Tag Archives: real-estate
Survey reveals many home owners support additional home stamp duty charge
Twice as many home owners in the UK support the new 3% stamp duty surcharge on additional homes as oppose it, despite loud opposition from landlord groups, new research shows. Some 47% support the extra charge which was introduced on second homes and buy to let properties on 01 April while 18% are against it and believe that it supports first time buyers. The results of the poll, conducted by YouGov for the HomeOwners Alliance and BLP Insurance shows that overall concerns about stamp duty have fallen dramatically since the reforms in 2014. In 2014, some 64% of UK adults believed that stamp duty was a serious problem but in 2016 that has fallen to 52%. Supporters of the stamp duty surcharge on second homes believe the measures are a good way to level the playing field between those buying a home to live in and those making an investment purchase. ‘The buy to let market is slowly destroying the overall housing market and making affordable properties less available for those wanting to own a home as their principal place of residence,’ said one survey respondent. The research also found that some feel there has been a shortage of homes available for first time buyers and this will make it harder for buy to let investors competing to purchase similar properties. Indeed it found that there are some anti buy to let feelings, a sense that buy to let may have been inflating house prices and pricing out local residents in some areas. Some also feel that those able to afford to buy a second home or to buy a property for the purpose of letting it out and making profit should be able to afford to pay higher stamp duty on their purchase. Those who oppose the stamp duty surcharge on second homes suggest the policy could have unintended consequences such as the surcharge being passed on to tenants in the form of higher rent. Comments also indicate that they feel the government is making another tax grab or that the policy is anti-enterprise. ‘I have been saving for five years to be able to afford to purchase an investment property. This change has now meant that it is not feasible for me to do so. It is unfair to penalise people who work hard and save,’ said another respondent. Paula Higgins, chief executive of the HomeOwners Alliance, thinks that the British public believe that homes are for living in and not speculating with. ‘The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head,’ she said. ‘This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors. However, we must see the money raised ploughed back into building more affordable housing,’ she added. According to Kim Vernau, chief… Continue reading
Prime property prices in New York driven by strong demand and limited supply
A global powerhouse, domestic and international wealth has fuelled the expansion of New York’s prime residential real estate markets, according to a new analysis report. New York is one of the most diverse, globally connected and high performing cities in the world and alongside London, it stands apart from any other city as a true global powerhouse, says the prime residential report from international real estate firm Savills. It points out that as a world leader in financial services, technology and media, New York hosts a large number of global company headquarters, is an important centre of education and a tourism destination. Download the full PDF report > > The sheer diversity of factors in the city’s success make New York’s residential real estate highly sought after, from the international wealthy seeking a foothold in a global city through to local young families realising the appeal of urban living. It explains how strong occupier demand and limited supply has pushed up prices so affordability is a growing issue for many. However, although costly by US standards, prime New York residential real estate is still relatively good value by global levels . For example, prime property prices in New York are 35% less than London and 61% below Hong Kong. But prices are rising, up by 42% from $1,200 per square foot in 2008 to $1,700 per square foot in 2015. The longest established prime residential markets are in Manhattan on the Upper East Side and Upper West Side, bordering Central Park. The Upper East Side is known for its large, classic New York apartments, while the Upper West Side is a somewhat more relaxed and accessible alternative. Together, these two large neighbourhoods accounted for 38% of all $1 million plus transactions across Manhattan and Brooklyn in 2015, and 47% of all $5 million plus transactions in 2015. The report explains how the generation of new wealth in the city has pushed the prime markets into new neighbourhoods. The Financial District saw 385 deals over $1 million in 2015, more than 10 times the 35 deals recorded in 2005. Harlem, Williamsburg and Park Slope all saw increases of a similar magnitude and even Downtown Brooklyn, a market where no deals over $1 million were seen in 2005, recorded 64 such deals last year. At the upper end of the prime market, Chelsea, Greenwich Village, Tribeca and Midtown have all seen rapid growth in the number of $5 million plus sales. From just a handful each in 2005, all these neighbourhoods recorded more than 50 in 2015. This comes as new condominium stock is delivered to appeal to the super prime market, the report says and price growth has been especially apparent in Midtown where many super prime condo schemes are concentrated. The average sales price here rose by 193% to $3.8 million in the 10 year period. New York’s prime residential market is dominated by two property types: cooperatives and condominiums (condos). Condos have… Continue reading
Property sales in Canada reach record all-time high in March
Residential property sales in Canada increased by 1.5% in March month on month while average sale prices are up over 15% year on year, the latest index shows. The month on month 1.5% sales rise to set a new all-time record in March but there were some falls, most notably a decline of 0.3% in Greater Vancouver and a fall of 1.8% in the Greater Toronto Area although both remain near record highs reached the month before. The data from the index from the Canadian Real Estate Association (CREA) also shows that sales in March were up from the previous month in about 60% of markets, including Victoria, Chilliwack, the Okanagan Region, Edmonton, Calgary, Woodstock-Ingersoll, Kingston, Barrie and Montreal. ‘Greater Vancouver and the GTA are heading into the spring home buying season with soaring demand and a shortage of listings,’ said CREA president Cliff Iverson. ‘Meanwhile, other major urban markets in Canada are well balanced or are amply supplied,’ he added. Gregory Klump, CREA chief economist, pointed out that single family home sales in the Lower Mainland of BC and the GTA set new records for March in the range between $500,000 and $1 million as did sales above a million dollars. ‘Sales below a half a million dollars, which were not subject to recently tightened mortgage regulations, are being increasingly restrained in these markets by a short supply of listings. If current sales and listings trends persist, price gains may pick up further this spring,’ he explained. Actual, not seasonally adjusted, sales activity was up 12.2% from one year ago and set a new record for the month of March. It also stood 14.2% above the 10 year average for the month. It surpassed year ago levels among nearly two thirds of all local markets, with BC’s Lower Mainland and the GTA contributing most to the year on year increase in national activity. Sales in a number of other markets in BC and Ontario also posted double digit gains, with Chilliwack sales double what they were one year ago. The Aggregate Composite house price index rose by 9.1% year on year, the biggest gain since June 2010. For the second consecutive month, year on year price growth accelerated for all Benchmark property types tracked by the index. Two storey single family home prices posted the biggest year on year gain at 10.8% followed by townhouse/row units up 8.6%, one storey single family homes up 8.1% and apartment units up 7.3%. The data also shows that year on year price growth continues to vary widely among housing markets tracked by the index, with nine of the 11 markets tracked by the index having posted year on year price gains in March. Greater Vancouver saw growth of 23.2% while prices were up 22.1% in the Fraser Valley, up 11.6% in Greater Toronto, up 10.8% in Victoria and up 7.1% in Vancouver Island. Prices fell by 3.7% in Calgary and by 2.7% in Saskatoon. Smaller price growth… Continue reading
