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Portugal is one of Europe’s hottest property markets in more ways than one. It is not only seen as a safe haven that rarely makes the headlines with a stable political and economic landscape; it also has thousands of people relocating to its sunny shores every year.

Its golden beaches, 1,800 kilometres of coastline and world-class golf courses are major attractions, and Portugal ranks third in the world’s most peaceful countries behind Iceland and New Zealand.

Portugal is also widely viewed as a safe haven for foreign investors, and since 2009, has offered generous tax incentives for foreign buyers which last for 10 years.

On top of this, it has a very popular Golden Visa programme which offers residency permits through buying property investments.

 

Golden Visa

The Portugal Golden Residence Permit Programme is a five-year scheme which offers residency by investing in the country through a number of different ways. Property investment has by far been the most popular route. As a resident you can have visa-free travel across Europe’s Schengen Area which includes France, Germany, Italy and Spain and a Portuguese passport grants you visa-free travel to 185 countries.

Foreign investors also like the fact that Portugal has a quick turnover time to purchase property.

                                                                                                                                                    

Asians flocking

Since October 2012, 9,625 investors and 16,382 family members have benefited from the Portugal Golden Visa and 9,042 (90%) of Golden Visa Portugal applications were done through real estate investments. While the Chinese remain the largest single applicant cohort (over 50%), their share of the program is decreasing as other nationalities are applying for the program too.

The Portugal Golden Residence Permit Programme has been very successful and now the government is removing the cities of Lisbon and Porto from the scheme to focus on other parts of the country. The new rules, which also affect coastal areas, will come in from July 2021 although there is a transition period to complete sales by the end of the year.

 

Business buzz

While foreign investors have Portugal in their sights, it is also attracting plenty of talent particularly in the technology sector. Many international companies have set up regional headquarters in the country, such as Google which built a technology hub near Lisbon in 2018. Car-making giant Volkswagen also has major manufacturing operations in Portugal.

Up until the Covid pandemic which affected tourism the world over, Portugal’s tourist numbers had been very healthy given its high number of sunshine hours. In fact, the southwestern coastline of Algarve gets more sun each year than all of Europe. As its tourism sector grew, this led to a scarcity of rental properties which drove rental yields up. This is good news for investors with properties in tourist hot spots.

Algarve, Portugal

 

Sun, sea and golf

The Algarve is one of Portugal’s most popular destination, drawing sun-seeking tourists, beach lovers and golfers alike. One tourist hotspot is the Algarve, home to one of Portugal’s most prestigious golf resorts. The 5,000km stretch of coast is known for its golden beaches, golfing and picturesque fishing villages along with an array of bars and restaurants. 

Douro, Portugal

 

Lisbon and Porto

If the objective is exclusively housing, you need to meet your personal preferences. A house in the Algarve is compatible with warm climate lovers, Porto is for those who like a mild climate and Lisbon is the best city to develop a professional career.

If the objective is the return on investment, there is a clear advantage in one of the options.

Portugal’s two main cities, Lisbon and Porto, have been the main destinations of foreign investment given they are seen as a trendy hotspots while being far cheaper to buy property in compared to other cities in Europe.  

Lisbon is one of Europe's smaller capitals with properties there inexpensive in comparison to London, Paris or Madrid.

The main driver for investors used to be quality of life, its historical heritage, natural beauty and over 280 days of sunshine. But it’s a very interesting market for putting your savings and investments now too. You can get a return both on rental yield and in capital appreciation.

Porto has the same dynamic in terms of lifestyle. But it’s also the research and development hub of the country. It’s where much industry is based, and most of the money from Portugal’s wealthy families is concentrated here.

 

 

For investors looking for extra capital appreciation from their investments, Porto is the natural answer. House prices there are still 30% less than those in Lisbon, it has a lower square metre price to buy, so you have higher potential for investment returns.

‘Many investors start enquiring about Lisbon. But when they ask for something that has a higher yield or capital appreciation potential, we say: yes, we do. In Porto’ – says Filippo Simonato, Residential Business Development Manager for JLL, based in Lisbon.

 

Property Market

While property prices have been rising modestly during the pandemic, Portugal has seen above average increases. Prices rose by almost 6% during 2020, according to the Idealista Price Index.

According to JLL’s research ’Investir no Mercado de Arrendamento’ (Investing in the Rental Market), the residential rental yields in Lisbon are almost always above 3% and in Porto 4%; proof of a market where supply is scarce and vacancies tends to be absorbed quickly. It is a market with enormous potential for growth and income generation.

 

Who is buying & renting?

Portugal is still proving popular with overseas buyers, and 57% of purchases are currently made by international buyers. While Asian buyers have been very active, these foreign-buyer purchases are spread across 47 different nationalities.

Rental incomes have softened a little during the pandemic, although this is believed to be only temporary. Some landlords have put their holiday homes up for rent on the local market while they wait for tourism to return.

Conde de Lima, Lisbon

 

When tourists start to return to the many holiday hotspots Portugal has to offer, property owners should be well placed to reap the benefits, along with the tax and residency perks the country has to offer.

If you are keen to find out more about investment opportunities in Portugal and learn more about the Golden Visa Program, please contact JLL International Residential:

 

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

23 Apr 2021

Not only Portugal is ideal for investors looking for stable returns on investment at a range of property price points, but the tax regime is very attractive. It offers a low effective tax burden, combined with a special Non-Habitual Residents tax regime, the free remittance of funds, the absence of inheritance and gift tax and no wealth tax.

