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Sales of residential land in Australia falls as prices rise
Residential building land in Australia has increased in price but availability is falling, making it more and more difficult for builders to provide affordable housing, it is claimed. In the last quarter of 2015 the number of residential lot sales across Australia fell by 1.6% while the median lot prices increasing by 5.2% to $234,600, according to the latest edition of the HIA-CoreLogic RP Data residential land report. Land supply pressures were more pronounced in the capital cities, with lot sales falling by 2.3% during the quarter and the median lot price rising by some 6.6%. A breakdown of the figures show that vacant residential land sales are estimated to have fallen in Sydney by 22.3%, in Brisbane by 20.1% and in Perth by 7.2%. Elsewhere, the level of sales increased. In Melbourne sales were up by 13.2%, in Adelaide by 27.5% and in Hobart by 7.2%. ‘Conditions in the residential land market are making it more and more difficult to deliver the new housing stock that Australia needs. Once again, we’ve had another quarter of dwindling land lot sales and pretty stiff price increases which is evidence of insufficient supply,’ said Shane Garrett, HIA senior economist. ‘We need much greater emphasis on the delivery of new residential land supply involving better models for infrastructure delivery and a real sense of urgency in the planning process,’ he pointed out. ‘Housing costs are one of the biggest components of most households’ budgets and needlessly jacking land prices up through inaction on supply will make for real hardship over the long term,’ Garrett added. CoreLogic RP Data research director Tim Lawless, pointed out that the number of vacant land sales has fallen by 14% in 2015. ‘While the fall in vacant land transactions is substantial at a national level, the drop has been more severe across the capital cities where housing demand is the highest. Land sales were down 19% compared to the same quarter a year ago across the combined capitals,’ he said. ‘If the drop in land transactions was attributable to lower demand we would expect a commensurate fall in selling price. In fact the opposite is true; land prices are rising in the context of lower sales which suggests a supply shortage is at play,’ he added. ‘The ongoing challenge for state governments is to ensure a sufficient release of residential land that is located in desirable locations and well connected by transport infrastructure to major working centres and necessary amenities like schools, health care and retail precincts,’ he concluded. Continue reading
British people dream of a four bedroom home by the sea equipped with high tech
A four bedroom home near a beach or a city centre is the most sought after dream homes in the UK, according to new research. Some 45% dream of a home built to their own specifications designed by an architect or themselves but only 38% think they'll only get to live in their dream house if they win the lottery and 26% don't think they'll ever achieve it. Most people would want an array of high technology and glamourous features that costs £3 million, the research from home buyers estate agency Tepilo found. It also found that 48% would want en-suites in every bedroom and the same number a television or cinema room, while 47% want a huge kitchen with its own kitchen island and the same number a huge garden. Other top desires were walk-in wardrobes and dressing rooms, an indoor swimming pool, a conservatory or orangery, open fires and wood burning stoves, a double front door and his and hers bathrooms. Some 38% want high technology security features, and a further 35% say they'd want their dream home to contain a series of mods cons such as remote controlled heating, lighting and sound systems. Other things near the top of the list are a balcony, a relaxation room, a library, a gym, a separate granny flat or guest lodge, a wine cellar, an aquarium, a bowling alley and a bar. On a beach is the most popular location with 16% wanting a view of the sea but another 16% want to be in a city centre, 11% in the countryside, 10% in the suburbs and 9% in a village. Some 29% want four bedrooms, 27% want three bedrooms and 21% would want a house with five bedrooms. Only 11% would want six or more bedrooms. Meanwhile 14% want a cottage, 12% a huge mansion, 13% a detached bungalow, and 13% a modern home. Amazing views from the garden are important for 52%, 40% want a built in barbeque, 38% a large veranda, 34% a big garage, 30% a water feature, 30% a sweeping driveway, 30% separate out buildings and 20% a children’s play area. ‘What's also interesting is the amount of money Brits would spend on their dream home, despite money being no object. Up to £3 million seems a pretty low price to pay for the ultimate pad, but it demonstrates that we're a price orientated nation that expects value for money when it comes to property,’ said Sarah Beeny, owner of Tepilo. Continue reading
Research suggests buy to let landlord confidence in the UK is low
Recent and forthcoming changes to tax for buy to let landlords in the UK seems to have dented confidence with new pieces of research showing many are set to re-evaluate their situation and put new strategies in place. One new report reveals that just one in five landlords believe there is still money to be made in the buy to let market even although many purchased buy to let property in the last three months to beat the Chancellor's stamp duty reforms. The study conducted by online letting agent PropertyLetByUs, shows that 43% of landlords are considering putting their properties into a limited company to beat the tax rises. Some 5% of landlords have sold buy to let property because of the increased tax burden and 6% plan to reduce their property portfolio and invest their capital in stocks and shares. However, despite all the rhetoric about buy to let profits, only one in six landlords are seeing a reduction in their profits and many of them appear to have strategies in place to off-set the tax rises such as opting for incorporation, but they are also set to increase rents. The surge in landlords investing in buy to let property in the first quarter of 2016 has created a bubble of new rental properties in some parts of the UK, according to a separte report from research consultants BDRC Continental. It suggests that in the longer term, it is likely that the tax changes will limit the supply of rental property and discourage potential new landlords from investing in the buy let market. The good news is that tenant demand will continue to rise, as unaffordable house prices push home owning out of reach for many people. Indeed, according to BDRC Continental’s latest quarterly Landlord’s Panel research report confidence is at the lowest level since the research began almost a decade ago. ‘There are few happy ever after tales here. Many private landlords in Britain are really concerned about the impact of the 2015 Budget when tax relief on private rental properties was cut, and given the housing shortage, the potential knock-on effect on renters and the supply of rental homes is something that we all need to care about,’ said Mark Long, director at BDRC Continental. The report says that confidence in three key metrics has seen the biggest falls year on year; that’s business expectations for the UK Private Rental Sector, UK Financial Markets and Own Letting Business. The majority of landlords, 59%,believe that the 2015 Budget will decrease their profitability Some 81% of private landlords with 20 plus properties believe that they will experience a decrease in profitability, twice as many as single property landlords. Landlords with buy to let mortgages feel hardest hit. Just 39% of those with a buy to let mortgage rate their short term prospects as good or very good, compared to 48% of landlords who are not leveraged. The research also… Continue reading
