Corporate Profile & Research Report 2016
Contents Corporate Profile
5
Research Report: Overview
14
Research Report: Australia
16
Melbourne
18
Perth
22
Brisbane
26
Sydney
26
Research Report: United Kingdom
30
Residential Forecasts
31
London
32
Manchester
36
Liverpool
39
UK Student Property/ PBSA
41
Brexit Important Q&A for the Property Investor
45
CSI Properties (Cornerstone International) (E(3)1548) is pleased to present our Corporate Profile & Research Report, which we believe will prove helpful to investors looking to invest in property in Australia and the United Kingdom. It is also an introduction to who we are and what drives us. Statistics show that Malaysia is the third largest Asian investor into the Australian and United Kingdom property markets in 2014 and 2015 with investments accounting for US$25.10 billion (Knight Frank). In all our interactions with investors, we emphasise the importance of understanding the fundamentals of any given location/suburb in which a piece of property is located. A suburb flush with infrastructural investments and job growth will attract a larger population of job seekers and their families which, in turn, increases demand and prices for housing. This, then, is the result of exhaustive, up-to-date research which covers major cities in Australia and the United Kingdom, and the viability of real estate investment in these locations. We believe it will help bring clarity to what drives these cities and the property market therein. This report comes from our deep commitment to help investors make informed decisions. Whether we profit from it is secondary, as we hold strongly to our belief of ‘Making A Difference’ and our core value of ‘Knowledge’. We sincerely hope that this Makes A Difference to you as an investor. We welcome your thoughts about this report and queries you may have about securing real estate in these cities.
Virata Thaivasigamony Spokesperson & Head of Negotiator Team CSI Properties (Cornerstone International)
Corporate Profile CSI PROPERTIES (CORNERSTONE INTERNATIONAL)
(E(3) 1548) is a real estate investment consultancy based in Malaysia.
We offer projects from major cities in Australia, United Kingdom and Thailand, which we promote through our team in Malaysia and strategic partners overseas. Our highly-trained team brings with them more than 10 years’ expertise in real estate investment. As a full service agency, we offer assistance throughout the entire process, from property selection to rental management, tax, legal, financing and re-sale. We are proud of our extensive portfolio of Australian, Bangkok, UK and student property investment projects, thanks to our strong connections with reputable developers and Unite plc, UK’s largest student accommodation provider. While acknowledging the strengths of other investment vehicles in the market, we firmly believe that property is the cornerstone of sound investment, specifically, strategically-placed property in locations of high growth. We offer a range of real estate projects from student accommodation to luxury apartments, townhouses and landed property. What sets us apart from all the property consultancies in the Malaysian market is our deep dedication to service and research; we do not market investment property in locations we do not believe in and have not thoroughly r e s e a r c h e d . W e w a n t t o m a k e a d i ff e r e n c e b y understanding your investment goals and equipping you with information that is crucial to your investment decisions. Our commitment lies in helping you build long-term wealth through research-backed investment opportunities with the highest yields and appreciation value.
Property Selection Financing
360 assistance
Legal
Re-sale
Tax Rental Management
CSI Properties is a full service agency.
5
Our Team Behind every successful organisation is its people. And our people are like family. We believe in empowering our team with ongoing personal development programmes and weekly training sessions, equipping them with tools that are not only relevant to their job scope, but which also enhance their personal and family aspirations. Having Fun is one of our core values. Team members plan and participate in monthly activities while Townhall Meetings are held to celebrate quarterly milestones, recognise team members’ achievements and share the company’s vision.
Our Mission: ‘Making A Difference’ We aspire to be leaders in the property market. As a consultancy and service provider, we understand that relationships lie at the heart of customer service and company growth. We strive to make a difference by offering personalised services and going the extra mile for clients, colleagues and suppliers alike, from the first enquiry to the final transaction. All our investment opportunities are researchbacked and yield-driven, typically concentrated in fast-growing cities with high job growth and education opportunities, presenting potential for high value appreciation and returns at low risk. We firmly believe that no investment is worth the time or money without thorough research. We place top priority in educating our clients and empowering them to make informed decisions. We pledge to continually offer solid and viable investment opportunities, provide sound and impactful advice and forge firm relationships with all our stakeholders, based on our core values of ‘Service’, ‘Accountability’ and ‘Knowledge’. Our credo is built upon what matters – good products, thorough research, deep interpersonal relationships, strong growth and prosperity.
8
We firmly believe that no investment is worth the time or money without thorough research. We place top priority in educating our clients and empowering them to make informed decisions.
OUR CORE VALUES Knowledge Innovation Service Having Fun Accountable
Project Portfolio — Australia
Testimonials
MELBOURNE
“The cashflow, location & countries of the investment properties offered by CSI Properties are really attractive. Overall, my experience with them was smooth and the whole process was clear. The management team are professional and Delia, the Relationship Manager that attended to me, was amazing. She made me feel comfortable and cared for. Her attention to detail and knowledge is great. I have recommended her and CSI Properties to my family and friends.” ~ Gregorio Schiavon.
Brunswick, CBD, Hawthorne, Mernda, North Melbourne, Richmond, South Yarra, St Kilda, Windsor PERTH Burswood, Canning Vale, Cockburn Central, East Perth, Maddington, Southern River, Subiaco, Success BRISBANE Albion, Burpengary, Coomera Estate, Everton Hills, Kangaroo Point, Kuraby, Newstead, Toowong SYDNEY Botany, Camperdown, North Ryde, Putney Hill, Parramatta
“I’ve always wanted to invest for my daughter and I found the properties in the CSI Properties portfolio, interesting. My Relationship Manager, Mr Soon, was patient, attentive and offered sound advice during the entire process — he gave great guidance. We have a good impression of the company and couldn’t be happier with our investment. I would certainly recommend Mr Soon and CSI Properties to others.” ~ Mrs Tan “As investors, we seek the best investments with the lowest capital and entry level. The returns from the student accommodation marketed by CSI Properties are fabulous! Moreover, my Relationship Manager, Jacey, was good and accommodating and it was a pleasure working with her. She took the time to listen and her genuine interest in our needs made investing in our property a fantastic experience. I look forward to continuing our relationship in the future because the student properties really give high returns.” ~ Murkhalis Mokhtar “I was attracted to the investment property because of the low initial price and guaranteed returns. Jacey, my Relationship Manager, was courteous, dedicated, respectful and helpful in helping us make our decision. The entire process and experience was a very positive one. The company has been in this business for a long time — it’s about trust and professionalism and for this reason, we recommend CSI Properties to our friends.” ~ Dr Sokdave Singh “CSI Properties is reputable and I regard it as a domestic household name for UK student properties. Our Relationship Manager, Hafizah, played an important role by providing me with helpful advice and laying out the facts. She always followed up and attended to all my enquiries, making the whole process easy. We also found the services of Raslan Loong to be efficient — CSI Properties made the right choice in assigning a reputable lawyer service.” ~ Pn Azimah
Project Portfolio — United Kingdom RESIDENTIAL Kent, Kingston on Thames, London, Liverpool, Manchester, Reading STUDENT PROPERTY
CSI Properties has to be recommended because the team’s professionalism has certainly set a standard that many other agents should aspire to. Our Relationship Manager, Michelle, was really efficient and prompt. She enhanced the whole client service experience and was resourceful in attending to us even after the deal was sealed. Dealing with a completely professional Relationship Manager like her saved me a great deal of frustration and stress. Thank you Michelle! ~ Simon.
