Advertisement

Royal Docks’ home prices may outpace London, rest of the UK, offering BN(O) emigrants option for investments and growth

  • Home prices in the Royal Docks, one of London’s regeneration areas, may jump by 30 per cent over the next five years through 2026, JLL said
  • That growth rate outperforms London’s 25 per cent estimated growth and the UK’s 20.5 per cent increase, JLL said

Reading Time:2 minutes
Why you can trust SCMP
1
Residential sales listings at an estate agent in Loughborough on Monday, July 5, 2021. Photo: Bloomberg.

A riverside development in East London could become a potential investment and residential option for Hongkongers, as property prices in the area may outstrip the rest of the British capital in the coming years, according to property consultancy JLL.

Advertisement

Home prices in the Royal Docks, one of London’s regeneration areas, may jump by 30 per cent over the next five years through 2026, outperforming London’s 25 per cent estimated growth and the UK’s 20.5 per cent increase.

The area’s five-year annual average rental growth is 3.2 per cent for a 17.1 per cent compounded growth rate between 2022 and 2026, said JLL, the sole agent for the Riverscape development on the River Thames, developed by the UK’s Ballymore Group and Singapore’s Oxley Holdings.

“Many Hong Kong investors are looking to diversify their wealth and are looking into the potential of properties that they may rent out now and wait for capital appreciation,” said JLL’s head of international residential property division Mandy Wong. “New developments offer a community atmosphere, and are particularly attractive to the younger generation because the property price is relatively lower than the central location of London.”

YouTube video player

Hong Kong is the first city outside the United Kingdom where the project was launched. A third of the development’s first phase, or 83 units out of 249 apartments, offering between one and three bedrooms, were allocated to Hongkongers.

Advertisement
Apartments range in size from 549 square feet to 1,214 sq ft (112.8 square metres), selling for at least £399,000 (US$546,000). That offers a better value for money than residential property in Hong Kong, the world’s costliest urban centre for more than a decade, where micro-apartments measuring between 186 sq ft and 333 sq ft found buyers last weekend for between HK$3.3 million (US$310,000) and HK$9.08 million.
Advertisement