The Midtown office bucked the traditional trend that the final quarter of the year is usually the quietest. This was the second busiest quarter of 2013 for the sales team, who experienced an uplift of 36% in the number of exchanges relative to the third quarter. The final quarter also saw the highest value achieved for the year with an apartment reaching a value exceeding £2,650 psf.
Documents • Jan 29, 2014 09:09 GMT
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In London the situation is ever more serious. Over the past decade London’s population has increased by around 800,000 whereas just 200,000 new homes have been built. With its population expected to increase by around 1 million over the next decade the pressure on housing will become even more acute.
2013 is turning into a good year for the capital. On the back of a surge in confidence, construction levels and sales rates are at a five year high. But underneath its skyline of cranes and skyscrapers, there are a handful of quiet little villages that, while still seeing strong growth in values, remain seemingly unchanged in physical terms. Perfect, the way they are.
Crossrail is Europe’s largest infrastructure project and its impact on London will be far reaching. In property terms, Crossrail is a game changer. It has already affected key investment decisions, acting as a catalyst for further development and providing a significant boost to property values.
The promising start to 2013 has continued throughout the first half of the year, with the number of sales increasing by 45% compared to last quarter and 68% compared to the same period in 2012. Enquiry levels have remained very strong, with the high number of new build properties we have brought to the market proving popular with both domestic and international purchasers.
Average house prices in prime Central London have increased again, rising by 4.2% over the last quarter and outperforming the wider London market, which saw growth of 1.5%. However, increases in new-build values surpassed both at 5.0%. At the beginning of the year, we were predicting price growth of around 6.0% in the prime market for 2013; we now expect growth to come in slightly above this rate.
Improving consumer sentiment and government initiatives is resulting in a more fluid new build sales market, which is feeding through to an upswing in land values for best sites. We have seen double digit price growth on well located consented land, in undersupplied regional markets; albeit from a low base and following several years of stagnant growth.
There has been a marked slowdown in activity in the first half of 2013, with around half the number of deals compared with the previous six months. The total value of unbroken investment block acquisitions has fallen from around £324m in the second half of 2012 to £224m in the first half of 2013.
The appetite for trophy properties in London has never been more intense, and the pinnacle of prime property is undoubtedly the penthouse. The prime residential market in London continues to outperform most other asset classes, as stock remains limited, and demand unrelenting, and this is only heightened in the penthouse market.
Documents • Apr 19, 2013 09:36 BST
A significant increase in stock during 2012 led to end of cycle rental reductions. We envisage muted rental growth in the coming years as the market absorbs the increase in stock and operators prioritise full occupancy over rental growth. We anticipate the market will stabilise, with more consistent rental growth trend in line with inflation will be achievable.
Documents • Mar 18, 2013 15:43 GMT
Recent improvements in the mortgage market have marginally increased the availability of credit for first-time buyers, but this does not go nearly far enough to stop the tide in favour of the private rental sector. London remains a key rental investment hotspot for those active and will continue to dominate investment and development strategies.
The London serviced apartment market is relatively small compared with its global counterparts, although demand has been steadily increasing over the last four years. There are now around 8,000 served apartments in Central London, accounting for around 1.5% of the global market, with approximately 20 major new schemes added over the past year.
Documents • Nov 12, 2012 09:24 GMT
The global super-prime residential market has continued to strengthen in 2012, despite the weak economic climate. The elite market that is ‘super-prime’ is confined to a handful of cities, and many of these have seen average values for their high-end housing edge up over the last six months. London remains extremely appealing on the international field, as a safe option for long term investment.