Uncovering North London’s Smithfield Square

February 16, 2015 2:03 PM SGT

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SINGAPORE: This year, residential projects from London that will find favour with Singaporean buyers are likely to be located in Zones 2 and 3, says Doris Tan, JLL’s regional director and head of international property services.

She attributes this outlook to the UK government’s new tiered stamp duty land tax structure that took effect on Dec 4 last year, whereby residential properties priced below £937,000 ($1.9 million) will benefit from tax savings.

Tan adds, however, that investors will have to be selective and able to identify hot spots.

JLL is launching Smithfield Square, a high-end residential development located in Haringey Heartlands, one of the largest regeneration areas in north London.

Developed by Berkeley Group’s St James, Smithfield Square is located in the village of Hornsey.

It shares the same postcode (N8) with Crouch End’s main high street, The Broadway, which is lined with bars, pubs and restaurants.

Crouch End itself is a gentrified small town, popular with creative or media types and young families.

Near Hornsey is the picturesque Muswell Hill, with its Edwardian architecture, quirky shops, independent cafés and farmers’ market every Sunday.

Shopping amenities include Sainsbury, Marks & Spencer and Planet Organic.

There is also ample parkland in the vicinity, the biggest of which is the 196-acre Alexandra Park, which contains a pub and restaurant, a boating lake, a deer conservatory and a rose garden.

Smithfield Square may be a Zone 3 location, but it is just 15 minutes to Central London by public transport, thanks to its transportation links, with the Hornsey Overground Station and Turnpike Lane Underground Station on the Piccadilly Line within easy access.

The project will appeal to investors, singles and young couples, says JLL’s Tan.

Smithfield Square comprises a block of just 247 units, which are a mix of suites and one- and two-bedroom apartments.

Prices are said to start from around £350,000 for a 555 sq ft one-bedroom unit.

The average price of units in Smithfield Square ranges from £650 to £700 psf, which Tan considers “affordable” because of the quality of the project, which is scheduled for completion between 3Q2017 and 4Q2017.

The new development will also include a 34,900 sq ft Sainsbury store, an added convenience for residents.

Smithfield Square saw healthy sales at its launch in London over the weekend of Jan 17 and 18, says Tan.

The project will be showcased in Singapore from Jan 27 to 30 at Berkeley Group’s office in Marina Bay Financial Centre Tower 2.

“Many people are waiting on the sidelines for the right opportunity to buy,” she adds.

“There’s now greater clarity, with the announcement of the new stamp duty and capital gains tax.

The only concern is whether there will be a mansion tax, but we will find out only after the UK elections in May.” Curtailing investors’ purchasing power is Singapore’s total debt servicing ratio.

“The alternative is to get financing from banks in London, but they will have their own set of criteria,” says Tan.

While London continues to be a perennial favourite with Singaporean investors, Tan sees interest in the US, especially with the housing market recovery on a more solid footing.

Last year, JLL brought 50 United Nations Plaza, a landmark luxury apartment tower in Manhattan, to Singapore.

Tan hopes to secure more projects from New York in 2015.

Besides New York, other cities in the US that are sought after by Singaporeans include Los Angeles, San Francisco and Boston.

When it comes to projects Down Under, Tan is keen on mainly two cities: Sydney and Melbourne.

Other cities in Australia that see buying interest from Singaporeans include Brisbane, Gold Coast and Perth, she adds.

Interest is also returning to Bangkok this year.

The military coup in the first half of last year may have led to some uncertainty.

“But the economy has remained relatively stable, and the country seems to be opening up,” she says.

“In Bangkok, prices of residential property are still very attractive.” Singapore banks such as United Overseas Bank are also willing to provide financing for residential property purchases in Bangkok as long as they are of a freehold tenure.

Japan continues to be a favourite, both as a holiday destination because of the weakening yen, and as an investment hot spot, on the back of the Tokyo 2020 Olympics.

Tan remains optimistic, however, as she sees Singaporean interest in overseas property remaining strong.

“The rich still have the money to buy, and they are the ones who benefit from every crisis,” she observes.

“Once they identify a good opportunity, they will jump in.”

This article appeared in the City & Country of Issue 661 (Jan 26) of The Edge Singapore.

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