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Farringdon Group offers exclusive property investment opportunities in emerging and recovery markets. Our specialists provide a full advisory service supported by comprehensive and in-depth research.

 

Why Property?

 

Property is the preferred investment class for wealthy investors making up the largest share of their investment portfolio. Property markets rise and fall, but the long term trend is upwards because of growing populations, urbanization, and people’s desire to improve their living standards.

 

Top Tips for Investing in Property:
•    Leave emotions aside when investing, only invest in a property if it makes sound financial sense
•    Investors should settle on a location first before considering which agent or developer to buy from
•    Conduct your own research and due diligence on the market and developer
•    Consider tenants and future perspective buyers, proximity to schools and transports links will be vital to perspective tenants and buyers

 

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2010 Market Hotspots:

The London property market is recovering with prices and market activity substantially improving on levels from early 2009. In July 2010 price growth in London over the last 12 months was 12.1%.

 

In July 2010, Kensington and Chelsea was the borough with the highest annual price rise, with an increase of 18.2%. The borough of Brent experienced the highest monthly price increase with a rise of 1.8%. Bexley experienced the smallest annual price rise of 6.1%, while Croydon experienced the greatest monthly price decrease of -1.4% as a whole.

 

London property prices increased by 1.6% in July 2010, which is the greatest rise experienced since January 2010. The average house in the capital is now worth £343,730.  The July data from the Land Registry has also shown that from June to July 2010, house prices have increased in the UK by 0.4%. Islington borough has performed just as well registering an annual 12.6% increase on house prices and a 0.4% increase from June to July 2010.

 

London remains the prime market for investment in the UK with an average of 5.5 tenants competing for every property. Average rental yields are 4.7% making London the best place for landlords in the UK with average rents equating to GBP1, 729 – 4% higher than the start of the year. Experts predict stagnant median growth in 2010 and 2011 but expect year-on-year growth of 6% in 2010 and 9% in 2013.

 

Arthaus House

Just 15 minutes from the city of London, this impressive art gallery conversion and new build development provides investors with the opportunity to invest in one of London's foremost upcoming areas.

 

Arthaus is expected to generate strong rental demand due to its close proximity to the city just 12 minutes to Liverpool Station and close proximity to the 2012 Olympic zone. Just a 10% deposit required now, with the remaining deposit on completion in 2011. Many units feature private balconies or roof gardens with amenities including concierge, full height atrium, restaurant and art gallery.

 

In June 2010 the total supply of residential housing in the Klang Valley was 1.67 million up from 1.64 million at the end of 2009 and 1.66 million at the end of Q1 2010. Of this total, just over 408,000 units are in KL; accounting for just 25% of the total housing stock in the Klang Valley.

 

Growth in existing supply has declined significantly over the last 2 years. With just 2% growth in 2009 and 6% in 2008; future supply has also declined over the past few years from a high of 17% of existing supply at end of 2004 to 10% of existing supply at end of 2009.

 

The luxury condominium (defined as RM 350 per square foot or above) market was less buoyant than the market for landed properties in 2Q 2010, due to a combination of ample available supply and the aforementioned preference for landed properties in Malaysia. Capital values gleaned from secondary transactions during the quarter were flat, and it appears asking rents in these luxury properties were mostly stagnant as well.

 

In the luxury property market a number of projects recently launched have sold well. CBRE research indicates that in Q2 2010 capital values were highest in KLCC at approximately RM 890 psf.

 

SixCeylon

SixCeylon is located in the serene and tranquil residential area of Bukit Ceylon on the higher ground of Jalan Ceylon just off the main road of Jalan Raja Chulan. The Bukit Nenas Recreational Park where the KL Tower stands is just a stone throw away whilst Kuala Lumpur City Centre (KLCC) is less than 2 km from the site.

 

Jalan Raja Chulan is considered one of the main roads in Kuala Lumpur City Centre where prominent office buildings are located. The road also leads to Jalan Sultan Ismail - a location well-known for international hotels and corporate buildings.  The famous Bintang Walk, which boasts mid to high-end shopping (with names like Pavilion Kuala Lumpur, Lot 10 and Starhill), restaurants and alfresco dining is within easy walking distance.

