Underdeveloped in years gone by, East London has reinvented itself as a residential property hot spot, with both buyers and landlords drawn to the area following its large-scale regeneration.

The success of government-backed gentrification initiatives on the banks of the River Thames has opened the doors to potential property price gains that are expected to surpass all other parts of London.

According to Caroline Palmer, Senior Manager with our International Residential Properties Services team, East London is “really popular with people looking for pre-completed properties. They have more room for investment growth, and there’s been a significant investment in transport and amenities in the area.”

In the residential re-sales market, we currently see a great deal of activity for “flipped” units that are near to, or a few months away from, completion.

“People are so keen to buy and invest, we need a larger stock of apartments for re-sale, particularly as Stratford doesn’t have a huge secondary sales market,” explains Palmer.

“We expect the market to acclimatize to the new political and economic environment and for East London’s place on the global stage to return to its pre-Brexit status,” adds Neil Chegwidden, Director with our UK Residential Research team.

It’s no secret that both home owners and investors are looking beyond Central London for “better value” properties, with East London providing much-needed supply in a capital city with a shortfall of around 20,000 new flats annually between now and 2021. But the property market is not the only sector that has its eye glued on East London. Businesses keen to expand their foothold in London are turning to the borough as well.

Stratford currently stands out from the pack, boasting the most affordable residential rentals and sales prices in London. Other prime contenders for price growth in East London are Canary Wharf—which will move within closer reach to the City once the new Crossrail station opens next year—Royal Docks, Bow, Canning Town and Surrey Quays.

JLL’s existing stock of apartments on the secondary market across all these residential areas includes a mix of studios starting from £330,000; one-bedroom flats from £410,000; two-bedroom units that start from £610,000; and three-bedroom apartments, from £700,000.

The relatively weaker position of the British pound against other major currencies while Brexit bumps are ironed out makes this an opportune time to invest in London property. We forecast sales prices to remain relatively stable this year, while demand for new and secondary homes is expected to increase slightly.

Greater London rental prices are forecast to rise by 19.9% annually from 2017 to 2021, versus Central London growth of 13.1%. As for house prices, we expect Greater London to rise 19.2%, compared to 15.8% growth for Central London developments.

The average price for residential properties in East London is £625 per square foot (psf), currently the lowest in the city and just one-third of prices in London’s Central Southwest area, which stand at £1,750 psf.

“Cheaper London boroughs have witnessed greater capital value growth compared with more expensive boroughs over the last couple of years, while previously less popular locations have seen higher demand,” comments Chegwidden.

Why consider the re-sales market?

There are any number of reasons to buy or sell London property via the re-sales market.

Maybe a buyer didn’t buy at the time of a development’s launch and later reconsidered and understood the potential for investment growth, reveals Palmer. “Once a buyer knows that the area is up-and-coming – like Stratford – they become more interested to invest and reap returns,” she notes.

Properties may enter the re-sales market because their owners made a sizeable gain on their initial investments ahead of their units’ completion. In these cases, owners may want to reinvest their gains elsewhere, or avoid paying mortgage costs or stamp duty on a completed property.

“If an owner bought a flat in Stratford for £360,000, they might only have put down a 10% deposit ahead of completion,” adds Palmer. “Yet, the property may now be worth £410,000.”

As with every investment there is inherent risk in property transactions, but when the chips are down in the residential re-sale market, the exit door stands open. The key to success, as always, is timing…

For more information about our International Residential Property Resales services, please contact Caroline Palmer

 

15 Oct 2019

Manchester, often considered Britain’s second city behind London, is undergoing something of a revival, with amenities to match its rival in the south. £800 million has been invested in Manchester’s Airport City and £110 million in The Factory, an impressive theatre and arts facility worthy of West End performances. So it was perhaps only a matter of time before the city also sought to replicate one of London’s most fashionable addresses and develop the “Mayfair of Manchester”.

Built on eight hectares surrounded by the River Irwell, the Castlefield conservation area and Manchester city centre, St. John’s – a new development from Allied East – hopes to live up to the name it was given in an original design brief.

Mark Elliott, Associate Director with JLL's International Residential Property Servicesteam, believes the moniker is justified, likening the development to an opportunity to “buy in Mayfair in 1990.”

With the likes of Soho House already expressing interest in the project, he says it won’t be long until the other big players of the London scene start to take hold of the opportunities to open boutiques, bars and Michelin-star restaurants. “Once that begins to happen the money will start to flow in and in turn there will be large appreciation upon investments,” Elliott adds.

