Edition 6

GLOBAL

PROPERTY NO. SCENE ISSUE 006

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This issue: A guide to wine investments | The complexities of green belt and brownfield land Should I move to Beijing? | The might of China shipping | Interview with Colliers International

FOCUS ON : AUSTRALIA

CHINA AND ITS RELENTLESS DEVELOPMENT

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INSIDE Features

15 Green & brown

33 China shipping

40 Extreme dining

71 What’s the alternative?

Around Britain, the countryside, suburbs and cities are changing. No longer is the idea of having a set urban area viable, as population increases mean more people need more space. The United Kingdom is one of the most densely populated countries on Earth, with 2.6 people per hectare, and this figure is only going to increase. The question is, where do we build next?

China is one of the key players within the global shipping industry, not only in the Asian region but in the entire world. The country has a total of 16 major shipping ports, which together have the capacity of handling more than 50 million tons a year. China’s full capacity is as high as 2,890million tons every year, meaning that at the end of 2010, 35% of the world’s total shipping actually originated from there.

In the age where everything is documented in the social media landscape (think invasive Facebook statuses, punchy Tweets and filtered Instagram photos), people are increasingly craving excitement, exhilaration, an element of the unexpected—in short, people want an unforgettable experience, an experience to truly write home about.

Wine. For many, this word invokes thoughts of an enjoyable addition to a sumptuous meal, or even a rare indulgence when one craves a little treat. But for others, wine is not just for the enjoyment of the drinker—instead, a new appreciator comes in the form of investors, as keen to collect fine wine as connoisseurs are to drink it.

Regular Articles

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07 Market in Focus: Australia

87 UK

WELCOME TO CHINA

Currently, the whole of Australia’s property market is incredibly reliant on its largest, although not capital city- Sydney

82 Should I Move to?

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Seen as a city in the midst of reinventing itself after the success of the 2008 Summer Olympic Games, Beijing is now a frenzied city moving at breakneck speed.

The home of the Industrial Revolution, the UK has long been established as a major commercial centre, benefiting from strong trade links with companies on every continent. With a long history in international cooperation, the country is an attractive place for investors both foreign and domestic.

Knight Knox have sold thousands of properties. We have experts on the ground that can help to find your perfect property. Why purchase with anybody else?

ISSUE 006 GLOBAL

PROPERTY NO. SCENE ISSUE 006

EDITOR’S NOTE

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: A guide to wine investments | The complexities of green belt and brownfield land Should I move to Beijing? | The might of China shipping | Interview with Colliers International

FOCUS ON : AUSTRALIA

CHINA AND ITS RELENTLESS DEVELOPMENT

1

7

Singapore $11.00 SGD

As development in the UK continues to snowball the availability of land becomes increasingly restrictive. With this in mind we take a look at how the UK government is tackling the restraints set in place by the Green Belt. It may be an aging concept, but perhaps a greater focus on building on brown field areas means the boundaries can continue.

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*Where Sold UK £4.99 USA $8.99 Europe €7.99 Hong Kong $67.00 Malaysia 31.00 MYR

www.globalpropertyscene.com | UAE 36.00 AED

As we wave goodbye to financial uncertainty, we find ourselves at a fork in the road. With the West’s economies moving towards higher interest rates courtesy of the Bank of England and the Federal Reserve Bank, we need to decide if the banks are a safe place for larger sums of capital. Regardless of what happens with the current interest rate, one thing is for certain. You will always see better strength with well-selected property.

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Credits Individual Samantha Jones, Hannah Wilde, Rachel Sharman, Christine Schulz, Richard Ellis, Alistair McGovern, Suzanne Todd, Callum Whiteley, John Power, Martin Copeland, Sue Hedges, Dee Barber, Mark Roberts, Michael Vickers Commercial Knight Knox International, X1 Developments, Fortis Developments, Forshaw Land & Property Group, Porsche, Buy Association, INTUS Lettings, Gold Key Media , Shove Media, Shutterstock, Property Investor, Red Spot Media Solutions, Colliers International, TQ Property Lawyers

With a vast amount of land, and a population to match, China is a true economic goliath. Conscious of the modern world, yet with strong traditions set from its long and illustrious history, it’s story is intriguingly unique. As a place where everything now seems to be produced, it seemed only fitting we take a look at both it’s culture and the power behind it’s booming growth.

Popular with Chinese students, Oxford and Cambridge are two of the most prestigious universities in the world. Both have strong reputations for academia, tradition and British values. The question is, how do you choose between them?

And finally we take a look at a popular investment alternative. Fine wine benefits from a vast and comprehensive market, with only a finite amount of top-shelf wine produced to satiate a growing demand.

The only real risk with this investment is restraint.

Until next time, enjoy.

Editor-in-chief Michael Smith

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MARKET IN FOCUS Australia’s property market is incredibly reliant on its largest, although not capital city- Sydney Words : Rachel Sharman | View : Cristina Muraca

2014 appears, at first, to be a completely average year as far as house prices go. The global property scene was relatively uneventful, with fair amount of countries managing to achieve positive growth in house prices, but almost half of which were only 5% or lower.

Over the twelve months to the final quarter of 2014, there was only a grand total of five countries which saw house prices rise by double digits: Ireland and Turkey led the way, posting impressive percentages of 16.3% and 16.2% respectively. Whereas at the bottom of the table was war-torn Ukraine which saw a -16.7% drop in house prices over the period.

However, a few gems and duds amongst a slowly rising world property market is not much to write home about.

However, house price growth around the world in 2014 was in fact incredibly illuminating because, for the first time in the past four years, cities around the world saw notably higher growth than countries around the world. In 2014, a total of ten cities saw their house prices grow by 10% or more, in comparison to only 5 countries. This is a big difference to previous years which saw an evener amount of countries and cities achieving 10% increases or higher: > In 2011: 5 countries and 4 cities > In 2012: 6 countries and 6 cities

> In 2013: 11 countries and 9 cities > In 2014: 5 countries and 10 cities So, why did the global market changed so drastically? How is it that a city is now more likely to be supporting its country’s property market than the other way around? What does this look like in real terms for these countries seeing such disparity from one city to the rest? To answer all of these questions I will be focussing on one of the more extreme cases- Australia.

In Knight Frank’s Global House Price Index Q4 2014, Australia’s housing market experienced the 14th highest rate of growth with property prices rising by 6.8% over the twelve months to the fourth quarter. However, in Knight Frank’s Prime Cities Index, Sydney came in at 8th with a very healthy 11% growth in property prices. Sydney’s success has pulled the entire country up the rankings of the Global House Price Index. However, do such large increases in prices concentrated in a single city really help a country? Or do they just leave one area inaccessibly expensive, whilst the rest of the nation is home to a faux sense of growth? Currently, the whole of Australia’s property market is incredibly reliant on its largest, although not capital, city- Sydney.

This country-continent (as it’s sometimes known) is famous around the

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world for over 10,000 sunny beaches, exotic wildlife and turbulent history.

However, Australia is also home to the Australian Alps, with more snowfall than the Swiss equivalent and a bustling camel export business to Saudi Arabia. (Plus, Fosters isn’t even brewed there!) In short, Australia is rather undefinable. Also, as it’s three times larger than Greenland makes it incredibly difficult to sum up this large, diverse country. And its property market is no different.

This goes a little way to explaining why Sydney’s property market is so much more buoyant than the rest of the country. In such a regionalised country, it is no surprise that the different areas can vary in price so much, Australia’s property market is undeniably difficult to judge. But that being said, none of the other state capitals are seeing such a bubble. The Australian Bureau of Statistics found even higher house price increases than Knight Frank’s for Sydney of 12.2% from December 20132014, whereas Brisbane, in second place only saw a 5.3% change. Other famous cities: Melbourne (4.5%), Adelaide (2.5%) and Perth (1.2%) were much less impressive and similar in their growth.

Sydney is not only the oldest city in Australia, it is also the most popular, made up of over 4.4 million people in a country of 23 million. It is the country’s financial capital and last year contributed a large 37.9% of all Australia’s GDP growth. Plus, with its global reputation, millions of investors and tourists are attracted to the city every year. All in all, it is clear that Sydney is extremely popular but this still doesn’t explain the full disparity.

Sydney’s history is an interesting one, although you may think it’d differ

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massively to the many ancient cities in Europe, famous for stories of wealth, war and impressive architecture from the ages, Sydney’s history is far from simple. It began almost exactly 245 years ago, on the 29th of April, 1770, when Lieutenant James Cook landed in Botany Bay. After travelling a little further up the coast, he came to an area and claimed it for Britain. By 1788, an official name was needed for this new colony. ‘Albion’ was a popular choice, but ‘Sydney’ was decided on thanks to Thomas Townshend’s (a.k.a Lord Sydney) role in establishing the settlement.

The harbour city’s fate as a penal colony is well documented and over the years from 1786 to the 1840s (when convict transport ended) the city had a population of 35,000. Legend has it that the city’s first police force was made up of the best behaved convicts. Although being transported was officially the punishment, many suffered upon arrival at Sydney as a lack of food and water plus rampant diseases, left poor living standards. Those who suffered the most were certainly the indigenous Aborigines, 50% of whom were estimated to have died during a small pox epidemic in 1789.

In the 1850s, gold was discovered in the region, and it went from being seen as a home for convicts to a land of opportunity. The population shot up to 200,000 by 1871. The following years saw this population continue to grow at a rapid rate and despite the Great Depression hitting the nation hard, by 1925, the city was home to 1,000,000 people. Again, unlike many European cities, the Second World War, provided the nation with jobs and industrial development as they strived to meet necessary needs. By 1975, after forty years of prosperity, there were almost 3 million Sydneysiders, a

Sydney Harbour, Australia

figure which has continued to grow to that of today’s.

Now, in 2015, Sydney is an absolute cultural melting pot. According to the 2011 census, of the 4.4 million population, a massive 1.5 were born in other countries. Plus, it is estimated that over 250 languages are spoken throughout the city. Sydney already has a vibrant atmosphere, thanks to being such a thriving city, and the incredible diversity found throughout only adds to this. Arguably, Sydney is one of the most multi-cultural cities in the world. What is not up for dispute, is its popularity. In 2013, 2.8 million people visited Sydney, which is nearly half of all international visits to Australia. It frequently makes the list of ‘Best Global Cities’ including the Condé Nast Top 25 Cities in the World: Readers’ Choice Awards 2014 which described the city as being “sun-soaked, lined with beaches, and full of beautiful people” with a “laid-back, outdoorsy vibe”. One of the most famous views in the city is found upon entering the natural harbour with the large Harbour Bridge and Sydney Opera House. This famous building was inspired by peeling an orange, and since its opening in 1973 has been the venue of more than 100,000 performances and 100 million visitors.

Sydney’s popularity with tourists, residents and investors has often left people drawing parallels to London. They are the big business hubs in the countries, the main bases for domestic and international companies. In Australia, 48% of the country’s top 500 companies have headquarters in Sydney, as well as two thirds of multinational companies. London is similarly famous for offering the lion’s share of jobs, attracting hordes to the city.

Therefore, it is no surprise that both big cities experienced incredibly strong property markets in 2014, bringing prices into almost another world, in comparison to the rest of the countries’. That being said, at least London’s house price growth didn’t beat the UK’s in 2014, with Knight Frank recording 5.1% for the city and 8.3% for the country in the year leading to the fourth quarter. Although thanks to a much higher starting point, the prices in London are now unattainable to many, whereas the rest of the UK’s aren’t so extreme. (Plus, throughout the year, London’s house prices were estimated to be reaching 18%, but obviously by the final few months things had cooled down thanks to new stamp duty taxes and mounting uncertainty about 2015’s general election.)

In both cities there were some neighbourhoods where the costs of houses frankly spiralled out of control. The biggest gains in London were in the borough of Greenwich, in South East London, which saw house prices rise by 24.6%, or £65k, according to Halifax. In March 2015, Sydney neighbourhood: Seven Hills recorded a whopping price increase of 46.58% over the previous year, according to CoreLogic RP Data. It takes a lot to make the London property market seem reasonable, but in relation to Sydney’s, it looks practically boring.

However, examining Sydney’s property market over a twelve month period only reveals part of the story. Data proves that house prices have mostly been on an upwards trajectory since the start of 2009, with its current extreme growth phase taking place from approximately June 2012. Whilst the other biggest cities- Perth, Brisbane and Melbourne suffered massively

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from 2010 until this mid-2012 period, Sydney was barely fazed. House prices did fall slightly, but it was nothing in comparison to Perth and Melbourne who have only recently recovered, or Brisbane which is yet to meet its late 2009 house prices.

Some estimates have said that since the initial growth started in 2009, Sydney’s house prices have risen by a massive 60%. Others have looked more in depth to the second spike of growth. From June 2012 until April 2015, the average house price across all of the state capitals had risen by 24.3%, whereas in Sydney alone, this figure rose to by over 14% to 38.8%.

In short, there are plenty of statistics proving that the Sydney property market is growing much faster than the rest of country.

In real terms, the latest headlines have proclaimed that the median price of properties in Sydney will have topped the AU$1,000,000 mark by the end of the year (making them the highest in Australia), should this level of growth continue. Independent property researcher, SQM Research, say that certain properties in the city have already met this price. According to them, the median price for a detached house (which make up 60.9% of the city’s homes) is over this million mark, equal to 13 times the average wage.

Interestingly, unlike London or many other big cities where more people rent because they can’t afford these high prices, Sydney actually has relatively high levels of home ownership. Before the Second World War, during the Great Depression, more people rented, but the war flipped this statistic. Now only 31.6% of Sydney homes are rented, with 30.4% owned outright and 34.8% owned with a mortgage.

