Kew A local market review

Transcription

1 Kew A local market review

2 Kew snapshot Kew is located in leafy Richmond upon Thames, to the north-east of the borough. Despite its almost rural location, it is around 30 minutes from Waterloo and served by good transport links. Its popularity as a residential location means it has above average house prices and experienced strong house price growth over the last year. London overview In the post-recession recovery period London s housing market has performed strongly, outperforming the wider UK market by a significant margin. Prices across the city are now 4 above their previous peak. Some of the strongest growth occurred in 2014 with annual growth peaking at 21% in August. Towards the end of the year and moving into 2015, activity has slowed and growth started to cool. However, this is something we anticipated and we welcome an orderly slowdown. Fears of a London house price bubble have subsided and the market is maintaining sustainable and robust growth, with 9% inflation in the year to September Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,448 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years. London s new build market 70,000 80% 60,000 70% Private units under construction 50,000 40,000 30,000 20,000 60% 50% 40% 30% 20% 10, average End 2007 End 2008 End 2009 End 2010 End 2011 End 2012 End 2013 End 2014 Q Sold Unsold Proportion Sold (RHS)

3 Demographics and demand for homes Kew lies to the north-east of Richmond in the borough of Richmond-upon-Thames, and with around 12,000 residents it accommodates approximately 16% of its population. In 2011 this number stood at 11,436, having increased by 1,991 since At borough level, the population of Richmond-upon-Thames is currently estimated at 199,632, having increased by 16% from 172,335 in This is expected to grow to 216,613 by 2021, reflecting a further increase of 9%. As a result of this growth, the number of households in Richmond-upon-Thames increased by 5% between 2001 and 2011 to 80,000, and this is expected to increase by a further 16% by 2021, bringing the total number to 93,000. This represents growth of approximately 1,300 households per year. However, despite this marked demand, only 774 new homes have been built across the borough since 2009 resulting in a significant shortfall of housing. As a result, and typical of London overall, demand for homes is hugely outweighing supply and this is fuelling price inflation. Across Richmond, 38% of units currently being built have been sold off plan. Tenure profile Proportion of households 100% 90% 80% 70% 60% 50% 40% 30% 20% 62% Kew Owner occupied Privately rented Socially rented 28% 22% 65% 1 Richmond upon Thames Emerald Gardens, Kew

4 House prices and growth Average house price index House price growth across Richmond-upon- Thames has been extremely strong over the past few years, with particular traction being gained from Overall its pattern of growth has echoed that of London, but with averages consistently being higher than the London average. London overall experienced the strongest growth of the post-recession period in 2014, but this was even more pronounced in Richmond-upon-Thames. Prices in the borough increased by last year, compared with 4% across London. Average house price index (Base = Jan 2007) London Richmond Base More specifically, properties within the district of Kew (TW9) tend to achieve higher asking prices than the wider borough. The latest data shows units in TW9 sold for an average of 814,225, 9% higher than the borough average of 748,139 and 52% higher than the London average of 536,615. Broken down further, apartments in Kew are achieving average prices of 501,530, 12% more than the borough which averages at 446,838 for a flat and 6% higher than London over all. On a local level, Kew is 16% more affordable than Richmond, but more expensive than both Teddington and Twickenham. Kew affordability - flats Average apartment price 1,000, , , , , , ,000 Richmond Kew Teddington Twickenham Property prices in the areas surrounding Kew Below 150, , , , , , , , , , , , , , ,000 Above 850,000 Richmond upon Thames Site 2,000m

5 Location Kew is a picturesque and charming area in the borough of Richmond upon Thames. It is home to attractions such as the Royal Botanic Gardens, where 326 acres, four of them under glass, contain the world s largest and most diverse collection of living plants, together with beautiful Kew Palace. Serviced by good transport links, the area is easily accessible to London with Charing Cross being only 32 minutes away by tube. In addition it is only 17 minutes from Heathrow airport and 14 minutes from Twickenham stadium by car. Average price increase over last year Overall, Kew is a sought after residential area, popular with families and empty nesters wanting to downsize. It is inordinately green, with the fore-mentioned Botanic Gardens, Richmond Park, Syon Park and Dukes Meadows Golf Club in close proximity. It boasts the feeling of a village, a plethora of restaurants and pubs, the aesthetics of the country and a complete absence of high rise buildings. In addition, the site is situated close to the river and offers good schools nearby. Expected population growth to 2021 Average house price 814,225 16% year growth UK 5% 4% 5% 22% London 5% 6% 31% Westfield Kensington Palace Latymer Prep School Kew Palace Heathrow Airport Syon Park Chiswick House and Gardens Kew London Wetland centre Kew Gardens University of Roehampton Twickenham Richmond Park Wimbledon Hampton Court Palace

6 Contacts Jennet Siebrits Head of Residential Research Alex Greaves Director Sources CBRE, Molior, Rightmove, TFL Disclaimer 2015 CBRE CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Images are computer generated CBRE Ltd.