New British home scheme

LONDON: Britain launched a flagship scheme to help people get on the property ladder, defying critics who believe the state-backed mortgage programme could fuel another housing bubble.

“Help to Buy” was launched hours after a survey suggested British house prices were rising at their fastest pace in 11 years.

Royal Bank of Scotland (RBS) and Lloyds, two banks in which the government retains big stakes after bailing them out during the financial crisis, will start marketing state-backed mortgages this week. HSBC, Europe’s biggest bank, announced it would join the scheme later this year.

Smaller lenders Virgin Money and Aldermore have also agreed to participate. But Barclays and the British unit of Spain’s Santander were still considering whether to join the programme which allows homebuyers to put down a deposit of as little as 5%.

In a sign of the breadth of concern, a cross-party committee of lawmakers warned the scheme risked raising prices rather than supply.

“Mistakes could distort the housing market or carry threats to financial stability,” the head of parliament’s Treasury Committee, Andrew Tyrie, said.

When the programme was announced in March, Britain’s housing market and its economy both looked in need of serious help. Now things look very different.

House prices nationally are rising at more than 6% a year, according to mortgage lender Halifax and parts of the capital are seeing gains in excess of 10%.

The government and Bank of England said there was no obvious risk of overheating, pointing to buying/selling and lending activity still well below long-term norms. More broadly, Britain’s economy is also recovering more quickly than expected.

A survey yesterday showed British firms recorded the best growth in domestic trade for at least six years in the third quarter. The British Chambers of Commerce said the results of its quarterly economic survey suggested economic growth sped up to around 0.9%–1% in the third quarter.

Prime Minister David Cameron and his Finance Minister George Osborne trumpeted the mortgage guarantee scheme at the Conservative Party conference last week and announced it would start three months early.

Under the scheme, the government will offer to guarantee up to 15% of mortgages, helping people who in recent years have been unable to get on the property ladder because they lack the high deposits lenders now require.

Now, a deposit of 5%, could suffice on any property worth up to £600,000. Participating banks would not have to set aside capital to cover the state-backed portion of mortgages they offered as part of the programme, the Bank of England said.

In exchange for the guarantee, the government will charge a fee of up to 0.9% of the loan’s value. This is designed to cover any losses to the taxpayer, if borrowers default, and to comply with European Union state aid rules. — Reuters

UK House Prices Rise Further, Sales Jump

British house prices recorded their fastest rise in almost seven years last month and a measure of sales volumes also jumped to a multi-year high, a survey showed on Tuesday.

The Royal Institution of Chartered Surveyors' seasonally adjusted house price balance climbed to +40 from a slightly upwardly revised +37 in July, staying at its highest since November 2006.

The balance reflects the percentage of property professionals saying that prices rose minus those reporting falls.

Britain's housing market has shown signs of a revival this year, spurred by a healing economy and help from the government and the Bank of England to ease access to finance. But the scale of the recovery has raised concerns about a new property bubble.

The RICS survey found that a net balance of +45 of surveyors expect further price growth over the next three months. Over the coming year, house prices are forecast to rise by 2.2 percent.

"Momentum is increasingly broad-based across the country; this isn't just a London story," RICS said.

The average number of sold properties per surveyor rose to 17.9 over the last three months, the highest since January 2010.

The number of properties going on sale also increased markedly in August, with the relevant balance jumping to +26 from 16 in July.

"With positivity starting to return to areas right across the UK, it seems those who may have been waiting for the right time to sell are choosing now to do so," RICS said.- Reuters

London property tight supply, rising prices a boon to Malaysian developers

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

London properties still pull ’em in

LONDON'S commercial properties continue to attract strong and diverse interest from abroad despite the internal and external challenges, with the sterling trading at one of its lowest rates in eight years, BNP ParibasReal Estate says.

“Seventy-seven per cent of Central London investments in the first quarter of 2013 (came) from overseas money,” BNP says in a release.

Europeans (outside of UK) accounted for 27% of overseas investments into Central London, followed by North Americans (25%), the Middle East 18% and the Far East (17%).

“Positively, total investment into the Central London property market rose 9% to £2.91bil (RM13.38bil) in the first quarter of 2013, compared with quarter four 2012,” a BNP release says.

Central London comprises the submarkets of the City, Midtown, Docklands and West End. The City refers to the square mile which houses London's financial district.

When analysing each submarket, investment into the City remained fairly stable in the first quarter of 2013 at £1.3bil (RM5.98bil) and the Docklands saw a rise in investment, with the largest deal being at 5 Canada Square.

