Canary Wharf and Excel Property Update April 2013

It has been a while since I updated landlords on the current market in Canary Wharf, Excel and Greenwich. The Olympics has been and gone and with it came some winners and losers both on and off the track. We had a number of landlords who benefited from some very attractive short let contracts during the Olympics. Most payments were made on time but unfortunately some of the later payments did not materialise. Some would say it all appeared to be too good to be true but speaking to other agents in Canary Wharf, Movello landlords appear to have benefited far more than landlords of other agents. Some Olympic clients were simply taking out long term contracts with Knight Frank, Morgan Randall and Henry Wiltshire and vacating after a month making no further payments.
We have certainly learnt from the experience and now insist on full upfront payment for all short let contracts no matter how big the client is. We have been contacted by the organisers of a major international exhibition being held at Excel in August and have some more very attractive short let contracts available (with full upfront payment). The requirements are:
1x 1 bed apartment for 17 nights (30th August to 15th September). £700 per week. Total contract value - £1700

8x 2 bed 2 bath apartments for 10 to 19 nights (29th August to 16th September). £1400 per week. 10 night contracts - £2000. 19 night contracts - £3800

2x 3 bed 3 bath apartments for 10 and 17 nights (31st August to 16th September). £2100 per week. 10 night contract £3000. 17 night contract - £5100
If you have an apartment in Excel that will be coming available please contact us for further details.
We are pleased to announce the arrival of Ian Pecoff, Senior Property Consultant. Ian joins us after a long spell with Life Residential and previously with Foxtons and Kinleigh Folkard and Hayward. He brings with him extensive knowledge of the Canary Wharf and Excel property market and is available to take your calls on both sales and lettings. His direct number is 020 7473 9539 and email address is ian@movello.com
We are still seeing very strong demand from tenants for apartments in Pan Peninsula, Discovery Dock, The Landmark and Baltimore Wharf. If you have apartments available in those developments please contact us for special rates.
Another trend we are seeing, particularly in Canary Wharf, is the emergence of a new type of tenancy. Traditionally there has always been long term contracts (six or 12 month assured shorthold tenancies) and short term contracts (1-3 months). Banks appear to be laying off full time employees while creating new positions on three month rolling contracts. This has created a demand for what we are calling "Mid Term lets" where tenants are requesting rolling 3 month break clauses. It is not possible to cater for these on a traditional assured shorthold tenancy since these have to be for a minimum of 6 months. Therefore we are able to negotiate increased rents for mid term lets on short let contracts. If this is of interest to you please contact either Ian, Hasan or myself.
The sales market has been fairly stagnant for the last few months, apart from the usual hotspots of central Canary Wharf from overseas buyers. There is growing interest in Excel with the announcement of plans to create a floating village in the Royal Docks http://www.wharf.co.uk/2013/03/floating-village-earmarked-for.html . With the arrival of Crossrail in 2018, prices of properties within walking distance of the new stations at Customs House and Canary Wharf are expected to rise in excess of 20%.
If you are interested in marketing your property for sale we are offering a package of professional photographs and floorplans on a fixed no sale no fee of just 1.5%. Contact us now if you would like a no obligation valuation.
We look forward to hearing from you and working with you in 2013

Latest Olympics Update

As the Olympics approaches we have managed to renegotiate the payment terms for new Olympic contracts signed with our clients. Rather than 10% on signing and 10% in 2 months time we have negotiated for the client to pay 20% on signing and a further 20% in 1 months time directly to the landlord. 50% is then paid into the escrow account account and released on move in. Landlords that signed 2 months ago are now receiving their second payments. We have also negotiated a further contract for the St Andrews development in Bow. We have a new member of staff (Hasan) who is working hard to secure the best Olympic bookings for our clients.




If you have an apartment available in any of the developments below and would like to take advantage of our Olympic contract please contact us now to secure a booking.



Here is a selection of the best bookings still available:



Canary Wharf

West India Quay 2 bed - 19/6/12-15/8/12 (57 nights) - £18,060 (1 left)

West India Quay 1 bed - 19/6/12-15/8/12 (57 nights) - £12,900 (1 left)

Discovery Dock 1 bed - 8/7/12-16/8/12 (39 nights) - £9,300 (1 left)

Millharbour 2 bed - 19/7/12 - 13/8/12 (25 nights) - £7,500 (1 left)

Ability Place 2 bed - 23/7/12 - 13/8/12 (21 nights) - £6,300 (9 left)



Excel

Capital East 1 bed - 18/6/12 - 15/8/12 (58 nights) - £8.908 (7 left)

Oxygen 1 bed - 25/6/12 - 17/8/12 (53 nights) - £8,228 (2 left)

Grainstore 1 bed - 5/7/12 - 15/8/12 (41 nights) - £6,596 (2 left)

Westgate 2 bed 15/7/12 - 15/8/12 (30 nights) - £7,140 (6 left)

Capital East 2 bed 23/7/12 - 14/8/12 (23 nights) - £6,569 (19 left)



St Andrews 2 bed 15/7/12 - 15/8/12 (30 nights) £7,140 (1 left)

St Andrews 2 bed 24/7/12 - 14/8/12 (22 nights) £6,283 (3 left)

St Andrews 1 bed 22/7/12 - 14/8/12 (24 nights) £4,896 (1 left)

St Andrews 1 bed 24/7/12 - 14/8/12 (22 nights) £4,488 (3 left)



For those that choose not to take advantage of the Olympics we are getting a number of enquiries from tenants looking for long term contracts. If you have an apartment coming available shortly please contact us for an estimate of the rent we could achieve for you. With the world's eyes already focussing on East London we are seeing increased interest from overseas buyers in the Docklands property market. If you are considering selling, now may be a good time to cash in on overseas interest. Contact us now for a free valuation.



