International Property News by Property Wire

Cuba�s first luxury golf property project plans approved

Fri, 24 May 2013 13:58:15 +0100

Cuba is to get its first luxury golf project with officials approving plans for a $350 million development with an 18 hole course designed by golfing legend Tony Jacklin.

The Carbonera Club proposed by British firm Esencia is the first of a dozen similar initiatives that have long been under consideration some 50 years after Fidal Castro famously orders the island’s golf courses to be shut down because he considered them elitist.

Tourism Minister Manuel Marrero has confirmed that a formal deal had been reached for a joint venture between Esencia and the Cuban government to develop the Carbonera on a 170 hectare coastal site.

Esencia said that building work should begin next year on a design which would transform the area. As well as the golf course, the plans include the construction of an exclusive, gated community of some 650 apartments and villas and a hotel and a country club with tennis courts, spa and a yacht club.

The Carbonera Club is set to become one of the first projects of its kind in Cuba. The aim is to treat the environment sensitively on a project that combines contemporary design and the highest quality materials. Properties for sale will include private Villas, one to four bedroom apartments and Conran Residences.

Marrero also confirmed that with planning approved for this project other developments are in the pipeline. A second golf project, with Chinese investment, is expected to be approved by the end of this year and there are other proposals from Spanish, Vietnamese and Russian developers.

The Cuban government is keen to increase the number of tourists and developments such as the Carbonera Club will also mean that foreign investors can buy property in the country for the first time.

According to Marrero Cuba could become a sought after golfing holiday destination, even attracting people away from Florida. ‘Cuba has a lot going for it including safety, nature, culture and now Golf,’ he explained.

In the pre-Communist era there were at least seven golf courses on the island, frequented mainly by wealthy residents and American visitors. Currently there is only one 18 hole course in Cuba, at the Varadero Golf Club, which opened in the 1990s when tourists were welcomed back.

Indeed, tourism is now the second biggest source of income on the island. Last year, 2.8 million people visited Cuba, mostly opting for all inclusive hotel deals.

Little movement in mortgage lending in UK last month, according to BBA figures

Fri, 24 May 2013 13:04:22 +0100

Gross mortgage lending in the UK remained unchanged last month with the latest figures from the British Banker’s Associations showing little movement in activity.

On a year on year basis gross mortgage lending was up 4% and net lending was £200 million last month, well below the £300 million level of March.

Duncan Kreeger, director at peer to peer lender West One Loans, described the data as a disappointing set of figures, in particular the serious deterioration in business lending. He explained that this continuously poor performance is one of the reasons why alternative business finance is booming and it is now lending over £1 million pounds each day.

‘Some members of the BBA are trying to lend more. But sadly the results speak for themselves particularly in mortgage lending. This month in 2007 saw the very same banks lending more than twice what they’ve managed in April 2013,’ he said.

‘Mortgage lending has suffered a 60% drop since this pre-crisis peak and even the most optimistic predictions don’t expect mainstream banks to take up that slack for perhaps a decade, if ever,’ he added.

However, according to David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, falling rates have begun to translate into an increased number of mortgage approvals.

‘High LTV lending is creeping up slowly but surely, with more first time buyers able to realize their dream of home ownership. Many buyers are hurrying to take advantage of the excellent rates and products on offer from banks,’ he said.

‘However, the race is still being led by those with sizeable equity or large deposits. Lending volumes are still far from ideal, and too many high LTV borrowers are still being locked out the market. Progress is being made, but there is a long way still to go,’ he added.

He believes that things should carry on improving in 2013. ‘With government initiatives trickling through, including the extension of the Funding for Lending scheme, the housing market is taking steps forward. The Help to Buy scheme is providing grounds for improvement,’ he pointed out.

‘How many steps forward the UK housing market takes in 2013 will be determined by lenders’ ability to target buyers with the smallest deposits with cheaper loans, and by how far they can breathe new life into the bottom tier of the market,’ he added.

Scottish landlords urged to look at energy efficient measures

Fri, 24 May 2013 09:41:04 +0100

Landlords in the private residential sector in Scotland should be encouraged to take advantage of energy efficiency measures allowing for long term financial benefits, according to agents CKD Galbraith. CKD Galbraith’s specialist lettings department has worked with a number of landlords prior to marketing their property, to help establish energy efficiency improvements.

Every rental property requires an Energy Performance Certificate (EPC) highlighting its energy efficiency and environmental impact ratings, as well as providing suggestions on cost effective improvements.

