South East London an emerging hotspot for investors
South East London an emerging hotspot for investors
January 13, 2015
The Greenwich Collection
In its annual November report CBRE Hot 100 The Winners of London’s Residential Market, CBRE Research identified the top 10 London boroughs with the highest price growth over the last year and compared it with growth over the last decade. The latest November 2014 report showed that whist over the last decade the central boroughs have typically outperformed other areas, more recently there has been a ripple out, with stronger growth in slightly off-pitch locations. This has been driven largely by the resurgence of domestic buyers. The map below shows those boroughs with strong growth last year (dark green, compared to the previous decade in light green) and illustrates the probable creation of a new wealth corridor in the South East. CBRE’s International Project Marketing Singapore is launching The Greenwich Collection in South East London.
Sarah Nicolson, Director, International Project Marketing, Singapore said “Located in the new regeneration hot spot of London, the development is on the border of the Royal Borough of Greenwich and the Borough of Lewisham, areas which have seen massive inward investment. The development itself will create a dynamic new urban village complete with shops, community facilities, an energy centre and public landscaped space.”:
In the report, Lewisham and Greenwich saw the fourth and sixth highest price growth of all London boroughs last year, achieving close to 20 per cent growth in prices over the previous year 2013. Lewisham still comes within the top 10 most affordable boroughs in London to buy. London is one of the most desirable global cities to live in and this is reflected in prices. However, there are areas of London that still provide good value for money and affordability is measured by calculating the house price to earnings ratio, Lewisham is approximately 8.46 per cent.
CBRE polled investors on the most sought-after feature in a project. “Outside terrace or other space” came out the second most important factor, after “Architecture”. At The Greenwich Collection all apartments have balconies and/or terraces, plus the residents benefit from landscaped public gardens and the nearby 180 acres Royal Park at Greenwich (15 minute walk) and 100 acres of protected common land at Blackheath (10 minute walk).
The Greenwich Collection has four London Rail/Overground stations within 800metres, with transfer times to the major employment hubs including London Bridge from 8 minutes, Canon Street from 12 minutes and Canary Wharf from 12 minutes. There is also a regular and efficient bus network. (Source: www.tfl.gov.uk and www.google.com)
There is a selection of 1, 2 and 3 bedroom apartments available with a good specification including Paula Rose Designed Kitchens with Bosch appliances, underfloor heating throughout and video entry. Facilities include 16 hours concierge, car parking (for selected apartments), Landscaped gardens, balcony/terraces to each apartment, lifts to all floors and a 12 year NHBC warranty.
The Greenwich Collection rental yields are recurrently projected to be from 3.8-4.9 per cent. Possible tenants include young professionals working in London Bridge, The City and Canary Wharf and students studying at one of the nearby universities, including The University of Greenwich (16 minutes’ walk), Kings College London (8 minutes), London Metropolitan University Moorgate (12 minutes), University of Westminster (15 minutes) and City University (15 minutes). The increase in private rental households across the capital has pushed rents up; according to LSL Property Services, average rents in London increased by 2.2 per cent over the year to now stand at £1,166 pcm. CBRE Research team carried out some analysis where they have considered a number of economic and demographic metrics to establish the boroughs with the best rental prospects over the next five years. They predict a 33.2 per cent increase in rent in the next five years in Lewisham, the 7th highest of any borough in London.
Ms Nicholson added that “The Greewich Collection is a really exciting opportunity to invest in a location which has been identified as a hotspot for capital and rental growth. It is an area with large amounts of domestic buyers and tenants who are attracted by the affordable prices, short commuting times and proximity to open spaces”.
CBRE and Investin will be hosting an exhibition in Singapore on Saturday 17th and Sunday 18th Janauary 2015, 11am to 7pm, at The Regent Singapore, Boardroom II and III, Level 1 Cuscaden Road, Singapore 249715.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.