英國財政大臣辛偉誠昨天公佈2021年英國財政預算案,主要針對振興備受新冠肺炎疫情打擊的經濟。當中最值得注意的措施是延長物業印花稅優惠。

 

延長物業印花稅優惠

新一份財政預算案將價值50萬鎊以下物業免收印花稅延長至今年6月底。而2021年7月起,以循序過渡,免收印花稅門檻降至25萬英鎊,並從10月份恢復至優惠前的12.5萬英鎊。

延長印花稅假期可鼓勵新買家利用該計劃並開始購買過程。資料顯示,自2020年7月份印花稅優惠落實後,住宅平均銷售時間由去年同期的70天降至54天。假設住宅平均銷售時間保持在當前水準,買家必須在5月7日之前開始購買物業,便能利用印花稅優惠延長的時間。

早前,有不少買家憂慮印花稅優惠將於3月31日結束,未敢貿然入市,導致住宅成交量下降。是次延長印花稅假期無疑能為住宅市場增加信心,注入動力。

 

額外2% 海外印花稅

自2021年4月1日起,英國政府確認實施去年提及的非英國居民購買住宅物業印花稅附加費為2%,屬英國歷來首次。無疑此舉初期會在市場受到一定阻力。可是,其他城市亦已經徵收更高的針對海外買家的稅項。因此,英國在國際投資舞台上仍然保持其競爭力。

 

上調企業稅

辛偉誠宣佈將於2023年4月上調目前19%的企業稅逐步提高至25%。利潤低於5萬英鎊的公司將保留19%的公司稅率,而隨著利潤的增長,稅率將逐漸提高到25%。這將影響所有擁有英國商業和住宅物業的公司。

 

預算案總結

辛偉誠表示2021年經濟增長前景將較預期理想。 儘管過去一年有超過70萬人因疫情失業,經濟亦萎縮了10%,是300年來最大的跌幅。不過,隨著疫情緩和及開始疫苗接種,政府預測失業率將由去年七月預計的11.9%高峰跌至6.5%。此外,政府預算責任局(Office for Budget Responsibility)預計今年經濟增長將達到4%。

05 Mar 2021

Rishi Sunak, UK Chancellor of the Exchequer, delivered his new Budget on Wednesday 3 March 2021. The Budget sets out the distributional impact on households of tax, welfare and public service spending decisions. On a wider economic context, there is also focus on trends in employment, earnings and household incomes – including the impacts of COVID-19.

“There are many welcome announcements within this Budget,” said Nick Whitten, Head of UK Living Research at JLL.

Major policies related to real estate market:

Extended Stamp Duty Holiday

Responding to calls from the industry and to prevent over a third of the deals from falling through, Sunak has extended the Stamp Duty Holiday. No tax will be levied on the first £500,000 of property purchases in England and Northern Ireland until 30 June 2021. To assist a smooth transition, the threshold will be reduced to £250,000 from July to September 2021. For completions after 1 October 2021, stamp duty will return to the usual level of £125,000.

Overall, JLL believes that the stamp duty holiday provided a much-needed confidence boost to the housing market. The extension will provide welcome relief to purchasers on the edge of the original deadline and open the door to additional buyers, where the clock is now effectively ticking.

According to statistics, it has taken an average of 54 days to sell a home since the stamp duty holiday was introduced in July 2020, down from an average of 70 days 12 months prior. Assuming the average time to sell a home remains at the current level, aspiring buyers have until 7th May to begin a purchase to take advantage of the full holiday extension.

 

2% Overseas Stamp Duty Surplus

With reference to last year’s budget, it has been confirmed that a 2% overseas stamp duty surplus for purchasers of residential property in England and Northern Ireland who are not resident in the United Kingdom. The measure will apply to land transactions with an effective date of 1 April 2021 or later.

From our perspective, this tax represents a big shift in UK Government policy away from an open trade policy – until now there has never been a consideration of an investor’s origin if they are looking to buy an investment home.

Undoubtedly, JLL recognises that this tax will create initial market resistance until it becomes accepted. However, it should be noted that many other competing cities already provide higher levels of overseas taxation; so, UK’s major cities should remain competitive on the international stage.