The Green Deal Cashback Scheme launched recently by the Scottish government aims to incentivise landlords to make energy efficiency improvements throughout their properties. The grants are limited and on a first come first served basis.

The scheme is offering a cashback incentive scheme towards energy efficiency measures that are recommended in the Green Deal assessment. Up to £1,200 is available towards energy efficiency measures including £500 towards insulation measures, £400 for a boiler and £300 for additional measures including for example improvements to glazing, LED lighting and heating controls.

There are some 45 measures of improvements which have been approved to receive funding under the scheme. Some of the most common ‘green’ measures that can be made to residential properties include insulation, heating and hot water, glazing and microgeneration whereby the property generates its own energy source.

‘As a firm we have been working closely with landlords advising them on many energy efficiency improvements they can make to their rental properties as well as outlining the grant schemes available,’ said Shirley Kenyon, lettings manager at CKD Galbraith.

‘A popular efficiency measure that landlords are implementing through the cashback voucher scheme is the installation of a new boiler to replace an old inefficient gas boiler, as well as taking advantage of free loft insulation offers, both of which greatly contribute towards fuel bill efficiencies in the long term,’ she explained.

‘We have noticed an increase in the number of potential tenants enquiring about the energy efficiency of a home before they sign any rental agreement as ultimately their priority is low monthly utility costs. Green improvements benefit both landlords and tenants as properties are far more appealing in terms of lower monthly fuel costs for tenants and therefore landlords are offering an attractive rental prospect,’ she added.

Climbing asking prices seen as sign of improving property market in the UK

Fri, 24 May 2013 08:23:59 +0100

Climbing asking prices could signify that the residential property market in the UK is on the road to recovery, it is claimed.

The average asking price has risen to £235,101 in England and in London asking prices in London have jumped by £10,000, according to the latest residential market review covering the first quarter of 2013 from Move with Us.

The report also shows that 125% more properties are coming on to the market than in December 2012 which the firm says is another sign of an improving market.

‘Although it’s still too early to call if the property market is improving, there are encouraging signs in place. Next quarter’s figures will confirm our thoughts and for the first time we will also be able to see what impact the Government’s new Help to Buy scheme has had on the market, if any,’ said Robin King, director at Move with Us.

The average asking price in London is up by 2.85% to £368,357 in the last three months, despite an increased number of properties coming to the market which would typically place downwards pressure on prices. Sale times for residential property in Greater London are 40 days faster than the national average in March and remain among the fastest in the country.

In the South East although the average asking price dipped in January to £295,798, perhaps in reaction to an increased number of new properties, by February it seems the market had adjusted to higher competition amongst sellers with asking prices surpassing the level seen in October 2012.

By the end of March, the average asking price had increased by over 1.4% to £299,934, £4,000 more than in January 2012. The South East maintained its position as the largest regional housing market in England in the first quarter of 2013.

The average asking price in the South West fell significantly in January to £253,524 as the number of new properties surged. However, prices recovered to reach an average of £255,976 in March, some 8.9% above the national average.

East Anglia had a positive quarter, ending at £251,519, the highest average asking price seen in recent years. Although the average time required to sell residential property increased overall in the first quarter, in March timescales decreased and if this trend continues, East Anglia will have adjusted to rising prices and increased competition amongst sellers signifying a flourishing market.

Average asking prices in the East Midlands increased incrementally in the first quarter of 2013, close to the overall trend for England. Prices returned to an average of £175,286 at the end of the quarter, which the firm says could be a very early indication of an improving market.

The average asking price reduced marginally in January in the West Midlands compared to December 2012, most likely as a reaction to increased competition from new properties. Despite the average asking price rising in February and March, the first quarter ended with prices at an...

US property sales up but slowing due to lack of homes and tight lending

Thu, 23 May 2013 15:23:04 +0100

Existing home sales in the United States rose in April but remain below underlying demand because of limited inventory and tight credit, according to the latest analysis from the National Association of Realtors.

The index shows that all regions are showing strong price gains from a year ago and sales increased by 0.6% to a seasonally adjusted annual rate of 4.97 million in April from an upwardly revised 4.94 million in March.

Lawrence Yun, NAR chief economist, said the market is solidly recovering. ‘The robust housing market recovery is occurring in spite of tight access to credit and limited inventory. Without these frictions, existing home sales easily would be well above the five million unit pace,’ he explained.

