom of the unsustainable rate of growth that the market stretched to last year, as the capital now takes a pause. He also pointed out that while a prospective mansion tax and the higher rate of Stamp Duty on million pound homes may be a blot on the buying landscape at the top end, everyday buyers are simply able to take their time to deliberate and get their finances in order now that market conditions have rationalised again. ‘With a greater supply of available homes on the market, we are striking a better balance between sellers and buyers, and at the bottom rungs of the ladder in particular, demand remains vibrant. The lowest priced London borough, Barking and Dagenham, has seen the biggest boost in home sales during the fourth quarter of 2014, up 33% on the same period a year previously, helping to drive annual house price growth of 14.4%,’ he explained. ‘The London story acts as a miniature model of what’s happening in the rest of the UK housing market. The market is temporarily treading water at the higher end, but fast moving in areas where price growth has been more modest, and where cheaper properties are within reach of new buyers and borrowers who can access Help to Buy,’ said Gill. ‘For instance, when you London and the South East from the equation the slowdown in annual… Continue reading
