Malaysian developers with projects in central London are expected to benefit from rising prices as demand is up on tight supply of new properties, Amresearch Sdn Bhd said today.
Malaysian property developers with projects there include SP Setia Bhd which is handling the development of the Battersea Power Station (pic) Phase 2 through a 40:40:20 JV with Sime Darby Bhd and the Employees Provident Fund (EPF). The Battersea Phase 1 project had achieved a take up rate of 97% in just six months from its launch in January.
Other upcoming launches in London include IJM Land Bhd’s 51-percent-owned Tower Bridge project with a gross development value (GDV) of RM1.5 billion and E&O Bhd’s Princes House Apartments, which has a GDV of RM250 million.The Amresearch report cited a LSL Property Services Plc/Academetrics survey that showed prices in the central London area have risen by an average annual growth rate of 7.9 percent in tandem with growing demand.
The lack of supply has been the key reason for the persistent demand of properties in London, it said.
According to Census 2011 data, the UK Department of Communities and Local Government estimated new households in London were expected to surge by 40 percent between 2011 and 2012.
However, from the expected demand of 525,790 units in the next decade, only 277,240 units would be available. This translates to a shortfall of 48 percent in supply in the prime areas, the report said.
Amresearch has maintained its overweight recommendation on the property sector.
Its top picks for the property sector are IJM Land Bhd (fair value: RM3.80), Mah Sing Group Bhd (fair value : RM3.70) and UEM Land Bhd (fair value: RM3.61). August 5, 2013. - The Malaysian Insider
No comments:
Post a Comment