However, such a high amount of people already occupying homes poses a new problem. The market is simply not as fluid as places with more renters who can move in and out of homes in a matter of months, upgrading or downgrading as it best suits them and keeping the property market fresh.

One of the biggest problems Sydney is currently facing is a definite lack of suitable housing. As demand grows and grows, and people are attracted to the gorgeous city and the jobs it offers, supply simply cannot keep up. This problem stems back to as early as twenty years after the area was first claimed. In 1790, Lieutenant William Dawes created a town plan designed to best make use of the area, unfortunately it was ignored, and now Sydney’s layout leaves lots to be desired. There is simply not room for the amount of houses needed for the area. Although from the decade 1996-2006 the amount of apartments in the city increased by 30%, there is only so far that dense accommodation can be implemented. The general consensus is that people know more houses are needed, but no one knows where they should go.

The other problem with the Sydney property market is how high the demand is there. New properties are sold quickly, meaning prices are always going up, however, they’re not always sold to those looking to use them as homes. In Australia, more and more are choosing to invest, rent out their properties rather than live in them, and consequently take advantage of ‘negative gearing’.

Negative gearing is a tax deduction system used in certain countries (Australia, Canada, New Zealand) created to help spur on the property market. However, critics in Australia now think it is more of a hinderance.

Basically, what it allows is for a property investor to take the net costs associated with owning a rental property (and any interest payments towards it) off their annual income. Therefore, if all of these costs are more than the rental income they receive from the property, their entire annual income is recorded as lower, reducing what they have to pay in income tax. This may seem like a lot of hassle for just paying a little less tax, however, as we have seen, the prices in Sydney are rising so much that an investor can quickly sell off their property and make a very good profit, without incurring many costs at all.

That being said, you’d be wrong to think such an inflated market is thanks to negative gearing. It has been estimated that throughout the country 1.8 million Australians and businesses make the most of this system (or ‘tax break’, as it has been negatively described), however, the recent interest from international investors has also impacted the market. The latest National Australia Bank (NAB) statistics show foreign buyer activity in New South Wales (the state which Sydney is the capital of), has risen to a new high of 21%. In other words, a massive 1 in 5 of the state’s property sales go to an international investor.

It also appears that investors in New South Wales are willing to pay more money than they are in other states, 41.5% of sales in the state were for properties in between $1 million -$5 million. In contrast Queensland, home

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Sydney Harbour Bridge, Australia

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Housing Prices

China as proportion of total foreign investment VALUE BY INDUSTRY

NUMBER OF APPROVALS

Other $6,163m (0.46%) Services $6,163m (22.29%)

$’000

Manufacturing $3,298m (11.93%)

China 14,716 (59%)

Others 10,104 (41%)

$’000

750

750

Sydney 650

650

Canberra

$m

Total approvals

27,650 Mineral exploration & development $5,656m (20.46%)

24,820

Perth

550

Melbourne 450

450

Brisbane

Adelaide

350

Real estate $12,406m (44.87%)

350

Regional* 250

250 2010 *

*Agriculture, forestry & fishing, finance & insurance, resource processing

SOURCE: FIRB

2014

to Australia’s third biggest city - Brisbane, saw the majority of sales (85%) being of properties under $1 million. Of course, the fact that Sydney is just more expensive does play its part in these statistics, but it also shows that it is the city big money investors are most interested in taking a risk in.

Sydney’s global reputation means that it attracts those from around the world who have noticed such a fast growing property market. However, whilst the country does get significant interest from every continent, research suggests that by far the largest group of foreign investors are from China. Some suggest that those from the world’s second biggest economy see Australia as basically no better than a safe place to move their money to. After all, Australia has been incredibly successful and self-reliant. However, such a popularity has left Australia with a skewed housing market which to some is no better than a bank.

Although the Australian government is keen to support international investment and the money and opportunities it brings to the nation, these recent high figures have prompted concern that Australians can’t even afford to buy in their own cities any more.

There have been various proposed plans throughout the nation to try and subdue foreign buyers. One idea is an extra tax for international investors: they would have to pay $5,000 more for properties valued under $1 million, and then an additional $10,000 for every $1 million more that the property costs. It is estimated that this would raise $200 million a year for the nation.

Another, much needed, proposal is a register of the foreign investors.

Currently, Australia’s Foreign Investment Review Board (FIRB) does not collect enough local data in Sydney to come up with comprehensive statistics about the level of investment to measure how beneficial, or detrimental, it really is for the nation.

So, how does the future look for Sydney? So far from my writing may seem rather negative, however, all this money coming into the city does not have to result in a spectacular crash or even an extended period of growth as cities continue to outperform countries.

The general consensus is that the market is just going to slowly level off.

Estimates for the 2015/16 property market are around the 6% and 7% mark, which are still healthy, but not nearly so extreme. The Australian Government has made reports and proposals to curb foreign investment, which will hopefully slow growth, and with less growth, fewer people will be tempted to play the negative gearing game, as there is not so much capital appreciation to be gained. However, as with any extreme figures, no one truly knows what will happen.

One thing is for certain though, Australia’s population is expected to keep on growing at one of the fastest rates in the world. By the 2061 census, it is expected that the number of Sydneysiders will have almost doubled to 8-8.5 million. Therefore, the current government has a strong responsibility to make sure all of these people are accommodated, and build some new houses.

Global property markets shift every year. It will be interesting to see how successful cities fare against countries next year, whether 2014 will just be blip in the statistics, or the start of a new era of global cities attracting more investment than their countries. The whole world’s population is growing and going into the future space will be a more valuable commodity than ever. Cities like Sydney need to act now- provide affordable accommodation and build new houses, to make sure they are truly future proof, whatever fluctuations occur in their housing markets.

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2010

Excludes apartments; measured as areas outside of capital cities in mainland states

Sources: CoreLogic RP Data; RBA

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550

Australia

2014

Sydney Opera House, Australia

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GREEN & BROWN With a burgeoning population, and a limited land mass, the UK faces the difficult decison of where to develop next?

Words : Grace Price-Salisbury | View : Albert Wise

Around Britain, the countryside, suburbs and cities are changing. No longer is the idea of having a set urban area viable, as population increases mean more people need more space. The United Kingdom is one of the most densely populated countries on Earth, with 2.6 people per hectare, and this figure is only going to increase.

So the question is where do the necessary new developments go? There is not a lot of available space in the UK, so how the government accommodates the nation is crucial in upcoming years. This crisis means we need to look at green belt and brown field land as solutions to the lack of space, but unfortunately these raise their own sets of problems too.

What is Green Belt Land?

Green belt land refers to an area that is kept in reserve for an open space, most often around larger cities. The main purpose of green belt policy is to protect the land around larger urban areas from urban sprawl, and maintain the designated area for forestry and agriculture, in addition to providing habitat for wildlife.

Pros The idea and implementation of green belt policy 50 years ago brought a number of benefits for people living in the countryside, in urban centres, as well as for the environment. The idea of green belt land was primarily to protect the rural environment and the historic towns from urbanisation.

However, green belt policy has been shown to have a number of benefits for both rural and urban areas, as well as for the environment – making it one of the most effective measures against the current environmental problems and natural conservation issues. The prevention of an unrestricted urban sprawl has been proven to be extremely effective because designated green belt areas are not supposed to be built on.

Occasionally developments do receive permission to be constructed in green belt areas (such as those used for agricultural purposes) however these projects are approved only in rare cases. For this reason, green belt land has become the key protector of the natural and semi-natural environment, as well as being a retreat for animals.

Additionally, green belt areas have helped to save rural communities from being absorbed by large urban centres, in addition to helping preserve

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unique landscapes. Access to open spaces provides a number of recreational and educational opportunities and the physical barrier between urban areas and the countryside improves air quality in these urban centres. Moreover, the strips of land that are kept as open space help preserve the unique character of smaller historic towns because they prevent the smaller towns from becoming suburbs of larger urban centres and from merging with the neighbouring towns.

Cons Despite the policy of keeping strips of land reserved for non-developmental purposes, green belt land has its disadvantages too and had been criticised by some groups over recent years. None of these groups suggest we abandon green belt policy but they point out to its disadvantages which perhaps have not received enough attention over the last few decades.

Critics of green belt policy have attacked the environmental challenges that still remain. Despite the fact that green belts are supposed to preserve the natural environment, some areas have little or no value to the environment or population. Green belt land used for intensive agriculture, for example, does not provide recreational opportunities or access to clean air and the environment. This is due to the use of chemical fertilizers and pesticides which are harmful to both the environment and humans.

Building restrictions in areas that are designated as green belts are also

a problem. It is perhaps necessary to preserve a certain percentage of landscape for non-developmental purposes but, on the other hand, future generations will face great difficulty in finding their own home without increased building activity as the population continues to flourish.

Keeping the green belts “green” without affecting the quality of life of the nearby population might also become challenging in the near future, especially is the number of people working and living in urban centres continues to grow. The trend is not encouraging because as it stands, over 92% of the UK population is estimated to live in cities by 2030.

Furthermore, green belts push up the value of housing land, which in turn, means that those who are less well-off potentially end up very badly housed.

A study by Paul Cheshire, professor emeritus of economic geography at the London School of Economic’s Centre for Economic Performance, argued that Britain’s booming house prices have been caused by “decades of planning policies that constrain the supply of house and land.” The professor attacked the green belt policies introduced in 1947, arguing that green belt is neither environmentally friendly, nor does it “provide a social or amenity benefit” for city dwellers.

What is Brownfield Land?

In the UK a Brownfield site is defined as “previously developed land”

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that has potential for being redeveloped. It is often land that has been used for industrial and commercial purposes which can be derelict and possibly slightly contaminated. Brownfield sites have become increasingly more popular to build on due to the lack of available green space for development. It has been said that there are over 66,000 hectares of Brownfield sites in England. These sites are considered for redevelopment of not only housing and commercial buildings, but also spaces for recreation, conservation, woodland and other community areas.

neighbourhoods and spur the transformation of entire cities by attracting people into a community core for work or play.

Pros

The planning process is often seen as a major stumbling block to increasing brownfield development because obtaining the necessary permissions can be delayed due to negotiations over clean-up operations and other concerns. An example of this is with housing because some brownfield areas may not be suitable for gardens, which is why they are usually more adequate for city apartment developments.

It is highly common for brownfields to be located in places where there are no other attractive areas that are suitable for development. The idea is that if the site is an eyesore or has no desirable locations nearby for people to visit, people won’t come and therefore the revitalised properly will not be able to sustain itself.

The Government’s decision to make publicly-owned brownfield land available to house-builders was welcomed by the National Housing Federation as housing associations desperately need affordable homes. According to the Government’s Housing Strategy (published November 2011), the freeing up of formerly used public sector land could deliver up to 100,000 new homes.

In terms of landscape, building on brownfield land will diminish something derelict or possibly unsightly, as well as preserving farmland and more attractive rural areas. Money can also be saved building on brownfield land because there is existing infrastructure like water and sewer lines, electricity, roads and accessibility to public transport.

Besides the environmental benefits, there are also economic and social perks. Shabby industrial sites can transform into thriving office buildings, apartments, luxury mixed-use facilities, shopping centres, public parks, and more. Brownfield development can breathe new life into

Cons Businesses and developers are often unenthusiastic about building on brownfield sites because of the expense of clearing contaminated areas and the limitations on building growth.

Garden Cities One possible alternative to building on either brownfield or green belt land is the idea of building entirely new garden cities. First thought up in

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Nuclear power station

1898 by Ebenezer Howard, he described them as having, “the advantages of the most energetic and active town life, with all the beauty and delight of the country”. They sound utopic and there have been a few attempts at building cities following his design such as Letchworth Garden City and Welwyn Garden City, both in Hertfordshire.

Some of the key ideas of garden cities include: offering affordable houses for everyone, having integrated public transport networks and providing a generous amount of green space (which means that it is not entirely out of sync with the ideology of the green belt).

Recently this idea was revisited when the yearly Wolfson Economics Prize proposed the question: How would you deliver a new Garden City which is visionary, economically viable, and popular? The competition was won, on the third of September 2014, by David Rudlin for his proposal garden city which was described as taking, “a confident bite out of the green belt.”

The director of URBED, an urban design and research consultancy, Mr Rudlin’s design was not a traditional garden city but used the garden city principles for expanding current cities by building on their greenbelts.

Once again leading back to the question of whether only building on greenbelt or brown field land is appropriate to meet the rising population.

Unfortunately, the government has already dismissed the project. Brandon Lewis, the housing and planning minister said that the proposed project was “not government policy and will not be taken up” and that the current government is “committed to protecting the green belt from development as an important protection against urban sprawl”.

Rudlin’s winning proposal echoes Paul Cheshire’s discontent with the current green belt system. In 1947 the Town and Country Planning Act introduced green belts to Great Britain and perhaps now, 67 years later, there needs to be a new discussion as to how relevant they are in today’s society.

Advantages and disadvantages aside, the country has changed more dramatically in the last century than anyone could imagine. The 1951 census measured a population of 43.8 million, significantly different to today’s 64.1 million, and with more people expected to move to cities, the traditional green belt boundaries may not be viable to uphold in coming years. However, to completely abandon the idea of green belts will have environmental consequences and will be sure to destroy rural communities. The government has to find a balance between accommodating the rising city populations and protecting the countryside.

Perhaps a revaluation and readjustment of the green belt boundaries are needed. Perhaps a new, more flexible system is in order. The 21st century is more environmentally conscious than ever before, and an abolishment of green belts is bound to be met with opposition. But equally, when cities start to get over-crowded and prices rise far above wages, these archaic boundaries are certain to be criticised. Whatever happens, a clear resolution as to the future of green belt land is needed.