‘Buyer traffic is 31% stronger than a year ago, but sales are running only about 10% higher. It’s become quite clear that the only way to tame price growth to a manageable, healthy pace is higher levels of new home construction,’ he added.

Existing home sales are at the highest pace since November 2009 when the market spiked at 5.44 million in response to the home buyer tax credit. Total sales have been above year ago levels for 22 consecutive months, while prices show 14 consecutive months of year on year increases.

Total housing inventory at the end of April rose 11.9%, a seasonal increase to 2.16 million existing homes available for sale, which represents a 5.2 month supply at the current sales pace, compared with 4.7 months in March. Listed inventory is 13.6% below a year ago, when there was a 6.6 month supply, with current availability tighter in the lower price ranges.

The national median existing home price for all housing types was $192,800 in April, up 11% from April 2012. The last time there were 14 consecutive months of year on year price increases was from April 2005 to May 2006.

Distressed homes, that is foreclosures and short sales, accounted for 18% of April sales, down from 21% in March and 28% in April 2012. Some 11% of April sales were foreclosures and 7% were short sales. Foreclosures sold for an average discount of 16% below market value in April, while short sales were discounted 14%.

The median time on market for all homes was 46 days in April, down sharply from 62 days in March, and is 45% faster than the 83 days on market in April 2012. NAR President Gary Thomas, said that with homes selling in half the time it took to sell a year ago, buyers must be both decisive and prudent.

First time buyers accounted for 29% of purchases in April, compared with 30% in March and 35% in April 2012. All cash sales amounted to 32% of transactions in April, up from 30% in March and 29% in April 2012. Individual investors, who account for most cash sales, purchased 19% of homes in April, unchanged from March.

Single family home sales rose...

Property prices up slightly in Jersey in the first quarter of 2013

Thu, 23 May 2013 14:55:57 +0100

Residential property prices in Jersey in the Channel Islands rose slightly in the first three months of 2013 but overall values are similar to averages recorded in 2011 and 2012, the latest data shows.

The mix adjusted average price of properties sold was 3% higher than in the fourth quarter of 2012, according to the latest Jersey House Price Index.

The index report says that quarterly rise was attributable to increases in the average (mean) prices of one and two bedroom flats and two and four bedroom houses. The average price of three bedroom houses was the lowest recorded since 2007.

The data also shows that the turnover of properties was about a third lower than in the previous quarter and more than two fifths lower than in the same quarter of 2012. The report says that the reduction in turnover was largely driven by fewer share transfer properties being sold. In the first quarter of 2013 share transfers accounted for three fifths of all eligible flat sales. In 2011 and 2012 this proportion had been closer to three quarters of such sales. The number of three bedroom houses which sold in the latest quarter was the lowest for more than four years.

The index also looks at how prices and sales have performed in previous years. In 2008 and 2009, the mean price of one bedroom flats had been essentially stable at around £230,000. A reduction in the mean price of this property type was seen in 2010 and 2011, largely due to the sale of an increased number of lower priced share transfer properties.

Throughout 2012, marginal increases in the mean price of one bedroom flats were recorded on a quarterly basis, taking the annual average in 2012 to £205,000. The latest quarter saw the mean price of one bedroom flats increase for the fourth consecutive quarter to £224,000, the highest recorded for three years.

Following a period of stability throughout 2008 and 2009, when the mean price of two bedroom flats was around £320,000, the latter half of 2010 saw marginal price increases, taking the average price to around £330,000, a level at which it had remained essentially stable apart from an upward fluctuation observed in the second quarter of 2012.

In the first quarter of 2013 the average price of two bedroom flats was almost 6% higher than in the previous quarter but was similar to the annual average for 2012.

The mean price of two bedroom houses had also remained essentially flat throughout 2008 and 2009 at around £400,000. After small increases in mean price towards the end of 2010, the average price of two bedroom houses then decreased over three consecutive quarters, taking the annual average price of this property type to £383,000.

Since the middle of 2011 the mean price of this property type has increased slightly and the mean price of £407,000 recorded in the latest quarter was 4%...

British, Norwegian and German architects chosen for world�s biggest urban transport project

Thu, 23 May 2013 10:38:32 +0100

Designs by British, Norwegian and German architects have been chosen for three iconic metro stations being built in Riyadh in Saudi Arabia.

