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

Canary Wharf Property Update April 2010

The Canary Wharf Property market appears to be returning to favour with recent reports suggesting that East London property will outperform the rest of London over the next five years. Here at Movello we are seeing an increase in both buyers and tenants and also an increase in the number of properties coming onto the market for sale. There is still a shortage of good quality stock at realistic prices but buyers and sellers expectations on price are converging.
In terms of new developments we appear to have seen the last of the Galliard Homes fire sales, for now. Completions are continuing at Baltimore Wharf, Pan Peninsula and the Landmark. Some investors are still experiencing problems getting finance on new apartments and many completed flats are remaining empty while financing issues are resolved.
Lanterns Court is the next major development to start completing in November. Many of these units have already changed hands multiple times at the height of the boom in 2008. Prices paid for some of these units are looking very expensive in the current market and we are likely to continue to see buyers struggling to complete.
Barratt Homes have started ground works on their new development next to the Thames Barrier. When finished, this will add numerous shops and restaurants to an area that is currently lacking in these outlets. Ballymore is still developing their own plans for the Royal Docks having acquired a sizable land bank in the area.
The lettings market has been very strong this month with many tenants leaving their search to the last minute and being surprised about the lack of apartments available. Apartments in popular developments are being reserved soon after they become available. This is good news for landlords and may lead to rent increases over the coming months.
For a free valuation and market appraisal call Angus on 020 7473 9533 or email angus@movello.com

Canary Wharf Property Update March 2010

With the traditional home moving season of Spring soon to start, most Canary Wharf agents will be desperate for good quality stock to sell and rent. Limited new stock is coming on to the market from recently completed developments such as the Landmark, Pan Peninsula and Baltimore Wharf. However, most vendors have paid eye watering prices for these units and are likely to be taking a loss in the current market. The so called “new build premium” no longer applies and brand new units are being sold close their older equivalents. For high deposit buyers this may be a good time to pick up a new flat before the new build mortgage market returns and the new build premium inevitably returns.
Prices have now been announced for the relaunch of St Luke’s Square in Canning Town by Galliard Homes. Discounts of £100,000 are being offered on 2 bed apartments starting at £190,000. We have already let all our apartments in the first phase of this development so are looking for new instructions from buyers attending the launch event on 27th March.
The lettings market is slow but steady with many tenants who secured low rents last year deciding to stay put. This is borne out by a recent call from a Canary Wharf concierge who was asking us if we had any apartments available in their development for some waiting tenants (it’s usually us asking the concierges if they know of any apartments available for our waiting tenants!)
Relocation agents are back in the market and we have been contacted by a number of agents recently working on behalf of some major banks rehiring and relocating staff to the UK. Typical requirements are good quality one and two bedroom apartments close to Canary Wharf. Budgets are £300 – 500 per week.
Short lets have also seen an upturn recently with a number of enquiries from corporate tenants looking to stay for 1 – 2 months with budgets £700 - £1000 per week. We are also receiving more enquiries from people looking to stay during the Olympics. If you have an apartment for sale or to rent contact Angus directly on 020 7473 9533 for a free no obligation valuation.

Canary Wharf Property Update Feb 2010

The Canary Wharf property market appears to be returning to some form of normality after a long period of uncertainty. We have seen a surge in interest from potential buyers and now require good quality properties at realistic prices to satisfy this demand. We have seen more sales this month than for the last three months of 2009.
Some positive signs appear to be coming from the mortgage market with an increase in the number of buy to let mortgages available and some further relaxing of the size of deposit needed to get some residential mortgages. However, this is countered by restrictions in the guarantor mortgage market which appears to be shrinking.
The re-launch of Indescon Court in Canary Quarter by developer Galliard Homes went off with a bang. Long queues were reported at the launch and the firm has now introduced a booking system for their next launch in Ilford to avoid people having to queue. Their next event in Docklands will be the relaunch of St Luke’s Square in Canning Town after only 25% of off plan purchasers were reported to have completed.
Barratt have now started groundwork on their new Royal Docks scheme currently named “Barrier Point 2”. The site next to the Thames Barrier and Thames Barrier Park is a large scheme of 1,000 apartments close to Pontoon Dock DLR station. However, the scheme may be affected by the recent decision by the LDA to concel the Silvertown Quays project which would have provided a world class aquarium and a town centre for the Royal Docks. There is now talk of the LDA forming a public private partnership to deliver the scheme post 2012 with the site used as temporary exhibition space during the Olympics.