At one time known as the Docklands, steel and glass offices dominate the skyline. Canary Wharf will be one of the beneficiaries of Crossrail, one of Britain's most significant infrastructure projects today since the Underground.

BNP Paribas Real Estate senior director of London investment, Richard Garside says: “Demand remains as diverse as ever with a continued high level of activity from overseas money driven by the focus on London as a safe haven with high quality investment stock. UK institutional investors also remain active within their traditional sectors and we are seeing a continued demand for annuity style income often provided by alternative sectors such as student housing, hotels, supermarkets and data centres.”

Why does London have such a strong attraction for foreign investment?

Chairman and CEO of Canary Wharf Group Sir George Iacobescu wrote in the Financial Times in March that the rule of law was central to London's safe haven status because investor could be sure that the legal system would safeguard properties under any political circumstances.

The same publication reported that 2012 saw £8.8bil buying into the London commercial sector, the highest volume since 2007. Knight Frank research says sovereign wealth funds accounted for about 25% of all transactions in the City market (or £2.4bil out of the £8.97bil).

CH Williams Talhar & Wong managing director Foo Gee Jen says it is necessary to look at the local office market situation in order to understand why Malaysian sovereign funds diversified abroad. Malaysian sovereign funds have invested about £3bil in London since 2009. He says yield for the Kuala Lumpur office market hovered between 7% and 7.5% from 2006 to 2011. Since last year, it has moved further down.

“Property value has moved up and the rental today does not correspond with the quality of the buildings. Yield is compressed. The same thing is happening in Hong Kong and Singapore. This has to be examined in relation to the 3% fixed deposit rates today. So when you get a yield of 4%, it seems reasonable, at 5% it is acceptable,” he says.

When sovereign funds buy into London, they enjoy a “double discount” in the form of lower entry point because prices dropped drastically in 2008/2009 and the pound is weak, says Foo.

The funds that have bought into London include Employees' Provident Fund, Permodalan Nasional Bhd, KWAP and Lembaga Tabung Haji.

Malaysian real estate investment trusts (REITs) also bought into the local commercial property market. Some development-based companies also converted their own assets into REITS. There are many prime office buildings, but the yield is not attractive.

Foo says buying abroad is a diversification for the Malaysian funds. Besides future capital appreciation and 5%-7% yield, Malaysian funds are attracted to long tenancies that go up 20 to 30 years.

The Financial Times reported on March 12 that the London office market and other European cities have attracted the attention of sovereign wealth funds from Asia of late. These funds are able to hold these assets for 30 years or more, if they so wish because their focus is on rental, not total return.

This fundamental difference in approach, combined with deep pockets means they can pay more and are in a position to outbid traditional landlords on many of the world's most coveted buildings, the Financial Times reported.

“From a Central London real estate perspective, sovereign wealth funds have been the driving force in pricing at the top end of the market and have become a key and distinctive purchaser type in the market. Sovereign wealth funds accounted for a quarter of City transactions,” the publication reported.

The build up in interest in London started in 2009/2010 while the local office market took a beating after 2008/2009. This does not mean there is no interest among funds in the local commercial sector. Pelaburan Hartanah Bhd (PHB) and Lembaga Tabung Haji have purchased local office buildings. - The Star

Battersea project off toa powerful start

IT'S a freezing Thursday morning at the Battersea Power Station in London. A couple of hundred yards away at its show gallery, potential buyers are lining up in droves to lock in purchases of the first phase of apartments being launched that day.

By noon, over 60 units had already been booked. Prices start from £338,000 (RM1.014mil) for a studio, from £423,000 (RM1.269mil) for a one-bedroom, from £613,000 (RM1.839mil) for a two-bedroom and £894,000 for a three-bedroom apartment as well as from £6mil for the penthouse units.

“I think our buyers are smart and appreciate the project's unique strengths. Its proximity to Chelsea, Battersea Park, our new tube station and, of course, the carefully blended mix of uses we have,” saysBattersea Power Station Development Co Ltd (BPSDC) chief executive officer Robert Tincknell, adding that there was a lot of pent-up demand for these apartments, especially from Londoners.

BPSDC is the company that is managing the Battersea Power Station project. S P Setia, Sime Darby and the EPF purchased the 39.5-acre Battersea Power Station site for RM1.99bil in September last year.

Both S P Setia and Sime Darby have an equal stake of 40% each in the project, with the EPF holding the remaining 20%.