Moreover, the residence permit scheme (granting travels within the Schengen area) and the possibility to apply for Portuguese nationality and, consequently, a EU passport, make Portugal a very attractive location.

 

The most popular Golden Visa program in Europe

In 2012, Portugal approved special legislation designed to attract foreign investment, by offering a fast way for property investors (non-EU citizens) to receive a residence permit, making it a privileged entry into Europe and allowing such permit holders free circulation in Schengen countries.

The Portugal Golden Visa program has proven to be the most popular scheme in Europe with investors attracted to its flexibility and benefits. Since its inception in 2012, thousands of families have successfully relocated to Portugal.  An investment of €500,000 (or €350,000 reduced option) in real estate in Portugal will gain a residency permit for a family including dependent children.

In 2019, more than half of all real estate transactions in Portugal were purchased by foreigners and Portuguese real estate agencies have been actively wooing Chinese and Asian buyers.

According to a South China Morning Post article, Hong Kong is tipped to become one of the top sources of foreign investment in Portuguese property as residents seek a European haven from the civil unrest that has rocked the city since May 2019.

 

What are the main advantages of the Portugal Golden Visa?

The holders of a Portuguese Golden Visa have many advantages:

  • You do not need a visa to enter Portugal or travel through Europe (Schengen Area).
  • You can live and work in Portugal, even with residency in a different country.
  • Portuguese residency can be extended to family members.
  • It has extremely low minimum stay periods compared to other residency / citizenship programmes.
  • You can attain permanent residency after five years.
  • You can attain citizenship after six years.

The residence permit is granted for a period of one year, renewable for two successive periods of two years, and requires the maintenance of the investment for a minimum period of five years and the presence in Portuguese territory for 7 days (consecutive or not) in the first year and 14 days (consecutive or not) in the subsequent periods of two years. The authorization may be extended to the investor’s family members and the residence permit may be granted on a permanent basis after the initial period of five years.

 

Investment types

This type of investment includes:

  • Commercial or residential properties.
  • Real estate acquired in co-ownership, as long as the investor’s share is at least the minimum indicated value.
  • Properties that are acquired individually or through sole proprietorship companies in which the investor is a partner.
  • Leased properties.
  • Properties encumbered, by the amount that exceeds the minimum amount of the investment.

 

Portugal Golden Visa Changes in 2021

Source: Cruz Roque Semiao Advogados (CRS Lawyers)

Only this month, the XXII Portuguese Constitutional Government has finally established the revisions and changes on the Residence Permit for Investment Regime (Golden Visa), by means of the Law-Decree no. 14/2021 of 12th February, which represents the 8º alteration to the Law no. 23/2007 of 4th July (widely known as “Foreigners Law”).

The main goal, according to said alterations, is to make this regime more and more directed preferentially to the investment in the interior territories, to investment in job creation and to the urban and cultural heritage requalification.

With that in mind, the first essential and most relevant decision that was made was that these changes will only come into force/into effect on 1st January 2022, meaning that foreign investors have until 31st December 2021 to invest in the exact same terms and conditions, all over the country, towards their Golden Visa Applications.

As of 1st January 2022, the following changes, which will represent an increase in the minimum investment amounts, as well as affect the geographical area of application in the real estate investment for habitation purposes, will apply:

 

1. Real Estate Investment:

a. In the amount of € 500.000,00, for habitation Purposes, will only be allowed in the interior of Portugal, Azores, and Madeira.

b. In the amount of € .350.000,00, with rehabilitation investment, for habitation Purposes, will only be allowed in the interior of Portugal, Azores, and Madeira.

 

2. Capital Transfers:

a. The amount of investment for the Capital transfer with a value equal to or above 1 million Euros, changes to a minimum of 1.5 million euros.

b. The amount of investment for the Capital transfer for investing in research activities conducted by public or private scientific research institutions involved in the national scientific or technologic system changes from €350.000,00 to a minimum value of € 500.000,00.

c. The minimum amount on the Private Equity Funds investments, changes from € 350.000,00 to a minimum value of € 500.000,00.

d. The minimum amount on the capital transfer for incorporation of a Company in Portugal, combined with the creation of five (5) permanent working jobs, OR for the reinforcement of the share capital of an existing company in Portugal, with the creation or maintenance of said jobs, changes from € 350.000,00 to a minimum value of € 500.000,00.

 

In view of the above, and according to the remaining legal diploma that was published, it is essential to highlight that:

  • Foreign Investors will have until 31st December 2021 – almost a whole year – to submit their Golden Visa application, taking advantage of the current Law as it is and was from the past years (with the same minimum amounts, on the same locations, and with the same requirements).
  • As long as these applications, by the Investors, are submitted before the 1st January 2022, client(s) can benefit for the same rules and have their residence permits granted, even if the actual approval of the process happens after that date.
  • The geographical limitations that will happen on the real estate investments, by “pushing” the investment for habitation purposes to the interior and the Islands, will still give a lot of interesting and potential possibilities in terms places to invest in Portugal, which will help on the development of those areas.
  • On the real estate investments, only the ones for habitation purposes will be affected, meaning that for commercial/services or other purposes foreign investors will still be able to invest in the whole country, namely in Lisbon and Porto, just like before, after the 1st January 2022.
  • Family members can still benefit from the Family Reunification applications and benefits, even after 1st January 2022, as long as their Main Applicant/Investor has submitted his/her application before that (under the same law).