Olympic fever has already begun at Movello with our first enquiries from families of athletes competing in the Games in 2012. All the athletes will be housed at the Olympic village in Stratford but families and supporters need to find their own accommodation. With the Excel Centre hosting seven events over the course of the Games, demand for short let accommodation in and around Canary Wharf will be fierce. Movello is traditionally very strong in Short lets having organised many Docklands corporate lets. We are now making arrangements for securing properties for up to 4 weeks before and during the games. If you currently let your apartment or would consider moving out during June/July 2012 contact Angus directly on 020 7473 9533 for a free no obligation valuation.
Angus Edy
Movello Managing Director
http://www.movello.com/

Prospects for Canary Wharf Property in 2010

The Canary Wharf property market has started the new decade with a splutter in 2010. Heavy snow has dampened people’s appetite for getting out and viewing new property both for sale and rental. With the dire weather behind us we can start to confidently look forward to the year and decade ahead.

One of the first events of the Canary Wharf property calendar will be the re-launch of Indescon Court in Canary Quarter by developer Galliard Homes. After successful re-launches at Wharfside and Barking Central, I’m sure the marketing will be along similar lines with big discounts advertised to savvy buyers due to non completion of previous investors.
The outlook for property prices in the area looks positive with pent up demand and lack of supply combining to put upward pressure on prices as well as the regeneration benefits on the 2012 Olympics around the corner. My advice to sellers is “don’t wait for the Olympics to sell”. By then it may well be too late. There is a window of opportunity to sell to people hoping to benefit from an uplift in prices due to the Olympics, but the longer you leave it, the less benefit there is to buyers. The regeneration underway for Stratford and surrounding areas will help prices and I think everyone is looking forward to having our own Westfield’s shopping centre on our doorstep! The improvements to transport will also impact on prices. Barratt Homes are also making positive noises, announcing recently that they will be starting work on 8 new major developments in London.
Rightmove recently announced that property stock levels are at their lowest level for a century. This only adds to the notion that now is the right time to sell if you have been putting it off.
If you have a property for sale or to rent contact Angus directly on 020 7473 9533 for a free no obligation valuation. We have access to the latest valuation tools to give you a realistic achievable price for your property.
Angus Edy

Movello Managing Director
http://www.movello.com/

Landmark Completions Begin in Canary Wharf

December is traditionally a quiet time in the Canary Wharf property market.  Tenants and buyers tend to be on the look out for bargains.  Landlords know that if they don’t get a tenant by mid December they are likely to have an empty flat until the new year.  However, this year tenants have to be careful they don’t negotiate too hard since many people are staying where they are and stock levels are surprisingly low.  Good quality properties are being snapped up at close to asking prices and many tenants who have put in very low offers are being surprised and disappointed when their chosen property is let to someone else who puts in a higher offer.  Long term tenants are also competing with short term Christmas holiday lets who traditionally pay more to stay over the holiday period.  If you have a property becoming available in December make sure you talk to Movello about short lets.

We were expecting a large increase in stock with the completion of Pan Peninsula, Ability Place and The Landmark.  However, completions are taking much longer than usual due to the difficulty getting mortgage finance and valuations from surveyors coming in lower than expected.  Although the Landmark is still pretty much a building site, we have seen some early completions of 1 bed apartments (starting from £320pw) which are significantly bigger than their equivalent at Pan Peninsula.  More completions are expected shortly so contact Movello for early viewings.

The sales market is slowly picking up but developers still have large numbers of unsold units which they are considering letting out until the market picks up further.  This has not stopped some major developers cracking on with major schemes.  Barratt is progressing well with the St Andrews Development in Bow and Ballymore are moving ahead with Baltimore Wharf on the Island and plan to start work again soon on their Leamouth Peninsula development, next to Canning Town station.  Consultation has also begun on the Thames Wharf site next to Wards Wharf in E16.  With a network of canals and the first “Urban beach” proposed, this will be a truly innovative development.

With inflation edging up, quantitative easing coming down, it won’t be long before interest rates start to rise.  Buyer should take advantage while prices are low and tenants should make quick decisions if they want to be in by Christmas.

If you have a property to sell or rent, contact Movello Managing Director, Angus Edy for a free valuation on 020 7473 9530 or visit www.movello.com.

New Column in London Homes and Property

I have been asked to write a monthly column in the new London Homes and Property Magazine. Over 60,000 copies will be distributed in and around Canary Wharf and the City. Please find below my first article published in October 2009.