Cardiff, Glasgow, Leeds, Liverpool, Luton, Manchester, Newcastle, Nottingham, Sheffield, York 10
11
CSI Properties operates out of Cornerstone International Centre, our affiliate boutique events space in Wisma Selangor Dredging, located right across KLCC in Kuala Lumpur. The space spans an impressive 11,000 sqft area, comprising a ballroom, holding room and boardroom with A/V facilities and catering services at affordable rates. This space has been used for various purposes including social and networking events, talks and seminars, awards events, weddings, team building, blood drives, education exhibition and board meetings. Clients that have utilised the space include embassies, banks, non-profit organisations, private corporations and individuals.
CSI Properties is comprised of the business development, marketing, communications & research, and operations teams.
Australia Australia To Lead In GDP Growth From 2015 Australia is one of the wealthiest developed countries in the world, ranking highly in quality of life, health, education and economic freedom. It is home to four of the world’s most liveable cities.
Malaysia is the third largest Asian investor into the UK and Australian property markets in 2014 and 2015 with investments accounting for US$25.10 billion.
4,000
3,600 Canada 3,200
Australia Has Been Ranked • Top 10 richest in the world by GDP per capita (IMF) • Top 5 in the world in average wages (OECD)
- Knight Frank
Top 5 In Average Wages (USD$)
Average Annual Population Growth Rate
GDP growth (volume)
Australia
• Highest annual population growth (OECD)
2,800
2,400 United Kingdom
2,000
1,600 New Zealand 1,200
800
400
Switzerland
Australia
$57K
USA
1.7%
Singapore
$56.7K
2010
1.2%
Year 2011
2012
2013
2014
2015
2016
Source: OECD Economic Outlook, Nov 2014 Figure 3: The OECD projects that Australia’s economy will continue to lead the pack from 2015 onwards., thanks to a diversified economy, sound banking system and good governance.
Australia Germany
$43.3K
UK
$41K
10K
16
Switzerland
$51K
20K
30K
40K
50K
60K
1.1%
USA
0.7%
UK
0.7% 0.5%
A good reason to invest in Australian property currently is its weakened currency, which makes it more affordable against a volatile ringgit. The Australian dollar has been weakened by the drop in oil and commodity prices, but thanks to the political stability of the country and strong economy, we foresee it strengthening against the ringgit in the long term. 1.0%
1.5%
2.0%
Source: OECD
Source: OECD
Figure 1: Australia has been ranked Top 5 in the world in average wages by the OECD
Figure 2: Australia’s population has been rising at a faster rate than the population of almost any other country in the OECD. In a number of these countries, the population has actually been declining over the past few years.
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Melbourne
Victoria Population Growth Forecast
Australia’s Cities, Present And Future Victoria
2053: Melbourne overtakes Sydney
10,000,000
Australia
8,000,000 New South Wales
6,000,000 2028: Perth overtakes Brisbane
4,000,000
0.0
2,000,000
0.5
1.0
1.5
2.0
% growth per annum, 2014 - 2019 Source: CBRE
0 2020 Brisbane
Sydney
Melbourne
Perth
2030
2040
2050
Figure 5: Because of the growth spurt in Melbourne, Victoria has been forecast to be the fastest growing state in the country.
2060
Where to Invest in Melbourne? Source: #CSIPropResearch, ABS
Figure 4: Australia charts a growing population, led by Melbourne which is predicted to overtake Sydney as the largest city in 2053.
i. CBD Fringe Property located within the fringe of the CBD has strong appeal due to its good appreciation value. This is attributed to its extreme accessibility to the city, green areas, the arts, F&B and entertainment precincts, and its strong transportation links; yet it is distant enough from the city’s hustle and bustle. Figure 6 shows some locations worth investing in ii. Melbourne North
Among all the Australian states, statistics show that Victoria will have the largest population in the future, driven by massive and rapid growth in Melbourne city. Melbourne, the vibrant capital city of the state, has been voted the Most Liveable City in the world five times by the Economist Intelligence Unit. The Australian Bureau of Statistics projects that Melbourne will overtake Sydney as Australia’s biggest city in 2053. Melbourne’s growth has propelled Victoria’s growth, too.
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Quick Facts
Not all growth happens within the city centre of Melbourne. One of the fastest growing areas in Australia is the city of Whittlesea, situated in Melbourne’s Northern Region some 26km from Melbourne CBD. Whittlesea includes suburbs such as Mernda, Doreen, Epping and South Morang.
•
Most Liveable City since 2011
•
Highly diversified economy
•
World class universities
• 2nd fastest growing local government area in Australia since 2010
•
Predicted to overtake Sydney as the biggest city in 2053
• Between 2016 to 2036, the population is forecast to increase by 64%
•
Some 100,000 people migrate to Melbourne each year
• Better resale — locals prefer living outside the CBD. Foreigners are not allowed to buy sub-sale
•
With an average of 2.6 people per household, 38,000 properties are needed per year to accommodate that growth
Quick Facts
• Tight vacancy rates @ 2.7% vs. 5.1% in the CBD in 2016 • 4-bedroom bungalows can be purchased for the price of a 1-bedroom condo in the CBD
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Top Places To Invest In Melbourne’s CBD Fringe Rental Vacancy
2015 Capital Median Rental Median Price Appreciation Yield
Carlton
3.7%
5.9%
$361,000
17.4%
North Melbourne
2.3%
4.9%
$491,000
-0.1%
Brunswick
2.5%
4.6%
$445,000
-4.0%
Moonee Ponds
3.0%
4.3%
$421,000
-7.0%
Richmond
1.3%
4.6%
$552,000
8.2%
00Hawthorn
4.1%
4.0%
$551,000
7.7%
Prahran
4.4%
4.6%
$533,000
1.9%
St Kilda
2.8%
4.4%
$472,000
-1.7%
3.2%
4.4%
$560,000
3.6%
South Yarra
Melbourne CBD - A Less Preferred Investment Choice The Melton township is another area in the northwest which holds great investment potential. At its heart is Toolern town centre, which is expected to develop as one of the largest town centres servicing the Western Growth Corridor. It is 30 minutes from the CBD via the Western Freeway. Quick Facts • 30,000 new jobs to be created in Toolern Town Centre with up to 206,000 jobs across the region thanks to the Western Growth Corridor Plan • 60,000 new residents to populate Toolern, with population growth predicted to increase to 315,908 in the City of Melton by 2036. • $15bn has been invested by the Melton Council and Victoria State Government into the area. We also recommend keeping a close eye on Wyndham on the West of Melbourne as it is the fastest-growing area in Melbourne.