 

Gustavo Machado Dias associate lawyer of CRS Lawyers

 

The new regime comes into force on January 1, 2022 and is applicable to all applications for Residence Permits trough an Investment Activity (ARI) presented from this date forward.

But until the regulation takes off, there is still a window of opportunity to utilise the popular Golden Visa programme via property investment.

This new regime does not affect the processes in progress and which have been approved under the law currently in force. Meaning, existing renewal processes and granting /renewal processes for family reunification which associated investment has been made until the end of this year (still in the period of the current law).

 

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

 

To find out more about the Portugal Golden Visa program,  join our live webinar ‘Let’s Talk Property. Portugal’s Golden Visa – Residency Through Investment’ on Thursday, 22 April 2021 at 6pm.

Register here

 

 

23 Apr 2021

Tokyo is one of Asia’s most exciting and dynamic cities, and home to 14 million people. As the capital of Japan, it is the economic and political heart of the country. And it is also hosting the delayed 2020 summer Olympic games this year.

With such strong fundamentals, it comes as no surprise that demand for real estate in Tokyo remains bullish.

High-rise condominiums are extremely popular in Tokyo where buyer activity has been relatively unaffected by the Covid-19 pandemic. Low interest rates and tax breaks have helped sustain property demand during this period.

Contrary to the trend in major cities where there was an exodus to the suburbs during the pandemic, Tokyo has seen the reverse, with an increased demand for new developments in central locations as people look to reduce their commuting times.

In summary, Tokyo boasts a resilient and healthy property market.

 

Beautiful neighbourhood of Shibaura

Located in the Minato ward in the south of Tokyo is Shibaura, a beautiful neighbourhood located between the eastern side of the Yamanote Line train and Tokyo Bay.

Why did we choose this area for property investment?

Continue reading!

‘Shibaura’ has great investment potential and is expected to see further growth due to multiple ongoing redevelopment projects. It is also a beautiful and enjoyable place to live in with the stunning Rainbow Bridge, scenic canals, and a futuristic cityscape.

It is also well connected, being close to the busy Yamanote Line and the Mita subway station.

 

View from Tamachi Station

 

The famous "Keio University", a leader in education, research and medicine, is near Mita Station, making it popular with university students.

 

Keio University

 

Shibaura consists mostly of artificial islands created by the excavation of industrial canals in the early 20th century. It was developed into a residential and commercial area as early as the early 2000s, and many corporate headquarters are now located at the area.

 

Shibaura House

 

The thriving community has excellent living facilities including parks, schools and supermarkets. As a result, the bay area is now very popular with middle-, and upper middle-class buyers and renters.

 

Canal side

 

End of the Rainbow

Nearby, and adding to the district’s attractiveness, is the symbol of Tokyo Bay - Rainbow Bridge, a suspension bridge crossing the northern part of the Bay. It is located between Shibaura Pier and the Odaiba waterfront development in Minato.

 

Rainbow Bridge

 

Conveniently located along the road from Tamachi station to the Rainbow bridge is a vibrant scene of supermarkets, restaurants, and stores. Residents and visitors enjoy the attraction of the Shibaura Canal Festival every September and the beautiful blossoms of sakura flowers in Spring.

Shibaura South Port Park is a scenic marine park under the Rainbow Bridge, which can be enjoyed during the day or night. This is where many Tokyo residents come to enjoy the first sunrise of the new year on January 1 and the park has open spaces, benches and a sports plaza where you can play baseball and football.

 

Park (under the bridge)

 

Investment opportunity: Branz Tower Shibaura

Within this bustling and exciting district, Tokyu Land Corporation has developed

Branz Tower Shibaura, a high-end residential building located in Minato-ku.

Situated in the center of Tokyo, the development allows residents to gain easy access to vibrant Shibuya, Ginza Shopping area and Otemachi, Shinbashi Office area.

The freehold development consists of 32 floors and 482 exclusive apartments. The tower is also equipped with impressive facilities for residents including a crown terrace, crown lounge, fitness studio and guest rooms.

With these facilities and its excellent location in one of Tokyo’s up-and-coming districts, Branz Tower Shibaura is sure to be a highly sought-after private residence this year.

And with Tokyo back on the global stage again this year as it hosts the summer Olympics, the timing couldn’t be better.

 

 

To find out more about this exciting development join our live webinar

‘Let’s Talk Property: Spotlight on Tokyo’ on Thursday, 15 April 2021 at 6pm.

Register here

 

We will talk about the Tokyo property market, the impact of redevelopment in Shibaura and also introduce Branz Tower Shibaura to the Singaporean investors.

 

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

 

31 Mar 2021

New residential projects are creating rare opportunities for property investment in the UK's fastest growing economy within commuting distance of London

World famous for its prestigious university, cutting-edge research and magnificent heritage, Cambridge is also one of the UK's leading technology hubs and fastest-growing economies.

A huge student population, excellent career opportunities and convenient access to London ensure consistently high demand for residential property in Cambridge, and several new developments are providing opportunities for overseas property buyers and landlords.

