Tag Archives: real-estate
Office space demand increased across major Australian markets in first quarter
Demand for office space across major Australian markets is on the rise in 2016, according to new data from Colliers International. According to the firm’s latest Office Demand Index, a total of 507,799 square meters of demand was recorded in the first quarter of 2016, a 33% increase from the fourth quarter of 2015. Large businesses looking for more than 3,000 square meters of office space accounted for over 50% of the total area enquired for in the first three months of 2016, while representing just 9% of the total number of enquiries, by volume. Small businesses looking for 1,000 square meters or less accounted for almost 80% of the total number of enquiries recorded in the first quarter this year. ‘We have found that compared to this time last year, on average, businesses are enquiring for more space,’ said Simon Hunt, Colliers International managing director of office leasing. ‘On a national level, the average area enquired for as of the first quarter of 2015 was about 888 square meters. In the first quarter of 2016 it increased to 1,050 square meters,’ he added. Notable increases were recorded in Brisbane, where average size required increased to 1,287square meters in the first quarter, up from 774 square meters in the first quarter of 2015, and Canberra, which recorded a significant jump in average size enquired for from 1,167square meters to 1,942 square meters. There was also an increase in average size requirement in the Sydney CBD, from under 1,000 square meters in the first quarter of 2015 to over 1,600 square meters in the first quarter of 2016. Locations that saw a small drop in average size included Sydney Metro and Melbourne CBD. ‘This quarter, we have seen the greatest number of large businesses enquire for office space in almost 10 years, which has contributed to the increase in the average area currently in demand,’ Hunt said. ‘This trend is also flowing through to transactions. In the first quarter of 2016, we have seen an increase of more than 15,000 square meters or 22% in the amount of office space leased. Larger businesses are doing the deals at the moment and this is showing up in both transactional and demand data. In the coming months, we expect smaller businesses will also increase their activity,’ he added. According to Simon Crouch, Colliers International head of tenant advisory, much of this smaller demand had been created by the compulsory acquisition of buildings associated with the Sydney Metro project. ‘Since February 2016 we have been appointed by 10 businesses averaging 300 square meters in size who require expert advice to help them through the relocation process,’ he pointed out. Continue reading
Asking prices rise across the UK apart from in London
Asking prices increased in all parts of the UK except London, up 0.5% month on month, according to the latest property index to be published. The East of England saw the largest monthly rise of 1% as demand continues to outweigh supply in the region but overall the annual home price for England and Wales fell to 7.5%, the data from the Home.co.uk index shows. The report suggests that typical time on Market figures in the East of England, the South East and Greater London are contrary to seasonal expectations, and this is a clear indicator that the anticipated slowdown is taking hold as demand dips, at least for the time being, while the market pauses for breath. The total stock of property for sale remains historically very low indeed despite gradually rising supply in London and Scotland. In all English regions outside of London and in Wales, scarcity holds firm as the key market driver. Overall, the number of properties entering the UK market is down 6% compared to a year ago. The supply shortage is most keenly felt in the West Midlands where 12% less new stock arrived on estate agents' books during last month compared to March 2015, and this will ensure prices in this region keep rising over the summer months. Similarly, the South West of England supply shortage is worsening as indicated by 11% less stock being registered on agent portfolios last month. The index report point out that market activity in the formerly lacklustre North East shows signs of significant improvement. There and in the North West, marketing times have reduced considerably and prices are on the rise. The North West market is improving more quickly as supply levels in this region indicate a new declining trend and consequently prices may show further significant upward progress across the rest of the year. Meanwhile, the Welsh property market remains the poorest performer. Prices there have fallen by 0.2% over the last six months and marketing times are higher than in any English region or Scotland. ‘Overall, the current mix-adjusted average asking price for England and Wales is now 7.5% higher than it was in April 2015, and we predict further rises over the next few months due to worsening supply in an increasing number of regions. However, the year on year rise is expected to attenuate as the London market cools,’ said Doug Shephard, the firm’s director. He explained that a buy to let stampede ahead of the new stamp duty charges means that growth might now slow. ‘Any sort of lull in demand from investors will be welcomed by first and next time buyers, especially those who had the wisdom to sit on their hands until the dust settled,’ he said. ‘The current figures suggest that London will be the best area to take advantage of waning demand and rising supply, but prices today remain very high and properties will need to hang around on the market much… Continue reading
New home loans falling in Australia, latest data shows
New home loans in Australia saw a further decline in February from the high levels of late 2015, according to the latest report from the Housing Industry Association. Despite a growth in the total number of owner occupier loans, excluding refinancing, new home loans fell by 6.5% month on month and were 2.7 per cent lower than a year earlier. During February the number of loans for the construction of new dwellings eased back by 1.9% in seasonally adjusted terms, while the number of loans for the purchase of new dwellings fell by 15.4%. Compared with a year earlier, loans for dwelling construction were down by 2.8% and there was a 2.6% decline in the number of new dwelling purchase loans over the same period. However, HIA senior economist Shane Garrett said that it is important to remember that new home lending volumes are still high by historic standards. ‘The decline in new home loans during January and February is consistent with our view that new home building will moderate during 2016 from last year’s record highs even though the number of new home starts this year is still likely to be one of the highest on record,’ Garrett explained. ‘While the markets that have risen on the recent wave of construction are likely to continue to perform in the near term, there is a risk that markets which didn’t fully participate in the boom may find this more painful,’ he pointed out. ‘It is vital that state governments are prepared to step in and offer support to our industry as required over the next few years,’ he added. Compared with a year earlier, the number of loans to owner occupiers building and buying new homes in the three months to February 2016, increased most strongly in the Northern Territory with growth of 37.4%, followed by growth of 20.2% in New South Wales and 9.3% in Victoria, New home lending volumes also rose in South Australia by 4.7%, in Queensland by 3% and in the Australian Capital Territory by 2.5% but over the same period, lending volumes fell in Tasmania by 33.1% and in Western Australia by 20.4%. Continue reading