Could a greater exploitation of brownfield land be the answer? The choice to develop brownfield areas could alleviate the growing pressure for building onto the green belt and regenerating uninhabited areas can bring life to different parts of cities. Although the existing structures and imperfect building environment are understandably off putting for developers, these sites have access to facilities and infrastructures that could balance their appeal.

Every project planned for brownfield areas is different. The sheer number of factors encourages unexpected costs and an unpredictable finishing time. Also, with planning permission and the relevant documentation difficult to come by, it is no surprise that many potential developers are put off.

So perhaps the process of building on brown field sites also needs to be evaluated. Brown field projects should not only match those built from the ground up, but should also be quicker, less expensive and ultimately more appealing to developers.

The green belt may be an aging concept, but perhaps a greater focus on building on brown field areas means the boundaries can continue. The government needs to make decisions as to how it will deal with the growing population, and the growing number of those living in urban environments. Building now to prepare for the future, is essential, however, in which areas they choose to develop remains to be seen.

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WELCOME TO CHINA Chinese culture; extremely diverse and intriguingly unique.

A harmonious blend that has almost become an invaluable asset to the world Words : Christine Schulz | View : Lee Yiu Tung

Egypt, India, Mesopotamia (today known as Iraq) and China– these are the world’s four most ancient and, for their time, also most advanced civilisations that we know of. All of these, which are believed to have emerged as early as in the 4th millennium BC, have in one way or another influenced the history of man – leading to what we today call our society.

Take China for example: It is a nation rooted deeply in its own history, majorly influenced by the heritage of the “three teachings” of Confucianism, Buddhism and Taoism.

Based around the wisdoms of the Chinese philosopher Confucius, Confucianism teaches its followers about the importance of certain virtues such humaneness, righteousness, justice, ritual courtesy, knowledge and integrity. Only by achieving those, one can become a moral human being. The lesson that helped shape China into what it is today however is filial piety, which is the respect and loyalty sons must have towards their fathers. This in particular has greatly influenced how business in China is conducted, with piety as a key foundation to its business culture.

Originally from the North East of India, Buddhism is a religion led by Siddhartha Gautama, a man who was the first person to reach the ultimate goal of the Buddhist path: to achieve the mental state of Nirvana. There is no word-for-word translation for Nirvana, as its meaning is manifold.

Literally though, it means something along the lines of “blowing out”, referring to the Buddhist goal of eliminating the “three fires” passion, hate and ignorance. In its essence Nirvana is a state of mind, in which a person

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gets rid of negative thoughts and reaches inner peace and happiness.

Buddhists aim to follow the footsteps of Siddhartha Gautama and to eliminate their suffering by achieving the same enlightenment. Its main principles include the likes of Dharma (the Natural Law), Karma (Cause & Effect), Samsara (the Cycle of Reincarnation) and Ahimsa (Non Violence).

The third of the three teachings Taoism (or Daoism) is, although not a religion per se, an ancient tradition of philosophy and religious belief that is deeply rooted in the customs and worldview of the Chinese. Tao means “the way” and focuses on the laws of unity and opposition – Yin and Yang – or a world filled with opposing forces such as action and reaction, light and dark and so on. Taoism practitioners don’t only believe in achieving harmony with Mother Nature but also in the pursuit of spiritual immortality and being virtuous in a non-pretentious manner, as well as personal development and growth.

Since its semi-mythological beginning around 2800 BC at the time of the Yellow River civilisation, China has been ruled by many dynasties, during which time each emperor in power differed in up-bringing and therefore possessed different beliefs. It is unsurprising then that the Chinese culture is made up of a range of elements influenced by each of the great three teachings and many more, and can vary hugely from area to area. However, the traditional fundamentals of the culture still place a heavy emphasis on family structure, obedience to one’s family as well as the Chinese state and constant personal development and improvement.

Shanghai, China

In general, the Chinese culture is extremely diverse and intriguingly unique. Yet it is so harmoniously blended, that it has almost become an invaluable asset to the world. In honour of its rich and intense culture, the Chinese don’t shy away from celebrating their traditions, making the Chinese calendar perhaps one of the busiest calendars in the world. It’s filled with traditional events and ostentatious celebrations, such as Shanghai’s beautiful Peach Blossom festival and the famous globally celebrated Chinese New Year as well as the Hungry Ghost festival.

Year and devour crops, animals and even people. To protect themselves and their property, villagers would prepare meals for Nian and leave them in front of their doors. However having had enough one day, the Chinese decided to get revenge on Nian. Thanks to a visit from the gods the villagers realised that the beast was afraid of the colour red as well as firecrackers, so they armed themselves with firework, red lanterns and red scrolls on their windows and doors every New Year.

From then onwards the beast stayed away from the village and was eventually captured by an ancient Taoist monk called Hongjun Laozu.

Since then the Chinese decorate their homes with red coloured paper The Chinese New Year is by far one of the most renowned cultural ornaments and lanterns. Nowadays, leading up to the Chinese New Year festivities worldwide. Every year is, according to the Chinese zodiac, a year people clean their entire house in order to sweep away bad luck and dedicated to one of the 12 animals: Rat, Ox, Tiger, Rabbit, Dragon, Snake, make room for new incoming fortune. On New Year’s Eve, families come Horse, Sheep, Monkey, Rooster, Dog or Pig. together from all over the country for the celebratory reunion dinner “Nian Ye Fan”, which is relatively comparable to American Thanksgiving and As of February 2015, we have officially entered the year of the sheep. This similar to Christmas dinner in western cultures. celebration is known as the spring festival at the turn of the Chinese calendar, and usually lasts for two full weeks until the 15th day of the first During the following two weeks, it is tradition to visit family and friends, month. Having over 4,000 years of history, the first day of the Chinese have lots of food and celebrate the gods. During the whole festive season, New Year falls between January 21st and February 20th, depending on the people tend to decorate their homes and themselves in red colours and lunisolar Chinese calendar, which is usually the second new moon after the have signs meaning “good fortune”, “wealth”, “happiness” and “longevity” winter solstice. around them - all of which they hope for in the new year. On the first day for example Chinese people tend to give away red envelopes to others According to legends, the beginning of the Chinese New Year was started that are filled with money, to smooth things over in both their work and with Nian, a mythical beast that would come on the first day of every New family lives. And because the beast Nian was afraid of the colour red, red Chinese New Year

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Blossom Festival, Shanghai

now symbolises joy, virtue, truth and sincerity in the Chinese culture.

The Chinese New Year is a season of many superstitions. As the Chinese start the New Year as they mean to go on, it is regarded as the omen of the year to come. For that reason, people have many taboos during the festivities such as words related to “death”, or “illness” or “ghost”. Taking medicine during that time is also considered to be an omen of the year ahead being full of sickness and suffering.

On the last day of the two week celebrations, the famous Lantern Festival takes place. According to Taoist belief the 15th day of the first lunar month relates to the “Official of Heaven”, who adores bright and joyful objects. To please him and therefore heaven, the Chinese send thousands and thousands of lanterns on their way as well as decorating the streets with them. The lanterns are almost exclusively red to embody good luck and come in various shapes, like animals. A lantern represents finally letting go of your past self, whilst simultaneously welcoming your new self.

During the festival the streets are flooded with colourful lights, enlightening visitors with a magnificent, almost dreamy view of the cities and towns.

Thanks to these spectacular views and romantic atmosphere the region of Hong Kong has even hugely commercialised the Lantern Festival on what is known as Valentine’s Day in most of the world.

The Chinese New Year is celebrated all over the world, as many Chinese continue to emigrate to western nations. It is not only an event with culturally rich heritage, but it is also a beautiful and colourful show all

around the world. Especially China’s own Beijing, Guangzhou, Xian and Pingyao which are said to be some of the best places to view the spectacle that is the celebration of the Chinese New Year.

Shanghai’s Peach Blossom Festival After the Chinese New Year celebrations, the spring festival continues all over the country.

Spectacular views await the visitors of Shanghai’s traditional Peach Blossom Festival between the end of March and April, when the country’s peach blossoms are at their most beautiful.

Traditionally, the peach blossom is a Chinese symbol of life, growth and prosperity. Native to the North West of China, this ancient tree is said to possess more vitality than any other tree because their blossoms appear before its leaves actually sprout. History suggests that peach rods are able to protect you from evil spirits, making the peach tree the most auspicious of all plants in the Chinese culture. Seeing as it is of big cultural significance, the Chinese like to honour it by celebrating the blossoming of the peach trees.

The Peach Blossom Festival takes place in Shanghai’s suburban Nanhui District on the Chengbei Folk Peach Orchard. Since 1991, hundreds of thousands of tourists and nationals come along to see the stunning views that await them on the 3,000 hectares full of blossoming peach trees, Castlefield, UK www.globalpropertyscene.com |

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Shanghai, China

creating the most beautiful rosy sea you will ever see. During the festivities, visitors are invited into the homes of local residents to get a better picture of what rural life in the district is really like.

Besides gazing at the beauty of the glorious rosy blossoms, the inhabitants cook up a storm of traditional Chinese cuisine for people to enjoy. Chinese folk presentations, dances and plays are also performed by locals for the 500,000 people that the festival attracts every year. Another popular custom is also to have entertaining pig sporting activities such as pig racing, hurdling and even competitive pig diving. To continue attracting fans from all over the world, Shanghai makes sure to have something new at each festival: they even built an artificial lake in the Nanhui district used for fishing and boating during the 2003 blossom festival.

Considering the romantic side of things, there is not much that would top taking a stroll by the river during sunset, gazing at the magnificence of the sea of pink and rosy peach blossoms. And who knows, according to Chinese legend, peach blossoms aren’t only used to protect us from evil, but they are also said to bring very good luck in love!

The Hungry Ghost Festival Both the Chinese New Year and the Blossom Festival celebrate life and new beginnings, whilst putting less of an emphasis on worshiping ancestors. On the other end of the spectrum of the several traditional festivals China has to honour its predecessors is the Hungry Ghost Festival in the 7th month of the Chinese calendar (July/August time in western cultures). The Hungry Ghost Festival, or otherwise known as Yu Lan, is a traditional Chinese festival, heavily influenced by Buddhism, Taoism and Chinese folk religions, in which descendants pay respect to their deceased ancestors.

It is held on the 15th day of the seventh month, which is also regarded as the Ghost Month. On the first day of this month, which is believed to be the scariest month of the year, legend says that the departed ancestors are let out of the underworld, as the gates of hell are opened. Throughout the month the Chinese have a number of smaller celebrations, leading up to its highlight: the Hungry Ghost Festival.

Here it is believed that the ghosts roam the earth in search of entertainment and food. It is very common to prepare food offerings for these spirits, who are said to not have had a proper ceremonial send-off after their death. During meals seats are left empty for them to join and at live shows the first row of seats is also left empty for the ghosts. Other activities include the burning of incense and so called ghost money (paper money) to please the visiting souls, as well as releasing tiny paper boats and lanterns on water to give directions to the lost ghosts travelling the earth.

The 7th month of the Chinese calendar is filled with auspicious customs and beliefs. For instance, children are told to be home before it gets dark, as parents fear the wandering ghosts may try to possess them. People also tend to avoid driving in the darkness that month to avoid collisions, as well as swimming, as they are afraid of ghosts drowning them. The term “ghost” is further not being used by anyone. Phrases such as “backdoor god” or “good brother” are much more preferred, to ensure the spirits don’t get offended.

Yu Lan is distinctively different from other ancestor worshipping festivities, such as the Qingming Festival in spring or the Double Ninth Festival in autumn, as opposed to those, the deceased here pay a visit to the living.

All in all China is truly remarkable. Characterised by its history dating back thousands of years, it has become a cosmopolitan country, proud of its heritage and customs. The versatile mixture of religions and common philosophies has allowed China to develop one of the most interesting events calendars of our time. Whilst to a large extent ruled by superstitions and myths, most festivities place an emphasis on honouring the deceased along with family and friends.

China is a nation proud of its history and true to its roots. There’s no surprise that China is thus one of the most visited countries in the world, constantly intriguing people from all over and of all ages. It doesn’t really matter when you visit China, because almost certainly there will be one of its many lively festivals happening at that time. Its intense events calendar guarantees that you will truly have a once-in-a-lifetime experience you won’t be able to forget!

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The Hungry Ghost Festival

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THE MIGHT OF CHINA SHIPPING China is one of the key players within the global shipping industry, not only in Asia but the entire world.

Words : Christine Schulz | View : Robert Mandel

There are many reasons to enter a foreign market for business: with domestic markets becoming gradually more saturated, businesses are nowadays increasingly expanding into other countries where demand is higher and stronger, with the aim of adding capacity and increasing profits.

One of the most popular destination countries is China, where demand for almost every product and service is extremely high, as over 1.3 billion people live there - almost a fifth of the world’s total population. Industry giants such as Apple for example are increasingly learning how important China, as a nation as well as a market, actually is. According to recent news, China’s demand for iPhones for instance has overtaken the demand in the US for the first time ever, making China an essential and important target market for the smartphone giant.

Located in the midst of Asia, China is the second largest country on the entire planet regarding its actual land area, with only Russia being larger.

Because of its size it borders on 14 different countries including the likes of Vietnam, India, Pakistan, Afghanistan, Kazakhstan, Russia, and North Korea, just to name a few. While its largest city is Shanghai with almost 22 million people, its capital is Beijing with over 17 million people residing there. Three of the most populated cities in the world are also located in China: Shanghai, Beijing and Guangzhou (home to 16,827,000 people).

