Knight Frank’s International Project Marketing team reports high levels of interest in turn-key, new build, residential stock in London among Asian investors following the impact of local governments introducing cooling measures on some Asian cities’ property markets after Chinese New Year. In late February, the Hong Kong government announced it would double the rate of stamp duty on all properties over HK$2 million, which has led to a marked slowdown in the sale of apartments in the city. Furthermore, a few days later, the Singapore authorities announced higher tax rates for rental investment properties in its Budget. Both these measures are expected to encourage cash buyers to look for other investment opportunities, such as London real estate instead of buying domestically.
This desire by investors to buy property which has the potential to immediately generate rental income has resulted in a recent development marketed by Knight Frank, Manor Apartments in St John’s Wood, London, selling out in just two days.
Knight Frank is now appointed as the sales agent of another new-build and fully completed development. Clerkenwell Quarter is a brand new development of 107 luxury apartments based in London’s vibrant Clerkenwell. The development is located just a few minutes’ walk from the City and the new Crossrail station at Farringdon. On completion, Crossrail will provide a new fast train link from the East to West London and beyond. The apartments are also strategically located near to a number of top educational institutions including the renowned Cass Business School, the business college of City University and the largest provider in Europe of specialist financial services courses.
The one, two and three bed apartments all have their own outside space with either balconies or terraces as well as providing access to a large communal roof terrace with views over the City and a concierge service. Prices start at £415,000. London is currently experiencing strong demand for rental property and based on current rental evidence, yields are forecast at 5% (scheme average).
Tom Rundall of International Project Marketing at Knight Frank, says, “As it becomes more expensive to invest at home, London looks an even more attractive choice for investors. Interestingly, it’s no longer just about off-plan sales: Clerkenwell Quarter, located in a core, central area, offers a relatively rare opportunity for cash buyers to purchase new build apartments which are ready for occupation and thereby can also provide an immediate return.”
A property exhibition will be held at Level 7, Bowen Room, Conrad Hotel, Pacific Place, 88 Queensway, Hong Kong on 27 & 28 April 2013 from 11am to 7pm. For more information, prices of Clerkenwell Quarter or registration for the exhibition, please contact Knight Frank Hong Kong on +852 2846 7418 or investint@hk.knightfrank.com.