CBD vs Melbourne North Comparative Appreciation
i) Valuation for property 20%++ BELOW purchase price Housing in the CBD, which are mainly highrise development, takes several years to complete. From our research and reports from mortgage providers, we learnt that banks valued properties up to 25% below purchase price. With property price in Melbourne increasing by only 9.53% p.a. (source: Australia Property Monitors), this means that not only has the property been valued below its purchase price, it has also depreciated! Speak to a licensed independent mortgage broker for more details. ii) Negative capital appreciation in the last 3 years (source: Australian Property Monitors) iii) The CBD is oversupplied with apartments There were 12,516 approvals for Melbourne CBD dwellings in 2015. Melbourne’s high-rise boom currently encompasses 33 towers under construction with a further 39 to be built (source: Skyscraper, Activity Monitor and Urban Melbourne). iv) Difficult exit Australians prefer quality living (a house, a yard and space for the kids and dog to run) in the CBD fringe or further — away from the bustle of the city. By law, foreigners are not allowed to purchase property in the secondary market which means foreign investors looking to exit the market can only sell to Australians (who don’t like living in the city). According to Australian website Domain.com in 2015, investors should “get out as soon as possible (otherwise) it will take 10 to 15 years before you get your money back.”
Apartments Being Built in Melbourne CBD
South Melbourne
2.0%
West Melbourne
2.6%
4.6% 5.1%
$643,000 $518,000
13.3% 0.6%
Source: #CSIPropResearch Figure 6: Some of the top places to invest in the fringe of Melbourne CBD.
Appreciation
Project
3 months
12 months
CBD
-1.5%
-3.5%
South Morang
3.4%
9.6%
Mernda
2.4%
10.4%
Floors Apartments
245 - 263 City Road 250 Spencer Street 279 - 289 LaTrobe St 323 LaTrobe Street 35 Spring Street 506 Flinders 611 Lonsdake 888 Collins Street Aurora Melbourne Australia 108 Australis
51 60 42 43 43 29 43 40 95 100 46
435 1298 307 205 270 132 399 578 1139 1105 374
Project Avant Empire Melbourne EPORO Eq. Tower Lighthouse Manhattan at UWS Marco Marina Tower Melbourne One Metrolitan Opus Tower
Floors Apartments 57 62 50 63 69 53 37 43 47 19 37
463 474 307 632 653 965 348 463 463 104 246
Project Opus Tower QT Melbourne Royal Elizabeth Shadow Play Southbank Central The Fifth Tower Melbourne Trillium Victoria One Vision Apartment
Floors Apartments 37 12 20 55 48 51 69 37 75
246 182 121 546 557 399 581 221 629
Summary Estimate
Apartments
Approved for Construction Applied for Permit Completed Under Construction
19,040 23,137 36,925 15,972
Source: Skyscraper, Activity Monitor, UrbanMelbourne Source: Unit Prices in CBD, House Prices in Melbourne North - Australian Property Monitors 2016 Figure 7: Statistics from various sources reveal that Melbourne CBD is not the best place to invest in property. You’d stand better returns from investing in the fringe of the CBD. Figure 8: The infrastructural and job growth in Melbourne North has spurred property appreciation to supersede that of the CBD.
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21
Perth
WA Unemployment Rate
Perth’s Liveability
State Jobs Data, March 2016
HIGHLY LIVEABLE Perth has been rated amongst the world’s top 10 most liveable cities every year for the past decade. In 2015, Perth ranked 8th and had the highest possibile scores for education, healthcare and infrastructure.
City Rank Overall (100=ideal, 0=intolerable) Infrastructure Education Culture Healthcare Social & Political Stability Overall 0
20
40
5.3
NSW
5.7
Vic
6.1
Qld SA
7.2
WA
5.5
Tas
PERTH’S LIVEABILITY SCORES
0
Perth property is picking up. New figures from the Foreign Investment Review Board (FIRB) revealed a total of 2043 approvals for foreign buyers in the 2014-15 period, an increase of almost 30% from the 1572 in the previous financial year.
60
80
Industry experts have predicted a cautiously optimistic outlook for Perth in 2016 as sales volume data up to March 2016 show signs of a bounce in consumer confidence, indicating that the property market is close to or at the bottom of the cycle. Official figures released by the Australian Bureau of Statistics (ABS) show a 0.5% jump in residential property prices in the December 2015 quarter, marking an end to the trend of sliding property prices recorded since late 2013.
NT
6.9
4.5
ACT
4.3 All data seasonally adjusted, except Tas, NT and ACT due to small samples. Source: ABS
Figure 10: Unemployment rate as at March 2016 shows that the WA economy is not a basket case as assumed by many.
Perth Population Forecast Perth hits 3.5 million population
4,000,000 2028
Source: Economist Intelligence Unit
3,000,000
Figure 9: Findings by the Economist Intelligence Unit reveals positive liveability scores for Perth.
2,000,000 1,000,000
Why Perth •
0.5% jump in residential property prices in Q4 2015 ending the property price slide since 2013 (source: Australia Bureau of Statistics)
•
Diversified economy — WA’s economy is not solely driven by the mining industry
•
Low unemployment rates
•
Growing population
0 2020
2030
2040
2050
2060
Perth Brisbane
Source: #CSIPropResearch, ABS Figure 11: Perth’s population is expected to increase by 70% to 3.5 million by 2050. ABS statistics show that Perth’s population growth is scheduled to overtake Brisbane by 2028 , becoming the third largest city in Australia
23
Average Annual Growth 10 Years To 2014
According to the Urbis Outlook on Perth: • Sydney and Melbourne have recorded rapid property price growth over the last 24 months while Perth has been fairly stable
ECONOMIC GROWTH Australia and her states have recorded higher economic growth than the OECD’s average. WA has seen greater growth than other states. Average annual growth 10 years to 2014
1.5%
2.0%
OECD
NSW
2.8%
2.4%
4.9%
• Rises in Sydney and Melbourne indicate affordability is limiting investment opportunities with buyers priced out of local markets • Perth’s housing market will likely be better placed to withstand inevitable interest rate rises • Despite softening, Perth’s indicative yields remain well above Melbourne’s & Sydney’s. Although Perth’s median prices are lower, rents have continued to be second only to Sydney
Where to Buy in Perth? • Areas with infrastructural & employment growth, e.g. Atwell & Cockburn
VIC
WA’s GSP per capita was $103,731 in 2013/14
AUSTRALIA
53% HIGHER
WA
than the national equivalent of $67.931
• Sought-after suburbs with temporary softening of prices e.g. established locations like Cottlesloe, West Perth and Southwest Perth, or older entry-level properties in suburbs such as East Fremantle and Wembley Downs for capital growth Here’s a list of suburbs with the biggest drop in entry-level prices between Feb 2015 and 2016:
Source: ABS, OECD (constant prices)
BARGAIN BUY SUBURBS
Figure 12: Australia’s economic growth up till 2014 was led by Western Australia. Despite doomspeak that Perth’s economic outlook is driven by the mining industry, latest numbers show that unemployment rates are low in Perth (see Figure 11).
