Prime London housing market showing increased transaction volumes
As highlighted by the Financial Times on the 20th of February 2017:
“House price cuts and the fall in the value of the pound are breathing life back into the prime London property market, with the number of homes under offer at its highest since before the EU referendum.
After slumping in 2016 to levels less than half of those the previous year, the number of offers in prime districts such as Chelsea and Belgravia rose in January to just 4.5 per cent below the level a year ago, according to LonRes, a data firm.
“This is one indicator of the market over the next few months,” said Marcus Dixon, head of research at LonRes. “People who are serious about selling have realised they need to be more competitive with their pricing, and to entertain lower offers. “There is also the currency play, particularly at the upper end. Sterling has fallen by 16 per cent since the Brexit vote on June 23. Combining these factors could lead to a total discount of 30 to 40 per cent for buyers compared with the top of the market”, said Mr Dixon.””[Source: Financial Times]
London property market sees substantial rise in prospective buyers
There has been a 22.1% rise in the number of new prospective buyers in the prime property market in central London since the European Union Referendum compared to the same period in 2015, according to a new report.
The number of properties under offer in the eight weeks since the Brexit Referendum rose 19% compared to last year’s web viewings grew by 20.8% while viewings increased by 49%.
The report shows that buyers in overseas currencies are benefiting from an effective discount of more than 10% since the start of the year due to the depreciation of Sterling. Meanwhile, the Brexit Referendum has been the trigger for some vendors to reduce asking prices to levels that take higher rates of stamp duty and the new economic and political climate into consideration. LINK
London prime rental market reviving post Brexit Referendum
The number of new rental properties placed on the prime property market in central London the three months to July increased by almost 40% as rents fell by 4.1%, according to the latest index.
The number of new prospective tenants also increased, up by 7.2%, while the number of tenancies agreed increased by a fifth and average gross prime yields were flat at 3.1%
August was a strong month in the super prime £5,000 plus per week market, with deal volumes up on the same month last year. LINK
London residential rental market strong, new reports suggest
The London rental market has bounced back to see rental values rise by more than 4% across most of central and east London with healthy gains seen across most of the rest of the city.
The prime central London market saw strong gains last quarter after several quarters of stagnation, and continued to see strong growth this quarter, the data also shows.
Many of the tenants are overseas professionals who are opting to rent long term […]. LINK[Source: Propertywire]
Cushman & Wakefield – “Winning in Growth Cities 2015-2016″ Report
Cushman & Wakefield, a commercial real estate services firm headquartered in New York, in its recent ”Winning in Growth Cities 2015-2016” Report confirmed London as one of the most interesting real estate markets in the world.
According to the Report, London is the Top City in the World for (i) Global Investors/Foreign Buyers and (ii) Office Investments. With reference to the former, London “was the most favoured market with a near 16% share of trading making it almost equal to the next 4 markets combined” (New York, Paris, Sidney and Tokio) LINK
Wealthy Chinese looking to invest more in London prime property
Chinese investors, particularly those from the mainland are set to become the biggest group of investors in London with a relaxation of the amount of money that can be moved overseas due to be implemented soon, it is claimed.
The changes in the stock market may also play a key role as wealthy Chinese investors turn away from their domestic market to explore new investment opportunities overseas […].
Typically Chinese spend up to £2 million on a new off plan development in London, however […] this will change with buyers from China looking at investing from £2 million to £50 million in real estate […].
One of the primary motivators for Chinese property investment in London will be education as increasing numbers of Chinese parents are choosing British educations for their children. London’s culture, retail and lifestyle will also be key contributors to increased investment in London property. LINK[Source: Propertywire]
London is top spot for wealthy real estate buyers, report suggests
Demand for luxury homes in the Europe, Middle East and Africa region is strong as ultra wealthy individuals are buying around the world to further diversify their holdings […].
The UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 in the first quarter of 2015, up nearly 4% from the fourth quarter of 2014, and 7% from the first quarter of 2014.
London remains the top real estate hub for the EMEA region. The city’s price per square foot at US$3,103 is nearly four times that of Dubai, six and nine times more than Madrid and Cape Town respectively.
The report says that a third of all premium London properties for sale, that is homes valued above US$1 million, are worth more than US$10 million. By comparison, Dubai has only 8% of its luxury properties listed in the super prime range above US$10 million […].
‘Luxury residential real estate encapsulates a core part of the identity of the super-rich. As their wealth continues to grow, so will their investment fueled by flight to safety from less geopolitically stable geographies,’ said Wealth-X president David Friedman. LINK[Source: Propertywire]
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows.
The study analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time.
In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation.
In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square.
For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square.
Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture […]. LINK[Source: Propertywire]
Prime central London rental values up for eighth month in a row
Rental values in prime central London rose for the eighth successive month in October, recovering to a level last seen two years ago, the latest index report shows.
Rental values climbed 0.5% in October as the UK economic recovery strengthened and yields saw the strongest improvement in three years […].
Annual growth was 2.6%, the highest rate since December 2011 and in the third quarter of 2014 tenancies agreed rose by a quarter while tenancies started increased by a third.
Rental yields rose to 2.9%, recording the biggest monthly gain in more than three years, the report also reveals […]. LINK[Source: Propertywire]
Cushman & Wakefield – “Winning in Growth Cities 2014-2015″ Report
Cushman & Wakefield, a commercial real estate services firm headquartered in New York, in its recent ”Winning in Growth Cities 2014-2015” Report confirmed London as one of the most interesting real estate markets in the world.
According to the Report, London is the Top City in the World for Global Investors/Foreign Buyers. According to the Report, “London remains by far the most favoured market with a 14.1% share versus 5.5% for Paris and 4.9% for New York.
According to the Report, London also ranks first in the World as a “Global Business Hub”, “Technology Hub” and “Top City for Hospitality”.
In relation to Cross-Border Investment Volume, London ranks again first with a total volume of 29,370,466,865 USD. New York is second with 11,364,607,926, while Paris is third with 11,057,422,477. LINK