London Calling
1
By MARK BOWLING London calling ... W ell high season is with us again, I could go on about all the fabulous new projects currently being launched throughout our beloved city and how they’re selling like hot cakes, but I’m not going to. I’m going to look at something completely different for a change, let’s look at London. London? “Yes London, you know Fish, Chips, Cup O’ Tea, Bad Food, Worst Weather, Mary ******* Poppins, London!”* It may not sound inviting to many of you, but in terms of a shrewd investment many wealthy Thais are snapping up properties in London. Local expats earning Thai baht could also give London some serious consideration to a long-term investment and here’s why ... Growth and safety “In a time of significant uncertainty in the global economy the London real estate market provides one of the best long-term investment opportunities for growth and safety.” Let’s look at the key points to substantiate this claim. l Security l Long-term growth l Weakness of the pound Security – London can offer investors a good legal and political infrastructure to safeguard their investment. Real estate investment offers protection on inflation and is considered a good hedge similar to precious metals. Strong rental yields of between 5-8 per cent with a 25 per cent increase in rental demand since 2009. A massive population growth of 600,000 and a lack of new For long periods throughout 2004/5 the exchange rate hit lows of Bt75 to the £. This year the Baht has strengthened and hovered between 45-50, an increase of more than 30 per cent ‘‘ properties. Relatively low interest rate environment. No capital gains tax for certain buyers. A significant property shortage is looming in London, which is due mainly to the hangover from the financial crisis and many developers keeping a low profile for the last couple of years. Giant cuts in government spending means fewer low-income housing projects. Another key factor is due to issues inherent with obtaining planning consent. In England & Wales 7,273 new homes commenced in 2011, up 148 per cent. For London, however, the figure is virtually unchanged. There are 1,200 unsold new homes in central London, which is down from 2,000 six months ago. So let’s look at Long-term growth, over the next 10-year period London’s 7.8m population is estimated to grow to 8.4m. The number of households will increase by 720,000 to 3.92m in 2026 to mainly single person households. This creates opportunity in the market, since there are currently fewer new housing starts than in 1990. Another key growth factor is that London has enjoyed a growth of 14.7 per cent since 2009, whereas the national average is 8.1 per cent. London currently receives an inward investment of £3.3billion annually by some of the world’s wealthiest people who are choosing to invest money in the London real estate market. Education considerations Central London property prices have also risen due to popularity of gaining an education in London. Since 2008/9, the number of Asian students studying in the UK has increased by an average of 13.25 per cent per annum. As Asia grows, and average incomes increase, the number of parents that are able to afford an education in the UK for their children will continue to grow. These students need somewhere to live, and many of the buyers we see at Colliers International are buying for their children’s future education. Finally let’s look at the Weakness of the British Pound and its downward spiral (see graph). For long periods throughout 2004/05 the exchange rate hit lows of Bt75 to GBP1. This year the Baht has strengthened and hovered between 45-50, an increase of more than 30 per cent, adding extra spending power in British pounds. My company are now offering fine residences in London from well known developers such as Redrow, Bellway, Barratt Developments Plc, Berkeley Group Plc and Regal Homes. Call in for a chat. * How a character in the movie Snatch described the English capital with expletive deleted. Mark Bowling is senior sales manager with Colliers International’s Pattaya office on Second Road opposite Central Festival. The branch office was voted Best Agent (Eastern Seaboard) in the 2010 Thailand Property Awards. He joined Colliers International in early 2009 having been sales manager with a local property development firm since 2006. Mark has had a successful career in international sales and marketing spanning more than 20 years both in Thailand and the UK. He can be contacted at [email protected] Mar 02 Jan 03 Nov 03 Sept 04 July 05 May 06 Mar 07 Jan 08 Nov 08 Sept 09 July 10 May 11 80 75 70 65 60 55 50 45 AVERAGE SELLING RATES ฿ TO £ ’’ 96•REm•Issue 127•12/2011 GUESTCOLUMNIST
-
Upload
mark-bowling -
Category
Documents
-
view
216 -
download
0
description
Article relating to London property from Asia buyers.