 

Best and brightest

There's more to Cambridge than its elite university, but the institution's influence on local life and the economy is undeniable. University colleges are spread across the city and one in five local residents are students, many of whom remain in the city after graduation for postgraduate research or recruitment into the highly-skilled local workforce.

Cambridge's science parks are partnerships between the universities and businesses that continue to attract substantial overseas investment from the world's largest brands. These partnerships have been instrumental in growing Cambridge's reputation as a world leader in fields such as biotechnology, medical research, software and pharmaceuticals, particularly around the high-tech cluster nicknamed 'Silicon Fen.'

The growing importance of Cambridge's technology and research sectors have placed the city among the UK's fastest growing economies in recent years. Less than an hour from London and international airports, Cambridge is a convenient location for businesses in all fields, and access will improve further with the new East-West Rail link and Oxford-Cambridge Expressway expected to open in the next decade.

 

Country charm and city convenience

Cambridge's reputation for work and study overshadows its other perks as a comfortable and stimulating place to live. Numerous performance venues, museums and art galleries provide one of the richest cultural offerings outside London, and a packed events calendar has something for everyone – from the live bands of the Big Weekend to the Cambridge Folk Festival and traditional Midsummer Fair.

Cambridge's shopping and dining options are just as diverse. With three shopping centers, traditional markets, independent boutiques and the wide selection of restaurants, cafes and bars that modern city dwellers expect, Cambridge has all the attractions of city living with the English countryside on its doorstep.

Families with children are also exceptionally well provided for in Cambridge, with many highly rated primary, secondary and independent schools in the area. These include the University of Cambridge Primary School, St Bede's Inter-Church School and Chesterton Community College, all rated 'Outstanding' by education authority Ofsted.

 

Buoyant residential market

With consistently high demand from domestic and overseas students, professionals and families, Cambridge property can offer investors and landlords some of the highest yields in the UK. The problem, until recently, was the lack of new supply. Cambridge's heritage architecture may be one of its greatest draws for visitors and residents, but stringent building restrictions have long stifled development in the small city, even as they maintained high levels of demand and prices.

This situation is gradually improving as more new residential developments are opening up Cambridge and surrounding areas to investment. The Government's proposed CaMKOx Arc initiative for Cambridge, Milton Keynes and Oxford is also aiming to bring one million homes and 1.9 million residents to England's 'brain belt' by 2050 by creating new neighborhoods and amenities.

One such district in Eddington, a new community less than two miles from Cambridge's historic city center designed by the University of Cambridge as a successful model of sustainable urban planning. Premium homes and apartments are now available in Eddington at Knights Park, combining modern living with convenient access to Cambridge, London and the surrounding countryside.

 

For more information about Knights Park and other residential properties in Cambridge and the UK, please contact:

Christine Wong (REN06667)

JLL International Residential

M: +6012 908 6318

E: wong.christine@ap.jll.com

19 Mar 2021

When most people think of the cities of Europe, London, Paris and Barcelona spring to mind, for living in as well as buying property. As a result, this tends to push their property prices up given the investor demand. But Europe is a huge continent with lots of bustling cities when plenty of potential if you are willing to look further afield.

One of these cities is Hamburg, which is Germany’s second largest city after its capital Berlin. Traditionally, Germany has not been a priority market for overseas property investors based in Asia. Most usually look at the UK, Australia and the US when it comes to purchasing a second home or an investment property overseas.

But more discerning investors have been looking at Germany as a way to diversify their property portfolios and improve their yields. Germany is also seen as lower risk than other markets like the UK post-Brexit. It also has the largest and most stable economy in Europe accounting for 20% GDP of the European Union (EU), which helps provide strong support for its real estate investment.

Plus Hamburg, along with other German cities of Frankfurt and Munich are regularly ranked in the world’s most desirable places in the world to live.

 

 

Strong backdrop

Did you know that there usually a shortage of suitable properties available in Germany? This is because it has strict housing policies that only allow a limited number of new-build constructions each year, restricting the housing supply. This also mean there are no wild swings in property prices but more stable and sustainable growth instead.

Germany has a very accessible education system with free education provided up to high school and no general tuition fees for public universities. At the same time, many German universities are ranked as some of the best in the world and more foreign students are now studying there. This opens up opportunities for graduates to work there, and across other parts of Europe.

It may come as a surprise but in Germany many people prefer to rent rather than buy. It is heavily embedded in the German culture. This strong demand for rental properties means there is a strong Buy-to-Let market which offers a steady source of income to property investors.

 

Why Hamburg?

Hamburg has around 1.8 million inhabitants and is both a city as well as a state. The metropolitan area is seven times greater than Paris and two and a half times greater than London. As a result, Hamburg has the largest average living space of all major cities in the world, leading to high standards of living and housing.

The city is known for its beautiful tree-lined waterways and lush parks. In fact, Hamburg boasts 2,302 bridges, which is more than Venice combined with Amsterdam.

On the economic front, Hamburg is a huge gateway to the world and home to Germany’s largest port. This has helped make it an extremely international and culturally-diverse city that has attracted more than 3,500 international firms and employers.

 

 

City in a city

Within Hamburg, a mini city called ‘HafenCity’ is being developed as part of its maritime district. More than 7,500 residential units for around 15,000 residents are being built, as well as business premises offering in excess of 45,000 job opportunities (of which 35,000 will be in offices), plus educational institutions, restaurants and bars, retail, cultural and leisure amenities, with parks, plazas and promenades – after overall completion, 80,000 visitors per day are expected.