JLL’s UK Residential Research team expects house prices in the North West of England to increase over the next five years, building on 5.5% growth in Manchester in the twelve months to the end of Q2 2016. “These are the locations where scale on a per asset basis is easier to achieve,” explains Adam Challis, Head of UK Residential Research in a recent investment report, “Into the Mainstream”. With investors seeking to diversify their portfolios and increase return-on-investment, UK cities outside of London are becoming ever-more appealing.

But for many buyers, lifestyle is increasingly important too, and by forging a community around its residential units, St. John’s aims to integrate itself into the fabric of its city long-term and offer its residents enriching experiences. They will also have a choice of spaces to fit their individual lifestyles, from low-rise apartments to penthouses, lofts and high-rise living.

 The expected establishment of workspaces of all sizes, commercial workshops, retail outlets, cafés and studios, will transform the area into an attractive destination for a youthful, technologically savvy demographic to both do business and unwind.  “By encouraging entrepreneurs, innovative companies, artists and designers to develop their craft within the development and then to engage with the wider community,  St. John’s will stimulate local economic growth and that in turn will lead to higher returns on investment,” says Elliott.

“There is an opportunity here, but it will not be available for long,” he warns. “Buy in now to be part of one of the most exciting, but under the radar, regeneration projects in the UK.”

For more information about St John’s or investing in UK Property, contact Mark Elliott.

15 Oct 2019

英國脫歐及美國共和黨候選人特選人勝出,大大震驚國際社會。不過,美國大選後,對英國物業市場有何影響及啟示?

 

美國大選後,股市出現波動正是預期之內。但特朗普當選對全球政經的長遠影響仍然未知。政治上,特朗普是個未知之數,投資者更需要尋找安全地方停泊資金。除了黃金,價格穩定的優質倫敦物業,是不少投資者及機構的將資產搬離美國的理想選擇。

 

倫敦物業一直被視為穩健投資,更是世界各地投資者尋求理想回報的選擇。除了美國投資者帶起的需求,仲量聯行國際住宅物業服務部副董事Mark Elliott預料,不少有意投資外國物業的人,會將視線轉各英國而非美國。他又預料來自中東及亞洲的買家,將會投資倫敦的物業市場,因他們或不滿特朗普有關移民的言論。

 

自美國總統大選後,英鎊兌美元出現升值約百分之1.2,升幅可觀。除了一系列的升率上調,英鎊升值亦舒緩了部分英國脫歐後通脹壓力。此外,對於資金充裕的買家,即使英鎊升值亦加強了他們的信心從而入市,特別是他們曾經擔心最近的匯價波動。一直以來,倫敦物業市場只有少量美國買家,Elliott預料會有美國公民以及與美元掛勾的國家的居民,將會移民英國。

 

英國有低廉的公司稅,中等程度的住宅物業稅,便利營商的格林威治標準時間,英語亦是國際通用的商業語言,都吸引不少投資者。另外,頂尖學府亦成為物業投資的考慮因素之一。

 

倫敦中部預料會成為僅有的區域,受惠於英國市場的增長。巴特西區的九榆樹,將會是有意移民的美國人的聚居地,此區同時是新美國大使館所在地。目前只有百分之2至百分之3.5的中倫敦物業買家來看北美洲,但特朗普勝出後,情況將會改變。

 

如欲取得更多英國市場的資料,請聯絡Mandy Wong。

15 Oct 2019

 

曼徹斯特常視為英國僅次於倫敦的最大城市。該市現時更有不少建設,改善設施以媲美南部的勁敵。主要工程有斥資8億鎊擴建曼徹斯特機場,以及價值1.1億鎊,落成後成為藝術及戲劇表演場地的The Factory。看來曼徹斯特要複製倫敦最時尚的地段,建立自己的梅費爾區,只是時間問題。

 

St. John’s是 Allied London的最新的發展項目,面積達到8公頃,受艾威爾河、Castlefield保護區,以及曼徹斯特市中心包圍。發展商希望項目能夠達致最初設計原意,並符合, St. John’s的名聲。

 

仲量聯行國際住宅物業服務部副董事 Mark Elliott相信,項目的名稱是合理的,認為與於1990年購下梅費爾區一樣。

 

私人俱樂部Soho House已表達了對項目的興趣。Mark Elliott認為,倫敦的大企業於不久的將來到當地開設精品店、酒吧及米芝蓮餐廳。他說: 「只要有建設進行,資金就會湧入,資產很快就會升值。」

 

