With the outcome of Brexit still undecided, the London property market remains subdued and is likely to remain so until an agreement is reached. So while we wait a little longer for the result of current negotiations, many buyers continue to sit back to see how the situation plays out. This uncertainty means that many sellers are hesitating too, still reluctant to put their property on the market for less than they believe it is worth.
Of course there are still international investors buying, and for most of these the weakness of sterling remains a huge advantage. Many are purchasing a property for their own use, either as a London base or as a home for children who are studying or working in London. Some of our international clients have been showing keen interest in rental guarantee products which we are offering in association with Barratt London, see here for more information.
We have recently been visiting some overseas regions meeting with clients and their attitude towards London property investment is interesting! For example, during our recent trip to Shanghai, China, we found that, while many Chinese investors are still buying or planning to buy a property in London, interest is definitely more subdued than normal. Generally these investors are buying a single property for their own use although some are still purchasing properties to rent out.
We will be visiting Singapore in early November and at the moment our view is that demand from Singaporean investors remains fairly good, particularly for high profile developments such as White City Living which has just had its first completions.
In contrast, we were in Mumbai and Bangalore at the end of October where the London investment market is very much in its early stages but interest in London property is definitely growing. Through our network events, we met with over 100 individuals and investors and left with some very good enquiries to follow up. A high number have already organised trips to London in order to view new property developments across all price brackets. Most of these investors are looking for long term investment potential so are less concerned about the short term political situation in the UK. And while we are not yet seeing large volumes of sales, the outlook is positive and demand is increasing, a trend which we hope will continue.
Generally, many overseas investors still prefer to invest in properties in Zone 1, as they are more familiar with this central area and therefore feel greater confidence in purchasing here. Increasingly though we do find that investors are prepared to buy further afield, particularly if they are familiar with and trust the developer.
Well established developments in Zones 3 and 4, with good transport links, are often sought after amongst more experienced investors.
For example, Beaufort Park in Colindale is phenomenally popular with investors (and tenants) and this residential quarter, with its high quality apartments and local amenities, has transformed the local area, really putting it on the map. As a result, we often find that investors who already own property here are more than happy to consider buying apartments in other developments by St George, the Beaufort Park developer, confident in their track record.
One of the latest of these new developments by St George is Oval Village, a regeneration and restoration project on the site of the towering Victorian Oval gas holders which, when they were built in 1847, were the largest of their kind in the world.
16 storeys high, the new apartment building will have views towards the City and to the nearby Oval Cricket Ground. New apartments are launching soon, and we are starting to see interest building in these stunning new homes in this historic part of London. Prices start at £510k and completions will begin in Q4, 2022.
If you are planning to buy an apartment in London, maybe for the first time or perhaps to expand your London property portfolio, please contact our sales office to find out more about new residential property opportunities in London. If you need an expert valuation for an existing property, we can also assist.
View all posts by Marc von Grundherr