 

There are a total of 215 units across over 33 floors; apartment sizes range from 696 sqf – 1555 sqf. Every floor will have 8 units per floor and will be serviced by 4 elevators.

 

Supported by an improved economic outlook and low interest rates, the residential property market continued its momentum in Q2 2010. There was some cooling off in May following the announcement of further Government measures along the four directions as contained in the 2010-2011 budget to ensure healthy and stable development of the property market in late April.

 

Flat prices steadily increased in the first half of the year, though most of the gains occurred in the first four months. Overall flat prices rose by 8% between December 2009 and June 2010, and were 15% higher than the peak in 2008.

 

As regards to flat supply, completions of private residential properties surged by 124% over a year earlier to 7,030 units in the first half of 2010. In the first half of 2010, 26 sites that together could produce some 13,900 residential units were disposed, lifting the total supply of flats in the coming few years from 53,000 units as estimated in Q4 2009 to 61,000 units as estimated at the end of June 2010.

Flat rentals in June 2010 rose by 7% from December 2009. This put the rental price to only 3% below the rental peak achieved in 2008. The average rental yield for residential flats stayed at 3.6% in June 2010, virtually unchanged from December 2009.

 

The land sales market has been very active during the first half of 2010. A total of 8 sites were sold up to June 2010, and a premium development site on Hong Kong’s famous hill ‘The Peak’ was sold by auction in July for an expensive HKD $10.4 billion (US $1.34 billion).Soon after the auction home owners and property companies raised their asking prices by as much as 8.6% on The Peak.

 

Clearwater Bay Properties

Surrounded by white sandy beaches and glistening ocean, Clear Water Bay has become extremely popular, especially amongst those wanting an escape from bustling city life.

 

Located just a 20 minute drive from Hong Kong's CBD, these custom design houses provide fantastic value as an investment property. IP Homes offers clients the opportunity to purchase these remarkable properties at up to 25% lower than current market prices.

 

Residential real estate prices in Australia have begun to slowdown as the number of new properties being sold declined by 6.4% in May 2010. However, house prices are still rising with growth of 0.2% in April 2010 and 0.5% in May 2010. The Australian property market has experienced 16 months of robust house price growth, which produced year-on-year price rises of 12.1% in capital cities.

Australia struggles year after year to build enough homes to cater for its growing population, which grew by over 440,000 in 2009. ANZ bank believes that 200,000 new homes are needed every year, but only 130,000-140,000 homes are approved for development each year. The end result of this is an undersupply which will underpin price growth in Australian property from now and into the future.

The challenge for the property market is to ride the strong economic fundamentals in a period when the stimulus package has been removed. The first home buyer (FHB) boost ended on 1st January 2010. According to Craig James, Chief Economist of Commsec and a respected market commentator he expects “home prices to rise by 8-10% over 2010. The population continues to grow and not enough homes are being built. For investors, rising rents and home prices is an attractive combination”.

Westpac Bank, Australia’s first bank also believe that “rising interest rates and recent hikes in home prices will start to pull forward the affordability issue, which in turn should result in a greater level of stability in prices from at least mid 2010”.

The Blackman

The Blackman Hotel and residences holds a prime position in the picturesque Elm tree lined St. Kilda road and is less than 3km from Melbourne’s CBD. There are numerous public transport options, with The Blackman being only meters from St Kilda Road tram stop and less than 3km to Flinders Street Station, which has access to the city loop, suburban and regional trains.

With an edgy, boutique interior and an enviable St Kilda location, The Blackman is set to inspire Melbourne’s imagination. A destination perfect for the business or leisure traveler, The Blackman will boast 207 room and suites, a selection of which will be complete with private terraces and spas. Built within and above the historical Airlie Mansion, The Blackman will charm and inspire guests with the works of one of Australia’s most celebrated artists, Charles Blackman, showcased throughout this unique hotel space.

The Blackman Hotel offers a blend of exclusive five-star hospitality and first class facilities. Such facilities include a state of the art gymnasium, full kitchenettes, Wi-Fi internet access, conference facilities and 24 hour reception, concierge and In-Room Dining.