Australia House Price Affordability (Index) HOUSE PRICE AFFORDABILTY (INDEX) SYDNEY
MELBOURNE
BRISBANE
PERTH
Suburbs with the biggest drop in entry-level prices between Feb 2015 and Feb 2016
Min price Min price Difference 2015 2016
Carramar
$462,500 $295,000 -$167,500
Willetton
$510,000 $400,000 -$110,000
Heathridge
$441,000 $345,000 -$96,000
Woodvale
$530,000 $465,000 -$65,000
Kiara
$565,000 $515,000 -$50,000
Quinns Rocks
$367,000 $330,000 -$37,000
East Fremantie
$750,000 $715,000 -$35,000
Doubleview
$480,000 $450,000 -$30,000
Waikiki
$365,000 $340,000 -$25,000
Kardinya
$460,000 $437,000 -$23,000
80 70
AFFORDABILITY
60 50 40 30 20
AFFORDABILITY
10 0 Prepared by Urbis, Source: REIA, ABS, RBA , Urbis
Source: Realestate.com.au Figure 13: Relatively high household incomes and comparatively low house prices mean that dwelling affordability is greater in Perth than in other cities (Urbis Perth Outlook).
24
25
Brisbane The property outlook in Brisbane is also looking up, with pundits predicting a slow and steady growth ahead.
Quick Facts:
Economy-wise, Sydney has evolved from a manufacturing city to a metropolis of high-end, knowledge-based jobs in the business and financial services sector. Unemployment rates are lower than the national average; data reveals that NSW has created more jobs in the first six months of 2015 than the rest of Australia combined.
• Brisbane’s housing market values expected to rise 4.2% for 2016, spurred by good rental growth and relatively strong employment conditions. However, slower employment growth in the rest of the state may weigh in on its market
Although rents were unable to keep pace with rising house prices, causing overall yields to decline, we predict that Sydney will see a comeback in investment as the cycle rights itself.
• Strong rental yields and relative affordability will see investors moving to Brisbane in 2016
Here are some trends worth observing: • Medium-density inner-city living and waterfront apartment properties are increasingly favoured by singles and households without children
Sydney
• Families prefer locations with effective transport infrastructure with easy access to amenities and quality education
Over the years, Sydney experienced extraordinary house price growth, and in July 2015 became one of the most expensive locations in the world to buy. Yet, the market has remained well ahead of all other capitals except Melbourne despite price falls in certain areas and tightened lending measures on investors.
NSW Unemployment Rate State Jobs Data, March 2016 5.3
NSW
5.7
Vic
6.1
Qld SA
7.2
WA
5.5
Tas NT
4.5
ACT
6.9
4.3 All data seasonally adjusted, except Tas, NT and ACT due to small samples. Source: ABS
Figure 14: NSW sports comparatively low unemployment rates, with more jobs created in the first six months of 2015 than the rest of Australia combined.
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Where to Invest in Sydney? With plans to extend its transport infrastructure to support future growth in the pipeline, Sydney’s connectivity from the south to the north will be simplified, resulting in population growth further from the CBD. That said, the inner and middle ring suburbs show potential for strong capital gains in the long term. i. Upper North Shore • Stable growth, with steady supply and demand. It sits on the middle ring of the CBD • Statistically one of Sydney’s safest areas and train access into the city • Includes Pymble, Turamurra, Wahroonga to Roseville, the area features a generational cycle, with wealthy families moving in to gain access to private education and good public schools, and moving out once the children are out of school. ii. Lower North Shore • A desirable place to live, featuring waterfront properties overlooking the Sydney Harbour Bridge, Middle Harbour and Lane Cove River • Higher population density, mainly apartments and units. Appeals to young professionals working in the CBD • Includes suburbs of Mosman, Castle Cove,Riverview, Chatswood and Kirribilli iii. City & East • Home to Australia’s highest property earners • Dense population, comprising small terraced housing and units/apartments with a higher proportion of renters in the Eastern suburbs than elsewhere in the city • Inner city suburbs like Darlington, Chippendale and Darlinghurst have a high proportion of young, single residents keen on the social scene and city lifestyle • Eastern Sydney is home to the famous beachside suburbs of Bondi, Tamarama and Coogee. • No train access to the coastal neighbourhoods, but bus networks are strong
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iv. Inner West • Gentrifying suburbs such as Annandale, Croydon Park, Lewisham and Lilyfield • Suburbs boast medium- to high-density housing
United Kingdom With a population of 64 million, the United Kingdom is the 5th largest economy in the world. Over the centuries, Britain has maintained its status as a trading juggernaut and one of the world’s largest financial centres alongside New York.
UK RESIDENTIAL PROPERTY 2016 started on a rather bleak note due to the global economic climate. The year was headlined by the Chancellor’s policies on homeowners and landlords i.e, tax and stamp duty increases and the abolition of mortgage income relief in 2017 amid concerns of increased Bank Rates. But the outlook for 2016 is positive, underpinned by the serious shortage in housing in the UK. We foresee that demand for private rented accommodation will continue to rise even as Bank Rates have been slashed to a record 0.25%. London, meanwhile, has become a market for the affluent, due to rapid price growth and changes in the Autumn Statement 2014. We correctly predicted a lacklustre 2016 for London residential property — what with Brexit — and foresee an uptrend in price growth towards the more affordable boroughs or suburbs outside the city centre and in regional markets. In due course, however, prices in London will start to pick up.
UK Residential Forecasts 2016
2017
2018
2019
2020
5-year
UK House Prices
5.0%
3.0%
3.0%
2.5%
2.5%
17.0%
Prime Central London Prices
0.0%
2.0%
5.0%
6.5%
6.5%
21.5%
Total (m)
1.245
1.280
1.300
1.300
1.305
Five-year change to end of 2020 Scotland
14.2%
Yorkshire & Humble
14.2%
North West
13.7%
East Midlands
17.0%
Wales
14.8%
East
21.0%
West Midlands
16.5%
London
15.3%
South West
19.9%
South East
21.6%
North East
12.0%
Source: Savills Research Figure 15: In its Key Themes for UK Real Estate in 2016 report, Savills had forecast price changes in the UK up till 2020.