Best regards



Angus

Olympics Update

Our Olympic accomodation project is well underway with the first deposits paid to landlords this month.  Many landlords seem to be sitting on their hands waiting for rates to go up before committing to Olympic contracts.  This is not likely to work in the landlords favour since the majority of corporate tenants have already secured their accomodation and most of the long stays (30+ nights) have already been allocated.  We are starting to get enquiries from tourists and athletes families who are willing to pay more per night but only require accomodation for two weeks maximum.

My advice to landlords is to take advantage of the corporate lets that are still available rather than wait for higher rates for shorter periods.  A quick reminder of the contracts we have in place and the remaining stays available:

Canary Wharf (Discovery Dock, Landmark, Pan Peninsula, West India Quay, Port East, Ability Place, 41 Millharbour) - 21 night stays are £2100pw for 1 beds, £2940pw for 2 beds and £4200pw for 3 beds.  30+ night stays are £1750pw for 1 beds, £2450pw for 2 beds and £3500pw for 3 beds

Best bookings currently available:  3 bed for 53 nights - total contract £24,200, 2 bed for 44 nights - total contract £14,420


Excel (Capital East, Oxygen, Grainstore, Westgate) - 21 night stays are £1428pw for 1 beds, £2002pw for 2 beds and £2856pw for 3 beds, 30+ night stays are £1190pw for 1 beds, £1666pw for 2 beds and £2380pw for 3 beds.

Best bookings available:  2 bed for 66 nights - £13850, 1 bed for 44 nights - £7004, 1 bed for 34 nights - £6644.


Pontoon Dock (Barrier Point, Wards Wharf, Britannia Village, Eastern Quay) - 25 night rates are £1190pw for 1 beds, £1666pw for 2 beds and £2380pw for 3 beds.

If you have an apartment in any of these developments and would like the benefit of a Corporate let during the olympics please contact Angus or Ingrid for further details.

Canary Wharf Spring Property Update

Dear Landlord
I did it! Many thanks to all of you who supported me running the London Marathon last weekend. It was the most gruelling thing I have done but an amazing experience. I have raised over £2000 for Action Medical Research so thanks again to those that have supported me.
Back at the office, we are experiencing the traditional post Easter rush from professional tenants looking to secure good quality properties in and around Canary Wharf. If you have a property coming available please don't hesitate to let us know and we will do our best to get you good quality tenants as quickly as possible.
The sales market appears to be improving, although this hasn't translated into price increases yet. We have a number of sales going through at the moment and are looking for new stock to market to existing buyers. If you are thinking of selling please contact us for a free valuation.
We have been busy doing Olympic site inspections with various international clients and have agreed our first contract for the Olympics with one of the major broadcasters. We have other contracts in the pipeline and our clients are taking apartments in West India Quay, Port East Apartments, Discovery Dock, Pan Peninsula, The Landmark, Millharbour, Ability Place, New Providence Wharf, Ontario Tower, Capital East, Oxygen Building and The Grainstore. If you have apartments in these blocks and haven't yet been contacted by Ingrid, please let me know and we will add you to our availability list.
I trust you are all enjoying the good weather and look forward to speaking with you soon.
Best regards

Angus

Canary Wharf Property Update Sept 10

September has been one of the busiest months on record for lettings applicant enquiries. Unfortunately there has been a distinct lack of supply of quality rental properties to satisfy this demand. Many of our existing tenants have chosen to stay where they are even when landlords have been increasing their rent. Many new tenants have been forced to look further afield for a suitable apartment or increase their budgets. It seems that many people who would normally be looking to buy have decided to rent instead. Any landlord with property available or soon to become available should contact Movello.

There is a distinct lack of buyers in the market and an increasing number of apartments available for sale. Vendors are becoming frustrated with the lack of activity in the sales market and already feel their marketing prices are fair. However, it is definitely a buyers market and vendors need to be more realistic if they are serious about selling. Getting a high price agreed is not always the answer since the property still needs to pass the surveyors valuation. Surveyors are being particularly cautious in the current market and down valuations are common. When a property is down valued it is usually not an option for a buyer to put more money in themselves so it usually comes down to the vendor to reduce the price in order for the sale to proceed.
A recent situation occurred where a repossessed apartment was priced realistically and attracted two keen buyers from different agents. Unlike normal property sales where a property is taken off the market when an offer has been accepted, lenders prefer to continue marketing repossessed properties right up until exchange of contracts to try to get the best price possible. This tactic backfired on this occasion since both buyers became so frustrated with the process that they both pulled out. The two bed property in central Canary Wharf has now gone back on the market at £305,000 (£10,000 less than the previously agreed price).
We are now close to agreeing our first deals for the Olympics but still require further properties for the 8 week period from 25th June 2012. If you have one or two bed apartments in Canary Wharf or The Excel Centre please contact Movello for details of the rent we can achieve for you.
For more information on selling or renting in Canary Wharf contact Angus Edy, Movello Managing Director on angus@movello.com, 020 7473 9533 or visit http://www.movello.com/.

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