Increase in Corporation Tax

Corporation tax on company profits above £250,000 is set to rise from 19% to 25% in April 2023. The 19% corporation tax rate is retained for those companies with small profits under £50,000. The tax rate for profits between £50,000 and £250,000 will be taxed at a rate between 19% to 25%, depending on the government’s relief.

Therefore, JLL envisions that this will affect all companies that own a portfolio of UK commercial and residential property.

 

Overall Budget Conclusion

The underlying message from the budget was that the outlook for economic growth is better than anticipated. There are various supports for the vaccination rollout, businesses, arts and sports to resume. GDP will reach its pre-pandemic level six months earlier than expected, while unemployment is expected to peak at 6.5%, rather than the initially anticipated 11.9% in June 2020.

The Budget’s stamp duty and mortgage measures may create a ‘generation buy’; however, to suit a greater variety of end user needs, renting as an aspirational lifestyle choice will still be apparent.

 

For further information, please contact +852 3759 0909 or email irp.hk@ap.jll.com.

05 Mar 2021

英國著名發展商Berkeley Group旗下品牌St James於倫敦W12區綠意盎然的White City Living項目推出全新一期住宅項目--Parkside。

 

一流社交、文化及教育設施

Parkside住戶可享世界一流的零售、娛樂、教育、文化及商業設施,毗鄰歐洲規模最大的休閒購物中心Westfield London,全球知名高級百貨公司Harrods的第二家分店亦座落其中。

此外,倫敦前五名大學中有四所(包括倫敦大學學院、倫敦經濟學院及倫敦帝國學院等)距離White City Living 僅30分鐘路程;其中,帝國學院正在項目旁興建一個佔地23英畝的新校區及創新中心。著名的諾丁山預備學校(Notting Hill Prep School)及聖保羅女子學校(St Paul’s Girls School)近在咫尺,而伊頓公學(Eton College)及哈羅學校(Harrow School)也在40分鐘路程內,優質教育設施一應俱全。

White City Living距離荷蘭公園(Holland Park)、諾丁山(Notting Hill)及肯辛頓(Kensington)僅數步之遙。項目提供2,300個全新單位,以及60,000平方呎綜合商用樓面和8英畝的綠化空間,其中包括佔地5 英畝的公園。

住戶前往倫敦及其他地區可享完善交通配套。由White City和Wood Lane地鐵站出發,15分鐘內即達倫敦西區、Bond Street及Mayfair等主要熱門地點。

 

融入大自然的家

項目命名為Parkside, 一如其名,住宅單位俯瞰中央公園(Central Gardens)並擁有冠絕全區的怡人景觀,讓住戶置身於8英畝開闊的綠化景色中,盡覽白玉蘭花景及恬靜的水景。

Parkside由國際知名建築師Patel Taylor設計,整體佈局居高臨下,戶戶朝西,而下方翠綠的花園則象徵著季節的縮影。

White City Living的園林設計由Murdoch Wickham負責,廣闊的綠色空間意味著全新的Parkside住宅單位被大自然環抱。住戶可透過附設的露台或天台等室外空間,飽覽各種特色水景及園林景致。

發展商St James的活化願景首重加強生物多樣化及為壯觀的園林注入生命;至今,項目已廣種經精挑細選的6,400多棵本土樹木及多種本土植物,為各種野生動物提供寶貴的棲息地。

為鼓勵步行及營造更綠化的環境,園内幾乎完全禁止車輛進入。所有車位均設有電動車充電設施,以及共享汽車俱樂部和固定的單車泊位。

 

無縫體驗

Parkside提供開放式單位、一至三房單位,並充份滿足自住客對各種不同設施的需求,包括提供往來倫敦帝國學院最大的校園、Westfield London購物中心及便利的交通接駁服務。

為切合現代生活所需,White City Living將於2021年初開設無與倫比的全新私人配套設施,當中包括橫跨兩座大樓、樓面面積逾20,000平方呎的先進會所Home Club。Home Club是一個集工作、會議、社交、休閒及健身等用途於一身的多功能場所。住戶亦尊享24小時禮賓服務,以及兩個特別設計的休息室,無論日間工作或夜間休憩均各適其適。

所有住戶設施均採用非觸式出入技術。這項創新科技讓住戶返抵White City Living後,無需接觸任何門柄或按動電梯按鈕及開關。

 