This exciting project started in 1997 and is expected to be finished by 2030. This has opened up the number of properties available for purchase in Hamburg and its Buy-to-Let market is starting to flourish.

JLL is selling a unique complex within HafenCity called Roots. The residential tower is 19 floors high and the tallest wood hybrid building in Germany. The development is also home to the German Wildlife Foundation, and includes a museum and restaurant while sitting in a waterfront location.

Along with panoramic views over the River Elbe, buyers also enjoy guaranteed rental yields should they choose it as an investment property. These all make a very strong case to put Hamburg and the newly-developed Hafencity on your property radar.

To find out more about property investing in Germany sign up to our livestream event on Facebook on 18 March.

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

17 Mar 2021

The housing market has got the extended holiday many were hoping for and the clock is now effectively ticking for new buyers who haven’t yet started the process of purchasing a home to take advantage of a reduced Stamp Duty charge.

 

Stamp Duty Extended Holiday

 According to Rightmove data it has taken an average of 54 days to sell a home since the holiday was introduced in July, down from an average of 70 days in the 12 months prior.

Assuming the average time to sell a home remains at the current level, aspiring buyers have until 7th May to begin a purchase to take advantage of the holiday extension.

Overall the Stamp Duty holiday has provided a much-needed confidence boost to the housing market following its full closure in March last year. However, its previous cliff edge ending on 31st March always risked seeing sales fall through increasing anxiety for aspiring purchasers. The extension will provide welcome relief to those purchasers and open the door to additional buyers. There now needs to be clear signposting introduced to ensure the cliff edge is not just pushed further down the road.

Nick Whitten - Head of UK Living Research

2% overseas Stamp Duty surplus

This tax represents a big shift in UK Government policy away from an open trade policy – until now there has never been a consideration of an investors origin if they are looking to buy an investment home.

This tax will undoubtedly create some market resistance for an initial period until it becomes accepted. It should be noted that many other competing cities already provide higher levels of overseas taxation so the UK’s major cities should remain competitive on the international stage.

 

First Time Buyer Mortgages

95% mortgages have been all but non-existent for some time now so the Government’s mortgage guarantee scheme is hugely welcome news for aspiring home owners who have long faced mounting affordability issues.

 

Capital Gains Tax changes

The UK has obviously seen a significant increase in its debts as a result of supporting the country through the COVID pandemic. Those who can pay more tax, should pay more – that is only right and it fits with the levelling up agenda.

Nearly half of the UK’s privately rented homes are in suburban locations owned by small scale buy-to-let landlords. There could now be an increase in demand for this kind of housing stock from first time buyers looking to take advantage of the new mortgage guarantee scheme. The proposed changes to Capital Gains Tax could prompt of flurry of sales from landlords looking to exit before the changes take place. However, if there isn’t sufficient lead in time before the CGT changes take effect, it could reduce the volume of rental stock coming to market. CGT is ultimately a discretionary tax, and if homes become bloated with that tax, many landlords will opt to sit on their asset and wait.

 

Wholesale Review of Residential Taxes

Looking ahead, the Government has announced a Tax Day on 23 March and this could include the commencement of a widespread review of residential property taxes.

Reviewing how residential properties are taxed in the UK is long, long overdue.

Council Tax is based on residential values from 1991, which frankly are a very poor reflection of the current market. Meanwhile, Stamp Duty is a hugely inefficient tax which is ultimately a potential hindrance to the future economic prosperity of the UK. It makes no sense for people to find themselves ‘locked-in’ to their current home because of the tax burden of moving. People need to be able to migrate towards opportunities as easily as possible in the 4th Industrial Age and as part of the levelling up agenda.

Government also needs to acknowledge that we have an ageing population and SDLT is a hugely punitive tax for those looking to descend the housing ladder and right-size in later life. Without enabling more people to downsize, we face many people continuing to live inappropriate homes for their needs which in turn forces Government to have to increase expenditure on health and social care.

However, any significant changes in the tax system must be carried out with care, following a detailed consultation and with a sufficient lead-in time. Any replacement residential tax should carry a similar starting burden for individuals. The variance should then occur over time to allow householders to adjust their finances accordingly.

 

Overall Budget Conclusion

There are many welcome announcements within this Budget. However, solutions to the housing challenge must also focus on providing homes to suit a greater variety of end user needs. Society has changed and we must move away from the concept of blanket home ownership. We need measures to support an increase in purpose-built rental homes which will professionalise the private rented market, providing long-term, secure housing, and raising the profile of renting as an aspirational lifestyle choice.

And we need attractive, specialist later life housing which will help free up family homes and make more efficient use of existing stock.  With people living longer, the UK’s ageing population is typically under occupying family homes, but appropriate alternatives will encourage right-sizing.

Measures to address the housing market should be targeted at increasing all forms of supply, not just increasing demand for Private Sale housing only. 

 

For more information, please contact:
Christine Wong (REN06667
M: +6012 908 6318
E: wong.christine@ap.jll.com

Nick Whitten - Head of UK Living Research
12 Mar 2021

Our lives now revolve around our homes more than at any point in the past 250 years. In 2020, Covid-19 has accelerated a trend which is making our homes the centre of our lives once again with technology being the great enabler allowing us to satisfy our needs and wants in our homes.

