Tag Archives: real estate
Latest data reveals home building boom in New Zealand
Residential and building construction along with infrastructure has reached a new all-time high in New Zealand, reaching $17.8 billion, new figures show. The building consent data from Statistics New Zealand reveals that 28,387 homes were consented in the past year, the highest number in 11 years, and the 9,434 consented in Auckland is continuing the strong growth over the past four years. The 732 for May is also the highest in 11 years. The growth in Auckland for the residential construction centre was 26%, a total of $4.3 billion, and is about as fast as a sector can grow, according to Nick Smith, Building and Housing Minister. He pointed out that this is treble the rate of $1.4 billion since his party came to office and the growth has been particularly dramatic in the past few years, since the Government entered into a Housing Accord with Auckland Council. ‘The construction sector is booming, with strong residential and commercial building activity across the country. The level of residential building activity in Auckland of $4.3 billion and nationwide of $11.4 billion is an all-time high in actual and inflation-adjusted terms,’ he explained. ‘This continues the longest and strongest period of growth in residential construction in New Zealand history. We are on track for 85,000 new homes to be built nationwide in this term of Parliament, up from 60,000 last term. Auckland is heading for an all-time record of 36,000 homes, the largest in any Parliamentary term,’ he added. ‘This record investment in residential construction is welcome because supply is the most important answer to New Zealand’s housing challenges. The Government is working on further initiatives to ensure this growth is maintained,’ he concluded. Continue reading
Property valuations increased in UK in June despite EU referendum
The pace of property valuations conducted in June 2016 in the UK increased both an annual basis and month on month, according to the latest research. The total number of valuations carried out in June rose by 4% compared to June 2015, and 24% compared to the previous month, the report covering the month of the European Union referendum from Connells Survey and Valuation shows. John Bagshaw, corporate services director of Connells Survey & Valuation, pointed out that the background to the figures is one of uncertainty and shock in the days after the UK decided to leave the EU, yet the property landscape appears surprisingly stable which he believes is encouraging. ‘Initial solidity from the post-Brexit housing market may not be enough to answer all the new legal and financial questions in light of the vote or to offset a likely blow to confidence on the near horizon. But this should bring such fears into perspective. Life will go on and the property market will continue to function,’ he said. Leading the June housing market, activity from first time buyers accelerated last month, making up for a considerable slowdown in buy to let valuations. Numbers taking their first step onto the property ladder rose 23% year on year, whereas buy to let valuations decreased by 40% over the same period. This is on the back of 27% month on month growth for first-time buyer valuations, ahead of the general seasonal pick-up in total activity while buy to let valuations increased by 17% since May, considerably slower than the overall picture. ‘First time buyers continue to drive activity in the housing market, an emerging trend since the start of the year and now reaching a new peak. Government schemes such as Help to Buy continue to be significant. But now a slowdown in the buy to let sector may be adding an extra short term boost for new buyers, as competition from landlords diminishes a little, easing the hunt for a home for sale,’ Bagshaw explained. Remortgaging has also seen a significant boost in valuation activity in June. The number of valuations carried out in June for those looking to remortgage rose by 18% on a 12 month basis and 19% month on month. Home movers were more cautious. Valuations for existing home-owners looking to move to a new property decreased by 7% on an annual basis since June 2015. However the number of such home owner valuations rose by 29% since May. ‘Home movers have once again had a stable month, and this section of the market has enjoyed the strongest seasonal acceleration from May. Meanwhile, remortgaging is the other major winner from a time of consistently low mortgage rates and a possibility of even lower borrowing costs over the summer,’ Bagshaw pointed out. ‘As seen in recent months many people are taking… Continue reading
Shortage of supply pushing up house prices in Ireland
A nationwide supply shortage has fuelled a rise of over 2% in the price of the average house in the last three months in Ireland. The majority of counties in the country recorded price increases in the second quarter of 2016 with a lack of supply exacerbated by would be commuters moving further from Dublin as they look for more affordable homes. The Real Estate Alliance Average House Price Survey shows that the average three bed semi-detached home nationally now costs €195,361, an increase of over €4,000 or 2.18% since the end of March and up 4.49% compared to the same time last year. ‘We are seeing firms who are in business for 50 years who have never experienced such a low level of supply, and this is responsible for causing sharp increases in prices in some areas over the past three months,’ said REA chairman Michael O’Connor. While prices in Dublin city and county grew by 1.4% to €363,333 since March, competition for scarce housing below the Central Bank’s €220,000 deposit limit in both the inner and outer commuter areas is fuelling an inflationary market. Prices in the commuter counties of Cork and Galway have risen by €5,000 to €214,588, a rise of 2.4%, while those in the rest of the country have increased by over €3,000 to €128,768 or 2.75%. Three bed semi prices in Kilkenny city rose by €20,000 or 12.5% in the past three months, a figure that is entirely driven by record low supply, according to Michael Boyd of REA Boyds. ‘Our analysis of the Price Register tells us that there are 15 less units per month selling in the county than this time last year and that this is the lowest level since these records began,’ he said. ‘We are finding that demand is strong, mainly from loan approved returned emigrants or Eastern European buyers. We desperately need new building to start, especially as prices for quality stock are now well into viable levels for builders to commence,’ he added. The survey also shows that as the flight to another of the outer commuter counties continues, prices in Laois have risen by €10,000 or 8% in the past three months while prices in Kildare have remained static at €242,500 in the four main towns, due to a low supply of suitable housing stock, combined with a relatively higher price to neighbouring counties. In contrast, Meath has now broken the €200,000 barrier at €201,250 following a 3.21% growth in three months, as Dublin based commuters move out to houses they can afford under the Central Bank’s deposit guidelines. In Wicklow, prices in Blessington have risen from €240,000 to €265,000 in a three month period, a rise of 10.42%, with agent REA Murphys advising that there is a bubble in the three bed semi market. Prices in the county as a whole have gone up by 4.44% to €235,000 over the past three months. Louth continues to act as a microcosm of… Continue reading