Attempts to revive the Battersea Power Station in the past unfortunately faced several problems. Tincknell is ecstatic that the Malaysian consortium has not only taken over the development but has already kick-started the project.

“I think it's fantastic. The consortium members not only have the financial strength to take on Battersea Power Station but also have the experience of working on large, multi-use projects such as this,” he says.

The first phase, which is named Circus West at Battersea Power Station, has a gross development value (GDV) of £900mil (RM4.5bil). A total of 800 units are up for sale, with 200 units being allocated to London purchasers. Being a Malaysian project, half (400 units) are allocated exclusively for Malaysian buyers.

The remaining 200 units are equally split between the Singapore and Hong Kong market. Buyers pay 20% and the remaining 80% on completion. S P Setia president and CEO Tan Sri Liew Kee Sin says he expects all units to be snapped up before the middle of the year.

“The strategy of Battersea is simple. We want to make it into an international centre for community and that's why we're selling it in London first, then Malaysia, Singapore then Hong Kong.

“We're the first property company to launch in London first. No other projects do this. They launch in Asia first but we were very confident that we could sell to the locals (Londoners first). As you can see, (with the good take-up) our faith and confidence is well paid off.”

According to the project's fact sheet, preparatory work on the first phase, located to the west of the power station, has already begun with work commencing in the second half of 2013. The first residents are expected to move in by 2016. Properties are to be sold on a 999-year lease.

Located on London's famous cultural South Bank, Battersea Power Station is just over a mile and a half from the Houses of Parliament. It sits south of the River Thames, across from Chelsea and forms the cornerstone of central London's last significant regeneration area, Nine Elms.

The British government-backed guarantee to extend the Northern Line underground through Nine Elms and Battersea Power Station is expected to boost accessibility.

“The biggest challenges are already dealt with the new tube station and planning permission. Now, our shareholders have the financial firepower to deliver,” says Tincknell.

He adds that Central London continues to go from strength to strength, fuelled by ever-increasing local and international demand.

“I can't see that changing any time soon. It's such a great city with the right blend of business, culture, heritage and entertainment. Nine Elms has been London's best kept secret. Its only one mile from Westminster and the mayor has produced a clear development framework for the entire area, which promotes socially and environmentally sustainable development.”

The Battersea Power Station development will create 16.8 acres of public open space with over 400m of river frontage, of which nearly six acres will be a new riverside park alongside a proposed river-bus facility.

The project will include 550,000 sq ft of retail facilities in both the Power Station and the High Street, which in turn will link to the new Battersea Power Station tube station resulting from the Northern Line extension.

With the development fully and financially supporting the proposed Northern Line extension, this transport upgrade obtained the backing from the Chancellor of the Exchequer in the Autumn Statements of November 2011 and December 2012, the latter of which confirmed a £1bil loan and a guarantee to extend the Northern Line to Nine Elms and the Battersea Power Station.

It is expected that upon completion, in excess of 15,000 people will work at Battersea Power Station across retail, hospitality, commercial, service community and creative sectors.

Separately, Tincknell says construction of the second phase will start soon.

“We're going to a new architectural team. Those appointments will be made in the next couple of months. Hopefully before Christmas, we'll be able to launch. Those units will be very much different (from the first phase). They will be much larger, with gardens on the roof.

“We're also bringing on very quickly the third phase, which is the building behind the power station. It's a new building similar to the first phase, so that will also launch pretty much the same time (by year-end).”

Tincknell says the entire Battersea Power Station project is expected to be developed over eight phases and should be completed within the next 14 to 15 years. - The Star

SP Setia expects phase one of London Battersea project to be sold out by April or May

Overwhelming response: Chor (3rd from right) at the launch of the Battersea project in Kuala Lumpur. Looking on (from left): Battersea Project Holding Co Ltd (BPSDC) CEO Robert Tincknell, BPSDC chairman of the executive committee Datuk Abdul Wahab Maskan, Liew, Sime interim chairman and EPF board chairman Tan Sri Samsuddin Osman, and SP Setia chairman Tun Zaki Tun Azmi. The proje ct will be launched in Singapore and Hong Kong within the next two weeks. – STAR/pic by SAM THAM.

LONDON: Despite the recession in the UK and scepticisms from some quarters, bookings from London and Kuala Lumpur for phase one of the Battersea Power Station project, Malaysia's largest property development outside the country, proved to be “overwhelming”.

“By April or May, we expect everything to be sold,” SP Setia Bhdpresident and chief executive officer Tan Sri Liew Kee Sin told reporters in the London last week.

