TSI
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows. The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time. In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation. In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square. For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square. ‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International. ‘While in part it is the address that purchasers are paying for, the size and quality of the property is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained. ‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added. Continue reading
UK buyers with pension pots favouring property as an investment, it is claimed
Pensioners in the UK have more investment opportunities than ever before due to pension rule changes and many are looking to property as an alternative to annuities, shares and bonds, it is claimed. Since pensioners were granted full control of their retirement savings in April, some 70% have opted to drawdown all or part of their retirement wealth and domestic and international property is topping the investment stakes. Compared to investments in the stock market, property remains a far more predictable and stable option in the longer term according to the latest Global Real Estate Outlook report from property investment company, IP Global. IP Global’s findings show a clear price surge in cities like Berlin, which saw a 10.01%rise, and the central wards of Tokyo, where investors have achieved a 13% return so far this year. In addition, growing rental demand in cities like Brisbane means that investors can expect a yield of 5.4% per year. Supported by the strong British pound against the Euro and Japanese Yen, UK investors can not only obtain far more favourable purchase prices but also secure a continued income. Domestically, London and most recently, Manchester, are leading the way, according to the report, with prices in Greater London increasing by 12% in the last year. In Manchester, a new property is still valued at less than half the average seen in London, however, prices are expected to rise to close this gap, with new projections putting Manchester price growth at a strong 26.4% up to 2019. With these new found freedoms, there has been a sharp rise in demand from pensioners for experienced and qualified advice on what retirees can do with their savings as they decide how to make use of their pension pot. Continue reading
Wealthy buyers returning to the Caribbean market
Wealthy British buyers who are feeling more confident about the economic outlook are returning to the luxury real estate market in the Caribbean, with Barbados proving popular again. Indeed, the luxury Royal Westmoreland resort in Barbados, which is popular with British footballers and celebrities, has reported the best sales period in more than 10 years, with $60 million of villa sales largely going to British buyers. The firm says that overall the appetite for overseas property is returning and Barbados is regarded as an appealing place to have a second home with $30 million of new villas now being built and another $30 million of homes in the next six to nine months. ‘This is the busiest period for me in 11 years at Royal Westmoreland. Everything we are building is for somebody who has purchased the property so we are not building anything speculative. We have seen a substantial turnaround from the previous five years,’ said Royal Westmoreland construction director Ian Putley. According to his colleague, sales Director Kim Goddard, Most of the sales are to British buyers who are feeling more confident about the economy back home and in the product that is Barbados. ‘They want a sure bet when it comes to making their lifestyle choice for a second home. This means built amenities, established vibrant community and lower risk on protecting resale values,’ she explained. The Royal resort, which is itself up for sale currently, with a price tag of $75 million, has expanded onto new land purchased in 2006 which covers 250 hectares and has planning permission for another golf course and hotel. The new collection of 31 lots are on a high ridge with views over the golf course and the southern stretch of the sought after west coast. Famous owners of homes at Royal Westmoreland include former cricketers Andrew Flintoff, Michael Vaughan and Ian Botham, golfers Ian Woosnam and Lee Westwood, boxer Joe Calzaghe and footballers Wayne Rooney, Andy Cole, Rio Ferdinand and Stuart Pearce. It is the only completed gated community in Barbados with a golf course and a beach club, and is a short drive inland from the Platinum Coast known for its white sandy beaches, chic restaurants and laid back beach bars. Wealth intelligence firm Wealth-X has just brought out a report saying that there is increased demand for homes in the Caribbean. It points out that while Caribbean luxury real estate values remain 10% to 15% below their 2009 highs, prime property sales increased by more than 10% in 2014. According to Wealth-X president David Freidman, the firm’s latest research shows that resurgent luxury real estate markets in the Caribbean, and specifically Barbados are in a good position to take advantage of long term growth trends in global ultra high net worth buyer demand for real estate. The report suggests that wealthy investors from China and Russia in particular are looking to buy in the Caribbean. They are looking to buy luxury real… Continue reading
