CBRE Thailand has appointed an International Residential Investment Manager to cope with the growing number of Thai buyers looking at buying and investing in London property.
Virginia Ewart-James (pictured) has been transferred to Bangkok from CBRE London, and her role is to offer a bespoke service catering to Thais wanting to make quality purchases in London.
Ewart-James, who has more than nine years’ experience in the London market said: “London remains at the forefront for prime residential investment, with strong employment opportunities, demand from professional tenants maintains a healthy rental market, and one of the best rates of capital appreciation, it has become the leading destination for residential investment.
“It is a safe spot to invest for a range of investors – those wanting to secure University accommodation for their children (now or in the future) or those looking for capital growth”.
Working alongside CBRE’s UK colleagues, Ewart-James will have access to products suitable for all investor needs – from off-plan sales to second hand stock.
London property remains high on international investors’ agendas. Strong global demand, particularly from Asia, underlines London’s status as a prime investment destination, and reinforces the inherently robust nature of London’s market.
Aliwassa Pathnadabutr, Managing Director at CBRE Thailand, previously identified the growing demand of Thais wanting to invest in London, and in response has launched an International Property Division.
Demand consistently outstrips supply for London residential property, keeping it in the spotlight as a lucrative location to invest. Apart from a minor blip in 2008/2009, prices have risen year-on-year across the London market. In addition, demand is driven by its world class education; since 2007 there has been a 40 percent increase in international students, adding purchasers and tenants alike. More than 1,600 Thais attended London universities in 2012/2013.
As the city’s population evolves, so does its skyline. High-rise living was considered to be a rare phenomenon in London in comparison to Hong Kong, New York and Bangkok, but that is changing. The 87-storey Shard now towers over the 48-storey Pan Peninsular, the tallest residential tower in London when it was completed in 2008. Soon, the Shard will be joined by new London residential towers ranging from 50- to 75-storeys, which are currently either under construction or in the planning process. However, with limited developable land and tight planning restrictions, the number of high-rise developments will still be limited.
The Tower on the South Bank, is currently London’s tallest completed residential project and CBRE Thailand successfully introduced a number of Thai buyers to this Berkeley Group scheme situated on the River Thames. This positive market response to The Tower has resulted in more high-rise residential schemes across the Capital.
The ‘golden prime postcodes’ of Knightsbridge, Mayfair, and Kensington and Chelsea continue to attract investors, pushing prices into super prime – a minimum of THB1.1 million per sqm – due to the distinct lack of developable land creating limited supply. One property in Onslow Gardens in Chelsea, for example, has increased in value by 74 percent over a nine-year period due to the huge demand from Europe, the Middle East and Asia which has pushed prices and created an overspill into surrounding areas.
One key area for growth is the South Bank which is seeing rapid residential development. The situation is comparable to Bangkok’s Chao Phraya River where redevelopment is fast occurring due to the greater availability of land.
Mark Collins, Chairman of Residential at CBRE UK, said: “Given the quality of the schemes coming out of the ground, South Bank will soon be firmly established as a prime location. High-rise towers, such as South Bank Tower and One Nine Elms, will change the South Bank’s landscape and pricing”.
The South Bank is attracting investors seeking new investment areas. It stretches from Battersea Power Station in the west which is opposite Chelsea; to Tower Bridge in the east, which is ideally located across from The City. Two of London’s leading universities, King’s College and The London School of Economics and Political Science, are within walking distance of central South Bank, which is also a cultural hub for arts and entertainment.
Property values have increased in Bangkok with the arrival of new mass transit lines. Crossrail is the first major mass transit underground network in London since 1979. Operational in 2018, it is Europe’s biggest infrastructure project with 118 km of railway lines to open up travel across London from east to west. Reducing journey times by up to 25 percent and increasing capacity by 10 percent, it is a key factor in the London housing market. Property along the route will not only boast accessibility to this improved transport, but will also benefit from capital growth.
Two areas that will experience the greatest capital appreciation are Tottenham Court Road and Canary Wharf. Tottenham Court Road in central London, at the eastern end of Oxford Street, boasts a prime location. Fitzroy Place, a CBRE project which sold extremely well in Bangkok, is a luxurious residential development just 700 metres from Tottenham Court Road station that will immediately benefit from the improved infrastructure, reducing travel time to Heathrow airport to 28 minutes. The last seven units are available from THB92.75 million. Canary Wharf, home to Pan Peninsular and an important financial district will also be enhanced by improved connections. Canary Wharf to Bond Street will be a 13 minute journey. Property prices are significantly lower than central London, and, with the availability of land, developers and investors alike are targeting this area.
CBRE said that 2013 was a particularly strong year for the London property market with transaction volumes up 30 percent from 2012; a 9.5 percent increase in capital growth in prime London, and 10.6 percent in Greater London. Some 60 percent of units sold were under construction, an increase from 50 percent from the previous year – a trend which developers have identified, bringing release dates forward accordingly.
One good example is Battersea Power Station where all 800 units were sold in its first phase in Q1 2013. CBRE also sold 1,800 new London units off plan in Asia. The UK’s Daily Telegraph reported that 41 percent of London property over THB 53 million per unit is purchased by foreigners.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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