2016 was a bit of a hectic one for the UK real estate industry, especially with Brexit and stamp duty hikes dampening demand for properties in London.
Photo credit: Sime Darby
Some industry analysts are cautious about their predictions on market outlook for this year, concerned that buyers are still rather price-sensitive. With the British election taking place next month, and in light of current political uncertainties, the real estate and related industries may face some challenges in the path ahead.
On the other hand, other industry players are upbeat about the potential for a 5 to 10 per cent rise in property prices of prime London homes within the next 2 years. One of the latest new property projects is the Battersea Power Station Development. Owned by Malaysia’s Sime Darby, S P Setia and Employees’ Provident Fund, the mixed-use development is spread over 17 hectares in London’s Southwest and will potentially yield ￡100 million worth of homes. For the most recent 50 deals transacted, yields average at 4.6 per cent, higher than the 3 per cent average for the city.
Photo credit: www.batterseapowerstation.co.uk
The Battersea Power Station project will be developed over 8 launches and the first 2 are already almost sold out while almost one-third of the 1,363 units have already found buyers. The development is slated for a 2025 or 2026 completion. Numbers from some other property agencies have also shown a 5 per cent price-rise and a 6.3 per cent sales volume in the first quarter of 2017.
