International property roadshows kicking into higher gear

NOW that borders have reopened, roadshows for international property sales are getting back into full swing, with a Singapore favourite — London homes — leading the charge.

The recent weeks have seen roadshows held for several United Kingdom (UK) properties, with more on the way.

At the exhibition of One Cluny Mews on the weekend of May 21, about 60 potential buyers turned up, which was “very encouraging”, given that there were a few other events happening on the same weekend, said Chua Shir Yee, head of international residential sales at JLL Singapore.

The 35-unit project by Manchester-based property developer and private equity company, Salboy, is in London’s Zone 1. It is 5 minutes from Earl’s Court Underground station and comprises 1, 2 and 3-bedroom flats and duplex penthouses. Visitors were mostly looking at the 2- and 3-bedders, which cost between £1.2 million (S$2.06 million) and £2 million, said Chua.

“One Cluny Mews sits on a prime location in central London and is near to Imperial College London and thus many are looking potentially for their own stay,” she explained.

Over the same weekend, Benham and Reeves Singapore held the first-ever launch here for UK developer, Countryside. Two projects were involved: Acton Gardens in South Acton, west London’s Zone 3; and Brook Valley Gardens in Greater London’s Zone 5. Prices are at £450,000 for a 1-bedder and £600,000 for a 2-bedroom unit.

Potential buyers were mostly first-timers keen on 2-bedders, said Doris Tan, regional director at Benham and Reeves, who also launched the first phase project in North London’s Silkstream by Berkeley Homes the following week.

In mid-May, SRI marked its foray into international project marketing with an event showcasing the 35-storey Cassini. This comprises 1- to 3-bedroom flats at White City Living in West London’s Zone 2. White City Living is a project in White City, a regeneration area in the northern part of Shepherd's Bush. The developer is St James, a member of The Berkeley Group.

Over 60 guests turned up at the 2-day private event jointly organised with Lamborghini Singapore and Downtown International, a real estate agency headquartered in London.

“We intend to increase our international project sales team from the current 5 to 20,” said SRI’s chief executive officer, Tony Koe, adding that the team will be equipped to handle sales of international investment properties mainly in Australia, the United Kingdom and America.

With the opening of borders and relaxation of safe management measures, international developers and solicitors are taking the opportunity to land in Singapore to engage buyers personally and showcase their schemes, said Jacqueline Wong, executive director and head of residential services, Savills Singapore.

This past weekend (June 4-5), Savills launched The Ashbee and The Delamarre, which comprise a total of 277 flats ranging from studios to 1-, 2- and 3-bedroom flats, including maisonettes, at Brent Cross Town in the Borough of Barnet, in North London’s Zone 3.

The flats are the first of 6,700 new homes at the 180-acre, £7 billion urban regeneration project, Brent Cross Town, by developer Related Argent.

Pre-sales engagements with clients had “garnered keen interest”, with virtual viewings of the physical marketing suite located in Brent Cross Town lined up, said Wong.

She says 1- and 2-bedroom apartments are most popular due to their more affordable prices starting from £390,000.

Savills is also marketing Slovakian developer JTRE’s first development in London, Triptych Bankside. Two penthouses in the luxury project on Southbank in London’s Zone 1 have just been sold in May for over £3,500 per square foot — a new benchmark for the area. There are a total of 169 flats in 2 residential towers, plus an office building and retail space in the £400 million development designed by architects Squire & Partners.

London home prices have increased by 6.8 per cent per annum over the past 30 years, according to Savills. 

Research by JLL shows that in Q1 2022, prime central London home prices saw an annual increase of 3.3 per cent. Achieved prices up were 4.7 per cent versus the pre-pandemic prices in Q1 2020.

Residential rents in the cultural and financial hub, which bottomed out in Q1 2021, have also rebounded, and are up 15 per cent from a year ago, with achieved rents now higher than pre-pandemic in Q1 2020, according to the consultancy’s prime central London rental index.

JLL forecasts price growth in prime central London homes of 7.5 per cent this year, amid an under-supply of homes there. Estimated annual new home deliveries of about 40,000 units falls short of an estimated annual demand for 66,000 units in 2022.

The opening of the new Elizabeth line — formerly known as Crossrail — has also helped properties close to it command a premium. According to new research from JLL, the price of homes surrounding 76 per cent of Crossrail stations have outperformed the wider market over the period from 2012, when tunnelling works started, to 2021.

Potential buyers in Singapore were drawn to Acton Gardens because the project is close to the Crossrail, said Benham and Reeves’ Tan.

Those keen on investing in overseas properties can look forward to wider options in the coming months, as sales agents are now preparing to hold more roadshows.

“We will be having roadshows for developments in the UK, Japan, Germany and Portugal in July, after the June holidays,” said JLL’s Chua.

Around September, JLL and Savills are expected to jointly launch Canada Water — touted as one of the largest and most sustainable London projects — which will have up to 3,000 new net zero carbon homes as part of a 53-acre mixed-use development masterplan.

The first phase of flats for sale are studios and 1-, 2- and 3-bedroom flats within a 35-storey tower designed by Allies and Morrison architects, with interiors by Conran and Partners. Prices for the project in the rejuvenated Docklands in south-east London’s Zone 2 are anticipated to start from approximately £650,000.

SRI’s Koe plans to organise monthly events for the rest of the year presenting UK and Australian properties.

Sales agents say there is readiness in the local market to buy international properties again, especially in London, which remains a popular destination for international property investment, particularly for Singaporeans.

“There are many new investors exploring international properties,” said JLL’s Chua.

Nina Coulter, director of residential development sales at Savills London, said there is an increase in interest from Singaporean buyers compared to recent years, with world-class education, a weakening pound and competitive transaction costs being some of London’s draws for investors.

In fact, Singapore’s property cooling measures, such as higher stamp duties, are seen as one of the reasons for enthusiasm for overseas properties.

“The numbers (of interested buyers) probably will spike a bit during times of government measures throughout the years,” said SRI’s Koe.

Added Savills’ Wong: “The high acquisition cost of multiple local (residential) investment properties is a contributing reason that propels local investors towards international properties.”

The recent announcement of the UK’s High Potential Individual visa, which offers visas to people who have completed a degree from top universities outside the UK within the last five years, will also lead to new entrants to the UK workplace, she says. Graduates from the National University of Singapore and Nanyang Technological University qualify under the new visa scheme.

And while there will be some concern over interest rate hikes, there are also concerns about inflation and rising costs, so “it’s best to stay invested”, said Benham and Reeves’ Tan.

“Buying overseas is not a short term investment,” she pointed out. “Like all property investments, it is long term, so holding on for 5 to 10 years should make it a good investment, especially with rising rentals in tandem with rising costs, on top of the supply and demand situation due to the pandemic.”