The People’s Republic of China is truly record-breaking in so many ways,

namely its incredible size (10,000,000km2), its vast population and its remarkably strong economy. One thing is obvious – China is a world super power to be reckoned with.

So the question arises: what is the real driving force behind the country’s immense economic influence?

A Look at China’s Economic Development Back in the day when China was ruled by dynasties, which are historical hereditary monarchies, the country heavily depended on its agricultural produce. Traditionally ancient Chinese were front-runners in science as well as technology, discovering copious inventions such as the art of papermaking, printing, alcohol, the compass and gunpowder. Many consider the reign of the Ming Dynasty (from 1368 to 1644) to be the time when the country has flourished the most. It was then that China started its journey to becoming the multi-faith, cosmopolitan society it is today. A country that is full of knowledge, learning and diversity. During the Ming reign, China opened its doors widely to global trade, exchanging its goods such as porcelain and silk for the silver of Europeans and Americans. This era, which is repeatedly described as one of the greatest eras of orderly government and social stability in human history, became the foundation of what China’s national economy and public affairs are today.

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The year 1978 became the beginning of economic liberalisation. From here onwards, things changed for the People’s Republic of China. The capitalist economic reforms didn’t only encompass the ‘decollectivisation’ of agriculture but also consisted of the privatisation of a large proportion of state-owned industry, opening up the Chinese market to foreign investment. During this time the Chinese private sector experienced an incredible upsurge, making it account for 70% of the country’s overall GDP by 2005. Since then, the Chinese economy saw unprecedented growth by as much as 9.5% every year. Interestingly however, whilst the Chinese economy is known for its foreign investment into other nations, its domestic economy remains highly restricted and to a large extent state-owned.

As of 2013, China’s total GDP stands at $13.39trillion, almost $1trillion more than the previous year. To put this number into perspective, the International Monetary Fund (IMF) reported that in the four years leading up to 2011, China’s economic growth rate was the equivalent of all the G7 countries’ (Canada, France, Germany, UK, Italy, Japan and the United States) combined.

Thanks to the reforms from 1978, China’s economy is nowadays highly led by both foreign investment and exports – making the country a leading nation in both sectors. Chinese exports alone made $2.21trillion in 2013 and, together with its importing business, accounts for about 25% of the annual Chinese GDP. Today’s Shipping Industry

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Almost three quarters of the earth’s surface are covered by water, and so over 90% of the world’s trade is done through shipping, making international shipping a multi-billion dollar business. Today, ship traffic directly reflects what’s going on in the global economy – so much so that within a typical room, there is a high chance that every item was shipped at least once on its journey to its current position in the room.

Shipping is the most economical way to transport goods around the world.

For example, it could cost as little as £3,500 to send a standard container from the UK to Hong Kong. Here, the principle of economies of scale applies: the bigger the sea vessel, the more containers it can carry, the cheaper the cargo cost thus will be. Unsurprisingly, countries are competing with each other to build the biggest possible ships and sea ports to get ahead in what can only be described as the game of international exporting.

With its waterways making up over 110,000 km and possessing in excess of 2,000 river and sea ports, of which approximately 130 are open to foreign ships, China is one of the key players within the global shipping industry, not only in the Asian region but in the entire world. The country has a total of 16 major shipping ports, which together have the capacity of handling more than 50 million tons a year. Taking into account all ports, China’s full capacity is as high as 2,890million tons every year, meaning that at the end of 2010, 35% of the world’s total shipping actually originated from there.

According to the World Shipping Council, seven out of the world’s ten biggest container ports are based in China. The biggest one however is

Maersk Line Cargo Ship

Shanghai’s Yangshan Port, followed by the likes of Singapore, Shenzhen, Hong Kong and Busan in South Korea.

Yangshan Port – Shanghai

of Chinese mega structures, as it is 12 times as long as San Francisco’s Golden Gate Bridge and is furthermore made to withstand the immense power of typhoons and hurricanes, which unfortunately frequently affect the country.

On Yangshan operations run 24/7. Personnel are always on highest alert when loading and unloading the world’s largest ships. Here, making one mistake could potentially impact the vessel’s whole journey and thus dampen Yangshan’s excellent reputation. In the world of shipping, time is essential, as time is money. This is particularly the case for employees controlling the cranes, which were especially made for the use at Shanghai’s port. These state-of-the-art cranes, which are controlled manually, similar to the popular arcade game known as merchandiser - in which one uses claw cranes to grab a prize - are designed to move as The idea behind Yangshan was to ensure Shanghai’s position as a key many as 50 containers per hour. So a minor mistake here can lead to a player within the shipping industry. Being a busy sea port, the original port of Shanghai struggled to accommodate the ever-growing cargo vessels, as major error of loading and balancing the ship correctly, affecting its overall security on its return journey. the water depth during high tide only reached a maximum of 7m.

Nowadays, the world’s largest vessels, such as the MSC Oscar that is What does the future hold for the Shipping Industry under China’s 396 metres long and can carry up to 19,224 standard containers, require influence? a depth of at least 12-15m, which is easily done by Yangshan Deep-Water Port.

Whilst the share of global traffic of the Atlantic Ocean has dropped from 40% in 1992 down to 32% in 2012, the share of the Pacific Ocean has The island, which took less than four years to construct, is currently about risen from 35% to 39%, demonstrating the ever-growing demand of the same size as a total of 20,000 basketball courts. Being 35km off Asian countries such as China. The United Nations Conference on Trade shore from Shanghai, the Yangshan Deep Water Port is connected to the and Development (UNCTAD) reports that China drives most of the Asian mainland by the Donghai Bridge, the world’s largest sea bridge after the regions’ traffic, as it is not only the world’s biggest exporter but also the later-built Qingdao Haiwan Bridge (spanning as much as 42.4km). With its largest importer of natural resources such as coal, iron ore and crude oil.

6-lane motorway, Donghai Bridge is another example of the excellence Officially opened on the 1st December 2005, Yangshan is the world’s largest ever cargo port, processing 443 million tons per year. This port alone is responsible for giving the city of Shanghai its competitive edge within the world economy. In the east, the port faces the East China Sea and in the south, the Hangzhou Bay. Originally the Yangshan Port was a collection of small islands which were artificially made into one. In fact as much as 60% of the port didn’t initially exist.

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Yangshan Port, Shanghai

This has led to a worldwide phenomenon which many researchers call the China Effect – the China Effect because of the spill-over effects China inevitably has on the world’s resources and global trade. Because of its size and increasing integration into the world economy, China affects both the global supply and demand for goods, services and assets. It has for example not only challenged developed countries such as the UK, Germany or the US as a preferred destination for foreign direct investment, but it simultaneously is one of the major overseas investors itself – so much so that it has helped generate incremental growth in the world economy, making the country a substantial factor for the welfare and economic development of other nations. The China Effect can, depending on a country’s trade patterns (focus on import or export of goods/services) and type or workforce (high or low minimum wage; skilled or unskilled), be very positive as well as challenging.

The world shipping industry is just one of the many examples of how China has affected the world economy: The rapid development of Asian economies has led to the Suez Route, the route connecting Europe and Asia, becoming the busiest one in the world. Instead of having to sail around the entire coast of Africa, from the Indian Ocean into the Atlantic, the Suez Route allows ships to use the Suez Canal in Egypt, provided the cargo ships aren’t too big, which connects the Red Sea with the Mediterranean Sea. Currently the China Ocean Shipping Company (COSCO) is working on strengthening its own and therfore China’s role in operating Europe’s infrastructure as a partner by acquiring the remaining 67% of the Piraeus Port, a major strategically important port situated in Greece. This would guarantee that China maintains an influential position within the European economy and its transportation industry.

In the longer term, the People’s Republic is trying to open up the north as a shipping route. Because of global warming, the ice surrounding the Arctic Sea is increasingly melting, creating a passable route for a few weeks each summer. Arctic shipping would save thousands of miles of travel and thus further reduce the costs of moving goods between continents drastically, as transportation forms the foundation of international business.

Although Arctic Ocean shipping has begun on a relatively small scale, it is estimated that it will still be a while before it becomes commercially viable and Asian shipping lines such as China’s COSCO will certainly become highly critical catalysts for this major change.

China has always been a key player in world trade and an active member of our global community. It is a world power, influencing everyone’s way of life. China presents itself not only as one of the world’s biggest consumers, but also exporters, and thus exerts an immense amount of power within the world economy, particularly in the world of shipping. Whilst it continues to invest heavily into further enhancing its status and importance in the shipping industry and exporting in general, interestingly it also remains one of the most strictly regulated countries in the world – to some degree opposing its philosophy of staying open to international trade.

Rules and regulation as imposed by the governing Chinese Communist Party prevent many global organisations, such as for example Google, Facebook and Amazon, from entering the market. Although China pioneers in many fields and prides itself as a major foreign investor, it is at the same time highly protective about its own economy and heritage. It is rather hard for some businesses to successfully penetrate the Chinese market, as national brands, producers and service providers are oftentimes preferred to their international competitors. WeChat for example competes with otherwise popular social networks such as WhatsApp and Facebook, while SinaBlog is China’s answer to Twitter, and Alibaba, instead of eBay or Amazon, is the biggest online marketplace in China.

It is safe to say that China and the Asian markets in general are becoming increasingly influential in the world of international business. But not only that: it is prominent in everything we do, as due to its sheer size, it influences prices, demand and supply in the rest of the world.

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Yangshan Port, Shanghai

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A GUIDE TO EXTREME DINING Some restaurants take things a step further, pushing the boundaries in the most unusual and unexpected ways Words : Hannah Wilde | View : Lukas Gojda

In the age where everything is documented in the social media landscape (think invasive Facebook statuses, punchy Tweets and filtered Instagram photos), people are increasingly craving excitement, exhilaration, an element of the unexpected—in short, people want an unforgettable experience, an experience to truly write home about. Capitalising on this need for adventure, hundreds of restaurants around the world have taken a very banal and everyday notion of dining out to the extreme, by providing their diners with a truly memorable experience.

Quirky restaurants are not necessarily a new concept—many eating establishments have been capitalising on their unique selling points for years, as seen with successful chains such as Hard Rock Café or TGI Fridays with their American-themed diner experiences. However, extreme restaurants take things a step further, pushing the boundaries in the most unusual and unexpected ways. Although often considered something of a ‘hidden treasure’, restaurants offering a truly thrilling and unique dining experience are not to be overlooked—there are a wide variety of restaurants operating on every single continent offering something special, so there is always something to suit every budget, inclination and risk level. This article will look at some of the world’s most weird and wonderful restaurants, oftentimes designed to test diners physically, emotionally or gastronomically.

First on the list is arguably the most physically extreme restaurant in the world, demanding from its visitors dedication and physical duress from the

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outset. The Huashan Teahouse, a former temple, is situated at the southernmost summit of Mount Hua in the district of Huayin, North West China and, to paraphrase the old idiom, the adventure in this case is well and truly in the journey. For those brave enough to take the trip, an old rickety tram will take you up to the pathway where the adventure truly begins—unharnessed guests have to then tiptoe across tiny wooden planks, scale up the side of a mountain supported only by narrow toe-holes and, if that isn’t enough, then tackle one of the world’s steepest staircases to reach the top. Once you have recovered from the 3-5 hour ascent, the views from the Huashan mountain are truly spectacular, and the teahouse itself is said to serve some of the best tea in China.

However, the only downside is that you then have to repeat the same journey in reverse to get back to solid ground, so this trip is not for the faint-hearted! Regardless of the incredibly dangerous expedition, this teahouse is still inundated with thousands of thrill-seekers ever year, eager to experience what has naturally been described as one of the world’s most dangerous hikes.

Another restaurant not for the tentative diner is found in the neighbouring country of Japan, in Tokyo’s Usukifugu Yamadaya restaurant.

Unlike China’s mountainous tearoom, the danger here is fairly veiled.

Situated in a back street of Tokyo’s Roppongi district, and ultimately disguised like a fairly substandard restaurant, the speciality of Usukifugu Yamadaya is fugu, a puffer fish renowned for containing a potent neurotoxin (hundreds of times stronger than potassium cyanide), a

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poison that is potentially fatal if not cooked correctly. However, nervous patrons should take comfort in the fact that you need to be fully trained and have a license to cook fugu in Japan, and research has shown that only 6 fugu-related deaths per year have been recorded between 1996 and 2006. Despite the potential lethality of fugu, it is considered somewhat of a delicacy in Japan, and so this game of culinary roulette is a must for gastronomical risk-takers.

The next physically extreme restaurant of note is in the European city of Costa Brava in Spain. Despite the name, customers frequenting the Disaster Café are lulled into a false sense of security—from the outside, the restaurant looks completely normal until you step inside, where you are greeted by staff wearing helmets and safety equipment and the food is served in heavy reinforced dishes. The reason for this soon becomes clear however, when suddenly during dinner, the whole restaurant emulates a 7.8-level earthquake. Diners never know when the promised ‘disaster’ is going to strike, but when it does, the lights go out and everything in the restaurant moves. It is safe to say that patrons of this café are advised not to don their finest clothes for this restaurant, as spilled wine and slopped food is to be expected. Strangely, demand for this restaurant is high, with reservations made up to a week in advance.

The Disaster Café is perfect for thrill-seekers who love a side order of adrenaline with their meal, but it should be said that those with a nervous disposition should probably pass up this particular eatery!