Our Residential Forecasts 2021 will look to the future and offer valuable insight on:

  • UK house price and rental value forecasts for the next five years
  • Expected future housing starts and levels of transactions over the next half a decade
  • Which cities will witness the highest house price growth?
  • Will the Covid-19 pandemic trigger large-scale de-urbanisation?
  • What role is technology playing to satisfy our increasing needs and wants in our home?

Download Report

 

Nick Whitten our Head of UK Living Research discusses our latest forecasts in the video below.

 

 

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

12 Nov 2020

Shortage in supply of new-built condominium pushes up demands in resale market

The sustainable growth of the Japan property market has been supported by a steadily-growing population in the metropolitan areas. As such, the shortage in supply of new-built condominium is leading more people to turn their eyes towards relatively new condominiums in the resale market. The Japanese traditionally favor new-built housing, but the recent trends tell us that there has been a change in the people’s perceptions in the age of a building or property. Today, we will look at more insights of the recent trend in resale market. Demand of housing remains strong The population growth in metropolitan areas like Tokyo has been showing a steady increase. COVID-19 has changed our living and working styles in various ways, but the impact on housing demand is limited. Market observers commented that more people from the city central areas are moving to spacious houses in country side because of working from home (WFH) was being introduced during the state of emergency in April 2020. Indeed, according to the survey by Tokyo Shoko Research survey, 56% of companies adopted WFH at the time. However, in August, the companies still continuing with WFH reduced to 34.40%.

 

Demand of housing remains strong

The population growth in metropolitan areas like Tokyo has been showing a steady increase. COVID-19  has changed our living and working styles in various ways, but the impact on housing demand is limited. Market observers commented that more people from the city central areas are moving to spacious houses in country side because of working from home (WFH) was being introduced during the state of emergency in April 2020. Indeed, according to the survey by Tokyo Shoko Research survey, 56% of companies adopted WFH at the time. However, in August, the companies still continuing with WFH reduced to 34.40%.

Large companies have higher adoption rate of 61.31%, which is almost double that of mid-to-small size companies.

However, in terms of participant rate, majority of large companies responded that no more than 30% of their employees actually WFH. Even so, it was often not full-time complete WFH but a partial one, i.e. biweekly or a few days in a week. Therefore, relocating to country side is not a practical option for the majority, as commuting to work is still required and thus good connectivity still remains important.

Looking at the demographic movement in Tokyo, COVID-19 did affect the population movements, but not to the extent to call it as a population outflow. Indeed, demography by nationality showed the decrease in population was largely contributed by foreign residents returning back to their countries. As of August 1, Japanese population has increased by 58,114 comparing with January, while foreigner population has reduced by 4%.  

In the long term, population growth is still in an upward trend. On year on year basis, the Japanese population in metropolitan areas is increasing, despite the state of emergency was announced in April to May period disrupted the usual influx of people expected for every new school year and fiscal year starting in April.

 

Fortunately, real estate sales activity has sprung back to what it used to be before COVID-19. There is still a great demand for condominiums from the local owner occupiers and the decrease of foreigners do not seem to affect sales. When businesses resumed after the state of emergency, local buyers started actively looking for housing like before. On year on year basis, there were even more transactions in the resale market in August.

Shortage of supply in new-built condominiums

In recent years, the supply of new-built condominiums in Tokyo has been decreasing, despite of the growing population and housing demands. The choice limitations turned buyers to the resale market for secondary alternatives. Land acquisition has always been very competitive in the already developed central areas in Tokyo. As city urbanization continues, the shortage of supply in new-built properties is expected to push up the demands of resale apartments.

The next graph shows the transaction volume of resale versus new-built properties in Tokyo 23 wards over the past ten years. The transaction volumes of resale market showed increase gradually, as the new-built condo supply slowed down after 2013.

Properties below 20 years are actively sought after

New-built housing has always been the most preferred option for Japanese, because historically, houses in Japan were built by wood. It was believed that the newer the house, the better would be its durability. However, the situations are different today. With fewer new-built options and the advancement of superior construction qualities, resale apartments are generally now more accepted.

As more buyers opt for resale markets as a substitute for new-built apartments, it resulted in the majority of transaction volumes concentrated in the relatively new buildings with age below 20 years. In terms of the transaction ratio against the supply, the building aged between 6 to 10 years shows the highest demand last year, followed by those of 11 to 15 years, 16 to 20 years and 0 to 5 years.

 

Recommendation is up to 15 years old

The observations showed that transaction volume zone is within 20 years old and so, investing in property below15 years is the best recommendation with consideration of the exit timing as well. Although buildings of 20 years old might sound “old” for overseas investors, the locals feel differently. Although traditionally the Japanese adore new-built properties, nowadays more people are realizing that the construction qualities after the millennium 2000 have become excellent to provide strong durability. Especially properties from established developers are well-maintained in very good conditions, which makes it no big difference to the new-built ones.

Many Japanese developers have their own prestige brand names for their condominiums. Therefore, they put in their utmost efforts in maintaining their quality and reputation. Often, the building management is by developer’s subsidiary company so as to make sure the same brand quality is achieved.

