By Andrew Batt and Farah Wahida:
Sales started in the United Kingdom yesterday for the first phase of the much-anticipated Battersea Power Station project (pictured), with dozens of people reported to be queueing in advance of the 10am opening.
The project will be officially launched for sales to property buyers and investors in Southeast Asia at an exhibition in Kuala Lumpur tomorrow (January 12), although PropertyGuru understands that a number of buyers from Southeast Asia have already signed contracts in advance of the official start of sales.
London’s Evening Standard newspaper reported that 32-year-old doctor Vallakalil Mathew was first in the queue. He told the newspaper: “I think overall because it’s riverside the prices are not bad. I’ve got my deposit money ready. But I won’t live in it, this is just an investment.”
Singaporean student John Chong was also one of the first to visit the sales office. The Evening Standard reported that he was given money by his parents to buy a two-bedroom flat to live in and as an investment. “The main attraction is the location,” he said.
Some 800 apartments will form part of the Circus West phase – the first part of the £8 billion (S$15.8 billion) development which will be developed in eight phases over the next decade. The 39-acre site will eventually have some 3,400 homes – all of which are being sold with a 999-year lease. Completion of the first phase is expected in 2016.
The developers, a consortium including Malaysian developers SP Setia, Sime Darby and the Malaysian government’s Employees Provident Fund, will also hold its sales exhibition in Singapore (January 19/20) and Hong Kong thereafter.
Rob Tincknell, Chief Executive Officer of Battersea Power Station Development Company, said earlier this week: “We are incredibly excited to be welcoming the UK public to the site of one of Britain’s most iconic landmarks. Over the past few months we have seen enormous interest in this unique development from potential purchasers, and we are delighted to be presenting them with an opportunity to be a part of what is sure to become a vibrant new town centre in the heart of London.”
Prices for units in the Circus West phase, which will feature eight separate residential blocks, will start at £338,000 (S$668,000) for a studio apartment with penthouse units going for as much as £6 million (S$11.9 million).
In spite of the strong initial interest, several UK property industry experts have urged potential buyers to be cautious.
Buyers’ agent Henry Pryor, speaking to The Guardian newspaper yesterday, warned that other developments in the area could lead to oversupply, adding that he expected the developers to target "cash-rich overseas buyers caught up in the London property hype".
"It’s difficult to see where domestic buyers are going to come from who can afford the prices that are being quoted,” he said.
Jo Eccles, Managing Director of London search agency Sourcing Property, also warned about possible oversupply.
She said: “The risk is that there will be a huge oversupply of flats, especially those for rent which have been bought by overseas buyers. As such, from an investment perspective, we’re warning clients about oversupply of property and the risk of no real community."
Andrew Batt, International Group Editor of PropertyGuru, and Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact them about this or other stories email andrew@propertyguru.com.sg and farahwahida@propertyguru.com.my.
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