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London
iii. East London
In London, regeneration projects and transport improvements are creating property hotspots. Some projects are longer term, but they will become part of a property story, and should be part of buyers’ decision-making. If you are looking for a good investment, here’s what you need to pay attention to:
Price Growth Strongest In East and Outer Core
i. Crossrail
HIGHEST
N or t h %
2. 6
C en t r a l N or t h %
0.3
Ilf (2 ord 5 m in s)
Fo r 0 est m G in ate s) (2 M (2 ano 3 m rP in ar s) k
M (1 ary 8 la m nd in s)
-2.9 2.5
LOWEST
1.2 % %
C en t r a l R i v er %
1.3
-5.3 Out
Continues to Shenfield
%
C ity W es t C en t r a l W es t %
C en t r a l S ou t h %
er R i v er
3.7 %
1.6
C a n a r y Wharf %
3.3
1.9% S ou t h E a s t %
-0.1 %
S ou t h W es t %
2.3
COR E
3.9 %
(8
Ca G (8 atw 0 ic m k in s) Lu (5 ton 4 m in S (6 tans s) 7 m ted in s)
H Ce (5 eat nt 0 hr r m ow Ov al in s) er gr Ba ou ke n d Ci rloo rc le Di st r DL ict R Ha m Ju me bi rsm l M ee ith et & ro Ci No po ty rth lita n e Pi cc rn ad illy
The Crossrail, which opens in 2018, offers good long-term potential. Prices of property in towns within its thoroughfare will see a good boost. For example, property values in Ealing jumped 25.5% during the 12 months to July 2015, more than twice the London average. Crossrail runs from Reading to Shenfield (westeast) while Crossrail 2, runs from Broxbourne to Epsom (northsouth). Jones Lang Lasalle has ranked Woolwich as the area with the strongest house price growth at a predicted 40% by 2020. ii. Tube extensions The Northern Line will extend from Kennington to Battersea, while there are plans to extend the Bakerloo Line from Elephant & Castle through southeast London to Lewisham via Old Kent Road.
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ALL CENTRAL LONDON
5.6 n m ary in W s) ha rf C (4 usto m m in H s) o us Ro e y W a oo l A lw rse ic n Ab h al b (4 m ey in W s) oo d
et W (1 hit 1 ec m h in ap s) el
Li (1 ver 4 po m o in l S s) tr e
Continues to Reading
S (1 trat 6 fo m rd in s)
tR oa Fa (1 rrin 7 m gd in on s)
B (2 ond 2 m Str in ee s) t
P (2 add 5 in m g in to s) n
T (1 otte 9 n m ha in m s) Co
ur
ay Ea (3 lin 3 g m Br in oa s) d w
A (3 cto 2 n m M in ain s) lin e
H (3 anw 8 m ell in s)
W (3 est 5 m Eal in in s) g
So (3 ut 9 ha m ll in s)
H (4 aye 2 s m & in Ha s) rl i
ng to n
d
E ast
7.0
W es t E n d %
O UTE R CO R E
Source: JLL Figure 16: Price growth in year to Q1 2016
The city is moving eastwards. East London’s population is projected to grow by a further 600,000 in the next 15 years and more Londoners live to the east of the Tower Bridge than west of the city. Once an undesirable part of London, East London — which encompasses Canary Wharf (London’s financial centre) and the London Docklands — is now one of the city’s most eclectic spots, populated by finance sector workers from the design, digital and creative communities; and families. Transport for London has unveiled proposals for 13 new river crossings, most of which are in East London, beefing up the transport network which includes Crossrail links and the DLR. London’s Docklands area, which includes the Limehouse Basin, Royal Victoria Dock, The Royal Albert Dock and Silverton Quays are transforming. The Royal Docks is set to be East London’s next first-time buyer hotspot with plans for 24,000 homes and 60,000 jobs to be created in the area. The Royal Albert Dock, particularly, will become London’s centre for Asian business thanks to the development of the Asian Business Port, creating 20,000 jobs, and generating £6bn to the London economy. With improved transport links and gentrification arising from infrastructural investments worth billions, East London is a place to watch.
33
Northern Powerhouse The Northern Powerhouse, a collection of cities in the north encompassing Leeds, Liverpool, Manchester, Newcastle and Sheffield, was announced by UK Chancellor George Osborne in 2014. The Northern Powerhouse aims to redress the north-south economic imbalance and boost economic growth in the north by attracting investment into northern cities and towns. Northern economies boast strong manufacturing, science, technology and service sectors. The proposal involves improvement to transport links, investment in science and innovation and devolution of powers.
HS2 Linkages
Knight Frank’s Private Rented Sector Update showed that the past 10 years has seen an increase from 80% to 86% in the number of people who live in rented properties in urban areas, driven mostly by cities like Manchester, Liverpool, Leeds, Sheffield and Nottingham. The survey also showed that demand for homes in these cities has increased steadily over the course of the last decade. The High Speed 2, a highspeed railway to be integrated into the UK transportation system, will link London, Birmingham, the East Midlands, Leeds, Sheffield and Manchester. The construction of the HS2 will reportedly cut journey time from Manchester to London to only one hour. The first phase of the HS2 is set to operate by 2026. The government’s objective of creating a global powerhouse in the north will see greater job creation and prosperity, driving increase in population and demand for housing. The Chinese are already helping to fuel the property boom, particularly in Manchester, Liverpool and Sheffield.
Construction to start in 2017
Figure 17: The HS2 will further increase linkages between major cities in the UK.
35
Budget 2016 Investments in Northern Powerhouse
SCHOOLS
£45bn
HEALTH
£150bn
Quick Facts •
85% of residents are renters
•
Home to over 60% more 25- to 29-year-olds than the UK average
•
Population of 2.87m people (increase of 125,000) in M a n c h e s t e r b y 2 0 2 5 – 8 9 % of t h e n e w population made up of Gen-Y
•
£56bn increase in the region’s GVA by 2030
•
22% of Manchester’s overall total population comprises Gen-Y, 4 times the national average
•
58% graduates from the Greater Manchester universities enter employment in the local area — 20,000 new workers each year
TRANSPORT
£13bn
Source: Department for Communities and Local Government
HSBC Ranks Manchester #1 Buy-to-Let City
Figure 18: Investment by the UK government in the Northern Powerhouse makes this a very viable location for investors.
Manchester Named twice consecutively by the Global Liveability Survey as the best UK city to live in, Manchester is the second largest city in England and also the assumed capital of the Northern Powerhouse. Research shows that the Manchester population is growing even as housing supply remains low and property prices are set to increase with the regeneration of Northern Manchester (NOMA). According to HSBC, investors in Manchester receive up to 8% returns, reflecting yields higher than in any other UK city. Manchester is home to MediaCityUK and a student population of 98,000.