Because of the superior construction quality, it is unlikely that owners of such condominiums will need to pay substantial amounts for maintenance in the first 10 years. That is why many property management companies offers guarantee plans that cover minor repair costs, as there is not much pay out expected during this period of time.

After the first decade, some replacements of appliances like air-cons, dishwashers, water-heaters may be required due to service lifespans, but in general, the properties will look no inferior to new-built ones and are equally competitive in the markets.

 

Property price continues to grow in prime locations

Both resale and new-built condominiums in Tokyo have been on a steep price growth since 2013. The growth until 2016 were largely affected by the great expectations towards Tokyo Olympic game, which has brought significant impacts on the property markets not only in Tokyo central, but also to surrounding areas. The growth in the most recent couple years was due to more sustainable and rational factors. Good connectivity, prime locations, redevelopment and superior quality apartments are enjoying appreciation, whereas those properties without these factors are being left behind from the continuous growths.

The demand for a good property in terms of quality and location is expected to remain strong in central area, as working in office is still a daily norm for majority. The shortage of new home supply will still continue, as land acquisitions will remain competitive in prime locations, which in turn can push up values of the existing good properties. It is therefore a good opportunity to widen your options to consider resale properties with strong growth factors.

 

 

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

 

 

 

03 Nov 2020

Despite the challenges posed by Covid-19, new housing schemes, developments and initiatives in the UK continue unabated.

The beauty of a city like London is that it has such a wide variety of vibrant districts spread across its vast metropolis. Most of these are steeped in rich heritage, dating back to Victorian times and beyond.

One of the lesser-known areas in central London, is called the Silk District and sits in the east of the city. Back in the 17th century, the Hugenots were forced to flee France and brought their silk-weaving skills to this part of London. Before that you couldn’t buy silk in England.

While most Londoners will know the area as Whitechapel, the Silk District is being revitalised thanks to some new regeneration projects. This historic part of the city currently ranks in The Telegraph's Top 20 Places to Invest in London.

 

Whitechapel vision

The Mayor of London’s “Whitechapel Vision” is a £300m investment to improve the local area, creating a new shopping destination, public squares and first-class educational opportunities.

The regeneration plan aims to create 5,000 new local jobs, a new street market, seven public squares, a research campus, parks and a medical research centre.

 

Christine Wong, Head of International Residential, JLL Malaysia said:

“With unrivalled transport link and located closely to central London with the most attractive price point, JLL present to you one of the best investment opportunity available now.”

 

Up-and-coming neighbourhood

The area is a magnet for city execs, technology workers and creative types with the ultra-cool Shoreditch enclave close by.

A major part of the regeneration includes the opening of the high-speed Crossrail train network in 2021. When this opens, residents can reach Central London in 10 minutes or less. This improved connectivity is likely to spur healthy rises in property values in locations that have Crossrail access.

“There is currently huge appetite to invest in Whitechapel,” Peter Gibney, director at JLL, commented.

This area was first identified by JLL’s Crossrail tool as offering the highest price growth potential compared with other Crossrail stations.

Together with the emerging creative commercial hub and unparalleled convenience of location for both work and leisure, Whitechapel looks set for demand for residential investment opportunities to continue to outstrip supply.”

 

 

“Neighbouring high-performing areas like Old Street and Spitalfields have seen staggering returns over the last five years, which demonstrates the best is yet to come.

The Bouchon (the last phase of The Silk District) offers a great opportunity for savvy buyers and investors, and it’s the last chance to buy in this up-and-coming development.”

Even without Crossrail, the Silk District and wider Whitechapel is on the edge of London’s city centre located in the Zone 1 transport network.

In fact, the Silk District is excellently located in between two of London’s largest financial districts, the City of London and Canary Wharf.

 

Strong growth

This part of London is predicted to grow strongly by 2024. The average price growth of the Silk District development is expected to be more than twice that of other new builds in the same postcode.

While London’s financial districts are very close, so too are a number of world-renowned universities including Queen Mary University, UCL, London Metropolitan University and King's College, which are all within 15 minutes.

The Silk District’s close proximity to these financial and educational centres guarantees a steady influx of people looking to rent or buy properties. And with a low price per square foot compared to neighbouring boroughs, the Silk District is ranked top by JLL for future price growth potential.

 

New developments

The Silk District development is designed by Stockwell Architects and features a 24-hour concierge, secured underground parking, a cinema room, a private gym, rooftop gardens and a large commercial space.

 

 

We have already successfully launched three phases of the development and now the fourth phase is ready to launch. For investors, a two-bedroom rental property in the Silk District could command a premium rental price and capital appreciation over the next few years.

Ongoing area regeneration and Crossrail’s arrival is the catalyst for a 25% projected price growth by 2024.

Launching now – The Bouchon @ The Silk District, London E1.

It is the tallest building in the development, rising to 25 floors, offering stunning views of Canary Wharf and the City.

“The Bouchon offers would-be buyers the last chance to buy within our development, The Silk District, which is scheduled for completion in spring 2024,” Jon Hall, sales director at Mount Anvil.

Could Whitechapel’s Silk District be the investment opportunity you are waiting for?

