August 2010 - Canary Wharf Property Update

We are seeing an increase in the number of foreign buyers entering the Canary Wharf property market. Recent sales at Movello include buyers from Hong Kong, Macau, India and Pakistan. A combination of subdued prices and a weak pound have made Canary Wharf prices good value when compared to other prime locations around the world. Local demand has remained weak and we are seeing an increase in the number of properties coming onto the market. Only competitively priced properties are selling and overpriced properties are remaining unsold.
The regeneration effects of the Olympics are yet to have any major impact on prices and property finance remains tight. However, interest rates remain low, reducing pressure on distressed property owners to sell. This stand off means that the majority of properties that are changing hands are where the owner is moving away and needs to sell or forced sales such as repossessions.
We are seeing an increase in the number of enquiries from investors who have bought at developments such as Lanterns Court and Indescon Court which are due to complete soon. Many buyers will have reserved these units at the peak of the market and will have to add significant funds to complete or choose to walk away and lose their deposit. This can be an opportunity for new buyers to buy at reduced prices since rental demand for these apartments will be high.
We are also seeing increased enquiries from owners at developments that completed two or three years ago where they are coming to the end of fixed rate or discounted mortgages and are unable to refinance. The prospect of reverting to lenders standard variable rates can make the investment unviable and selling is preferred to subsidising the investment.
Short lets have proved very popular this summer with landlords achieving double the equivalent long let rent for periods of 2 weeks up to 2 months. One family from Qatar were very pleased with the Movello service when we arranged a short let for them in under an hour. They had arrived at their hotel for a two week holiday only to be told their booking did not exist and there was no availability. They called Movello and we had an apartment arranged within an hour.
Future prospects for the Canary Wharf property market remain positive but prices are likely to remain static in the short term.
If you have property available for Long let short let or for sale contact Angus Edy, Movello Managing Director on 020 7473 9533 or visit http://www.movello.com/

Canary Wharf Property Update June 2010

The summer has finally arrived and with it traditionally comes the busiest time for Canary Wharf estate agents. Short lets have been particularly strong this year with a mixture of holiday lets and corporate clients accommodating employees from overseas. Short lets are a win-win for landlords and tenants. Landlords benefit from 50% higher rent than an equivalent long let and tenants benefit from it being much more cost effective than an extended hotel stay.

The lettings market is experiencing a shortage of supply with continuing completion delays on some new build apartments due to restrictions on finance. This is causing rents to rise in the short term and may lead to sustained price rises over the coming year.
Another factor affecting the supply of rental units is the increasing number of investment landlords choosing to sell apartments rather than re let. With the abolition of Home Information Packs (HIPs) it is now easier for landlords to test the market since they only need an EPC in place to market their property for sale. We are seeing an increasing amount of stock coming onto the market for sale without an increasing number of buyers to match. Therefore there is continuing downward pressure on prices due to the increasing amount of choice available to buyers.
The recent budget has increased capital gains tax for second homes. There was talk of this being introduced next April but this in fact takes effect immediately so there will be no rush of landlords selling which should dampen supply a little. However, with mortgage costs likely to increase over time, many landlords are considering selling up anyway.

Looking forward to the rest of the year, there are still a number of new developments due to complete although still not many new starts. Canary Wharf Group now have planning permission for the final building on the original Canary Wharf Estate and will start work as soon as a tenant or buyer is found. With the working population of Canary Wharf continuing to increase the prospects for the local property market still looks positive.

If you have Property available to rent or sell in Canary Wharf call Angus Edy, Movello Managing Director on 020 7473 9533 or visit www.movello.com