Fringe areas in London a hit with overseas buyers
Many Singaporeans are still turning to overseas property investments to avoid paying the seven percent stamp duty on second properties, and 10 percent for third properties in the city-state.
From 2012 to 2013, the value of such purchases made through real estate agents in Singapore grew from $1.4 billion to $2.0 billion, according to statistics in parliament last year.
Colliers International noted that the top three outbound investment destinations for Singapore-based investors were London, Sydney and Tokyo from October 2013 to 2014, with 70 to 80 percent of interest focused on the UK capital.
Separately, a recent PropertyGuru news report revealed while properties in prime central London have attracted robust demand from overseas buyers for more than 30 years, the city fringes are slowly becoming a new hotspot for Singapore investors. Read more > City fringes attract more London buyers
For instance, Halifax shared that property prices in the Wembley area which is about 10 miles outside of central London grew by over 20 percent in 2014, making it one of the top 10 best performing areas for price growth.
And foreigners now have more reasons to invest there with the future Wembley Park development by Quintain transforming the 34ha precinct, bringing new shopping, leisure facilities, homes and public spaces.
Charles Calverly, residential development director, Quintain, expects some 5,500 homes will be added to Wembley in the next 10 to 20 years.
The property developer is set to launch the first phase of Alto, its next phase of residential development in North West Village at Wembley Park to Singapore-based investors next month. Comprising one- and two-bedroom units ranging from 534 sq ft to 837 sq ft, prices start from 350,000 while a penthouse is expected to be over 1 million.
Calverly noted that similar apartment layouts in Hyde Park, a prime London location are in the range of 3 million and above.
The lower asking prices in city-fringe areas such as Wembley has contributed to strong overseas interest. The 450-unit Emerald Gardens, the first phase of North West Village is already 85 percent sold, shared Calverly.
Good connectivity is another key selling point with the London Undergrounds Wembley Park station only two tube stations away from the Bond Street shopping belt.
Meanwhile, for those interested to purchase a unit at Alto, the sales showcase will be held at Shangri-La Hotel from 18 to 19 April from 11am to 7pm.
Image: Facade of the Alto apartment development.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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