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