City & East property sales market

Bernard Cully, Head of Sales, comments on the City & East sales market: “Traditionally, Q1 is one of the most active periods in the property sales market, but activity levels have softened slightly year on year. We have seen a marginal decrease in the number of buyers registering, but this is primarily due to caution ahead of the impending election and, of course, the stricter lending criteria introduced at the end of last year.

“However, we are finding that both vendors and buyers who are active in the market at present are still very motivated to transact. This, in turn, has created a very healthy and buoyant market environment for all parties.

“The City Fringe is performing well and a micro-market of demand is starting to form within the 'catchment areas' of London's new Crossrail Stations at both Whitechapel and Liverpool Street. It is attracting strong investment interest, especially from UK based buyers, and pricing in the City Fringe has seen a sustained level of growth. Stock levels are still low, though, as most investors are continuing to benefit from generous rental yields.”


City & East property lettings market

Charlotte Malone, Director, comments on the City & East lettings market: “The City and East London lettings market has performed strongly, with new applicant registrations up 25% year on year. We expect enquiry levels for Q2 to remain buoyant as we head towards spring which is typically a busier time in the market. Demand continues to be particularly high for newly completed, and well-connected, studio and one bedroom apartments, appealing to professional tenants whose offices are in central Canary Wharf.

“However, continued lack of supply in prime Canary Wharf means we are still experiencing a shortage of stock, with newly completed units renting within days of coming to the market. Despite a slight slowdown in the sales market in the run up the election, a significant number of investors are continuing to take the opportunity to sell their rental investments and realise their capital, which is contributing further to the lack of supply in the lettings market.

“Demand for developing residential areas surrounding prime Canary Wharf, such as Bow and Poplar, continues to grow, where affordability and supply of new build apartments are favourable. Average rents for new build property in these areas are £325p/wk for a one bedroom, £375p/wk for a two bedroom, and £525p/wk for a three bedroom. The first quarter of 2015 has seen completions in the next phase of the Bellway Homes scheme New Festival Quarter, which offer the convenience of being within easy reach of Canary Wharf without a premium price tag. We have also seen extremely high demand for the Telford Homes development Lime Quay, where nearly all available units have now been let. These types of developments attract professional couples, sharers, and students who are looking for value for money in a well-connected new build development.”

South East property sales market

Tim Howells, Assistant Branch Manager at JLL's Blackheath office, comments on the South East sales market: “We are currently very active providing market appraisals for potential vendors preparing to put their property on what is usually a buoyant Spring market; it's clear to see that most people are poised to go to market following a 'Spring clean', and some sunny photographs. Despite there currently being a shortage of supply, we envisage a spike of instructions over the coming weeks, going someway to satisfying current demand. 

“The typology of buyers has changed recently; we still enjoy the luxury of non-dependant, chain free buyers, with no issues of affordability, but there seems to be an increasing volume of chained buyers, either up or down sizing.  This is likely a factor of growing property equity, and whilst moving costs are high, a low inflation rate allows movers to join spare income, savings and property equity to make that move. This type of chain is not causing a great degree of concern since all types of property are selling well.

“We will be launching the latest phase of River Gardens in April, and have a good deal of pre-launch interest from both owner occupiers and investors. The development is situated on the banks of The River Thames in East Greenwich, just a short walk from central Greenwich and The Royal Park and offers amongst the largest new build apartments in the Borough.”

South East property lettings market

Charlotte Russell, Assistant Manager (lettings) of JLL's Greenwich office, comments on the South East lettings market: “We are still seeing a steady flow of requests for properties to rent in West Greenwich and in the conservations areas. However, the new homeowner and tenant looking for more space or access to the Jubilee line is heading East of Greenwich Park where there is a plethora of new riverside communities and the beautifully presented terraced houses that have been lovingly restored to their former glory.

“Over the last five years there has been a rise in development and a change in demographic for East Greenwich; it has now become a prime spot to live thanks to its improved local amenities to rival that of Greenwich and even Blackheath. Riverside developments such as the River Gardens have really lifted the luxury living market and we will see this continue on completion of phase three in 2016. Greenwich Square and The Peltons have also started new residential communities in the area increasing the need for better facilities making the area a prime location for new businesses. We are looking forward to seeing the changes in East Greenwich in the very near future.”

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Notes to Editors:

About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

For further information, visit www.jll.com. DO NOT DELETE THIS TEXT