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Above:Demand for UK property increased by 5% this month, indicating to investors that now is a good time to purchase real estate assets.

Summary:

• More potential purchasers want UK property now than at any point in the past 11 years
• UK real estate is one of the world’s safehaven property classes, with strong supply and demand dynamics
• Strong demand for property is likely to drive capital value increases in the future

Real estate investment in the UK has a long history of high returns and sustained growth due to its supply and demand dynamics, and the latest research shows now could be an effective time to invest.

The August report from the National Association of Estate Agents (NAEA) shows the number of house hunters registered per branch increased by a further 5%, to an average of 462 per branch compared to 439 in July.

The last time demand for UK real estate was this high was in 2004, when an average 582 potential property purchasers were recorded per NAEA branch.

Furthermore, the report also revealed the number of transactions completed in July remained static from May and June, with just nine per branch and the number of sales made to first-time buyers fell in July. The group now accounts for less than a quarter of new sales.

Mark Hayward, NAEA Managing Director, said: “The truth of the matter is though, there simply aren’t enough houses to meet growing demand, and until we see more physical bricks and mortar, there may be no hope in solving the housing crisis.

“It’s also alarming that the number of sales being made to first-time buyers is steadily falling; with reports of house prices increasing and expectations of rising in the future, first-time buyers will continue to be pushed out of the market.”

This means that tenant demand – already at an all-time high – is likely to increase, creating strong rental yields that will entice further investors to the market.

Source:Select Property

Above:The British property market’s status as a safehaven for overseas investors shows no signs of diminishing, with huge levels of investment recorded.

Summary:

• Since 1999 offshore companies have bought more than £150 billion worth of property in England and Wales
• 73% of the value of the deals related to residential premises, while investment was UK-wide
• Investment levels currently strong from regions such as Southeast Asia and South Africa, where devaluing currencies and economic uncertainty has encouraged investors to diversify their portfolio

A strong pound, a diverse product range and high returns has helped the UK property market to be a popular sector for international investors, with the interest showing no signs of slowing down.

In the last 15 years, offshore companies have bought more than £150 billion worth of property in England and Wales, with the latest Land Registry data showing that many of the UK’s most expensive buildings were bought by international investors.

The research covered analysis of 96,440 transactions by 35,922 companies registered by the Land Registry since 1999. According to the Office for National Statistics, 73% of the value of these deals related to residential property, in addition to commercial real estate.

In one central London street, for example, 149 homes were owned by offshore companies. But although the UK capital has long been popular with international investors, popular postcodes outside London include those in regions such as the north-west of England and Yorkshire, highlighting the country-wide demand for British property.

The interest from overseas has been particularly profound since the start of the year. In Southeast Asia, for example, uncertainty surrounding the Chinese economy, has driven many investors in key destinations such as Hong Kong and Singapore to look for high returns and stability elsewhere. Indeed, UK Prime Minster David Cameron recently outlined the potential of the Northern Powerhouse to investors in the Far East.

That need for asset diversification has also reached other countries around the world. In South Africa, for example, a rapidly devaluing rand has prompted more investors to purchase property in the UK, historically South Africa’s largest booking centre for offshore investment.

Furthermore, the increased demand among overseas investment institutions for UK property is starting to lead to more developers creating products designed specifically for these investors.

Source:Select Property

Above:Manchester is the clear public favourite to be the UK’s second capital – with Birmingham in second place.

Since George Osborne delivered a speech last June calling for a ‘Northern Powerhouse’ that could take on the world, the phrase has become commonplace. Now there is a minister for the Northern Powerhouse to devolve powers and address the north-south economic imbalance, and Manchester will be run by an elected Mayor from 2017. The Chancellor wasn’t talking about one city, but a “collection of Northern Cities sufficiently close to each other”, however the choice to deliver the speech in Manchester fuelled speculation that the Northern revival would be focused there.

New YouGov research reveals that from a list of the UK’s ten most populated cities aside from London, Manchester is the public’s top choice to be the UK’s second capital. Manchester is chosen by 30% as the city to rival London, well ahead of Birmingham at 20%.

Edinburgh, the third favourite on 12%, is preferred by Scottish people to Glasgow (42% and 27% respectively). Londoners favour Manchester to a greater degree than average, with 33% choosing it compared to 18% for Birmingham.

Above:Londoners favour Manchester to a greater degree than average.

George Osborne has signed off a £235m institute for advanced materials research to be based in Manchester, and the city will get a £78m theatre and arts venue on the site of the former Granada TV studios, which will host the Manchester International Festival.