仲量聯行香港國際住宅部主管黃嘉欣表示:「香港買家一直對英國樓市興趣濃厚,投資者留意到,英國樓市在脫歐及新冠疫情的不確定性壓力下依然保持穩健。隨著遙距工作日益流行,富裕的年輕家庭對親近大自然及採用便利科技的靈活辦公休閒空間的需求與日俱增。Parkside不僅充份符合這些條件,更擁有四通八達的交通網絡,加上周邊地區增長潛力優厚,對希望把握英國樓市浪潮的長綫投資者而言,實為不二之選。」

 

White City Living單位入場價由727,500英鎊(772萬港元)起。如欲了解更多詳情,請聯絡黃嘉欣,電話:+852 3759 0909,電郵:irp.hk@ap.jll.com

 

 

:

購買境外未建成物業是複雜及有風險的。在作出購買決定前,閣下應仔細閲讀所有相關的資料及文件。營業員純粹就香港以外地方的物業擔任持牌地產代理,營業員並無處理位於香港任何物業的牌照。如有疑問,請在作出購買決定前尋求獨立專業意見。買家可擁有所購單位之999年期業權。London Borough of Hammersmith & Fulham規劃編號:2019/01300/RES。物業編號: IRP_N_101_00309。最後更新日期:04.01.2021

25 Feb 2021

St James, part of the Berkeley Group, has launched a new collection of parkside homes set within the green landscape of White City Living in London’s W12.

 

A world class social, cultural and educational destination 

Parkside residents will find themselves surrounded by world-class retail, entertainment, education, culture and commerce, with Westfield London – Europe’s largest retail destination – on the doorstep, which is now home to the second branch of Harrods, the world’s leading luxury department store. 

In addition, White City Living is located within 30-minutes of four of London’s top five universities including University College London, London School of Economics and Imperial College London, which is currently developing a new 23-acre campus and innovation hub adjacent to the scheme. Families are also well catered for, with the prestigious Notting Hill Prep School and St Paul’s Girls School located close-by, while Eton College and Harrow School can be reached within 40 minutes.

Positioned moments from Holland Park, Notting Hill and Kensington, White City Living is home to more than 2,300 new homes alongside 60,000 sq ft of mixed-use commercial space and eight acres of open green landscaping, including the Exhibition Park which is a new five-acre public park.

Residents enjoy outstanding transport connections to London and beyond. White City and Wood Lane Underground stations provide quick and easy access to key London hotspots including West End, Bond Street and Mayfair in less than 15 minutes.

 

At home in nature

Aptly named Parkside, the new apartments overlook the Central Gardens and offer some of the best views of this new neighbourhood, located within eight acres of open green landscaping, including magnolia gardens and serene waterscapes.

Designed by internationally renowned architects Patel Taylor, Parkside’s elevated views face to the west, whilst the verdant gardens below epitomise the passing seasons.

With a landscape designed by Murdoch Wickham, White City Living’s extensive green spaces mean the new Parkside apartments are enveloped by nature. Residents can enjoy a network of water gardens and landscaping features, with all apartments featuring outside space in the form of balconies or terraces.

Enhancing biodiversity and giving life to a spectacular landscape is key to St James’ regeneration vision; so far more than 6,400 native trees have been hand-selected along with a wide variety of native planting, which will provide valuable habitats for a range of wildlife.

The landscape is almost entirely car-free to encourage a pedestrian approach and aims to deliver a greener environment. Electric car charging points are provided to all parking spaces, alongside an on-site car sharing club and secure cycle parking. 

 

A seamless experience

Parkside includes suites, one, two- and three-bedroom apartments that are ideally suited to owner-occupiers looking to take advantage of all the area has to offer; including access to Imperial College London’s largest campus, Westfield London and outstanding transport connections.

Catering perfectly for modern life, residents enjoy access to White City Living’s unrivalled private facilities which will be newly opened at the beginning of 2021. A state-of-the-art Home Club occupies more than 20,000 sq ft across two buildings. The Home Club is a multifunctional space to work, meet, socialise, relax, and keep fit. Residents also have access to two individually designed private lounges that provide a perfect place to work during the day or relax in the evening and a 24-hour concierge.

