Small is beautiful for Wharf's final phase
Speculation continues that the British property market is rebounding from the recession. Traditionally, the summer season is a slow time for the London property market, but this year more transactions materialised than usual.
Peter Murray, partner at property agency King Sturge, said it had been unseasonably busy, with high levels of enquiries and increased dealings following the stronger spring and early summer market.
He said this was due to improved market conditions underpinned by continued confidence, price stabilisation and increased activity. Low interest rates and lack of supply also had a positive effect.
Earlier this year, reports suggested there had been increased activity in the London housing market and that the market would stabilise this year. Macroeconomic forecaster and analyst Lombard Street Research predicted that annual house price inflation would be positive across all indices by next year.
Potential investors in the London market may be interested in an exhibition that King Sturge will host today showcasing a new development in the English capital's southwest.
Octavia House is the last phase of a riverside development north of the River Thames where residents rub shoulders with the well-heeled residents of Chelsea, Sloane Square, Kensington and Knightsbridge. The development is part of Imperial Wharf, a mixed-use building including residential and office space, a 10-acre park and numerous shops, restaurants and cafes.
Octavia House differs from other residential builds within Imperial Wharf because it includes one-bedroom apartments in addition to units with two, three and four bedrooms.
Units include the Manhattan apartment with features such as a custom-designed kitchen and timber flooring. The units are specifically targeted at property investors. Other features include hi-tech entertainment systems and surround sound for one-bedroom and two-bedroom units.
The next step up from a two-bedroom unit is the Premier apartment, which comes with a terrace and luxurious extras such as a wine cooler and coffee machine.
Penthouses meanwhile, feature terraces, floor-to-ceiling windows and interior finishes such as leather, timber, stone and chrome. Platinum penthouses take luxury to the next level and include a walk-in double shower, multiroom entertainment system and bespoke interiors. Completion is expected in spring/summer 2011.
One-bedroom apartments start at GBP329,950 (HK$4.18 million). Penthouses cost upwards of GBP1 million. Annual rental yields are expected to be in the region of 6 per cent.
Reports of an oversupply of one-bedroom units in London were unfounded when it came to Imperial Wharf as earlier phases in the development had few such apartments, Murray said.
'Octavia House, which is the final phase of the development, is the only building to provide a selection of one-bedroom apartments. This presents an excellent opportunity for purchasers to take advantage of this imbalance [in one-bedroom units] at Imperial Wharf,' he said.
Murray said Octavia House offered Hong Kong-based investors an opportunity to buy in a prime riverside development, particularly for those investors who intended to rent out apartments. 'There will be limited completion within the development for smaller apartments, where we anticipate the demand to be strong.'
Murray said the development was also a good investment for buyers looking to buy property for their own use or for their children to use while studying in London.
Imperial Wharf station is on a new rail line next to the development and due to open this autumn. Murray said it would offer a quick commute to London's underground rail network.
He said there was limited competition for rental properties of such 'high quality and cutting-edge contemporary specification'.
In addition to its location, other selling points included a gym, underground parking, 24-hour security and a concierge service, Murray said.
Octavia House is being exhibited overseas ahead of any marketing in London.
Ross Faragher, managing director of St George, the developer of Imperial Wharf, said that in addition to the opportunity to purchase in a prime riverside development, investors could also capitalise on a 25 per cent currency saving compared to summer last year, plus lending rates at their lowest in Britain for decades.
According to analysts, London's position as a world centre consistently results in strong demand from the private and corporate sector for rented accommodation.
A short supply of suitable property and a growing population in the English capital boosted the rental property market, analysts said.
Foreign investors in British property are exempt from capital gains tax on resales, while tax payable on rental income can be offset against mortgage payments, making investment in the market an attractive option.