Transcript of London Calling
BymarkBowling
London calling ...
Well high season is with us again, I could go on about all the fabulous new
projects currently being launched throughout our beloved city and how they’re selling like hot cakes, but I’m not going to.
I’m going to look at something completely different for a change, let’s look at London. London? “Yes London, you know Fish, Chips, Cup O’ Tea, Bad Food, Worst Weather, Mary ******* Poppins, London!”*
It may not sound inviting to many of you, but in terms of a shrewd investment many wealthy Thais are snapping up properties in London. Local expats earning Thai baht could also give London some serious consideration to a long-term investment and here’s why ...
Growth and safety“In a time of significant uncertainty in the global economy the London real estate market provides one of the best long-term investment opportunities for growth and safety.”
Let’s look at the key points to substantiate this claim.l Securityl Long-term growthl Weakness of the pound Security – London can offer
investors a good legal and political infrastructure to safeguard their investment. Real estate investment offers protection on inflation and is considered a good hedge similar to precious metals.
Strong rental yields of between 5-8 per cent with a 25 per cent increase in rental demand since 2009. A massive population growth of 600,000 and a lack of new
For long periods throughout 2004/5 the exchange rate hit lows of Bt75 to the £. This year the Baht has strengthened and hovered between 45-50, an increase of more than 30 per cent
‘‘ properties. Relatively low interest rate environment. No capital gains tax for certain buyers.
A significant property shortage is looming in London, which is due mainly to the hangover from the financial crisis and many developers keeping a low profile for the last couple of years. Giant cuts in government spending means fewer low-income housing projects. Another key factor is due to issues inherent with obtaining planning consent.
In England & Wales 7,273 new homes commenced in 2011, up 148 per cent. For London, however, the figure is virtually unchanged. There are 1,200 unsold new homes in central London, which is down from 2,000 six months ago.
So let’s look at Long-term growth, over the next 10-year period London’s 7.8m population is estimated to grow to 8.4m. The number of households will increase by 720,000 to 3.92m in 2026 to mainly single person households.
This creates opportunity in the market, since there are currently
fewer new housing starts than in 1990. Another key growth factor is that London has enjoyed a growth of 14.7 per cent since 2009, whereas the national average is 8.1 per cent.
London currently receives an inward investment of £3.3billion annually by some of the world’s wealthiest people who are choosing to invest money in the London real estate market.
Education considerationsCentral London property prices have also risen due to popularity of gaining an education in London. Since 2008/9, the number of Asian students studying in the UK has increased by an average of 13.25 per cent per annum. As Asia grows, and average incomes increase, the number of parents that are able to afford an education in the UK for their children will continue to grow. These students need somewhere to live, and many of the buyers we see at Colliers International are buying for their children’s future education.
Finally let’s look at the Weakness of the British Pound and its downward spiral (see graph).
For long periods throughout 2004/05 the exchange rate hit lows of Bt75 to GBP1. This year the Baht has strengthened and hovered between 45-50, an increase of more than 30 per cent, adding extra spending power in British pounds.
My company are now offering fine residences in London from well known developers such as Redrow, Bellway, Barratt Developments Plc, Berkeley Group Plc and Regal Homes. Call in for a chat.
* How a character in the movie Snatch described the English capital with expletive deleted.
Mark Bowling is senior sales manager with Colliers International’s Pattaya office on Second Road opposite Central Festival. The branch office was voted Best Agent (Eastern Seaboard) in the 2010 Thailand Property Awards. He joined Colliers International in early 2009 having been sales manager with a local property development firm since 2006. Mark has
had a successful career in international sales and marketing spanning more than 20 years both in Thailand and the UK. He can be contacted at [email protected]
Mar
02
Jan
03
Nov
03
Sept
04
July
05
May
06
Mar
07
Jan
08
Nov
08
Sept
09
July
10
May
11
80
75
70
65
60
55
50
45
AVERAGE SELLING RATES ฿ TO £’’96•REm•Issue 127•12/2011
GUESTcolumnist