The Riyadh public transportation network is the world’s largest urban transport project in development and includes six underground metro lines, three bus lines, a circular city centre bus route and community bus services.

Park and ride facilities will be available at many of the 85 metro stations around the city and the Arriyadh Development Authority (ADA), the government body responsible for the planning and development of Riyadh, said it has selected the three winning designs in order to create stunning buildings.

The aim is for these iconic stations to transform Riyadh streets as they become the most visible elements of the city’s new world class public transport system. They are designed to provide for travel, shopping and dining and be at the heart of city life.

The designs by Gerber Architekten from Germany for Olaya Metro Station, Snohetta from Norway for Downtown Metro Station (Qasr Al Hokm) and Zaha Hadid from the United Kingdom for King Abdullah Financial District Metro Station, were selected for their outstanding conceptual thinking and powerful design.

Khalid Hazzani, ADA director, said that each of the stations creates a modern landmark for the city, as well as supporting the technical requirements of Riyadh Metro.

‘The selection of station designs is an exciting milestone for Riyadh Metro. These iconic landmarks will transform the city streetscape. They will not only provide elegant interchanges for one of the most advanced public transport systems in the world, but also provide new public spaces for shopping, eating and working,’ he explained.

‘Riyadh Metro is benefitting from world leading design expertise, ensuring Riyadh remains at the forefront of sustainable urban design,’ he added.

Olaya Metro Station creates a new public plaza integrated within an iconic city-centre development. Inside the station, a large, open entrance hall allows visitors to see across all four storeys of the building, including the two metro lines, a mezzanine level with shops and food halls, and an open concourse housing the ticket barriers.

The main Downtown station at the intersection of Al Madinah Al Munnawarah Street and King Faisal Street, in the Al Doho quarter will serve as a transfer point between Metro Lines 1 and 3, as well as integrating with the bus network, like all the main stations.

It is described as a model of sustainable development, with a large canopy creating a shaded plaza and allowing natural light to filter to the underground concourse. The station also has a Mosque at the south west corner.

The main station at King Abdullah Financial District (KAFD), at the intersection of Metro Lines 4 and 6 is described as having soft, fluid wave forms, creating an impressive aesthetic whilst also minimising solar heat transfer. Geometric latticework covers the building facade, creating a modern twist on the Mashrabiya found in traditional Arabic architecture.

Other landmark ADA projects...

Welsh property prices down as lack of lending slows market

Thu, 23 May 2013 09:06:38 +0100

Residential property prices in Wales have fallen back to levels last seen in December 2010 as lack of lending squashed demand, it is claimed.

The latest LSL/Acadametrics house price index shows the average property price is now £151,780 having fallen by 0.2% in March compared with the previous month. On an annual basis prices are down 1.1%.

‘The Welsh housing market is being dragged back by a lack of mortgages available to buyers with small deposits. Despite the small rise of £581 since January 2013, houses prices are lower than a year ago and have dropped by £294 in the last month. Prices just haven’t taken off, and have fallen back to their December 2010 levels, a 2.7% fall over three years,’ said Oliver Blake, managing director of Reeds Rains estate agents with branches in Wales.

‘The crux of the problem is a lack of mortgages. Welsh first time buyers are finding it tough to secure a mortgage at a decent rate and many first time buyers are being locked out of the market entirely so are having to stay in expensive rental accommodation. As a result house sales are low, especially at the bottom end of the market. This has stifled activity higher up the property ladder, making the whole chain sluggish. Demand is high, as people are desperate to buy and escape the expensive private rental sector, but they are thwarted by strict mortgage requirements,’ he explained.

‘In local terms, the rate of growth in house prices is closely tied to the performance of each region’s economy. Some areas are more exposed to public sector austerity, inflation, a lack of private sector investment and unemployment which suppresses house prices,’ he added.

The data shows that in March house prices fell in 15 of the 22 unitary authorities in Wales. Sales in the South most counties are up by over double those in the North, partly owing to the population size in different parts pointing to the North and South gap.

‘The weakness of the Welsh economy means the government is right in trying to give the housing market a shot in the arm. New initiatives geared to boost the first time market, like the Help to Buy scheme, should offset some of these chronic weaknesses,’ said Blake.

He also believes that the signs for 2013 are more positive. ‘As mortgage rates drop and the range of mortgage deals improve, there is much hope that the housing market will make some great strides towards recovery this year and we are beginning to see this occur elsewhere in the UK,’ he pointed out.

