Letting agency City Docklands targets Singapore investors
John Murphy, director of London-based City Docklands, an independent estate agency, has been travelling regularly to Hong Kong and Singapore to meet clients since 2008. That was the onset of the global financial crisis, and with domestic demand and financing drying up, many UK developers saw the opportunity of launching their projects in Asia. The weakening British pound had also been a lure for Asian investors, particularly those in Singapore.
A lot of these projects in London, especially those in giant regeneration schemes, are now coming online, he says. These include the first phase of Royal Wharf by Singapore-listed property group Oxley Holdings in a joint venture with Ballymore, as well as Battersea Power Station, developed by a Malaysian consortium led by S P Setia, Sime Darby and the Malaysian Employees Provident Fund.
Source: City Docklands
The living and dining area of a rental apartment furnished for rent by City Docklands
Record completion this year
The number of new homes built in London will reach record levels in 2017, according to Savills in a report in April. Total net completions (including sub-market and intermediate housing provision) are expected to peak at 46,500 this year. Last year, an estimated 41,000 homes were completed.
With many investors in Asia having purchased units in London offplan, and frequently, sight unseen, this spells an opportunity for City Docklands. The company, which started out in 2004 as a letting agency, now handles 500 portfolios on behalf of clients, many of whom are individual investors, says Murphy.
Murphy: As a letting agency, City Docklands has on hand 500 to 600 active tenants
Launch of satellite offices
Today, investors from Singapore represent only 18 out of the 500 portfolios. However, Murphy is optimistic that there is great potential for further growth. “We’re looking at existing and soon-to-be-landlords in projects that are completing soon.” Therefore, City Docklands Global was launched last month, with two satellite offices at Two International Finance Centre in Hong Kong and Six Battery Road in Singapore. Each office will be manned by three staff and a secretary.
City Docklands has on hand 500 to 600 active tenants, according to Murphy. These are mainly young professionals from overseas, either singles or couples. They tend to work in financial institutions, MNCs, law firms or professional consulting firms in the London area.
More than 90% of them want furnished apartments, he says. “They want good-quality, stylish furnishings,” observes Murphy.
City Docklands will advise landlords on furnishing their units for rent. By offering turnkey solutions from handover to checking for defects, furnishing and putting in a tenant, landlords will have a shorter void period, thereby, maximising their rental return, he adds.
Murphy also recognises that many of the Asian buyers are also parents whose children are studying or planning to do their tertiary education in London.
Concierge service, trilingual hotline
City Docklands is therefore rolling out a new concierge service at end- October. This will be a service catering to overseas clients whose children are coming to the UK for the first time. They will be received at the airport by one of the agents from City Docklands, and orientated on how things work within the property they will be moving into, as well as the amenities in the neighbourhood.
There will also be an emergency telephone number in case of distress. “The person at the other end of the phone will be trilingual in English, Cantonese and Mandarin,” says Murphy. “We’re going to offer this service in London, Manchester, Birmingham, Oxford and Cambridge — the main university towns for international students.” There will also be a new “professionally built” trilingual website.
To kick-start its Asian operations, City Docklands is offering promotional management services fees of just 8.88% (excluding VAT) for each property’s initial rental contract period. The rate is a discount to the prevailing market rate of 10% to 15% for similar services, and will be available for those who sign up before Jan 1, 2018, says Murphy.
This article appeared in The Edge Property Pullout, Issue 797 (Sept 18, 2017) of The Edge Singapore
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