Touch-free access technology is incorporated throughout all residents’ facilities. This innovative technology removes the need for residents to touch door handles or press lift buttons and switches, from the moment they arrive at White City Living.

Mandy Wong, Head of International Residential at JLL in Hong Kong said, “The UK housing market has been generating high interest from buyers in Hong Kong, with investors recognising its resilience even amid pressure from uncertainties following Brexit and Covid-19. A rising trend in remote working has led to growing demand from affluent young families for a flexible work-leisure space that has both access to nature and convenient technologies. Parkside embodies all of these features on top of having excellent transport connections and fantastic growth potential in its surroundings, making it a prime location for those who are looking to ride the tide of the transforming real estate landscape in the UK and make an ideal long-term investment.”

 

Homes at White City Living start from £727,500 (HKD7.72 million). For further information, please contact Mandy Wong, JLL, tel: +852 3759 0909, email: irp.hk@ap.jll.com.

 

 

Disclaimer:

Purchasing uncompleted properties situated outside Hong Kong is complicated and contains risk. You should review all relevant information and documents carefully before making a purchase decision. If in doubt, please seek independent professional advice before making a purchase decision. Our sales representatives for overseas property work exclusively in relation to properties outside Hong Kong and are not to deal with Hong Kong properties, unless expressly stated otherwise, are not licensed under the Estate Agents Ordinance to deal with Hong Kong properties. Acquiring interest in an apartment in the building with 999 Years leasehold. Planning Permission no: 2019/01300/RES granted by London Borough of Hammersmith & Fulham. Property ID: IRP_N_101_00309. Last updated date: 04.01.2021.

25 Feb 2021

Matching Green has launched Dockley Apartments, an exciting new residential development located a stone’s throw from the heart of Bermondsey and is set to complete in Q2 2022. The development offers 111 apartments across 8 levels, comprising of one, two and three-bedrooms, each with a generous private terrace and many with far-reaching views across London.

 

Spacious outside living and sleek design for modern comfort

The apartments are finished to an excellent specification with contemporary interiors and stylish layouts. Each unit is thoughtfully designed to maximize space and light, from open-plan kitchens, underfloor heating to frameless shower screens. The apartments are wired for fibre optic broadband, essential for the emerging trend of working from home. The face of the development showcases an innovative tiered design, which allows for spacious private terraces for each apartment. Residents will exclusively benefit from a sheltered all-weather children’s play area, landscaped central courtyard and two communal roof terraces with comfortable seating and year-round sunlight. The project is also equipped with secure parcel lockers to accept personal deliveries. Built to the highest environmental standards, with sustainable modern design and high-quality materials, this impressive development breathes new life into a historic industrial site.

 

Perfectly located in a trendsetting yet historical district

Dockley Apartments is conveniently located within a five-minute walk from Bermondsey tube station in Zone 2, ten minutes from the River Thames and vibrant Bermondsey Street. Canary Wharf, the business district, is only four minutes away on the Jubilee Line.

Bermondsey, host to London’s first railway, was named ‘Best Place to Live in London’ in 2018 by the coveted Sunday Times. Known as a thriving hub for food and drink, Bermondsey hosts a wealth of bars, breweries, restaurants and cafes. The neighbourhood also offers parks, modern art galleries and an independent cinema, providing a rich cultural atmosphere. Sitting alongside Dockley Apartments are a collection of railway arches which, in conjunction with Matching Green, Monmouth Coffee and Neal's Yard Dairy, have been restored to create Spa Terminus where like-minded food production and distribution companies now occupy these spaces. From cheesemongers and greengrocers to butchers and brewers, Spa Terminus consists of companies who supply some of the absolute best food products on the market, all on Dockley Apartments’ doorstep.

Along with Dockley Apartments, Matching Green is currently developing Dockley Road, a development of approximately 12,000 sqft of commercial and retail space. The project will create a new pedestrian street and a new series of commercial units opposite the railway arches, contributing to the range of artisan producers on-site. This will create a dynamic street open for Saturday market trading forming a key part of Southwark’s Low Line walking routes and establishing an exciting centre of activity and enterprise.

 

Units at Dockley Apartments start from £544,500. For further information, please contact +852 3759 0909 or email irp.hk@ap.jll.com.