仲量聯行英國住宅研究部估計,英國西北部住宅價格未來5年會上升。曼徹斯特的樓價直至2016年第二季,於過去12個月上升了百分之5.5。英國住宅研究部主管 Adam Challis於最近名為Into the Mainstream 的報告中表示,這些地點中的每項資產,較容易獲合比例的回報。

 

投資者希望增加不同的投資組合,以及夫高回報,令倫敦以外的英國城市變得更吸引。

 

對買家而言,生活模式同樣重要。St. John’s於單位附近設立社群,旨在將整個項目融入於社群當中,豐富居民的日常生活。為切合買家的需求,項目提供低密度單位、豪華頂層單位、公寓及高層單位。

 

不同大小的辦公室、商用作坊、零售舖位、咖啡室及工作室等,將會整個區域改造,吸引充滿活力及掌握先進科技的年青人創業及享受悠閒。Mark Elliott表示,St. John’s鼓勵項目內的企業家、創科公司、藝術家及設計師展開事業,以及與外面的社群交流,將刺激本土經濟增長及帶動投資回報。

 

 

不過,他警告說機會不會持久,惟目前仍是英國最令人振奮的項目。

 

15 Oct 2019

仲量聯行最近與美國紐約的豪宅經紀公司CORE結盟。開發東亞市場,憑藉仲量聯行海外物業團隊的經驗,協助CORE向亞洲買家出售新開發項目。CORE於2005年成立,是一家提供全面咨詢服務的豪宅經紀公司,為經紀及發展商提供平台,開拈合作機會。CORE的規模已擴展至170名員工,於紐約切爾西區、熨斗區、聯合廣場、麥迪遜大道及布魯克林區都有辦公室,曾經銷售超過30個新項目,銷售額達到50億美元。

 

仲量聯行是全球市場的領先者,其海外物業團隊與全球各地最活躍的投資者建立良好關係,為他們尋找住宅物業投資機會。我們的經紀透過周末展銷會、雞尾酒會及私人聚會,為外國投資者提供樓花項目,成績優秀。愈來愈多外國投資者對美國住宅物業市場感興趣,我們在紐約擴張業務後,將為投資者帶來機會。今次的合作,更為發展商提供咨詢服務,就發展項目的單位面積、戶型及設施等提供意見。

 

聯盟由仲量聯行副主席莫家文帶領,結合仲量聯行的制度及CORE的專業知識,就紐約市場夫提供獨特的見解及服務。

 

莫家文表示:「今次的合作是雙贏方案。我們在亞洲區有龐大的買家網絡,同時涉足紐約皇后區、曼哈頓、布魯克林區及新澤西的新項目,為亞洲區的買家提供機會,尋找大平洋對岸的投資機會。

 

如有意了解更多今次合作的詳情,以及發展商如何因獨有的合作模式而吸引海外買家,請聯絡莫家文。

 

 

15 Oct 2019

Following June’s pro-Brexit vote, London’s future as a business hub for the world’s biggest players was in jeopardy. Yet barely a few months have passed and already there clear signs that this worry may have been unfounded. Tech giant Apple is just one of the big firms showing confidence in the market, announcing plans to move their UK headquarters to Battersea Power Station in Nine Elms, and it surely won’t be long before others follow suit.

In a major coup for the $16.5bn regeneration of the Grade II- listed building and the surrounding Nine Elms area, Apple has signed a deal that, in 2021, will see the company occupy 500,000 sq. ft. of office space across six floors in the power station’s former main boiler room. Apple will relocate 1,400 employees to the Battersea headquarters from its eight other London offices. As the first company to sign onto the project, Apple’s commitment will account for 40% of the building’s office space – a huge vote of confidence for a project that has not been without its critics.

Yet as Mark Elliott, Associate Director with JLL's International Residential Property Services team makes clear, “it won’t only be the power station that benefits from Apples arrival but rather the entire surrounding area. This will see more affluent residents moving into the area, and new shops and bars will open to service this increase in population.”  In short, the area is expecting to become more gentrified and the “buzz will spread”, in Elliott’s words.

As the biggest office letting in the West End of London for over 20 years and one of the largest Apple offices outside the US, Chancellor Philip Hammond views the company’s new Battersea site as “another vote of confidence in the UK economy”. Hammond concludes that, “Apple’s decision further strengthens London’s position as a global technology hub and demonstrates how the UK is at the forefront of the next steps in the tech revolution”.