Busy summer leads to shortage of property

What never fails to surprise me with the Canary Wharf property market is how quickly the tide can turn in your favour and against you. In early summer we were experiencing a glut of properties available for rent and a worryingly low number of tenants looking. In the space of a few weeks the tide had completely turned and we were experiencing a high number of new applicants and a fast diminishing supply of property. The summer came and we saw the completion of The Icon (now Ability Place) and the long awaited Pan Peninsula. The completion of these two major developments has failed to satisfy the still raging demand for good quality apartments within walking distance of Canary Wharf. The main problem is that despite the buildings being completed, the sale of many of the apartments has not been completed. Many investors have been caught out by the sudden fall in prices in 2008/09 combined with a similarly sudden tightening of finance available to buy to let investors. Many of the apartments have gone back to the developer to be resold or held until the market shows signs of a sustained recovery. By not releasing these apartments onto the rental market this has created pent up demand and helped maintain rental prices for prime canary wharf apartments.

Tenants now have to move very quickly to secure good quality apartments in Canary Wharf. We still have a few apartments available at Ability Place and Pan Peninsula but they are being snapped up very quickly. Ability Place is proving popular due to it’s superior gym and more spacious apartments. Being situated at 39 Millharbour Road it is a little further to walk to Canary Wharf than Pan Peninsula but prices also reflect this. Pan Peninsula is still “The Place to Live” at the moment with its’ Resident’s Cinema, Roof top bar, Six Senses Spa and close proximity to Canary Wharf. Hot on the heels of these new developments is The Landmark. Further down Marsh Wall and very close to the Riverside South Office complex, The Landmark is due to start completions next month. We already have some instructions here and are looking for more.

Corporate clients are also returning to the market. Tenants are more confident about their job prospects and are committing to new tenancies rather than letting their current tenancy go onto a monthly rolling contract. With a shortage of supply we are also seeing rents starting to increase. Traditionally we see tenants waiting until the winter to renew their contracts when they think they can negotiate the best rent. My advice to tenants is renew now while you can.

We have seen increased activity on the sales side, with many more viewings being booked compared to this time last year. Buyers are still finding it difficult to raise a sufficient deposit and lenders are still making it very difficult to get competitive finance. However, the signs are positive and we expect activity and prices to stabilise and improve over the coming months.

If you have a property to sell or rent, contact Movello Managing Director, Angus Edy for a free valuation on 020 7473 9530 or visit www.movello.com.

Movello Landlords Update

It's been a while since I gave you an update on how we're doing at Movello. The market appears to be picking up and we have seen a large increase in enquiries from both tenants and prospective buyers. Our corporate clients also seem to be dipping their toes back in the water with a number of short led deals going through in recent months. It will be a while before we can safely say the recession is over and many pundits are predicting a double dip recession. However, the banks seem to be recruiting again and we are seeing a steady flow of new applicants coming from the big banks such as HSBC, Citi and Barclays. If you have properties available that you haven't already told us about please give us a call.

There seems to be concensus that sales prices will not be shooting up for the forseable future so if you are thinking of selling you don't need to worry about the thought of selling just as prices start to rise. We seem to be in a fairly unique position where it is equally a good to time to buy. Even though you might not see an increase in the value of any property you buy for a while, you can be fairly sure that you are buying pretty near the bottom. The problem at the moment is stock levels. There is very little good quality property available on the market. Most developers have stopped building and many investors have been reluctant to sell at what they percieve to be the bottom of the market. As I said, there is very little benefit in delaying since prices are unlikely to increase in the medium term.

We have seen some new additions to the Movello team including Michael Evans who has joined us as Lettings Negotiator from Square Mile in Canary Wharf. Michael also has experience at Award winning agent Martin and Co in Kent. Michael is studying for his ARLA exams and is also a keen Triathlete, having competed for Great Britain. We wish Michael well in his new role.

We have also improved the Marketing and Administration side of the business with the addition of Ingrid Kaad to the team. Ingrid's main role is to ensure new properties are booked for professional photography and are presented as professionally as possible on the web. Inrgid also assists our Property Management Department in dealing with enquiries from Movello tenants and landlords.

We were very sad to see Judy Wawrzyk, our star Negotiator, leave to join a rival agent recently, having spent over two years at Movello. However, I have just been told that after a week in her new job she has agreed to come back to Movello. We will be making sure Judy is well looked after when she comes back!

The improvements to our website over recent months are now paying dividends. The addition of a development search on our home page allows you to type the name of your development into the search box to show a list of properties we are marketing in your development. This is a good way to see how your properties compare to others in the same development. We have also added a popular developments section with some additional information on our most popular developments. We are driving traffic to these pages using Google adwords. Due to the quality of our web marketing we recently let a number of apartments to an overseas company without them even viewing the properties. They searched for Docklands properties on Google, found our website, went to the popular developments section and reserved their apartments over the phone.