10 Feb 2021

New residential projects are creating rare opportunities for property investment in the UK's fastest growing economy within commuting distance of London

World famous for its prestigious university, cutting-edge research and magnificent heritage, Cambridge is also one of the UK's leading technology hubs and fastest-growing economies.

A huge student population, excellent career opportunities and convenient access to London ensure consistently high demand for residential property in Cambridge, and several new developments are providing opportunities for overseas property buyers and landlords.

 

Best and brightest

There's more to Cambridge than its elite university, but the institution's influence on local life and the economy is undeniable. University colleges are spread across the city and one in five local residents are students, many of whom remain in the city after graduation for postgraduate research or recruitment into the highly-skilled local workforce.

Cambridge's science parks are partnerships between the universities and businesses that continue to attract substantial overseas investment from the world's largest brands. These partnerships have been instrumental in growing Cambridge's reputation as a world leader in fields such as biotechnology, medical research, software and pharmaceuticals, particularly around the high-tech cluster nicknamed 'Silicon Fen.'

The growing importance of Cambridge's technology and research sectors have placed the city among the UK's fastest growing economies in recent years. Less than an hour from London and international airports, Cambridge is a convenient location for businesses in all fields, and access will improve further with the new East-West Rail link and Oxford-Cambridge Expressway expected to open in the next decade.

 

Country charm and city convenience

Cambridge's reputation for work and study overshadows its other perks as a comfortable and stimulating place to live. Numerous performance venues, museums and art galleries provide one of the richest cultural offerings outside London, and a packed events calendar has something for everyone – from the live bands of the Big Weekend to the Cambridge Folk Festival and traditional Midsummer Fair.

Cambridge's shopping and dining options are just as diverse. With three shopping centers, traditional markets, independent boutiques and the wide selection of restaurants, cafes and bars that modern city dwellers expect, Cambridge has all the attractions of city living with the English countryside on its doorstep.

Families with children are also exceptionally well provided for in Cambridge, with many highly rated primary, secondary and independent schools in the area. These include the University of Cambridge Primary School, St Bede's Inter-Church School and Chesterton Community College, all rated 'Outstanding' by education authority Ofsted.

 

Buoyant residential market

With consistently high demand from domestic and overseas students, professionals and families, Cambridge property can offer investors and landlords some of the highest yields in the UK. The problem, until recently, was the lack of new supply. Cambridge's heritage architecture may be one of its greatest draws for visitors and residents, but stringent building restrictions have long stifled development in the small city, even as they maintained high levels of demand and prices.

This situation is gradually improving as more new residential developments are opening up Cambridge and surrounding areas to investment. The Government's proposed CaMKOx Arc initiative for Cambridge, Milton Keynes and Oxford is also aiming to bring one million homes and 1.9 million residents to England's 'brain belt' by 2050 by creating new neighborhoods and amenities.

One such district in Eddington, a new community less than two miles from Cambridge's historic city center designed by the University of Cambridge as a successful model of sustainable urban planning. Premium homes and apartments are now available in Eddington at Knights Park, combining modern living with convenient access to Cambridge, London and the surrounding countryside.

 

For more information about Knights Park and other residential properties in Cambridge and the UK, please contact JLL Investment Limited at +852 3759 0909 or irp.hk@ap.jll.com.

18 Jan 2021

JLL research has identified the core trends that are likely to shape the UK's housing markets after COVID-19

From Brexit to COVID-19, the UK housing markets and wider economy have been facing unprecedented levels of uncertainty, but there's every reason for investors to feel positive about the near future.

Despite the challenges, performance in some markets has been better than expected across the difficult year, and the next few years will present opportunities to buyers and sellers who understand how the real estate landscape has changed and who are prepared to adapt.

 

Economic outlook

Based on projections that the number of new infections will fall steadily over the next year and that an effective vaccine will be available the following year, Jones Lang LaSalle (JLL) expects the UK economy to recover to pre-COVID levels of growth by mid-2022.

Unemployment will likely take longer to return to former levels, with many industries being hit hard by the pandemic, but the rate is expected to stabilize around 3.5% by the end of 2025. With interest rates and income growth at historic lows, housing affordability during this period should offer many excellent prospects for domestic and overseas property investment.