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Another restaurant where your Sunday best attire is not advisable is Dans Le Noir?, a restaurant chain with branches in various European cities like London and Paris. For those ill-versed in the French language, the translation of the restaurant’s name is simply ‘In the Dark’, which sums up the crux of this quirky restaurant perfectly. However, far from being just a fad, the creators of the restaurant have created a whole process that is perfectly designed to give diners the best and most exciting experience possible. To illustrate this process, the London restaurant in particular requests its customers pre-order their dishes before entering the dining room from one of three ‘secret’ menus, whereby you select either the Red, Blue or Green menu. The colours correspond to the main component of your meal—Red indicates meat, Blue means seafood, and Green ensures your meal is vegetarian. From there, you are led through to the pitch-black dining room by one of the restaurant’s servers, who are either blind or visually impaired. This decision has been explained by the creators as “a human exchange when, for once, the blind become our eyes to guide us into an intriguing new way of experiencing our environment”. Then, once seated, guests are forced to converse in complete darkness until their food arrives. The simple premise of eating in the dark is to enhance the idea that, if one of the human body’s five senses is removed, then the remaining four are heightened to compensate. So theoretically, the meal should smell and taste better without the sense of sight, which makes dining all the more exciting when you can’t see what you are eating.

Naturally, dining at Dans Le Noir? is bound to be a messy affair, but is rich in experience, fine food and the chance to truly see the world through the

perspective of others.

If it is a truly sensory experience you are seeking, our next ‘restaurant’ is another must-do. As the name suggests, ‘Dinner in the Sky’, operating in over 45 major cities worldwide, straps diners into chairs around a 22-seater table and suspends them 150 feet in the air, providing unparalleled panoramic views of the city sprawled out below. Each ‘restaurant’ can hold a waiter and an entertainer, as well as a chef who cooks your meal whilst in the air. The only problem with this is you can’t guarantee the weather, but what you can guarantee is unparalleled views, a luxury meal, and an exhilarating adventure!

A very similar concept was adapted in the Netherlands by top Dutch chef Angelique Shmeineck, who since 2011 has been offering a truly unique luxury dining experience—Angelique offers 14 diners a once-in-a-lifetime experience of a stunning three-course meal, prepared and enjoyed from the comfort of a hot air balloon. Whilst not as exhilarating as a singular table suspended in mid-air, nonetheless CuliAir Sky Dining offers its guests spectacular views of the Netherlands and a luxury gastronomical experience.

From one extreme to the other, we will now take you from the clouds right the way down to the bottom of the sea at the Ithaa Undersea Restaurant in the Maldives. Often topping the list of the world’s most beautiful restaurants, Ithaa is a truly revolutionary development in extreme dining as

the world’s first and only all-glass undersea restaurant. Not one for those with a fear of confined spaces, this restaurant sits 16 feet below the surface and offers brave diners beautiful 1800 views of the reef, with stingrays, fish and even sharks swimming around you as you tuck into the restaurant’s six-course contemporary European cuisine. This restaurant is incredibly exclusive, offering only 14 tables, and the luxury fare on offer includes fois gras, quails eggs and caviar, which only adds to the experience that can only be found at Ithaa Undersea Restaurant.

However, if confined spaces, heights or extreme physical duress aren’t exactly your idea of a good time, never fear—there are plenty more restaurants for you to experience safely on ground level.

If you have a hankering for a truly unusual dining experience, the USA is definitely home to of some of the world’s most unique and exciting restaurants. First on the list is New York’s Ninja, designed to emulate a 15th century Japanese feudal village. Inside, the restaurant is full of winding passageways and dark alcoves, perfect for the waiters (all of whom are fully trained in ancient ninja principles) to creep up on unsuspecting guests. Similarly, the Safe House restaurant located some 880 miles away in Milwaulkee, Wisconsin, is a self-professed “house of espionage”, and provides its diners with an interactive and fully immersive dining experience. Guests are put through their paces from the very beginning— think passwords, spyholes, two-way mirrors, labyrinthine hidden

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passageways and secret entrances. After all this excitement, no trip to Safe House is complete without trying the restaurant’s signature cocktail Spytini, which sees the cocktail mix travel through an incredible 600 feet of tubing that passes through every room in the restaurant before landing back at the bar and poured into a glass.

If you’re looking for a more ‘traditional’ American dining experience, head over to The Heart Attack Grill in Las Vegas, a satirical play on America’s culture of big portions and fast food. Gluttonous diners are given hospital gowns and invited to tuck into the restaurant’s signature Quadruple Bypass Burger (consisting of 4 beef patties and a whopping 20 slices of bacon), served by waitresses who, you may have guessed, are dressed as nurses. However, if you prefer your restaurant a bit more organic and al fresco, a visit to the controversial Clothing Optional Diner in New York is the perfect place to shed your inhibitions. As the name suggests, diners are invited to remove their clothing and dine completely naked. Looking further afield, Asia also has its fair share of unique dining establishments, hosting perhaps some of the most kooky and unconventional restaurants in the world. Starting off in Eastern Asia, perhaps the most well-known restaurant on this list is The Royal Dragon in China, a tourist trap of roller-skating waiters, zip-wiring servers and a troupe of costumed Chinese entertainers. Whilst diners tuck into one of over 1,000 pan-Asian dishes on offer, they are treated to an authentic display of dance, martial arts and

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entertainment- a fast-moving show taking place over all 8.35 acres of the restaurant. However, if you’re looking for something a little more unusual, take a trip to Bangkok’s Kraton Flying Chicken restaurant where, as the name suggests, your food becomes the entertainment. In a situation that can only be seen to be believed, this restaurant sees cooked chickens set on fire, catapulted through the air, and skewered on the spiked helmets of unicycle-riding waiters and delivered to your table. But if you prefer animals of the more cuddly variety, The Kayabukiya Tavern in Japan may be the place for you. This restaurant is the home to two miniature waiters— Yat-chan and Fuku-chan, two uniformed Japanese macaque monkeys.

Well known for their love of people, Yat-chan takes drink orders, whereas Fuku-chan gives diners a hot towel. Here, service with a smile is guaranteed, and the monkeys are tipped handsomely with soya beans for their trouble—Rest assured though, the monkeys are very well treated, so come and meet Yat-chan and Fuku-chan for a truly unique dining experience.

A little closer to home, Europe too offers a range of opportunities for unusual dining. One of the most surreal dining experiences is found in Volterra, Italy, with a restaurant located within an actual top-security prison.

Diners at Fortezza Medicea are served by actual prison inmates who are facing no less than a seven-year sentence, so it is no real surprise that this is perhaps one of the only restaurants in the world that require guests

undertake a background check before entering. To heighten the prison experience, guests are provided with plastic cutlery, but luckily handcuffs and prison food are nowhere to be seen. Meant as a rehabilitation programme, this restaurant has since gained a reputation for delicious gourmet food and a unique atmosphere, albeit with armed guards and a strict ‘no mobile phone’ policy. Not deterred by this altogether unprecedented restaurant, diners are eager to experience a taste of prison life, as Fortezza Medicea often boasts a waiting list of up to two weeks for a reservation. However, if you want a unique prison experience sans the inmates, head to the Malmaison Hotel in Oxford, England, where this converted prison offers diners the chance to eat haute cuisine in the confines of a former prison. Customers here can rest assured—far from handcuffs, cell and inmates, the only thing this Malmaison ‘prison’ offers is luxury dining and gorgeous architectural features.

Mainland Europe has its fair share of culinary experiences for the daring diner. From Amsterdam’s Kinderkookkafe, where everything is cooked and served by children, to La Lucha Libre in France (a celebration of Mexican cuisine and wrestling, where guests can eat, drink and either watch or take part in a wrestling match in the ring in the middle of the restaurant), Europe truly has something for everyone. If apples are your thing, a trip to Pomze in Paris is a must, using 120 varieties of apples in every one of its menu items. Or, if the English seaside is something you enjoy, be sure to stop

off at Cornwall’s Museum of Celebrity Leftovers, which is dedicated to the presentation of various leftover food articles like crusts of bread and coffee-stained napkins once belonging to the restaurant’s celebrity clientele, including Prince Charles, singer Pete Doherty and renowned photographer David Bailey.

If celebrity spotting is more your thing, a little shy of 100 miles away in Berkshire is situated another of Europe’s most interesting dining experiences, perfect for the adventurous eater. Whilst on the outside The Fat Duck restaurant looks like a standard three Michelin-star restaurant, inside is home to a true gastronomical adventure. Unsurprisingly, this restaurant is spearheaded by notorious experimental chef Heston Blumenthal, and it’s now iconic 14-course tasting menu has been known to feature such culinary fares as snail porridge, Alice in Wonderland-inspired mock turtle soup, and finished off with the likes of egg-and-bacon ice cream. This restaurant is fast becoming as famous as its head chef, with a repertoire of celebrity clientele and even its coveted status as (surprisingly!) the fastest restaurant in the United Kingdom to earn three Michelin stars.

Whatever your taste, budget or inclination, there is without a doubt a restaurant to suit you. However, this begs the question: are you brave enough to go extreme?

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OXFORD VS CAMBRIDGE Words : Rachel Sharman | View : Cedric Weber

These two global powerhouses have been competing against each other for over 800 years. Despite that, the Universities of Oxford and Cambridge are still neck and neck

Throughout history there have been a number of big name rivalries: Rangers and Celtic, Apple and Windows, Manchester and Birmingham.

There is something electric about a well-balanced back-and-forth, with one side gaining success until trumped by the opposition, which leaves audiences on the edge of their seats. People will argue vehemently for each side, governed as much by passion than logic. However, there are a few rivalries which go way beyond brand loyalty, and one of the oldest, most renowned examples to grace the world stage, takes place in the grounds of the UK’s 121st and 172nd largest cities. It may sound underwhelming, yet these global powerhouses have been competing against each other for over 800 years now. Despite that, the Universities of Oxford and Cambridge are still neck and neck.

Oxford and Cambridge are two of the most prestigious universities in the world, with strong reputations for academia, tradition and Britishness. The University of Oxford is slightly larger, with approximately 22,100 students, to Cambridge’s 18,200. Yet, which one is better is almost completely based on opinion as opposed to fact. The two hit such high standards and have such impressive reputations that they are seen as equally best around the world.

However, not only do they compete in academic league tables, there are also running tallies going on recording the successes of universities’

alumni. Who has created the most political leaders? C.E.Os? Noble Prize winners?

To the general masses though, the most exciting product of the Oxbridge rivalry takes place every year from Putney to Mortlake along the River Thames. The Boat Race, as it’s proudly called, is famous across the world and watched by millions. Currently Cambridge has more wins than Oxford at 81 to 79, but 2015 saw not only a win for Oxford, it was also the first year that the female race took part on the same course, again which Oxford won. Other sports events take place too, rugby union and rugby league matches, ice hockey, cricket and polo fixtures all pitch the universities’ best against each other. Interestingly, over the hundreds of years that these events have taken place, neither side is clearly victorious and the win rates are mostly very close.

Perhaps this is part of the beauty in the Oxford/Cambridge rivalry, they can continually compete against each other yet they remain evenly matched. Neither university is likely to slip down the rankings, as they equally attract the brightest and best from around the world. The Oxford and Cambridge rivalry is so compelling because there never will be one runaway winner, every year they have equal opportunity to prove themselves best.

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However, there is a second battle raging between Oxford and Cambridge, and it has nothing to do with education. Oxford and Cambridge are not simply extensions of the universities, but vibrant municipalities in their own rights. When 2014 saw a wave of Londoners leaving the capital in search of lower priced, commutable locations, Oxford and Cambridge were high on the list. The property markets flourished, and suddenly it was much more than students walking the hallowed streets. Again, the two found themselves competing, and once more, it is not yet clear who’s going to win this battle.

whereby students apply to live in a college, rather than in university halls.

Many of the colleges at one institution have a sister college at the other, ever linking the two together. At Oxford there are 38 colleges ranging from the smallest, All Souls College (currently home to 8 talented graduates who had to pass what’s been described as the ‘hardest exam in the world’ to attain their place) to the largest, St Catherine’s College, where there are 799 undergraduates and graduates. Cambridge has 31 colleges, some of which are notably larger than Oxford, for example, Homerton and Trinity both attract over 1000 students, giving these colleges a real buzz.

About the Universities Nobody quite knows when the University of Oxford was founded, but there is evidence of teaching back all the way to 1096, making Oxford the oldest university in the English speaking world. It grew rapidly, especially as the king of the time, Henry II, banned students from studying abroad in Paris in 1167. However, in 1209 disputes, leading to riots, between students and townspeople (dubbed town vs gown) meant some academics chose to migrate to Cambridge and set up their own university, thus the rivalry began.

The Universities of Oxford and Cambridge have always used the college structure, a relatively unique system amongst British universities,

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These colleges offer small groups of students valuable time with faculty members every week, focussing in-depth at what the students are studying. These are called tutorials at Oxford and supervisions at Cambridge, and are another one of the ways these universities really set themselves apart from the rest. Normal lectures, seminars and lab work are taught by each university. The college system (and the tutorials/ supervisions that come with it) truly make the university experience at Oxford and Cambridge special, and have been proven to improve students performances. These universities often attract potential students by their famous reputations, but they also deliver the excellence expected of them.

Oxford University, UK

Oxford and Cambridge universities have always been intertwined throughout history, occasionally one may push slightly ahead but the other will always be just behind. Currently, the University of Cambridge is slightly more successful academically, often coming just ahead of Oxford in global ranking tables. However, with both institutions being undeniably first class and university rankings differing from publication to publication, the University of Oxford may be ahead a few years down the line.

students have to make the difficult decision between the two. Although there have been assumptions made Cambridge favours science subjects and Oxford’s better for the arts, these are mostly fictional with only marginal differences between the two. On the whole, any degree from either university is highly respected. The Universities of Oxford and Cambridge are a step above the rest, yet remain snugly on that step together.