Manchester: Residential Development Pipeline
•
•
•
Source: Deloitte Manchester Crane Survey 2016
6.02% growth in yields since 2010 is the highest in the country – yields in London have risen by a maximum of just 4.71% over the same period £1bn expansion of Manchester Airport will accommodate 55m annual passengers by 2050. Beijing Engineering Construction Group is investing £800m in Manchester's Airport City
•
7.98% highest rental yields in the UK compared to 5.2% in the rest of UK — HSBC
•
HSBC’s no. 1 buy-to-let spot
•
Top regional city for property investment — Savills
YIELD%
Manchester
7.98
Kingston-upon-Hull
7.81
Blackpool
7.35
Forest Heath
7.26
Conventry
7.20
Southampton
7.13
Nottingham
7.04
Liverpool
6.56
Cardiff
6.38
Portsmouth
6.35
Source: #CSIPropResearch, HSBC
Figure 19: Manchester is in great need of housing to accommodate the rapidly growing rental market, which mainly comprises Gen-Y. Only 1,417 units are set for delivery over the next eight years (with two-thirds still subject to planning). Manchester needs 4,000 new units each year to house its rapidly growing Generation Y market
.
36
One of only two UK cities where property prices have surged past pre-2007 levels
CITY
Figure 20: Manchester is becoming a great draw to investors thanks to its high yields.
37
Liverpool
Manchester Property Market Highlights
A major city in the UK, Liverpool is home to half a million people and one of the country’s largest economies. Liverpool was designated the European Capital of Culture by the EU and is renowned for its history and cultural diversity, The Beatles and Liverpool FC!
NO.1
CAPITAL GROWTH PROSPECTS
Also known for the economic importance of its port, Liverpool has been ranked among HSBC’s Top 10 Buy-to-Let Hotspots in 2015 by yield. The city is also pivotal in driving an increase in the number of renters in urban areas from 80% to 86% over the last 10 years, according to Knight Frank.
House prices to rise by 26.4% between 2016-2020 (JLL)
House prices increased by 3.3% in the year to Sept 2015 (Savills)
No.1 location for buy-to-let returns (HSBC 2015)
Sutton Kersh’s Rental Feasibility Report revealed that rental values had risen by approximately 1% during Q1 2016, with the rental market continuing to perform strongly and rental value growth of 5% per annum foreseeable for the next several years. This chimes with newly released figures by the Office for National Statistics (ONS) House Price Index which showed that the northwest region had experienced the greatest monthly jump in values in April 2016.
26% 63%
436% Rents to rise by 26.3% between 2016-2020 (JLL)
The number of households renting privately in Central Manchester and Salford rose by 436% between 2001 and 2011 (Savills)
Private rental sector represents 63% of households in the city centre (Savills)
96% 96% occupancy rates recorded in Manchester (Belvoir Lettings)
Manchester is home to the UK’s highest concentration of 20-34 year-olds (CBRE)
105,000 students across 4 wellestablished universities
Source: Experience Invest
38
Perhaps a reason for Liverpool’s surging buy-to-let market is due to housing shortage — an issue faced by the city over the last two centuries.
Property investment volumes in Greater Manchester reached a record-breaking £1.7bn in 2014
Quick Facts •
£5bn Liverpool Waters scheme regeneration
•
£35m regeneration plan for Liverpool Lime Street
•
6.56% yields compared to the typical 5.2% in the rest of UK — HSBC
•
9.10% capital appreciation for 1-bedroom apartments — City Residential UK
•
Property price increased by 5.5% in the last 12 months — Hometrack House Price Index
•
100,000 new jobs and an increase of 20,000 businesses to be potentially created by 2040 in a strategy by The Liverpool City Region Local Enterprise Partnership (LEP)
UK STUDENT PROPERTY
Growth in Liverpool
+100,000 New jobs
+20,000 Businesses
Education remains a huge driver of the British economy; HE Finance Plus 2014/15 shows that the total income of higher education providers in 2014/15 was £33.2 billion. Based on 2014 figures, higher education contributes over £73 billion to the economy.
Liverpool City Region
+50,000 People
Economy + £50bn Source: Liverpool City Region LEP Figure 22: With the Liverpool City Region Local Enterprise Partnership Strategy, Liverpool is well and truly open for business!
Liverpool Facts & Figures
4 universities. 16,500 graduates a year.
6.2 MILLION people live within an hour’s drive 2.2 MILLION residing in
2 hours journey time to London.
Formerly reserved for institutional investors, student property is the UK’s strongest investment platform today, surpassing other traditional real estate classes in the UK. In 2015, the student property sector saw investments to the tune of £6 billion from a mere £500 million in 2010 – twice the amount invested in the sector in 2013 and 2014 combined, and an increase of more than 300% over the £1.7 billion invested in 2014 alone. Experts say the sector is likely to see more investment in the years ahead. There is growth in this sector due to the acute undersupply of purpose built student accommodation (PBSA) in the UK. Meanwhile, student population continues to rise as a result of recently abolished restrictions in foreign student numbers and an oversubscribed university system. The demand for PBSA is set to continue outstripping supply.
metropolitan Liverpool. Life Sciences worth
£1.7 BILLION in products
45% of North American trade enters via Liverpool.
£21
BILLION City Region economy.
and services per year.
2 major airports within 45 minutes’ drive.
Projects with a development
£7
BILLION will be value of developed over the next decade.
Visitor spend worth
£3.8 BILLION to the local economy.
40
£300
MILLION Liverpool Two post-Panamax terminal, opening 2015.
Student property is the fastest growing property sector in the UK with demand consistently exceeding supply — Knight Frank, Savills
Direct Investment into the UK Student Property Sector $ $ $$$$
2015
$ $ $ $ $ $$
£6bn >300% increase from 2014 (£1.7bn)
$
$
$
2013 + 2014
$
£3bn $
2010
$
£500m Source: #CSIPropResearch
Figure 24: Direct investment into the UK student property sector
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Why Invest in UK Student Property?
Purpose Built Student Accommodation features: •
High quality living areas
•
Fully furnished
•
24-hour security
•
Walking distance to universities, F&B areas, mall/convenience stores, library, transit stops
•
Enhanced WiFi connectivity
•
Professionally managed
•
Communal study and recreation areas e.g, cinema, sports facilities
•
Cleaning services
•
Separate washrooms/ensuite
•
Payments / rent paid upfront before semester commences
•
Parental guarantees
In 2015, there were 7.3 applications from overseas (EU and non-EU) students for each EU student accepted and 7.9 for each place accepted by a non-EU student. According to CBRE “cost is clearly not the only consideration”.