 

Residential outlook

JLL research predicts a bumpy road of generally positive growth for UK house prices over the next five years. The current strong recovery of residential property prices is expected to continue through to March 2021, when the changes in Stamp Duty come into effect for overseas property transactions and prices decline. A resurgence of growth is expected from 2022, dependent on a COVID-19 vaccine being in wide circulation.

Rental growth is also expected to decline in 2021 as the British Government's job retention furlough scheme ends, which could see many lower to middle income earners facing redundancy. Private housing starts and transactions will be well below numbers predicted before the pandemic, but are expected to recover from 2022 as confidence returns to the sector.

 

London and South East England

The Prime Central London property markets are comparative safe havens for investment in times of financial crisis, and price and rent growth are expected to resurge as early as 2021. Greater London property as a whole is also expected to prove its resilience with flat house prices in 2021 before growth resumes in 2022. Buyers will increasingly favour outlying districts and regions, especially with the arrival of Crossrail services connecting the South East.

 

East and South West England, the Midlands and Wales

JLL forecasts Birmingham's sales and rental markets for the strongest growth in the UK over the next five years, supported by the HS2 rail service and 2022 Commonwealth Games. Bristol has the potential to be a favoured alternative to London for commuters and home owners if the undersupply of private sale apartments is addressed.

 

Northern England

North East England is set to be the worst affected housing market in the UK as the region faces 11% unemployment by 2021. The major northern cities of Manchester, Liverpool and Leeds are expected to fare better with generally flat prices in 2021 and strong growth from 2022, underpinned by the ongoing housing shortfall.

 

Scotland

While Scotland house prices are set to fall in line with the UK average, its two major cities of Edinburgh and Glasgow will see stronger performance. Demand for Edinburgh city centre apartments will continue to outpace supply, while the £35 million regeneration of the River Clyde will create more opportunities in Glasgow.

 

Changing buyer demands

Beyond economic factors, changing trends in what home buyers and tenants are looking for in properties will drive some of these changes in the markets. The coronavirus pandemic has accelerated the pace of some ongoing trends while creating or reversing others.

One of the biggest changes brought about by the pandemic is the rise of remote working. As people spend more time working and shopping from home, sellers and developers need to satisfy the growing demand for a flexible work-leisure space, access to nature and reliable broadband speeds in properties.

While the growth of cities will continue, a notable shift is underway of affluent young families favoring greener outskirts and suburbs over city centers to satisfy their changing living needs. This could mean that access to public transport and amenities are no longer the priorities they were for a significant portion of home buyers, opening up more opportunities in previously overlooked locations.

For more insights on the real estate markets and residential properties in the UK, click here or contact JLL International Residential at +852 3759 0909 or irp.hk@ap.jll.com.

Download Report

 

14 Dec 2020

Buying Process

Buying process of resale property is very much similar to that of a new-built property.

The payment schedule is very straight forward, with a 5 to 10% down payment upon exchange of contract and the balance payment will be upon delivery of property. The whole transaction in general will take around 2 to 3 months.

 

Documentations

For the documentation process, the buyer needs to prepare an Affidavit/Declaration before the exchange of contract, as a proof of identity and for registration of ownership purposes.

 

Costs

The estimated costs upon purchase amount to 5 to 8% of property price, inclusive of agency fee and related taxation.

 

Selling Process

To list the property on the resale market, the owner needs to exchange a brokerage agreement with an appointed agent after deciding the desired selling price. Once a potential buyer has made an offer and after the buying conditions and schedule are confirmed, the contract will then be exchanged with a 5-10% down payment. To save on remittance costs, all payments from the buyer is usually kept by agent first. After receiving all payments and deducting all necessary costs, the agent will remit the net income to the seller.

 

Documentations

The owner shall prepare Affidavit/Declaration before the exchange of contract to prove identity. Also, the title deed of the property needs to be submitted before the delivery of the property. If you have bought a property through JLL, the title deed would have been delivered to you after the handover. If you have problems locating the title deed, please contact your respective salesperson and we will be able to assist.