The Battersea Power Station project was also launched in Kuala Lumpur by Housing and Local Government Minister Datuk Seri Chor Chee Heung last Saturday. The project will be launched in Singapore and Hong Kong within the next two weeks.

“And we're not just talking about bookings. Come April or May, we expect sale contracts for all of the units to be signed,” said Liew.

The Malaysian consortium developing the iconic Battersea Power Station site comprised SP Setia, Sime Darby Bhd and the Employees Provident Fund (EPF). The 39.5-acre site was purchased for £400mil in September last year and is estimated to have a gross development value (GDV) of £8bil on completion 15 years later.

Both SP Setia and Sime Darby have equal stakes of 40% each in the project, with the EPF holding the remaining 20%.

At the launch of the properties in Kuala Lumpur, Chor said: “For Malaysia, it is an opportunity to showcase our capability in the international arena and also to learn the best practices from another nation... This (achievement) is a national pride.”

Liew, who was also at the same event, expressed delight with the interest generated, adding that a hurdle over transportation had been resolved with the British government agreeing to a loan of up to £1bil to allow London Underground to fund an extension of the Northern Line to Nine Elms on the South Bank. The announcement was made byChancellor George Osborne early December.

“This is a (UK) government guarantee. Come what may, the Northern Line will be ready,” Liew said.

The Northern Line extension is crucial to the Battersea Power Station project, which is part of a greater regeneration programme in Nine Elms. There are 27 projects currently in the development pipeline including Battersea Power Station and the new US Embassy.

It is learnt that half of the 800 units in phase one, known as Circus West at Battersea Power Station, which are reserved for the Malaysian market, “have been taken up”.

The official numbers are expected to be released later.

Two hundred units were allocated for buyers in the UK, and the remaining 200 units equally split between the Singapore and Hong Kong market. Buyers pay 20% and the remaining 80% on completion.

Prices start from £338,000 for a studio, from £423,000 for a one-bedroom unit, £613,000 for a two-bedroom unit and £894,000 for a three-bedroom apartment.

Penthouse units starts from £6mil. Phase one, with a GDV of £900mil (RM4.5bil), will also offices, shops, leisure and hospitality units. Construction is expected to commence in the second half of 2013.

Liew said a £2mil insurance policy from the National House Building Council effectively protects purchasers' deposits during the construction period and ensures a certain quality to the development.

“There is a 12-year guarantee on the construction,” he said.

On next week's launch in Singapore and Hong Kong, he said, “Singapore knows us because we have projects there and Sime Darby has presence in Hong Kong.”

Despite the high number of Asian buyers, Battersea Power Station Development Co Ltd (BPSDC) chief executive officer Robert Tincknellsaid the project will have an international audience.

Liew noted that profit from the project could only be recognised after completion estimated in 2016 due to the accounting policy in London. - The Star

Malaysian consortium to sell all 800 units in UK project by end-April

KUALA LUMPUR, Jan 12 — The Malaysian joint-venture consortium for the £8 billion (RM38.9 billion) Battersea Power Station, which launched its local sales programme for the first phase today, is targeting to sell all 800 units by end-April.

The consortium comprises SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund.

SP Setia chief executive officer Tan Sri Liew Kee Sin said the consortium had allocated 400 units for the Malaysian market and the balance for the Singapore and Hong Kong markets.

“For the London market, which was launched on Wednesday, we have allocated over 200 units and given the overwhelming response from the sales, we might consider revising it upwards,” he said at a press conference after witnessing the launch of the sales programme here by Minister of Housing and Local Government Datuk Seri Chor Chee Heung.

Liew said the official sales figure would only be released on Monday.

The London Borough of Wandsworth granted detailed planning permission for phase one of the Battersea Power Station development on December 13, 2012.

The Chancellor of the Exchequer confirmed the United Kingdom government’s support for a £1 billion loan and a guarantee to extend the Northern Line underground monorail to Nine Elms and Battersea Power Station.

“The £1 billion is for the full value of the project and with this backup from the British government, the monorail extension will be ready,” he said.

Confident that the consortium would benefit immensely, Liew said profits would only be recognised upon completion of the first-phase development in 2016.

Battersea Power Station Development Co chief executive officer Rob Tincknell said phase two of the development would involve transforming the 1.8 million square feet power station into a mixed development of retail, offices, leisure, restaurants and over 300 residential units.