•
High nett yield and rental assurance
•
ZERO stamp duty & ZERO capital gains tax
•
Low risk
•
Individual title
•
Income tax relief applicable to selected nationalities, e.g. Malaysians
•
Resilient & recession-proof
To illustrate, the number of foreign students in Britain’s top universities doubled between the 2005/2006 and 2013/2014 academic years. These students tend to come from wealthy families who are able to afford the soaring cost of tuition fees for non-European Union residents and demand a high-class standard of living. The Higher Education Statistics Agency (HESA) reported that the number of residents living in private halls more than doubled between 2007 and 2014—from 46,000 to 102,000—a trend predicted to continue. The dramatic upswing has been fuelled by the inability of university-managed accommodation to keep pace with student numbers. But, beyond the fundamentally undersupplied market, a reason for the success of PBSAs is that students have become more discerning especially in light of increased tuition fees. Unite Group reports that 85% of second year undergraduates are now looking for quality, purpose-built student homes that fulfill all their needs (including peace and quiet and access to nightlife). With CBRE statistics showing that student accommodation generally has occupancy rates of some 99%, it’s easy to see why people put their money into this sector.
Where to Invest in PBSA? London’s full-time student population alone is expected to rise by 50% in the next 10 years, whilst student cities, particularly where there is a Russell Group university, is expected to see dramatic increases in student numbers . EU and non-EU students are the fastest growing segment, bringing a net benefit of £2.3 billion per annum to London’s economy and supporting 60,000 jobs in the capital. An article by UK-based portal Property Wire published in January 2016 has placed student cities like Birmingham, Brighton, Liverpool and Manchester on its investment hotspot list. Note: do not plonk your hard-earned cash into any PBSA. Make enquiries. Find out which universities are in the area, total number of students enrolled, and how many student beds are available. The lesser the supply, the better the choice. 43
Structurally Undersupplied
BREXIT Important questions and answers for the property investor Originally published on www.csiprop.com on 10 July 2016
What are the political and financial uncertainties caused by Brexit? As we correctly predicted in our Brexit FAQ published before the Referendum, Brexit brought about uncertainty with the pound taking a tumble. The housing market slowed down but not at any rate worth panicking over. With David Cameron resigning and Theresa May elected into office, Article 50 now needs to kick off.
What is Article 50? Has Britain already exited the UK? The Article 50 process, crudely put, is the divorce process. It sets out the exit process for countries wanting to leave the EU, but because it is vague, member states will have to enter into negotiations to thrash out the terms of any deal. A two-year window will begin immediately after Article 50 is invoked, when Britain will enter talks on its plans for its relationship with the EU post-Brexit. The topics are wide and will require the unanimous agreement of all 28 member states to the terms of a deal, which could take years. In the meantime, Britain is still bound by the obligations and responsibilities of its membership with the EU. What are the opportunities and risks resulting from Brexit? As the immediate issues facing the UK is political rather than economic, the political uncertainty could affect the economic climate. The UK government will try to mitigate disruptions as best as it can and bring certainty to the markets. Interest rates will likely remain lower for longer. In the short term, the uncertainty of UK’s future relationship with the EU will affect trade and consumer confidence, but this is unlikely to drag out into a blown out recession as predicted by some naysayers. The UK’s economy is in good health and will ride out the storm. Ultimately, UK is home to 60 million wealthy consumers and a high-skilled workforce — something that will remain attractive to multinational companies across the globe; Coca-Cola and BMW will still want to access a market this big; skillbased employers such as PwC and Google will always want to access such a large pool of talent.
Source: Knight Frank/QS Figure 25: Contrary to popular belief, university-provided student accommodation is hardly adequate, forcing students to resort to Houses in Multiple Occupation (HMO) which are limited in supply, let on a per-room basis to unrelated tenants, and, in most cases, in dire condition. Purpose Built Student Accommodation (PBSA) – which has a healthy approach to student living – is in even lower supply. With rising student numbers, this shortfall will continue to grow.
44
45
What can overseas investors look forward to now? While investment sentiment will be affected, UK will remain an attractive property investment destination, and it looks increasingly likely that investment will be led by Asian and US investors. With the fall in the pound, London, the most expensive property investment location in the UK, has become more affordable. Overseas buyers for example, Malaysians, Singaporeans, Hong Kongers and even Americans, Australians and New Zealanders, now have a significantly higher buying power. The media is rife with reports of savvy investors taking this sterling opportunity to invest in the market. Knight Frank reported that the sale of prime London real estate increased by 38% a week after Brexit!
However, the fact remains that the the inherent undersupply of housing in the UK will continue to underpin the market. The general housing shortage means that prices should rise in the medium to long term as reticence by developers to commit to new builds will make it harder for the government to achieve its target of building new homes by 2020. This will push house prices up and the cost of renting will rise across many parts of UK as demand from tenants increase whilst new housing supply falls.
UK House Prices Since 1962
At the time of publication, the pound to ringgit value stands at £1: RM5.18 representing a 14% drop. More significantly, the value of the pound against the US dollar has dropped to a 31-year low, at £1: US$1.28.
Q4: £197,044 200,000
Rental Values Up To 2016
180,000 160,000
UK House prices £ - nominal
Q4: £157,387
England
140,000 120,000
110 100,000
105 80,000
100
60,000
Q4: £50,930
95
Q4: £35,436
40,000
90
Q4: £11,288
20,000
85 Q4 1952 Q1 1955 Q2 1957 Q3 1959 Q4 1961 Q1 1964 Q2 1966 Q3 1968 Q4 1970 Q1 1973 Q2 1975 Q3 1977 Q4 1979 Q1 1982 Q2 1984 Q3 1986 Q4 1988 Q1 1991 Q2 1993 Q3 1995 Q4 1997 Q1 2000 Q2 2002 Q3 2004 Q4 2006 Q1 2009 Q1 2011 Q3 2013 Q4 2015
0
1956 Recession 1961 Recession
People looking to do business in the UK now have a more level playing field with the abolishment of EU red tape, and this makes London an attractive place to invest again.
What will happen to UK house prices in the medium term? A general short term slowdown in the housing market is to be expected. Developments that have not yet begun could be delayed until there is more clarity. However, the slowdown in the residential market may be a good thing for first-time buyers as property becomes more affordable.
46
England excluding London
115
Mid 1970s Recession Early 1980s Recession
Early 1990s Recession
May 2006
May 2008
May 2010
May 2012
May 2014
May 2016
Source: Office of National Statistics
Great Recession
Source: Notionwide
How will purpose built student accommodation (a.k.a student property) weather Brexit? UK student property proved its resilience by outperforming other assets in weathering the past economic downturn. We are confident that it will ride the Brexit wave well, as demand for higher education in the UK is unlikely to be directly affected because of (i) a more attractive exchange rate due to the drop in the sterling for international students; (ii) unlikely change in domestic demand for higher education. Knight Frank anticipates that EU students may be required to pay full international rates, but noted that EU students only represent around 6% of the total full time student population in the UK. The acute undersupply in purpose built student accommodation in the UK will continue uphold market values. 47
Is the UK economy robust enough to withstand the shock of Brexit? The UK has long been a global superpower with London as the world’s financial, education and cultural centre. This was the case before it became a member of the EU. But London will work towards negotiating its own treaties with other EU members while also trying to agree terms of its exit. We see London’s position as the world’s financial centre wavering in the short term, but it will regain its strength once the dust settles. UK education will continue to hold its stead; we don’t foresee anyone waking up and saying, “I’m not going to study in the London School of Economics because the UK is no longer part of the EU.”