Cost

Estimated cost for selling property can amount to 4 to 5% and exclusive of Capital Gain Tax as it can vary case by case. Capital Gain tax is imposed on the net profit that the seller makes from the transaction. The taxation rate is either 30.63% on properties held for less than 5 years, or 15.315% on properties held over 5 years. Please note, that the holding period starts from January 1 of the new year. Eg. If the handover of the property is September 2020, 15.315% rate will apply from January 1, 2026.

 

For more information, please contact us at +852 3759 0909 or email us via irp.hk@ap.jll.com or enquire now from the link here.

 

02 Nov 2020

Shortage in supply of new-built condominium pushes up demands in resale market

The sustainable growth of the Japan property market has been supported by a steadily growing population in the metropolitan areas. As such, the shortage in supply of new-built condominium is leading more people to turn their eyes towards relatively new condominiums in the resale market. The Japanese traditionally favor new-built housing, but the recent trends tell us that there has been a change in the people’s perceptions in the age of a building or property. Today, we will look at more insights of the recent trend in resale market.

 

Demand of housing remains strong

The population growth in metropolitan areas like Tokyo has been showing a steady increase. COVID-19 has changed our living and working styles in various ways, but the impact on housing demand is limited. Market observers commented that more people from the city central areas are moving to spacious houses in countryside because of working from home (WFH) was being introduced during the state of emergency in April 2020. Indeed, according to the survey by Tokyo Shoko Research survey, 56% of companies adopted WFH at the time. However, in August, the companies still continuing with WFH reduced to 34.40%.

Looking at the demographic movement in Tokyo, COVID-19 did affect the population movements, but not to the extent to call it as a population outflow. Indeed, demography by nationality showed the decrease in population was largely contributed by foreign residents returning back to their countries. As of August 1, Japanese population has increased by 58,114 comparing with January, while foreigner population has reduced by 4%.  

In the long term, population growth is still in an upward trend. On year on year basis, the Japanese population in metropolitan areas is increasing, despite the state of emergency was announced in April to May period disrupted the usual influx of people expected for every new school year and fiscal year starting in April.

Fortunately, real estate sales activity has sprung back to what it used to be before COVID-19. There is still a great demand for condominiums from the local owner occupiers and the decrease of foreigners do not seem to affect sales. When businesses resumed after the state of emergency, local buyers started actively looking for housing like before. On year on year basis, there were even more transactions in the resale market in August.

Shortage of supply in new-built condominiums

In recent years, the supply of new-built condominiums in Tokyo has been decreasing, despite of the growing population and housing demands. The choice limitations turned buyers to the resale market for secondary alternatives. Land acquisition has always been very competitive in the already developed central areas in Tokyo. As city urbanization continues, the shortage of supply in new-built properties is expected to push up the demands of resale apartments.

Properties below 20 years are actively sought after

New-built housing has always been the most preferred option for Japanese, because historically, houses in Japan were built by wood. It was believed that the newer the house, the better would be its durability. However, the situations are different today. With fewer new-built options and the advancement of superior construction qualities, resale apartments are generally now more accepted.

As more buyers opt for resale markets as a substitute for new-built apartments, it resulted in the majority of transaction volumes concentrated in the relatively new buildings with age below 20 years. In terms of the transaction ratio against the supply, the building aged between 6 to 10 years shows the highest demand last year, followed by those of 11 to 15 years, 16 to 20 years and 0 to 5 years.

Recommendation is up to 15 years old

The observations showed that transaction volume zone is within 20 years old and so, investing in property below15 years is the best recommendation with consideration of the exit timing as well. Although buildings of 20 years old might sound “old” for overseas investors, the locals feel differently. Although traditionally the Japanese adore new-built properties, nowadays more people are realizing that the construction qualities after the millennium 2000 have become excellent to provide strong durability. Especially properties from established developers are well-maintianed in very good conditions, which makes it no big difference to the new-built ones.

Many Japanese developers have their own prestige brand names for their condominiums. Therefore, they put in their utmost efforts in maintaining their quality and reputation. Often, the building management is by developer’s subsidiary company so as to make sure the same brand quality is achieved.

Because of the superior construction quality, it is unlikely that owners of such condominiums will need to pay substantial amounts for maintenance in the first 10 years. That is why many property management companies offers guarantee plans that cover minor repair costs, as there is not much pay out expected during this period of time.