Other improvements to the website include the addition of Google Street View. Under each property there is either a scrollable 360 degree view of the development or if Street View is not available a standard map showing the location of the property.

The addition of a short let search has also increased the number of short let enquiries we are getting. We have also backed this up with advertising in the City Airport map, Wharf Newspaper, Docklands Property Guide, Canary Wharf Magazine and London Property. I now write a regular editorial piece in the Wharf Newspaper and have been asked to comment on the market for the Guardian and various property magazines.

I appreciate that rents have not held up well over the last year or so, so I hope you haven't been too badly affected by the market. Having spoken to a few of you recently about your mortgages it sounds like some of you negotiated some very good variable rate mortgages during the good times!

Thank you for your business over the years and we hope we can help you rent more of your properties soon.

G20 Summit and Michael Jackson prove popular for short lets

With the impending arrival of 37 world leaders and their entourages to the Excel, Dockland's Award winning Estate Agency, Movello has been busy helping TV companies including the BBC secure apartments to film the events taking place for the G20 Summit. Movello Managing Director, Angus Edy commented "The TV companies had specific requirements such as elevated views of the Excel Centre as well as line of site to the O2 where most of the outside broadcast facilities will be based. There was only a couple of developments that met the criteria and we have been working hard to secure the right apartments. Another interesting enquiry we had this week was from the sound engineers who will be working on the record breaking run of Michael Jackson shows at the O2. They are looking for an apartment for the full six months of the shows and may be able to get hold of some free tickets to the shows as part of the deal! We have a number of corporate clients with requirements in Canary Wharf at the moment. Interested landlords should contact Movello. " Short lets work well for both landlords and corporate or professional tenants. For landlords the rent received is significantly higher than for a long let and for tenants the cost can be significantly less than an extended hotel stay and offers more spacious accommodation. Contact Movello for more information - 020 7473 9530 www.movello.com

New Year Shows Signs of Green Shoots

Despite endless bad news stories about the economy and the property market in general, Movello Managing Director, Angus Edy, reports a strong start to the year both in terms of property sales and rentals.

“Despite a very different market to this time last year, there are an increasing number of buyers coming into the market and a high number of rental applicants looking to move. Prices have dropped dramatically during 2008. Unusually this has affected both sales prices and rental prices. The general consensus among investors is that sales and rental prices will continue to drop for another 6 months and will then start to rise. It is notoriously difficult to judge the bottom of the market so buyers are advised to look now while finance costs are so low. Many of our applicants are coming from West London and are looking to save money at the same time as improving the size and quality of their accommodation. We are also seeing a high number of existing Docklands tenants looking to renegotiate the rent on their current property or move within the area. Most landlords are able to negotiate on the rent due to the massive reductions in the base rate. Tenants still need to be realistic about the level of discount they can expect because many landlords are still on fixed rates and don’t have the flexibility to negotiate as much as others. Sales applicants are coming into the market but are looking for bargains. Only the most realistically priced properties are selling. We have a lot of investors who have bought off plan in the soon to complete developments of Pan Peninsula and The Icon. We have pent up demand to buy and rent these apartments when they complete, but applicants will be negotiating hard for the best deals. These developments are setting new standards for luxury living in Canary Wharf and existing tenants in nearby developments will no doubt be looking at these developments for their next move".

If you are looking to move or have a property available please contact the Movello team on 020 7473 9530 or visit www.movello.com

Editorial published in The Wharf Newspaper 12/02/09

JP Morgan deal shines light on Canary Wharf property

With the anouncement that JP Morgan have signed the biggest office deal in the history of Canary Wharf to take 1.9 million sqft at Riverside South, the prospects for the Canary Wharf property market looks rosy. The sales market is currently subdued and prices have fallen dramatically during 2008. However, signs that the mortgage market will start to pick up in 2009 should signal the bottom of the market. Savy investors with cash will start looking to buy during 2009, therefore sellers should be looking to market their property from early 2009.

Will house prices rise or fall?

The reality is that the market is driven by demand and supply. Only 6 months ago the government were telling us there was a shortage of housing in the South East and we needed to build more. This demand has not gone away. There is still a massive shortage of housing in the south east. No doubt demand has waned but everyone still needs somewhere to live. My prediction is that the house price crash will be short and sharp. We will see 20-30% falls from the peak in 2007. We have already seen 20% falls in most areas and up to 50% in some northern city centres. Therefore we only have about 10% further to go. The recovery will be led by London from the middle of next year when the mortgage market eases up. There will still be a dearth of first time buyers but they will be replaced by cash rich investors picking up properties at the bottom of the cycle.