It is not only Apple making big moves. They follow Google and Facebook, who signed up for similarly impressive developments in King’s Cross and Oxford Street respectively.  “The reason Apple and Facebook chose the sites they did is predominately because of the incredible infrastructure changes that are happening in the vicinities of their respective sites”, adds Elliott. “There is a lot residential buyers can learn from that – these are also the factors that can increase return on investment for those looking to pick up property in those areas.”

Nine Elms, where two new underground stations will be completed by 2021 and the new US Embassy is just a few hundred metres away, is just one example. Adjacent to Facebook’s new offices on Tottenham Court Road meanwhile, Crossrail – “the biggest infrastructure change in London since the War” – will facilitate travel across the entire city, with dramatically reduced journey times.

Alongside these new tech headquarters, there are also a number of prestigious banks acquiring new bases of operations in London. Wells Fargo & Co. signed a deal just three weeks after the EU referendum, and will be paying 300mn pounds to move into 33 Central – between Old Street and Farringdon, with quick transport connections to both Westminster and the City. The deal is further proof that London’s real estate demand may remain stronger than predicted.

While it could be argued that London was always going to continue to attract the world’s top banks, the long-term situation remains unpredictable. Yet, until Article 50 is triggered and the Brexit situation is fully resolved, it seems that major corporations from different sectors are still willing to invest heavily in the London market to the benefit of international property investors.

“These companies are not moving there for fun - they are investing in the location as they are aware what it will be worth it in the future,” concludes Elliott. “You should too.”

For more information about the UK property investment market, please contact Mark Elliott.

15 Oct 2019

自6月脫歐公投後,倫敦未來作為世界巨型總部的地位備受考驗。僅僅幾個月之後,這些疑慮已一掃而空。科技巨擘蘋果公司是其中一間對英國市場充滿信心的企業,更宣布將英國總部遷至巴特西發電站。其他企業短期內亦會較法。

巴特西發電站是英國二級重點保護歷史建築物。發電站及附近一帶九榆樹區正在重建,整個工程成本約為165億鎊。蘋果公司簽下合約,承租當中50萬平方呎共6層樓面,並計劃在2021年,將分散在倫敦8個工作地點,約1400名員工遷入 。蘋果公司是首家遷至當區的企業,並佔用發電站四成的樓面面積。這顯示大型企業對此備受爭議的項目投下信心一票。

仲量聯行國際住宅物業服務部副董事 Mark Elliott 認為,不只是發電站會受惠於蘋果公司的決定,更多富裕人士會遷至該區,同時不同種類的商舖及酒吧會開業,應付居民的需求。他指,該區將出現「貴族化」,並形成一股新趨勢。

今次的租務交易,是倫敦西部20年來最大宗的成交,更是蘋果公司於美國以外其中一間最大的辦公室。英國財政大臣夏文達更視之為對英國經濟投下信心一票。他表示:「蘋果公司的決定,大大增強倫敦作為全球科技樞紐的地位,同時展示英國是面對下一波科技革命的重要地方。」

除了蘋果公司,Google亦簽下位於國王十字車站新總部樓租約 ,而Facebook 落實租用牛津街辦公大樓。Mark Elliott認為,蘋果公司及Facebook揀選這些地點,是由於附近一帶的基建大大改善。不少住宅買家已看準這一點,買下這些物業的回報將會上升。

九榆樹區是另一個很好的例子。此區將會有兩個地鐵站於2021年落成,而且新的美國大使館更只是幾百米之遙。鄰近Facebook位於托特納姆宮路新辦公室的橫貫鐵路,是戰後倫敦最大的基建,將改善市內交通,並大大縮減交通時間。

除了科技巨企,不少著名銀行都物色新地方作為辦公室。富國銀行集團於脫歐公投三星期後,斥資3億英鎊買下位於法靈頓及老街之間的中央33號。此地有方便快捷的交通前往西敏區及市中心。今次交易,是倫敦物業市場需求旺盛又一例證。

倫敦一直吸引著世界各地的大型銀行,但仍有人與質疑長遠而言,倫敦的地位難以預測。直至里斯本條約第50條啟動,以及英國脫歐塵埃落定之前,不同行業的大型企業仍會以倫敦為基地,當地的物業投資者將大大受惠。

Mark Elliott總結時表示:「這些公司來倫敦並不是兒戲。管理層知道投資在這裡,未來會有甚麼得益。」

如欲獲得英國物業市場更多資料,請聯絡Mandy Wong。

15 Oct 2019

JLL has recently formalised a strategic alliance with CORE, a leading Manhattan residential real estate brokerage firm. The JLL/CORE alliance will focus on the sale of to-be-built residential condominium units to buyers in Asia through JLL’s long established International Properties group.  