After the first decade, some replacements of appliances like air-cons, dishwashers, water-heaters may be required due to service lifespans, but in general, the properties will look no inferior to new-built ones and are equally competitive in the markets.

 

Property price continues to grow in prime locations

Both resale and new-built condominiums in Tokyo have been on a steep price growth since 2013. The growth until 2016 were largely affected by the great expectations towards Tokyo Olympic game, which has brought significant impacts on the property markets not only in Tokyo central, but also to surrounding areas. The growth in the most recent couple years was due to more sustainable and rational factors. Good connectivity, prime locations, redevelopment and superior quality apartments are enjoying appreciation, whereas those properties without these factors are being left behind from the continuous growths.

The demand for a good property in terms of quality and location is expected to remain strong in central area, as working in office is still a daily norm for majority. The shortage of new home supply will still continue, as land acquisitions will remain competitive in prime locations, which in turn can push up values of the existing good properties. It is therefore a good opportunity to widen your options to consider resale properties with strong growth factors.

For more information, please contact us at +852 3759 0909 or email us at irp.hk@ap.jll.com or enquire now from here.

30 Oct 2020

The regeneration of Shoreditch in the East End ranks alongside Canary Wharf as one of London's great success stories of the 21st century so far, but its rise to prominence has been more rapid. The past decade has seen many of the world's best and brightest creatives relocating to be part of the emerging East London Tech City – nicknamed the 'Silicon Roundabout' as London's answer to Silicon Valley, and home to many of the same names, including the likes of Google, Facebook and Amazon among thousands of ambitious startups.

The explosive growth of Shoreditch has made available property scarce, and new residential developments are highly in demand by professionals and local and overseas property investors who are keen to capitalize on house price increases, set to be greater than in Central London. One of the most significant new residential projects entering the market this year is The Makers, a mixed-use development of 175 private residential units, exclusive amenities and a college, located off a quiet street with convenient access to Tech City and the London lifestyle.

 

Work-life balance in Shoreditch

Shoreditch has global appeal for creatives and tech-savvy entrepreneurs for its collaborative startup culture, business support facilities and excellent transport connections. London City Airport is just 26 minutes from Old Street station by train (four minutes' walk from The Makers), while Heathrow Airport is 50 minutes away. Journey times across London and South East England will be improved when Crossrail services begin at nearby Liverpool Street station in 2021, which will also give a boost to house prices and rents in the surrounding area.

Convenient transport links put other London experiences in easy reach, but there's no shortage of restaurants, bars, shops and cultural venues to serve the local community. From bargain hunting at Old Spitalfields Market to catching events at the Barbican and dining out in Islington, there's plenty to enjoy within walking distance. Shoreditch is also a remarkably green part of London, abundant with canalside parks and other recreational areas.

Families moving to Shoreditch with children will be pleased to know that it's in the capture area of some of the city's most prestigious schools, while higher education institutions such as King's College, Central St Martin's and the London School of Economics are within 30 minutes' travel. The development at The Makers also includes a co-located school, New Regent's College, which will provide state-of-the-art education for pupils aged 5 to 16.

 

Design-led luxury living

Tucked away behind busy City Road on the corner of Nile Street and Jasper Walk, The Makers is a collaborative project between established developers Londonewcastle, the London

Borough of Hackney and the Local Education Partnership. Avanti Architects were tasked with designing this new residential landmark, which draws inspiration from the surrounding architecture and rises 28 stories, including a 7-story podium block.

The interiors by Woods Bagot have a distinctly 1920s flavor, from the grand, double-height entrance lobby to the brass fixtures. Buyers can choose from studio flats, two or three-bedroom apartments or family duplexes and penthouses adding more premium finishes and furnishings. All residents will enjoy views over Canary Wharf, the City of London and the West End from their balcony or terrace, as well as use of private communal facilities including a gym and treatment room, screening room, lounges, garden terraces and a 24/7 concierge.

A number of units at The Makers are now available and ready for occupation. Buying before the end of March 2021 means overseas property investors can qualify for Stamp Duty and Land Tax (SDLT) relief, making a London property purchase more affordable. For more information about The Makers in Shoreditch and other residential properties in London, contact JLL International Residential at +852 3759 0909 or irp.hk@ap.jll.com.

 

13 Oct 2020