A report from IP Global places London, New York and the emerging city of Kuala Lumpur rank as the top three hubs to watch this year, while the troubled cities to avoid are listed as Athens, Hong Kong and Prague.
London property market is being fuelled by international investors with 5% growth forecast for 2012 while New York is perceived as a safe haven with prices still 20% below their peak.
With strong growth forecasts of 5% for 2012 and 23% over the next four years, prime London property continues to attract foreign investors and top the rankings. Sales volumes increased 85% over the last year, as a result of 11% price growth and rental demand remaining strong.
The report states that Kuala Lumpur leads the way in the Far East, with average price increases of 5 to 24% and says there is encouraging activity in San Francisco, Brisbane, Perth and Istanbul.
IP Globalis a leading property investment company specialising in prime investment opportunities in 20 emerging and developed markets around the world.
Showing posts with label London Property Market. Show all posts
Showing posts with label London Property Market. Show all posts
Monday, March 19, 2012
Saturday, January 14, 2012
London Property Market News; WSJ Looks At London Property in 2012
How long can London's property market defy gravity asks the online Wall Street Journal? House prices in the capital rose in December, even as prices elsewhere stayed flat or fell, says the Royal Institution of Chartered Surveyors.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Monday, October 24, 2011
London Property Investment is a Safe Bet
Property in London continues to be a safe bet for investors as overseas demand is helping to keep the market stable, it has been revealed.
Selwyn Lim, director of Mouseprice, said the ongoing robust nature of the London market can be attributed to the city's position as a globally-renowned cultural and business centre, with the capital continuing to outperform the rest of the UK in terms of its ability to recover from the financial downturn.
"London has always been a unique case in that the supply and demand of property in London is [affected] by overseas cash and lots of overseas buyers," he commented.
According to figures published by Rightmove, the gulf in north-south average asking prices is now the highest it has ever been.
The firm revealed average prices in the south of England (£336,743) are now more than double those seen in the north (£164,347).
Selwyn Lim, director of Mouseprice, said the ongoing robust nature of the London market can be attributed to the city's position as a globally-renowned cultural and business centre, with the capital continuing to outperform the rest of the UK in terms of its ability to recover from the financial downturn.
"London has always been a unique case in that the supply and demand of property in London is [affected] by overseas cash and lots of overseas buyers," he commented.
According to figures published by Rightmove, the gulf in north-south average asking prices is now the highest it has ever been.
The firm revealed average prices in the south of England (£336,743) are now more than double those seen in the north (£164,347).
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