Founded in 2005, CORE is a forward-thinking brokerage firm providing “a boutique, full-service consulting platform for agents and developers to grow and strengthen their businesses.”   Since its establishment the firm has grown to encompass over 170 real estate professionals and staff, with New York offices in Chelsea, Flatiron, Union Square, Madison Avenue and Brooklyn. CORE has overseen the sale of more than thirty new development projects – resulting in over $5bn in sales to date.

As the global market leader, JLL’s International Property team has the strongest global relationships with the most active investors seeking these residential investment opportunities. Through weekend exhibitions, cocktail receptions, and personal meetings, our broker network has a proven track record of selling off-plan residential units to foreign investors. As an ever-increasing number of foreign investors seek residential opportunities in key U.S. markets, the expansion of our services into the New York City market will allow us to deliver opportunities to those investors. The new partnership will also allow JLL and CORE to provide advisory services directly to developers as they contemplate pre-construction design metrics such as unit size, bedroom count and amenities. 

Spearheaded by JLL Vice President Gavin Morgan, the alliance between JLL and CORE will combine our institutional approach with CORE’s proven expertise in residential brokerage, to offer a service which is otherwise unavailable in the New York City market.

“Such a mutually beneficial arrangement between CORE and JLL provides a win-win for both of our firms’ respective clients. We now have unrivalled, market leading access to Asia’s largest pool of buyers, married to New York’s best access to new developments in  Manhattan, Brooklyn, Queens and New Jersey,” says Morgan.  “Our uniquely collaborative culture also enables us to leverage relationships both sides of the Pacific to ensure maximum exposure in Asia to the best purchasing opportunities in New York City.”

If you are interested in learning more about this new dimension of our Investment Sales business or know of a developer that would benefit from a unique approach to capturing foreign demand for residential units, please contact Gavin Morgan.

15 Oct 2019

First the vote for Brexit and now the vote for Republican nominee Donald Trump – both shocked the world, but what consequences can be expected for the UK property market following the U.S. election?

The stock market’s knee-jerk wobble in the immediate aftermath of the election may have been predictable, but the long-term impact of Trump’s triumph on international events remains uncertain. The new US president-elect is an unknown political entity and his election has led investors to seek safe-havens for their funds. Stable refuges such as gold and prime central London property are being viewed as concrete options for many companies and investors looking to move their investments out of the U.S.

Regarded as a safe investment, London property offers people from around the globe a variety of residential options guaranteed to generate a sound return on investment.  In addition to demand from U.S. investors, Mark Elliott, an Associate Director with JLL’s International Residential Property team in Hong Kong, anticipates numerous other foreign property buyers will now look towards the UK instead of America.  He also expects buyers from the Middle East and Asia, who may have taken offence to Trump’s inflammatory rhetoric on immigration, to be especially likely to invest in London real estate ahead of that in the U.S.

Since the presidential vote the British pound has made significant gains against the U.S. dollar – rising 1.2%. Barring a series of interest rate hikes, this minor improvement will help ease some of the post-Brexit inflationary pressure in Britain. It may also lead to dollar-rich buyers, who have previously been wary of the UK market owing to recent currency fluctuations, gaining confidence and deciding to buy before the U.S. dollar begins to weaken. While Americans haven’t historically been prolific buyers in London, Elliott predicts that more U.S. citizens and those residing in countries with currencies pegged to the greenback may now begin to lay down foundations in the British capital.

During  these uncertain times, the UK’s benign corporation tax, mid-level residential property tax, beneficial GMT time zone for business, international business language,  huge depth of markets and talent, and top class educational institutions continue to catch the eye of the cautious property investor.

The predicted boost to the UK market is likely to only involve Central London, with Nine Elms in Battersea– home of the new U.S. embassy – as a possible destination for disenchanted Americans looking to move. Currently only 2 to 3.5 per cent of prime Central London buyers originate from North America, but with Trump’s election that may be about to change.

For more information about the UK property investment market, please contact Mark Elliott.

15 Oct 2019

未來的倫敦住宅供應有不少挑戰。2016年,新建住宅及新的建屋計劃大大減少,這是由於交投漸見減少,改變印花稅措施,以及英國脫歐,導致此情況出現。

不過,指出問題所在,並不足以阻止問題發生,更未可以解決及扭轉建屋數字下降的問題。住宅市場的交投已漸見活躍,但發展商會小心應付未來挑戰,預料增長會平穩。新英國首相以及倫敦市長需要盡快解決問題。

15 Oct 2019