Singaporean buying interest in London property remains high, although a slight slowdown is expected this year due to constraints brought on by the TDSR framework, explained Doris Tan, Regional Director of International Project Sales at JLL.
“Banks are still lending at 70 to 75 percent loan to value but there is now more paperwork involved,” Tan said in reference to the longer and more tedious process of obtaining in-principle approval for a home loan.
But she added that “London is an evergreen market and a must have for property investors”.
In 2012 and 2013, the consultancy witnessed volume sales of London homes in the city-state.
Data published by JLL for 2013 shows that Singaporeans outpaced other foreign nationalities as the top overseas buyers of central London property with a share of 18 percent, beating out Hong Kong (17 percent) and the Middle East (15 percent).
According to Tan, one and two-bedrooms are more popular with Singapore-based investors and the majority of them are aged 45 and above.
As for prices, growth in the range of 25 to 30 percent has been achieved in the capital over the last two years with an expected five percent increase per annum until 2018 when the much-awaited Crossrail line opens, providing direct connectivity within London’s main employment centres.
Banking on this future development is Principal Place, a new mixed-use project that’s set to have its global launch in Singapore next weekend.
Located in the heart of Shoreditch and the City of London, considered the financial district, the 50-storey residential component is touted as the only tall apartment building in the area and comprises 243 homes. Facilities include an indoor swimming pool and gymnasium offering street views.
Its developer W1 Developments is confident on demand from Singapore. “So far, around 40 units have been pre-sold around the world,” said Managing Director Christopher T. Murray, adding that buyers here are sophisticated when it comes to the London property market.
Units sizes range from 525 sq ft to 2,500 sq ft and prices are between £700,000 and £2.5 million.
And while many look at education as a major factor when it comes to buying new build property in London, Murray believes the location of Principal Place within proximity to major office towers and Liverpool Street station, and a workforce of 12,000 people emerging in the area in the next few years offers strong rental opportunities.
Principal Place is expected to achieve a gross rental yield of four percent.
The project will also be launched in other parts of Asia as well as the UK in the coming weeks.
Image: Artist’s impression of Principal Place in London.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