‘Traditionally, Wales lags the rest of the UK, but if the Country holds true to previous performance, we should now begin to see the green shoots emerge in the near future,’ he added.

The data also shows that the range of price variation has decreased. For example, last month’s index saw annual changes ranging from a fall...

Selling times for UK properties falling in most areas

Thu, 23 May 2013 07:08:00 +0100

The amount of time it takes to sell a house in regional areas of the UK is falling as properties have begun to sell faster, research suggests.

Selling can be a frustrating experience at the best of times, but especially so when properties are languishing on the market too long. Since the financial crisis, many regional markets have seemingly been stuck in first gear, but at long last, the time taken to sell a property outside of London and the South East is dropping.

The typical time on the market for unsold property across the UK has fallen to 102 days, eight days less than in May last year, according to data from Home.co.uk.

By way of contrast, in May 2009 when prices were severely under pressure, the typical time to sell a property stood at 184 days, some 80% longer than in the current climate.

Considerable regional differences still exist. London and the South East top the table with typical time on the market around 70 days and continuing to fall. At the other end of the spectrum, the typical property in the North East remains on the market for 198 days or six and a half months.

Unfortunately, this has risen by a further nine days, over the last 12 months which the firm says is a clear indication that the region’s property market is still crawling.

However, the now well established recovery in the London and South East markets is, to some extent, moving to other regions of England, Scotland and Wales.

The Yorkshire and Welsh property markets have experienced the largest falls in marketing times, with Yorkshire's time on market falling by a full 30 days since May 2012. Both the East and West Midlands have also experienced considerable reduction in the time to market property and average prices are now beginning to recover.

‘Whilst marketing times are notoriously seasonal, the time taken to sell property is an important indication of the real health of the local market. This vital signal provides estate agents, buyers and vendors alike an insight into the fluidity of local markets and their ability to drive transactions,’ said Doug Shephard, director of Home.co.uk.

‘The dynamic markets of London and the South East continue to enjoy the shortest selling times, but it is encouraging to note that other areas of the country are seeing the largest falls. One cannot underestimate the boost to vendor confidence that is gained by taking three to four weeks off the selling time. In turn, this puts more pressure on the seller to commit to the purchase of their next home, and creates a positive impact throughout the entire property chain,’ he added.

New home market in US boosted in first three months of 2013

Wed, 22 May 2013 13:09:18 +0100

Nationwide single family building permits in the United States in the first three months of 2013 have increased by 27% from a year ago to the highest first quarter total since 2008.

Meanwhile foreclosure starts in the first quarter decreased 27% from a year ago to the lowest quarterly level since the second quarter of 2006, the latest figures from RealtyTrac show.

The majority of building permits in the first quarter were for single family homes at 64% while 33% were for five plus multi family properties. Overall multi family building permits increased 23% from a year ago.

States with the most single family building permits in the first quarter were Texas, Florida, North Carolina, California and Georgia, all of which posted double digit percentage increases from a year ago. All these top states also posted decreasing foreclosure starts from a year ago, although Florida foreclosure starts were down just 1%.

States where both single family building permits and foreclosure starts increased from a year ago included Nevada, Washington, New Jersey, Maryland and New York.

Cities with the most single family building permits in the first quarter were Houston, Oklahoma City, Austin, El Paso and Fort Worth. Of these top five, all except for Austin posted decreasing foreclosure starts during the same time period. Austin foreclosure starts increased 19%.

Cities with the most foreclosure starts in the first quarter were Miami, Las Vegas, Chicago, Fort Lauderdale and Orlando, with Las Vegas, Fort Lauderdale and Orlando posting increases in foreclosure starts from a year ago. All five cities posted increases in single family building permits from a year ago.

Cities where both single family building permits and foreclosure starts increased at least 10% from a year ago in the first quarter included Las Vegas, Seattle, Raleigh, Reno, Nevada, and Boca Raton.

Cities where both single family building permits and foreclosure starts decreased from a year ago in the first quarter included San Antonio, Albuquerque, Fresno, Bakersfield, both in California, and Greensboro in North Carolina.

‘Nationwide and in most markets it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favour of supply of homes for sale in the coming months in terms of both new homes and foreclosures,’ said Daren Blomquist, vice president at RealtyTrac.

‘On the other extreme there are some markets where both building permits and foreclosure starts are down dramatically, indicating that there will be no reprieve from the shortage of homes for sale in those markets in the near future,’ he explained.