The Locations

Besides, in such ancient establishments, it seems unfair to measure them by 2015’s figures alone. Both universities have educated a host of Nobel Prize winners, but it is the University of Cambridge’s website which claims its affiliates have won more Nobel Prizes than any other institution in the world. The 90 prizes won by those affiliated to the University have gone to every category, but mostly to Physics and Medicine (29 and 26 respectively). The University of Oxford, although lacking in Noble Prize winners, has its own population of successful alumni to brag about. Oxford has been home to more British Prime Ministers than anywhere else. Twenty six future PMs in total studied there, along with a host of foreign leaders, including Australia’s current Prime Minister Tony Abbott.

As those wanting to go to Oxbridge are only allowed to apply to one,

Both Oxford and Cambridge cities are relatively small in comparison to the big cities where many other Russell Group universities are based.

The 2011 census data for Oxford recorded a population of 151,906, with Cambridge at 122,700, although it must be noted that 2014’s mass exodus from London will have elevated these figures significantly. The amount of people living there becomes even harder to calculate as, as such popular university cities, when the summer holidays start the cities take a notable hit to population figures. However, with both picturesque locations getting a fair share of tourists, there is always a buzzy atmosphere. So, although neither are the biggest, they are pleasantly busy all year round and with London only one hour away by train, the residents are not far from having some of the best connections in the world.

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Cambridge is found in the heart Cambridgeshire, about 50 miles to the North of London. The city is often praised for its picturesque views (Forbes listed it as one of the most beautiful cities in the world in 2010) with the lovely River Cam, after which Cambridge was named, meandering throughout the town. Punting down the river is often associated with student life and some colleges even offer punting schemes from where students can rent the boats for a discounted price.

Nowadays, punting is also a popular tourist attraction.

The two cities have seen a rise in tourism over the last decade, probably thanks to the universities’ global reputations putting them on the map for foreign tourists, as well as people coming to view the universities. Plus, due to its inland, southern location, Cambridge enjoys some of the best weather in the British Isles- approximately half the average rainfall and temperatures which often equal London’s. Ultimately, tourism in Cambridge generates over £350 million for the local economy.

Another thing Cambridge is famous for is the invention of modern association football. Now the most popular sport in the world with billions of fans, the rules were first established in Cambridge in 1848. Parker’s Piece may only seem like a small plot of green space in the city centre these days, but it was actually where the very first game of modern football was ever played.

Cambridge’s history is also coloured by the role it played in the English Civil War. The anti-Monarchy support was strong there and it was the backbone of pro-parliament military effort before the New Model Army was formed. As well as this, Oliver Cromwell was educated at one of the University of Cambridge’s colleges.

On the other hand, the city of Oxford mostly supported the monarchy during the civil war. The city housed Charles I’s court, after he was exiled from London, and then Charles II during the great plague. Oxford (or the ‘city of dreaming spires’, as described by poet Matthew Arnold) has a rich history of success from its beginnings as an Anglo Saxon settlement. One of the highlights was during the early 1900s, when Oxford was experiencing massive population growth, thanks to the vast amount of industry relocating to the city.

Similarly to Cambridge, Oxford has strong rowing and punting traditions.

The city is flanked by two rivers- the Cherwell and the Isis (which later becomes the Thames) which are enjoyable for students and tourists alike.

However, Oxford is notably larger than Cambridge and therefore thrives even more, independent to the university. It is a cultural city, with many international students and residents giving it a cosmopolitan feel. Such a wide, diverse population has created a strong market for independent shops and eateries, of which there are many throughout the city.

The Property Markets All together it is clear that the two cities have been linked to each other for centuries. Whether by the famous universities or by the locationsboth relatively small, pretty cities, with good connections to London. Still there is no obvious winner in this rivalry. However, although personal opinion plays such a strong part in deciding which one university is best, there are some ways to measure the popularity of location- one of which is analysing the housing markets.

As referenced a number of times in this article, the start of 2014 saw London’s house prices go from ‘expensive’ to ‘downright unaffordable’ for many of the professionals living there. The Nationwide House Price Index, for the second quarter of 2014, noted an annual percentage change of 25.8% within the capital. This is not only the highest growth rate since Q3 1987, but also raised the average house price to £400,000.

At the time, this was higher than even the second most expensive region, the Outer Metropolitan, where the average house price was £100,000 cheaper. London, compared to the rest of the UK, painted an even starker picture, thanks to a £215,000 disparity. With sky high rents, and incredibly high property prices many Londoners were forced out of the capital to move to locations, which were still close enough to commute in from.

Oxford and Cambridge were two of the largest beneficiaries from these London buyers. That being said, 2014 also saw a lot of overseas investment to these two cities as well. Knight Frank, in their Q4 Oxford City Index noted the location of buyers in Oxford: there were huge increases in interest from the Asia Pacific region, the Middle East, and other parts of the UK outside of London and the South East. In 2013, 76% of buyers in Oxford were from the South East, in 2014, that figure dropped

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Cambridge University, UK

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to 48%.

With such popular markets, it is no surprise that both Oxford and Cambridge property prices also saw an impressive 2014. Because they started from lower points, they didn’t quite escalate beyond affordability as London did, however, neither market is cheap. As of February 2015, the Hometrack cities index reported year on year changes of 11.6% in Oxford and 10.8% in Cambridge. Making them two of only five cities to report double digit increases in the preceding twelve months Nationwide went on to measure the cities by quarter. From Q2 2014 – Q1 2015, Oxford and Cambridge both found themselves in the UK’s top 5 performing areas twice. In 2014’s Q2 and Q3, Cambridge saw chart topping, yearly increases of 20% and 21% and Oxford saw 15% in Q2 2014 and 13% in Q1 2015. As for actual prices, the property portal Zoopla, calculated that as of mid-April 2014, the average asking price in Cambridge is currently £422,400 and the average asking price in Oxford is £432,300. These two cities are once again competing against each other, as house prices continue to grow.

Looking at the growth statistics alone, you might assume that Oxford clearly has the most successful property markets, however, many experts have had other opinions about the housing situations in these two cities. Currently, the whole of the UK is facing a housing crisis, with

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not nearly enough new homes being built, and not a lot of solutions offered by politicians to abate the crisis. In 2014, Cambridge did well to build 1300 new houses, expanding the city and being one of the few cities to answer demand. Oxford, on the other hand, only managed 70 new homes.

Cambridge is a city in the middle of the countryside; it is literally surrounded by greenbelt fenland but also, more importantly, surrounded by a single constituency- South Cambridgeshire. Twelve years ago, with the agreement of this council, the greenbelt was constricted, allowing much more room for new houses to be built. In 2013, further plans were made to free up enough room on the greenbelt for an extra 500 homes and commercial space. Oxford, on the other hand, is stuck between four constituencies, all with different agendas (other than the agreement that they do not want the city of Oxford encroach onto their land) and also a greenbelt. Already with tight budgets and very little room, the local council have a hard time finding where the desperately-needed houses can fit. This has also resulted in a highly congested city, as more people are pouring in, but there is no new space to fit them.

Cambridge’s property market is also set to keep doing well because, frankly, the city is thriving. Whereas Oxford had a definite heyday in the early 20th century, Cambridge’s time in the spotlight will forever be

Cambridge University, UK

documented as the early 21st century. The city is almost synonymous with innovation and enterprise at the moment. It has long moved on from just being known for its university and is now home to ‘Silicon Fen’, a play on California’s famous Silicon Valley. Silicon Fen is one of Europe’s most important technology hubs, with a special focus on medical technology. To highlight how successful the city is, in 2012, Cambridge had 68.7 patents granted per 100,000. This is a higher figure than the next five cities put together and proves the city’s innovation. All together Cambridge has created more well-paying jobs than Oxford, attracting more workers, over the past few years.

Oxford also topped the tables last year but for a less coveted title: in Oxford, the average cost of a home is 11.3 times the average local earnings, making it the highest rate in the country. The average rate throughout the rest of the UK is significantly lower at 5.8. Whilst London is the most expensive city, employees can often receive higher earnings for the same job when working there, but unfortunately this is not the case in Oxford. This has resulted in the strange situation of locals being priced out of their city, whilst the priced-out Londoners take their homes.

It has been estimated that 46,000 people commute into the city every day, just under a third of the entire city’s population. Meaning that, although Oxford’s job market isn’t massively suffering, the roads and public transport systems are.

However, there are strong intentions to build new houses in Oxford, as there are for the whole country. In 2014, a city council commissioned report found that Oxford will need a further 32,000 houses by 2031 to keep up with the high demand. Unfortunately, with such a tight greenbelt, there is simply not enough land for these houses. The city estimated that around 10,200 houses could be built there, but the remainder would have to be spread across the stubborn four surrounding constituencies.

The two universities may be in an endless competition, but right now there is a clear winner when it comes to the success of the cities. Oxford has clearly needed to change, so where better to look for inspiration than the old rival Cambridge? Even the leader of Oxford City Council, Bob Price, admitted, “Cambridge is at least 20 years ahead of Oxford” after a group of Oxfordian business people, politicians and academics visited Cambridge in October 2014 to see how it was so successful. Currently, Oxford serves as somewhat of a warning towards other small cities as to where the lack of house building will leave them. However, the city clearly has clearly recognised its problems, and it trying to find ways to solve them. Cambridge, on the other hand, has never been better. The city looks set to continue to flourish, as more and more are attracted to the vibrant hub.

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CHINA’S UK INVESTMENT GPS speaks with Colliers International on China’s interests in UK investment Words : Samantha Jones | View : Lee Yiu Tung

Ashley Osborne MAFI Head of Residential

> Can you give a brief overview of the relationship between China and the UK in regards to investment? What are the current trends and what is China’s view on the UK property market?

China and the United Kingdom enjoy a strong business relationship which is bolstered by regular political trade trips between the countries.

The UK is often perceived as the gateway into Europe and its stable political environment, social infrastructure, pool of skilled workers and established financial and commercial markets are some of the reasons why many companies seeking investment opportunities within Britain.

Already in the past month, we have seen large property investment deals from China into the UK including China Life securing a 50 per cent stake (£170m) in 99 Bishopsgate, London, office building and China Minsheng Investment Corporation (CMI’s) £1bn investment into the redevelopment of the Royal Albert Dock area in east London.

Colliers International research shows there is also a significant volume of cross-capital flow between China and the UK, particularly within the residential property sector. In 2014, China’s outbound investment totalled US$2.56billion into the UK market. This accounted for 21 per cent of all

outbound investment, that is, US$12.3billion globally. Comparatively, investment within other Asian markets from China totaled US$3.4billion. > What is the local property market like in China? Does it differ from region to region?

The local markets within China vary widely from region to region in terms of what local product is available, what you can own and the way the product is priced. It is a very different system to the European capitalist property markets. In terms of various regions’ appetite for international residential assets, the criteria also differ.

Shanghai has many private wealth companies, immigration companies and international property agencies, therefore, the residential buyer market is very savvy. This sophisticated market is well researched and pays particular attention to financial sensitivities, regardless of whether the asset is for investment purposes or private use. In particular, they search for optimal yields and tend to have a higher price point, which also means that Shanghai buyers will take their time making a decision.

Beijing has a more relaxed property investment approach and tends to Ukraine, Europe

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Manchester, UK

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London, UK

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ABOUT COLLIERS INTERNATIONAL Colliers International is a global leader in commercial real estate services, with more than 16,300 professionals operating out of 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate occupiers, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. Colliers International has been recognized and ranked by the International Association of Outsourcing Professionals’ Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm.

In the UK, Colliers International is one of the top real estate advisory organisations, employing over 700 people in 12 full service offices across the UK and Ireland.

For the latest UK news from Colliers International, visit colliers. com/uk/news or follow us on Twitter: @Colliers_UK

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rely on the reputation and recommendations from family and friends regarding whether a property should be bought. This typically means when one investor secures an apartment then we see other family members or business associates of that buyer also buying in the same scheme.

Hong Kong is very loyal to the UK property sector and is a very experienced market. This market is more prone to trading real estate, treating property similar to stock investments. This means it is more an investor market and on average, investors will hold at least two apartments within Britain.

Conversely, Guang Zhou has a stronger preference for Australian real estate, particularly within Sydney and Melbourne’s central CBD areas. This market has a lower price point than the other aforementioned regional markets. > Do changes in the local market (stocks and/or property) affect where the Chinese spend their money?

No. China has a closed economy so unlike Britain it is not influenced by the stock markets, interest rates or inflation. However it is influenced and shaped by Government policies, particularly those concerning international asset ownership. > Are there any figures on the value of transactions made by the Chinese into the UK property market?

Last year, China invested a collective US$2.56b into UK real estate with the majority of this being within London. However, the volume of all UK investment was down by 42.42% compared to 2013 volumes (US$4.45b). > What type of residential property are Chinese investors more likely to invest in? Apartments, houses, individual units etc.?

China is a diverse country and buyer tastes are very different across the country depending on the buyers’ specific financial situation. However, for the largest part of the market, investors are seeking apartments as they are easier to maintain and manage. In particular, the market typically buys an asset valued between £400,000 and £700,000 or £500-£800 per square foot. > Where do you see the future relationship between the two countries going? Will we see an increased amount of investment into the UK property market, or are other countries seeing heightened levels of investment?

Britain and China will continue to remain close business associates and capital flows into the UK property market are expected in coming years.

However, China is currently experiencing a slowing domestic economy while the British economy is gaining strength. Therefore, we expect outbound investment volumes to be reduced. > How much of an impact does culture have in business transactions between China and the UK? Culture does have a large impact in business transactions. Typically Chinese transactions take longer to complete and emphasis is placed on developing the relationship rather than just securing a quick deal. > Are there traditions in particular that UK businesses would need to be aware of, in order to conduct business with the Chinese?