The first phase of the project, named Circus West, has a gross development value of £900 million, a mix of 800 units of one-, two- and three-bedroom apartments, townhouses and penthouses, as well as a blend of offices, shops and leisure and hospitality facilities.

Prices start from £338,000 for a studio, £423,000 for a one-bedroom, £613,000 for a two-bedroom and £894,000 for a three-bedroom apartment while a penthouse unit would cost £6 million. — Bernama

EPF others jointly buy London's Battersea site for RM2bil

LONDON: The Malaysian consortium comprising property developers S P Setia Bhd, Sime Darby Bhd and the Employees Provident Fundbecomes the official owner of the 39.5-acre Battersea Power Station site after paying £400mil (RM1.99bil) on Tuesday with a £300mil bridging loan from CIMB, said S P Setia president and CEO Tan Sri Liew Kee Sin.

The remaining £100mil was paid as per the equity stake of each of the three consortium partners, with both S P Setia and Sime Darby forking out 40% each and EPF the remaining 20%.

This will be the first and the largest property development for both Sime Darby and S P Setia in Britain with a gross development value of £8bil (RM39.8bil).

The completion of the purchase saw the boards of Sime Darby and S P Setia and a team from EPF descending on London along with analysts and the press.

Plans for site: Liew (second from right) giving a briefing on development proposals for the Battersea Power Station site. Also at the briefing in London are Tincknell (left) and Murphy (right). — Bernama

Minister in the Prime Minister's Department Datuk Seri Idris Jala and London mayor Boris Johnson gave speeches to mark the official cocktail held on Wednesday evening.

At an earlier press interview on Tuesday morning British time, Liew said “although the consortium may not have the experience in this side of the world, we have the British technical team to see to it while we provide the concept and the funding.”

A newly-minted British company Battersea Power Station Development Co Ltd has been formed “a few days ago” with a logo of the Battersea Power Station and its four chimneys. This team from Battersea Power Station Development Co comprises the technical, management and financial team from those previously involved in the Battersea Power Station when it was owned by Irish firm Real Estate Opportunities (REO) before the site was placed under administration last year.

The newly-formed company's chief executive officer Robert Tincknell, who has been employed by REO for the last 10 years, will manage the project.

“Now that the project is fully paid, the next step is to work out the financing structure, whether it will be in Sterling pounds, whether it will be issuing of sukuk and seeking the best rates among banks,” said Liew.

The financing team headed by Battersea Power Station Development Co chief financial officer Simon Murphy and those in Kuala Lumpur “will find the best structure going forward for the long term,” said Liew.

Malaysian project: SP Setia president and CEO Tan Sri Liew Kee Sin showing the Battersea power station site in London that will be developed by Battersea Power Station Co Ltd, a consortium consisting of Sime Darby Bhd, SP Setia dan Employees Provident Fund. — Bernama

“We will enhance the value of the site,” he said.

What is important at this juncture is that the site is purchased clean of liabilities and it comes with an approved planning consent. The master plan is being done by renowned award-winning architect Rafael Vinoly.

The master plan will feature 3,400 new homes, 160,000 sq m of new office space, 56,000 sq m of retail and 9 ha of public parks and spaces.

Besides the long-term financing structure, the next step is to plan the development of phase one.

This will comprise the development of the residential units next to the power station and the refurbishment of the power station itself.

The units will be officially launched next year with construction to begin in April.

On comments that the deal hinges on contributions to British infrastructures, Liew said that other than the purchase price of £400mil, the consortium had to contribute £211mil over the duration of the 10- to 15-year project for infrastructure works.

“This is to be paid on a staggered basis as we go along,” he said, The first portion of £38mil will be paid in two equal portions of £19mil each in 2014 and 2015.

A major portion of £203mil will be for the extension of the Northern Lines, which involves the development of two stations with one of them at the power station site itself and the remaining £8mil for other infrastructural works.

He said this contribution towards infrastructure works was not due only from the Malaysian consortium but from other developers whose projects would benefit from the extension of the Northern Line calculated at a certain rate in proportion to the land they own and planned for development.

Liew said the fact that planning consent was already given by the British authorities and that there were already plans to extend the Northern Line close to the power station by the local authorities were huge plus factors.

Other features which add premium to the site are the nearby 200-acre Battersea Park, River Thames frontage and Chelsea and Sloan Square located on the other side of the Chelsea Bridge.

The site is also part of Vauxhall Nine Elms' largest urban regeneration project in central London.

Sime Darby president and group chief executive Datuk Mohd Bakke Salleh said the support given by the British government was tremendous.