Summary That Brexit has caused uncertainty in the housing and economic market, is undeniable. There are risks and opportunities, but, the UK economy looks set to prevail once the things settle. The business world will adapt and Britain’s policies and flexible economy will help it right itself around. While there will be a slowdown in the housing market, this will only be in the short term as the lack of housing supply will not change overnight. Given the substantial undersupply in housing across the UK, the residential housing market will remain a good investment in the long term even as student accommodation remains resilient. Ultimately, Brexit has probably presented one of the best opportunities to invest in a UK property. In the long term, taking advantage of the current market will allow you to reap strong returns once the UK economy picks up again.
References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
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32. Capital Cities: Past, Present and Future, Regional Population Growth, Australia, 2012-13, Australian Bureau of Statistics 33. Outlook Perth, Perth Property Outlook, Urbis Report, Oct 2015 34. Industry Forecasters Predict Slow & Steady Growth Ahead, With No Bubble In Sight, www.realestate.com.au, 26 Feb 2016 35. The Property Boom is Over But What’s In Store for 2016, www.smartcompany.com.au , 28 Jan2016 36. The Sydney Property Market 20 Investor Insights, www.propertyupdate.com.au, 27 Oct 2015 37. A Game Changer for Property Investors Banks Crack Down on Landing, www.propertyupdate.com.au, 21 May 2015 38. Labour Force Commentary March 2016, Australian Bureau of Statistics 39. Projects, Transport for NSW, www.transport.nsw.gov.au 40. World Economic Outlook Database, International Monetary Fund, Oct 2015 41. Crossrail: The Impact on London’s Property Market, CBRE, Winter 2013/14 42. Overview of the UK Population: February 2016, Office for National Statistics, 2016 43. Crossrail Still Opportunities, UK Research March 2016, Jones Lang Lasalle, 2016 44. Transport & Works Act Order, Northern Line Extension, Transport for London 45. Bakerloo Line E x tension to Improve Transport Links in South London by 2030, Media Release, Transport for London, 17 Dec 2015 46. Where to Buy A Property in L ondon in 2016: East London’s New Post-Olympics Boom Towns, Homes & Property, www.homesandproperty.co.uk , 27 Jan 2016 47. New River Crossings for London, Publications & Reports, Transport for London, Dec 2015 48. London House Prices: Boris Johnson Unveils Plans to Create 24,000 Homes & 60,000 Jobs in Royals Docks, East London, City A.M., 16 Mar 2016 49. Mayor Announces £1bn Deal to Transform Royal Albert Dock, www.london.gov.uk, 29 May 2013 50. The Rise and Rise of Urban Renters, Private Rented Sector Update, Knight Frank, Q2 2015 51. Britain to Have New National HighSpeed Rail Network, www.gov.uk, 10 Jan 2012 52. Chinese Property Investors Bet on the Northern Powerhouse, www.bbc.com, 22 Apr 2016 53. Gunning for Growth: Film Promotes Northern Powerhouse to the World, www.gov.uk, 12 Apr 2016 54. Northern Powerhouse: Project Start Dates Published, www.constructionnews.co.uk, 16 Mar 2016 55. Manchester Named Best UK City to Live in Again!, www.manchestereveningnews.co.uk, 19 Aug 2015 56. Manchester is UK’s Top BuytoLet Hotspot 2015, 28 May 2015 57. Investing in a City That’s Investing in Itself, Finance Digest, 4 Juk 2016
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58. When the Turner Prize Isn’t Enough to Resolve Liverpool’s Housing Crisis, https://www.liverpool.ac.uk/ media/livacuk/publicpolicypractice/Housing,think,piece.pd , Apr 2016 59. Liverpool City Region to Create 100,000 New Jobs and 20,000 New Businesses by 2040, www.liverpoolecho.co.uk, 30 Jun 2016 60. Income and Expenditure of Higher Education Providers in 2014/15, Higher Education Statistics Agency 61. Higher Education Contributes 73bn to UK plc, Times Higher Education World University Rankings, 3 Apr 2014 62. Spotlight World Student Housing 2015/16, Savills World Research Student Housing 63. Investment In Student Housing Set to Rise in the UK, www.propertywire.com, 29 Sept 2015 64. Autumn Statement: Cap on Student Numbers to be Lifted, www.bbc.com, 5 Dec 2013 65. New Schemes in 2016, Knight Frank Student Market Review 2016 66. Student Housing Gets Top Marks for Brexit Resilience, www.propertyweek.com, 9 Jun 2016 67. Number of Foreign Students at Top Universities Doubled in Less than a Decade, Research Finds, www.telegraph.co.uk, 29 May 2015 68. Up and Up, www.economist.com, 26 Apr 2014 69. Unite Students Insight Report 2015 70. Student Housing Attracts £800m of Investment in H1 2012, CBRE, www.cbre.co.uk, 6 Aug 2012 71. London’s Student Population will Double by 2025 Increasing Investment and Demand in UK Student Housing JLL, www.jll.co.uk, 22 Sept 2015 72. The Best Places to Invest in Student Property in 2016, www.propertywire.com, 27 Jan 2016 73. Knight Frank Private Rented Sector Update 2015 74. Savills Key Themes for UK Real Estate in 2016, Savills World Research UK Commercial, Residential & Agricultural 2016 75. Savills Forecast 5Year Forecast Values, Nov 2015 76. CSProp Research 20150-2016 77. A Summary of the Liveability Ranking and Overview August 2015, The Economist Intelligence Unit 78. What Impact Does Britain’s Vote to Exit the EU Have on the Private Rented Sector, www.landlordtoday.co.uk, 24 June 2016 79. How Will the New Crossrail Station Impact on London Property Prices, www.thelondoneconomic.com, 28 Jan 2016 80. Brexit: London More Popular Than Ever to Overseas Buyers after Leave Vote, www.homesandproperty.co.uk, 24 June 2016 81. Brexit: PBSA Specialist Say Higher Education Sector Will Prove Resilient, www.independent.co.uk, 28 June 2016 82. London’s Property Market Loses Shine Ahead of Brexit Vote, www.cnbc.com, 8 June 2016 51
Managing Editor Virata Thaivasigamony Project Manager & Writer Vivienne Pal Design Muhd Nurham Hamdan
Level 3, North Block Wisma Selangor Dredging, 142D Jalan Ampang, 50450 Kuala Lumpur, Malaysia Website:www.csiprop.com Email: info@csiprop.com Tel: +603 2162 2260
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