Patience, politeness and modesty are all key. In addition, saving and giving ‘face’ is very important. Being aware of the Chinese calendar is helpful due to the importance of some of their traditional holidays and festivals. > What are your predictions for the relationship between the two countries? Do you expect the amount of investment into the UK to decrease or increase?

As the relationship continues it should get stronger, as the two countries develop more understanding of each other’s culture, and therefore we should see an increase in business activities. With the stable political environment, excellent education system, and the City of London’s preeminence as one of the world’s leading financial centres, as well as the UK’s proximity to the rest of Europe, investment should continue to increase.

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Hong Kong, China

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THE STORY OF LI NA It’s hard to overstate what a disadvantage it’s been for Li to come to tennis from China, a nation with virtually no tradition in the sport Words : Michael Smith | View : Neale Cousland

Chinese athletes, once dutiful ambassadors who obediently spent their lives in pursuit of patriotic glory, are no longer willing to just grin and bear it. Younger athletes are beginning to expose abuse, challenge exploitation and reject official interference in their careers. Quite a risky move in a country where there is no separation of sport and state. Their struggle is a microcosm of the clash in contemporary China between the push for personal liberty and the grip of an authoritarian government.

Li Na, the “Golden Flower” bloomed onto the international tennis radar back in June 2011. She defeated the current reigning champion, and a player considered to be at the very top of her game, Francesca Schiavone 6-4 7-6 in the French Open final. In achieving this victory she etched her name into the history books as the first player from an Asian nation to win a Grand-slam title. Tennis fans around the world would be somewhat curious as to how this 29-year-old product of communism became Asia’s first Grand Slam singles champ.

She is the product of a system, which grants the chance to bring honour to one’s family and country through competition. But can often leave a

feeling of restriction. That the Olympic rings become shackles that bind for years. The grip of indentured servitude to a government that frequently neglects their scholastic education and ignores injuries, while taking a sizable cut of earnings, all in the name of national pride.

China’s highly centralized and rigid sports program was adopted and adapted from the Soviet Union’s methods. The Chinese government invests heavily in sport and recruits athletes at a young age. Although this system has created a number of world champions across many sports, it is infamous for its strict management and the sacrifices athletes are expected to make.

It’s hard to overstate what a disadvantage it’s been for Li to come to tennis from China, a nation with virtually no tradition in the sport. It’s easy to underestimate how many hurdles she has had to clear in order to give herself a chance of being where she stands today, lofting a Grand Slam singles trophy.

At the age of six, Li was selected to play badminton at her local sports

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STATS Singles Career record: Career titles: Highest ranking:

W 503 – L 188 9 WTA, 19 ITF No. 2 (17 February 2014)

Doubles Career record: Career titles: Highest ranking:

W 121– L 50 2 WTA, 16 ITF No. 54 (28 August 2006)

Australian Open, January 20, 2013

school. Her father, an amateur badminton player who died from cardiovascular disease when Li was 14, was keen for her to focus on badminton until her coach introduced her to tennis. Li switched to tennis at the age of 9 and joined China’s National Tennis Team in 1997. She graduated to the ITF circuit, and by age 20 was in the Top 200.

Towards the end of 2002, Li took a break from training with the national tennis team to focus on completing a bachelor’s degree in journalism at Huazhong University of Science and Technology. Due to pressure from her stringent tennis coaches, Li returned to tennis training in 2004, eventually completing her studies in 2009.

Hungry for success on the international stage Li faced a difficult situation.

Although her training needs were taken care of by the state, they still came with strong restrictions. It is very unlikely that a Chinese athlete can hope for success without the support of the state, does she continue on the state sanctioned road, or roll the dice and see if she can stake her own claim to success?

In late 2008, conflicted with the tight restrictions and a yearning for tougher challenges, Li quit China’s tennis program. As a free player she was able to carve her own path and create her own team. With this new arrangement, she was able to choose her own coach and pay 8-12 percent of her winnings to the government compared with 65 percent she’d previously faced.

But just what did she leave behind?

The Chinese state does not recognise that the Grand Slam events represent the pinnacle of the sport. The open tennis tournaments and Grand Slam events were often considered training matches (that is, if they managed to qualify). When they do qualify, they are usually knocked out in the first round. When looking for a notable breakthrough in tennis, they concentrated on the women’s doubles in the Olympics, purely because other countries don’t consider it to be as significant as the men and women’s singles.

Even in Asia, China is not seen as a serious tennis competitor. Tennis is simply treated as another part of the national sports system. Players who show good potential are selected, trained and provided for by the state.

They then compete for the country. With little say over which events they should compete in, they’re left little choice but to aim for success in events such as Davis Cup and the Federation Cup to name a few. Most significant to China’s national sports system are the Olympics, the Asian Games and the National Games.

So what does the future hold for young Chinese tennis stars?

Many are left to battle the difficult system. Their efforts represent a challenge to the state sports system, but their needs are also the most basic ingredients in the sport of tennis. How can one become a champion if he or she is not competing against champions? At first, their efforts were denied. Gradually they obtained tacit permission. Through their own courage and efforts, they changed their own fates and broke the ice.

Unfortunately, Li Na was at a fairly old age by the time she broke free and achieved notable success. If she had gained independence for a solo career 10 years earlier, and had left the fetters of the state system, she may well have been at the very top of world tennis.

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WORLD MARKET VIEW The global financial crisis plunged property markets into a downward spiral. Seven years on Global Property Scene takes a look at how the Beijing property market stacks up to it’s overseas equivalents.

Manchester, UK • Median Sales Price: $415,618* • Average price per sqft: $974

Note - Figures correct as of stated dates: * May 2015

New York, USA Los Angeles, USA • Median Sales Price: $561,000* • Average price per sqft: $819

• Median Sales Price: $1,211,437* • Average price per sqft: $1,435

Mexico City, Mexico • Median Sales Price: $95,000* • Average price per sqft: $670

Sao Paulo, Brazil • Median Sales Price: $225,000* • Average price per sqft: $174

Cape Town, South Africa • Median Sales Price: $76,688* • Average price per sqft: $174

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Beijing, China Paris, France • Median Sales Price: $670,000* • Average price per sqft: $1,024

Dubai, UAE • Median Sales Price: $257,694* • Average price per sqft: $473

• Median Sales Price: $63,930* • Average price per sqft: $898

Sydney, Australia • Median Sales Price: $574,667* • Average price per sqft: $754

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WHAT’S THE ALTERNATIVE? Fine wine benefits from a vast and comprehensive market, but does it make for a better investment rather than a consumable?

Words : Hannah Wilde | View : Thomas Zsebok

Wine. For many, this word invokes thoughts of an enjoyable addition to a sumptuous meal, or even a rare indulgence when one craves a little treat.

But for others, wine is not just for the enjoyment of the drinker—instead, a new appreciator comes in the form of investors, as keen to collect fine wine as connoisseurs are to drink it.

Investment in fine wine is by no means a new venture. The market has been recognised as far back as the 16th century, and if you are an investor of fine wine you’d be in good company: the likes of Samuel Pepys and Thomas Jefferson themselves are known as early acquirers of luxury wine.

However, not all wine can be classified as ‘fine’ and thus tradable as an investment commodity—in fact, only a tiny fraction (less than 0.1%) of the global market is deemed to be of investment quality. Additionally, only select vineyards and regions produce investment-quality wine, with the likes of Bordeaux, Rhône and Burgundy often topping the list. But why invest in wine? As well as widely appealing to oenophiles (the name given to wine aficionados), fine wine investment also works as a sound portfolio diversifier for the most seasoned and savvy investor because of its

stability, capacity for price appreciation, and a proven track record for providing a stable hedge against recession, inflation, currency devaluation and movements in financial markets. Furthermore, expensive wine has incredible longevity, as it is an appreciating asset that matures and improves with age, and so boasts long-term prospects for its investors.

What’s more, fine wine benefits from a vast and comprehensive market, with only a finite amount of top-shelf wine produced to satiate a growing demand. Because of this imbalance between finite production and almost insatiable consumer demand, it is no surprise that the price of many exclusive vintages have risen in value by more than 250% over the past decade alone. Such a limited supply further fuels both investor and buyer appetites, so from an investment standpoint the capital appreciation that can be gained by investing in a restricted (and highly sought-after) asset can oftentimes be incredibly lucrative.

Therefore, for relative novices in the profitable market of fine wine

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investment, you don’t need to know everything there is to know about vineyards, vintages or grand vins—it is a fairly accessible market, especially if you enlist the help of specialist wine merchants (who can come at a cost of around a 10-15% margin). Investment wines generally come in two types: matured, and en primeur. As the name suggests, the former is a wine that has enjoyed the full fermenting process and been bottled as per the age-old method of the individual winemaker. The latter, however, is a relatively new addition to the wine market, whereby investors can purchase wine en primeur—that is, the act of purchasing wine early before it has been matured and bottled. Naturally, this is the cheapest point to buy wine because the contents of the barrel have not yet reached maturity and the final blend and oak-ageing process has not been fully completed.

However this also carries an element of risk, because the actual bottled product could turn out better or worse than the initial barrel suggests.

Buying wine en primeur is not for the faint-hearted investor, since it poses a high risk-reward ratio—before the product is bottled you cannot fully guarantee its value, but on the flipside wine en primeur also has the capability to exceed expectations and yield even higher returns for the investor.

If taking risks is not your thing, never fear: Wine offers plenty of options for stable and secure returns if you invest in a tried-and-tested region.

Selecting wines from prestigious regions such as Bordeaux, Burgundy, the Rhône, Champagne and Tuscany means that your money is relatively safe, since investing in produce from châteaux in any of these eminent and celebrated winemaking districts is a sure-fire way to generate excellent returns.

Arguably the top region in the world is Bordeaux, a name synonymous with producing some of the best wines in the world. Therefore unsurprisingly, wines from the Bordeaux region have continued to be the most popular for investors. The region has more than 100 châteaux which produce a number of world-renowned names, and its market has been regulated for over 150 years. Bordeaux is an incredibly transparent and engaging wine production market, with all of the region’s wines categorised into five distinct classifications. The crème de la crème of the Bordeaux market are the First Growths (containing incredible brands such as Margaux and Lafite-Rothschild), followed by Super Seconds (including Pontet-Canet and Cos d’Estrournel), then the Third, Fourth and Fifth Growths respectively. The world’s most well-known wines are produced in Bordeaux’s First Growth, with the aforementioned Margaux and Lafite-Rothschild joining ranks with Latour, Mouton-Rothschild and Haut-Brion to create the ‘blue-chips’ of the wine world. It is not surprising then that these First Growths are both investor and connoisseur favourites, especially since First Growths particularly boast stable average returns of 10-15% per annum over a long-term (5-10+ year) basis. To reaffirm the prosperity of Bordeaux fine wines, 2010 saw a bottle of 1869 Châteu Lafite-Rothschild sold at auction for a massive £144,269, one of the most expensive bottles ever sold. This is not to say that all Bordeaux wines will fetch as much, but justifiably Bordeaux has gained a firm reputation for its consistently high-quality produce and proven track record on the market, reinforcing its relative safety as an appreciating and highly sought-after asset.

Unsurprisingly, many investors look to Bordeaux because of its excellent reputation and its highly popular produce, but in recent years as the emerging wine market has matured and developed, interest in other established wine-making regions has increased. It seems that the taste of buyers and wine connoisseurs alike are maturing for regions outside of Bordeaux, and recent years have seen an interesting diversification in the secondary market. The ‘next big thing’ in the wine market is arguably found in Burgundy, with both the top red and white Burgundy wines having been known to generate some of the highest prices when sold at auction. Much like the limited production found in Bordeaux, the wines of Burgundy are delivered in tiny quantities—this in turn helps to fuel the region’s success, as their scarcity on the open market leads to an influx in demand. Burgundy is home to a number of estates that produce incredible wines, including Domaines de la Romanée, Armand Rousseaux, Leroy, Dujac, Georges Roumier and Jacques-Frédéric Nugnier to name but a few. Top-end Burgundies, because of their limited supply, have been known to generate astronomical prices for particular vintages, with a case of Henri Jaycer being known to fetch over £50,000.

However, the thing that it is important to remember when investing in wine is that, although Bordeaux and Burgundy have a proven track record of producing excellent vintages, diversification is the key for savvy wine investors. As with anything, a diverse investment portfolio is pivotal to the continued success of your investments, and this is particularly true in the

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Bordeaux, France

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fine wine market. A select few vintages from Bordeaux and Burgundy should form the basis of any wine portfolio, but truly seasoned wine aficionados should know to look outside the most popular regions to offer sufficient portfolio differentiation. Other regions like the Rhône Valley, various Italian regions and even unlikely producers in the USA and Australia have been known to produce wines strong enough to command high prices and garner an excellent reputation in the wine world. But then, this poses the question—how do I know which wine to invest in?

In this instance, the simple answer is to listen to the expert. For those not fluent in the language of fine wine, Robert Parker Jr. is a renowned wine critic and self-confessed oenophile who has singlehandedly revolutionised the fine wine market. Having developed a stringent ‘100 point rating system’ known unsurprisingly as The Parker System, Parker himself visits each château in the region and tastes their current en primeur offerings, then rates each vintage out of 100. Unlike most landscapes like film or music, where a cacophony of voices and opinions are rarely ever harmonious, in the wine world Parker is the singular authoritative voice—his rating is used throughout the industry to dictate price and quality. Parker’s opinion is so highly regarded in the wine community that a study has shown that ‘The Parker Effect’ has been known to influence the value of a wine by on average 15%. A classic example of this was when Parker awarded a perfect 100 score to a 2009 Pontet-Canet from Bordeaux, its price rose from £1,100 to £1,800 literally

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overnight. Therefore, novice wine investors should always look to Mr Parker for advice on which wines to invest in, as his scores are an excellent benchmark to measure current and future success of the existing in-demand wines.

