London ties with Tokyo and Cape Town as top-value cities for buyers
By Hailey Yu
/ EdgeProp Singapore |
London skyline (Credit: Savills)
SINGAPORE (EDGEPROP) - Buyers in London, Tokyo and Cape Town can get 28% more prime residential space as compared to December 2021, according to a report by Savills on Oct 11.
“A US$1 million ($1.4 million) budget will now buy an additional 895 sq ft in Cape Town, 132 sq ft in London and 127 sq ft in Tokyo,” the report says. This accounts for currency movements compared to the US dollar.
Buyers benefit from reduced spending for the same property or an increase in home size for the same budget.
Meanwhile, buyers in Singapore only reap a 6% increase in property size for the same US$1 million budget, given Singapore’s stable economy and strong currency.
“Investors should consider capitalising on the positive currency exchange to purchase international prime property with a strong Singapore dollar,” says Jacqueline Wong, executive director of residential services at Savills.
“It is a highly opportune time for international investors to set their sights on central prime London homes,” she adds.
London ranks sixth on the list of cities with the highest psf prices, according to Savills World Cities Prime Residential Index.
“Prime London’s rental index rose by 14% in value in 3Q2022, the highest annual growth recorded since 1979,” the report says.
The rent hike in prime areas is driven by intense competition for homes located in the capital, given the imbalance between shortage of prime rental stock and increased tenant demand, which is up 70% compared to August 2019.
Savills agents in London have reported the gradual return of international high-net-worth buyers to traditional prime postcodes in the last couple of months since the easing of pandemic-related travel restrictions. An uptick in activity was noticed in Chelsea, Belgravia, Kensington, Mayfair, Notting Hill and Holland Park. They also expect keen interest in London Square Nine Elms, launching later this month.
With prime central London prices down by 17.8% in British pound terms since 2014, prices have fallen by 47.5% in US dollar terms. Buyers can now acquire 609 sq ft of prime London residential property with US$1 million.
Savills will hold an international property seminar at the Four Seasons Hotel on Oct 29 and 30.
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