YouGov has previously found the Manchester accent to be the third most unattractive to British people, however Birmingham again fared worse, with ‘Brummie’ considered the least attractive accent in the British Isles. The trend was the same when YouGov polled on the safety of British cities – Manchester came in 7th place and Birmingham in 10th, only one place ahead of Bradford.

Above:George Osborne delivered a speech last June calling for a ‘Northern Powerhouse’.

Source:YouGovUK

In Australia foreigners can only purchase new properties but not resell units unless the project is FIRB exempted, which is rare. Imagine purchasing an FIRB exempted property and paying only 10% down-payment – you stand to reap big capital gains by reselling this rare property to foreign investors, especially Chinese nationals who have been very active in the Australian property market recently.

Golden Emperor Properties hosted an event about investing in this unique opportunity and a freehold Waterfront Landed Property project with FIRB exemption, Sanctuary Cove, was exhibited.

 Above: Investors who attended the exhibition were given an opportunity to invest in the rare few plots of FIRB exempted waterfront property

Above: Kingston Lai, Sales Director, Partner of Golden Emperor provided a presentation on Australian freehold land investments.

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Above:Southern investors in the past few months looking to buy north of the Tweed.

Southern investors are looking north to the Queensland property market as Sydney and Melbourne markets become too expensive to gain a foothold.

While the latest BIS Shrapnel report warning Sydney and Melbourne house prices will start to fall in 2016-2017 as interest rates start to rise, Brisbane, the Gold and Sunshine Coasts, are emerging as the more attractive destination for investors.

Despite a flat jobs market in south-east Queensland as the mining boom comes off the boil, Brisbane’s median house price of $475,000 is looking a lot more affordable than Sydney ($785,000) and Melbourne ($527,000).

Above:Sydney and Melbourne markets become too expensive to gain a foothold.

Gold Coast real estate agent John Newlands said he had been inundated with calls from southern investors in the past few months looking to buy north of the Tweed.”There is still a bit of that because Brisbane house prices haven’t caught up [to Sydney and Melbourne] – but we are starting to see more investors come back from interstate, especially in the unit market. They have been absent for a while because things have been so good in their own state. But there are definitely opportunities up here now.”

Mr Newlands said clients had commented about the expensive price tags in Sydney and Melbourne and they were attracted to the higher returns and the buzz and new infrastructure around the Gold Coast ahead of the 2018 Commonwealth Games.

Above: Investors were attracted to the higher returns and the buzz and new infrastructure around the Gold Coast ahead of the 2018 Commonwealth Games.

Chinese investors have also been piling into the Gold Coast apartment market as well as funding their own developments, with over $600 million worth of Gold Coast development sites sold to Asian-backed buyers in the past year.

The BIS Shrapnel report found Queensland would largely be insulated from the dip in house prices in southern states, with further interest cuts later this year expected to make Brisbane homes even affordable.Brisbane’s median house prices were expected to grow by a total 13 per cent over the next three years, while apartments will rise by 6 per cent. CoreLogic RP Data found Brisbane had the highest investment yields of the major metropolitan markets for both houses and apartments.

REIQ chief executive Antonia Mercorella said the growth projections for Queensland homes and units was very encouraging. This is despite a sluggish employment market with the state’s unemployment rate staying persistently high – it was 6.7 per cent in May – after the collapse of the international coal price.

“Brisbane offers some excellent opportunities for owner-occupiers and investors. This is in stark contrast to other markets, such as Sydney and Melbourne, where rapid price growth is a cause for concern,” Ms Mercorella said.

Above:Gold Coast and Sunshine Coast markets with future price growth expected to reach 13 per cent and 12 per cent respectively.

She said there was also good news for the neighbouring Gold Coast and Sunshine Coast markets with future price growth expected to reach 13 per cent and 12 per cent respectively.The Brisbane apartment market has been hot for some time, with the BIS Shrapnel report saying the Queensland capital will be the only city where apartment prices will be stronger in 2018 than they are today.

More than $742.9 million worth of apartments were purchased in Brisbane during the March quarter, according to Place Advisory, which is 200 per cent above the 10-year average for the city.Brisbane real estate agent Rob Holcombe, who runs Bees Nees Reality in South Brisbane, said southern investors were chasing bigger yields and cheaper prices in Brisbane. “They are primarily investors and most are buying with a view to capital gain. They see better prospects for returns up here, not to mention it’s more affordable,” he said.”

Source:Domain