“The British are very keen to develop and regenerate the site and this support will work for all parties concerned,” he said.

On who would be the target purchasers, Bakke said the project would be sold to everybody.

“London has a huge global market. The fact that the eurozone is facing some challenges at the moment has also enhanced the safe haven aspect of British properties,” he said. - The Star

London luxury home market risks price crash

LONDON: Developers rushing to build top-quality London homes to cash in on strong overseas demand are in danger of being stung by a price crash as they flood the market, property consultancy EC Harris said.

Over 15,000 homes in developments worth more than 38 billion pounds ($60 billion) are due for completion in London's most expensive neighbourhoods in the next ten years, a 70 percent jump on last year, an EC Harris report said on Monday.

The total floor area covers almost 20 million square feet - equivalent to the size of the London Olympic park - and includes properties in upmarket Mayfair, the City of London financial district and the south bank of the river Thames.

"Developers are racing to get first to site because they don't want to miss out on the boom that's happening," said Mark Farmer, head of residential at EC Harris. "There is a danger that if all these schemes happen that you'll have a massive oversupply."

Prices for luxury homes have surged in recent years after economic turmoil in Europe and political uprisings across North Africa drove investors to the relative safety of central London property. Signs of a slowdown appeared after the UK government said in March it would clamp down on tax avoidance by overseas buyers of homes costing more than 2 million pounds.

Prices for the best central London homes rose 1.8 percent in the three months to August, the weakest quarterly growth since November 2010, property consultant Knight Frank said on Monday.

About 4,000 high-end homes are scheduled to be built in 2016 alone, an eight-fold increase on the average number built in London each year. The risk of over-building may be tempered by a tight supply in development finance, Farmer said.

Recent entrants to the market include offices and shops developer British Land, which said in July it would redevelop a block in Mayfair into luxury flats, and Malaysian developers SP Setia and Sime Darby, who plan to build over 3,000 homes at Battersea Power Station.

Such developers have been described as "late to the party" by some residential players. A May report from Development Securities warned that London luxury home prices could halve if the euro zone broke up.

Other risks include further devaluation of the euro, which would make London property look more expensive, and changes to the UK planning system that make it easier to convert offices to homes and add to the pipeline, EC Harris said.

"The reality is that no one knows what the conditions will be in five or ten years," he said. - Reuters

Real estate in the UK

Maidenhead is one of the most affluent areas of the UK. It lies on the River Thames countryside and can be a gold mine due to its close proximity to the capital, London.

The Inter-City train from Paddington takes only 20 minutes and the other major attractions are the Windsor Castle, Henley on Thames with its famous Henley Regatta since 1839 and Eton College.

An established international real estate services provider, KPWG International acquired a 4.04 hectare of real estate land in Maidenhead in late 2008.

The Maidenhead land opportunity allows the owner or investor to have total flexibility and control over the land.

The allocated time frame is three years from date of issuance of the freehold title deed.

Besides that, KPWG is also marketing the ever-popular UK student pods in Leeds, Bolton and Liverpool via its real estate subsidiary, KPWG Real Estate.

The projects in Leeds and Bolton are refurbishments of existing buildings with ready planning permission and its completion date is targeted in September or October this year.

Interested purchasers should pay the KPWG International booth a visit during the Star Property Fair 2012 to find out more about the development.

Touted as Malaysia’s premier showcase for stylish living, the four-day extravaganza will be held at Gurney Plaza and the adjoining G Hotel from July 12 to July 15.

Organised by The Star for the 10th year, the fair will be open to the public from 10am to 10pm daily. Admission is free.

To date, 50 exhibitors, including financial institutions and investment companies, have confirmed their participation.

Among the major players are IJM Land, SP Setia Group, Mah Sing Properties, Sunway Bintang, Ivory Properties Group, DNP Land, BSG Property, Ideal Group, Bukit Kiara Properties, Andaman Property, Henry Butcher, KPWG International, Magna Putih, Province Valley and Tambun Indah Land.

This year’s new faces include Elite Forward, Sunrise Manner, Solid Tribute (Asia Green Group), GSD Land, Quantum Metro Development, Zetapark Development, East West One Consortium, PJD Eastern Land, Airmas Management, Property Talk, Avenue Properties and Popular Realty.

For contest buffs, three tablets and other attractive prizes will be won daily.

IJM Land is the official sponsor for the contest while Hong Leong Bank is the sponsor for the talks and forums. - The Star