Book a one on one appointment today or contact:
Christine Wong (REN06667)
M: +6012 908 6318
E: wong.christine@ap.jll.com

Register: https://internationalresidential.jll.com.my/event-calendar/18/oct/2020/silk-district-phase-4

 

Download our brochures for more information:

The Silk District, The Bouchon
Download Brochure

The Silk District, The Bouchon
Download Factsheet

Whitechapel Investment Guide
Download PDF
15 Oct 2020

In fact, data from UK's Land Registry reveals Asian are among the top 10 buyers in the Capital. But with the uncertainty over no-deal Brexit and rising property prices, it's becoming harder for buyers to find an ideal investment that can yield good returns.

In this article, you’ll discover why The Silk District in Whitechapel, London E1 is the answer to many investors’ dream of owning a profitable rental property in the Capital.

 

Five-Star Hotel Experience at the Heart of the City

Named after Whitechapel’s historic silk trade, The Silk District is a collaboration between Mount Anvil and L&Q.

The Silk District is designed by Stockwell Architects and features a 24-hour concierge, secured underground parking, a cinema room, a private gym, rooftop gardens, and a 3,500 sqm. of commercial space.

The interior comes with Terrazo-inspired flooring, SMEG appliances, integrated wardrobes, full-height windows, and open-plan living spaces.

An audio visual entry system plus 24-hour CCTV cameras make sure the residents are safe and secure.

For first-time and experienced buyers, The Silk District promises a profitable opportunity to grow their assets.

Here’s why...

 

The Launching Of Crossrail Elizabeth Line

With the upcoming opening of Crossrail, residents can reach London in 10 minutes or less.

That means an increased flow of transport to and from the Capital and a 15.3% growth in rental prices by 2021. (Source: JLL)

What’s more, the Crossrail opening will likely initiate a price growth.

This will bring Whitechapel more in line with its neighbors who are trading 50% to 60% higher.

 

 

Less Than 20 Minutes from Major Employment and Educational Hubs (City of London, Canary Wharf, and Stratford)

The City has a 55% of the workforce between 25 and 39 years old while the average full-time salary is £80,000 (SGD 142,682).

This is the highest of any London borough and 3x the national average.

Canary Wharf is one of three core financial and business services employment location in London.

Experts estimate that Canary Wharf will see another 14% growth in next ten years -- bringing the total number of employees to 234,000 by end of 2026.

Stratford expects 30,500 new students, four new university campuses, and will house Europe's largest shopping mall.

Silk District’s close proximity to these financial and educational centers guarantees a steady influx of prospects looking to rent or buy properties.

 

The Rise of “Generation Rent”

A 2016 analysis from PwC shows that by 2025, 60% of Londoners will be renters.

Dubbed as “Generation Rent” this group aged 20 - 39 years old will boost the demand for private renting across the UK and will continue to do so over the next decade.

 

But why is this so?

Richard Snook, senior economist for PwC explains:

“High prices are making homes in the capital unaffordable to most and could undo a century long trend towards rising home ownership rates - in just 25 years the city has been transformed to one where rental is becoming the norm – especially for younger people”

 

David Snell, partner, PwC, adds:

“With around 60% of Londoners predicted to be renting by 2025 (40% private sector/20% social housing), policy will need to adapt. This could include encouraging a better quality of private rented accommodation including longer tenure periods, and more rental properties designed for families.”  (Source: PwC)

 

For investors, this means a 2-bedroom rental property in The Silk District could command a premium rental price and capital appreciation in the next few years.

 

The £300m Regeneration Plan

The master plan aims to create 5,000 new local jobs, a new street market, seven public squares, a research campus, parks, and a medical research center.

With the regeneration plan underway, investors should expect residential prices to skyrocket by 19.8% between now and 2021 -- outpacing much of Central London.

 

Co-developed by UK’s #1 Company for Health & Safety

For the 5th consecutive year, the British Safety Council named Mount Anvil, developer of The Silk District, as UK's number one company for health and safety across any sector.

 

The developer also received a five-star rating and an audit score of 99.96%.

“Mount Anvil is an exemplar organisation in respect to health and safety management – in the UK and internationally. They are dedicated to world-class health and safety”
- Joscelyne Shaw, Policy Director, British Safety Council

 

Mount Anvil also received two Sword of Honors - a global award recognizing health and safety excellence.

Furthermore, Mount Anvil homes are protected with a 10 Year Buildmark Warranty, in conjunction with the NHBC. This warranty protect landowners for 10 years against structural defects like roof and foundation failures.

And for the first 2 years post legal completion, Mount Anvil, in conjunction with the NHBC, shield investors against defects resulting from failure to meet NHBC requirements.

 

Ready to Invest In The Silk District?

Singaporean investors who wish to capitalize on this opportunity may realize a double-digit growth in prices and rents. 

JLL’s Director of Residential UK Research, Nick Whitten, explains:

“The Silk District in E1 falls into the perfect buyer hotspot, meeting demand for competitively-priced homes in an area with excellent transport links.”

“We expect rental demand for The Silk District to be as strong as the forecasted rental growth of 15.3% by 2022.”

 

Exclusive Launch:

24th & 25th October 2020
Saturday & Sunday | 10am to 6pm
Mandarin Oriental Hotel
Parkview 1, Level 2
Kuala Lumpur

For more information, please contact:

Christine Wong (REN06667)
M: +6012 908 6318
E: wong.christine@ap.jll.com

Register: https://internationalresidential.jll.com.my/event-calendar/18/oct/2020/silk-district-phase-4

05 Oct 2020