In addition to the expertise of Robert Parker Jr., investors in the fine wine market also have other invaluable resources at their fingertips to assess where next to invest. London International Vintners Exchange, often referred to by the acronym Liv-ex, is an online trading platform (similar to those seen on Wall Street) that provides a good indicator for private investors to check the prices on virtually all fine wines on the market.

Similarly, website Wineowners.com is another resource perfectly placed to help investors keep track of their wine investments, as well as allowing them to access wine information and prices, and even giving suggestions on when certain wines are at their most opportune for drinking.

Unsurprisingly for such a luxury asset, experts have suggested that to build up a diversified portfolio of high-yielding fine wines, investors may initially have to be willing to spend in the tens of thousands. Furthermore, wine investment is a long-term strategy, meaning that investors are agreeing to lock away their assets for at least 5-10 years before seeing any feasible financial returns. However, the general consensus for wine investment is that fine wine demands investors to speculate in order to accumulate, so any investor serious in using wine as a strategy for wealth accumulation

Private wine merchant, Bordeaux

must be willing to spend money to make money. So just what does a typical wine portfolio look like? Like the idiom ‘how long is a piece of string’, a wine investment portfolio can take on any capacity you want, depending on factors like available capital and what the investor would like their assets to yield. But for illustrative purposes, Vin-X, a leading wine investment company, have shown what a typical portfolio looks like with a starting budget of £10,000 and £25,000 respectively.

Unlike stocks and shares, fine wine is a tangible asset which takes maintenance to ensure it maintains its worth. Any wine connoisseur worth their salt will know that with fine wine in particular, two factors are of the upmost importance: proving the wine’s provenance, and ensuring that it has been correctly stored. Intrinsically linked, these two factors can guarantee the maximum investment returns when the wine is ready to be sold.

A £10,000 budget sounds like a substantial sum of money, but in the wine world it is just a drop in the ocean. A relatively safe investment portfolio with a £10,000 starting budget would limit investors to the region of Bordeaux, investing in two First Growths (one case of Château Margaux and one of Châteaux Lafite-Rothschild) and one Bordeaux Super Second, in the form of a Château Pontet-Canet. However, a £25,000 starting budget allows for a more diversified portfolio, with three First Growths (Margaux, Lafite-Rothschild and Mouton-Rothschild), a Second Growth through Cos d’Estrournel, a Bordeaux Right Bank (Ch. Cheval Blanc), a Champagne vintage (Dom Pérignon Rosé) and a Rhône (Guigal La Mouline). Although this is just a guideline, as you can see the more starting capital you have for your wine portfolio, the more diversity you can achieve without compromising your returns.

The provenance of the wine (that is, its history of purchase and storage transactions) is pivotal to buyers of fine wine because they want to ensure that the bottles have not been in any way tampered with, and thus that the content is at its highest quality. In order to ensure complete transparency in the wine’s provenance, its storage is equally important— it is advisable that all fine wine, particularly those used as investment assets, are stored professionally in a specialist temperature-controlled bonded warehouse. Keeping the wine in storage has a number of advantages, not least ensuring the bottles’ contents are kept at the ideal temperature and humidity. Furthermore, a storage facility not only preserves the wine itself but also its status as a tradable commodity, since buyers will not pay top dollar for a wine that they believe may have been compromised. Although there is a minute cost attached to keeping your wine in storage (which is around £15 per case), placing your wine in a bonded warehouse in the UK means that the wine is held ‘in bond’, therefore making it free of duty and VAT tax. Additionally, wine is

Once you have selected your wines, the next thing to remember with wine investment is the ancillary costs you will accrue along the way.

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pigeonholed as a ‘perishable item’ in the UK, so investors of fine wine are also exempt from Capital Gains Tax, as well as the tax benefits of holding wine in professional storage. But when considering ancillary costs, investors cannot forget expenses like insurance, shipping costs and handling/administration costs, so ensure to factor in these one-off costs when considering investing in wine.

Ease of market penetration, generally excellent investment returns, relatively low start-up costs and selected tax benefits, mean that it should come as no surprise that wine investment has gone from strength to strength in the past decade. To reaffirm the market’s success, Liv-ex has measured a price growth of fine wines of 150% over the past 10 years.

Yet this is expected to be just the beginning. It has been predicted that the global consumption growth rate is expected to be 6.17% over the next 5 years, so not only is the price of fine wine increasing, demand is skyrocketing too. From this perspective then, it looks like there has never been a better time to invest in the fine wine market. Industry experts have long since vouched for the inclusion of wine in any investment portfolio as a sound (and oftentimes financially viable) diversifier, with professionals citing that collectible assets should comprise between 3-8% of a typical investor portfolio.

Additionally, as well as being viewed as a financially viable investment strategy, fine wine investment does have an element of the fun factor about it—it is not for nothing that wine has been named a ‘passion investment’. Not surprisingly, Knight Frank’s 2013 Wealth Report indicated that fine wine was considered in the top three investments of passion, alongside fine art and watches, as investment in wine by high net worth individuals increased 10% on average in 2012. Experts too are increasingly enamoured with this asset class, which is growing stronger year-on-year. Fine wine is a luxury product that many aspire to own, consume and know more about, with Richard Taffler, Professor of Finance at Warwick Business School attesting: “Passion assets are perceived as making powerful statements about their personal values, characteristics and expertise of their owners and how they want to be seen”. For many, fine wine suggests luxury, prestige and expense, which only further enamours investors to the fine wine market. Sara Guiducci, a wine expert at Berry Bros. & Rudd even admits: “There is an inherent enjoyment factor with wine collecting”.

Although a lot can be said for the benefits of investing in fine wine, it has to be said that, like all investments, assets like wine do come with some risks too. The wine market, whilst relatively stable and trading on its high buyer demand cannot be wholly predictable—like wines en primeur, vintages that hypothetically should yield high returns sometimes don’t, but you simply cannot predict the success of the wine until it goes to market.

So from an investor perspective, it is hard to quantify what will work and what will not. Of course though, as with anything, you can make an educated guess on what will yield good returns, either capitalising on the recommendations of experts or looking back at historical data of which regions have generated good vintages in the past. As previously mentioned, wines produced in tried-and-tested regions like Bordeaux are always generally a safer bet, but it does have to be said that even the mighty Bordeaux wines are also susceptible to their off-seasons. Whilst Bordeaux should form the basis of most wine investors’ portfolios (demand means that it will always get sold, as it can always be traded on its great name and even greater reputation), but at what margin is somewhat of a risk in a market that cannot always guarantee consistent prices.

Additionally, fine wine is not like other tangible assets. Like property (where exactly what you see is what you get), wine has a number of factors that affect its sellable status, from climate and the age of the vines, down to the genetics of the grape and the soil used by each particular château. Therefore experts have advised that investors should restrict their holding in fine wine to no more than 25% of their overall investment portfolio.

After all is said and done, fine wine in theory makes for a good and financially sound investment choice—the truly great thing about investing in a tangible asset is that if one particular wine doesn’t yield the returns you were expecting, you can always drink the negative equity. From this mindset, your asset is never truly wasted, which is one of the many positives of investing in a ‘passion investment’. To paraphrase top wine investment company Cult Wines “equities can go bust and bonds can default, but a bottle of Mouton Rothschild will always be a bottle of Mouton Rothschild”.

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Private wine merchant, Bordeaux

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Q &

A

It’s time for GPS to answer some of our readers most pressing questions Words : Hannah Wilde

Q.

A.

I am thinking of investing in a property in Manchester, England, but as I live in the USA it is not possible for me to visit the site—Can I still invest blind?

Both of these aspects are very important in property investment—yields are the amount of rental income you receive from your property less any expenditure, whereas capital growth (or capital appreciation) is the increase in price between when you purchased your property and when you are looking to sell. Yields are a short-to medium-term return that you receive every month throughout the lifecycle of your property, whereas capital growth is a long-term return that accumulates over time that you Yes, you can invest in property in any country without having visited the site before purchase, but it is always advisable to do your research in your can only access when you sell your property. The perfect investment should give you both competitive yields throughout your investment and chosen country before you invest. If you can’t visit the site personally, be capital growth in the long-term when you sell—the best way to ensure sure that you are familiar with the area you are investing in, and ensure that you use a reputable property investment company who have a proven that you get both of these returns is choosing an investment in a popular location, so you can be sure of both rental demand and eventual house track record producing high-yielding stock in the city that you are looking price rises. to invest in. Any questions you have should be answered by a property consultant, who is there to guide you through your investment process, especially if you cannot visit the property personally.

A.

Q.

Q. When considering which properties to invest in, should I be concentrating more on yield or capital growth?

I am looking to invest for the first time but I don’t have my own solicitor, will this be a problem?

A. Whilst you are always free to use your own solicitor when exchanging

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contracts on a property investment, most reputable investment companies offer recommended solicitors that you can utilise to finalise your paperwork. Solicitors personally recommended by your investment agent are generally more familiar with the procedures of buy-to-let legalities, so they are better placed to process your investment in the quickest possible timeframe.

developments but still yield excellent returns on investment because of their high demand.

Q. Can I use my pension to invest?

Q. Is it true that the more you invest, the more returns you gain?

A. Not necessarily. With property investment, the returns you are expected to receive depend on a number of factors including location and condition of the property. If you choose your investment carefully and are sure that your property is in excellent condition and in a highly in-demand location, you can generally be sure that your property will always offer good returns. For example, in the UK market particularly, the majority of student accommodation developments are significantly cheaper than residential

A. Yes. The UK pension landscape has changed as of April 2015 to allow those nearing retirement age to release equity from their pension without having to buy an annuity. UK residents over the age of 55 can release 25% of their pension fund tax-free, with the remaining lump sum taxable at the pension-holder’s marginal rate of income tax. Because of these changes in regulations, many pensioners are looking to the lucrative buy-to-let market to further invest their pension, but it is advisable to speak to a financial advisor before withdrawing any money from a regulated pension fund to invest in property.

ASK THE EXPERT

Q. What are the differences between buying a normal residential property to live in (e.g. my house) and an investment property?

A. Buying a property will be one of the major investments in your life. You will always want to ensure that the property is good value for money; that it is in the right location, that it’s structurally sound; that the finances are in order; that the lawyers are happy with it.

When you buy a property for investment purposes however, you will be driven by slightly different factors to a dwelling for you and your family to live in. You may not even have seen the property due to its distance from you, if so, you need to be able to trust the selling agents as well as the developers. Your main priorities will normally be to get a good return, over and above a bank deposit account, competent management of the tenant and the property; and a secure knowledge that you can exit when you want to.

If you are looking for a guaranteed yield period, then you will looking for the best investment scheme, having applied the factors outlined above, in particular the credentials of the agent and the solicitor. Some deals look too good to be true, you will want to be satisfied that the agent has played ‘devil’s advocate’ and vetted the financials and the status of the developers themselves and can still support it.

When you get the paperwork from your solicitor, you will find that it is bulky and probably hard to understand – you will need to have the confidence that your solicitor has been through it all with a fine tooth comb and is happy with recommending it to you. A typical investment scheme purchase is far more complex than a conventional buy to let, and requires specialist lawyers to handle it. Their job will be to summarise the complexities of the title into plain, simple English in as short a format as possible so that you can understand at a glance the points you need to know.

You will be under time pressure to exchange and will want your solicitor to be efficient, responsive and be mindful of the timescale. If you have concerns and need to raise questions, you will expect a prompt and full response from a seasoned professional. You will of course expect any deal you have done with the agents to be enshrined in the legal paperwork.

Some deals have exit strategies, called ‘Pre-emptions’, ‘Call Options’ or ‘Put Options’. Again you will need to know exactly what these entail so you can address any possible downside.

In recent years, investment scheme purchases have been increasingly popular and have been a good investment for many buyers. The key is trust; trust the competence of your agent, the developers and your lawyers and you will have the best possible chance of making good money with a secure exit.

*These questions and answers are provided for general information only and may not be completely accurate in every circumstance.

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SHOULD I MOVE TO BEIJING? Words : Alistair Mcgoven | View : Songquan Deng

In the midst of reinventing itself after the success of the 2008 Summer Olympic Games, Beijing is now a city moving at breakneck speed, with a frenzied explosion of new housing, new roads, and new venues seeming to spring up almost overnight. With an epicenter that still revolves around almost 2,000 years of tradition encapsulated in the famed Forbidden City, with its luxuriant pavilions and the flourishing gardens of the Summer Palace, Beijing is a city that intrigues, inspires and rewards those who delve into its vast culture.

district, clamour for attention against the iconic Tiananmen Square and Meridian Gate, which still shows the scars of its past across its crumbling walls. Traffic is at times chaotic- to be expected from a city with over 6.7million people and the overwhelming smell of Chinese cuisine seems to be forever present, as you are never 10 feet away from either a restaurant or street vendor. As the bright lights of shopping malls and arcades illuminate Beijing’s skyline, you cannot help but become intoxicated by the living and breathing environment of the city projects.

I spent my time in Beijing shortly after the Olympic Games, witnessing how the city and its people were willing to build upon the success which had globally captivated 6.7 billion, and allowed the continual development of the world’s 3rd largest city. Yes, the city can boast that it is home to many of China’s largest state-owned companies, in addition to the various landmarks on everyone’s must-see lists, but nothing could have prepared me for the diversity and scale this metropolis in Northern China had to offer.

Whilst following the traditional tourist traps can be a fantastic way to explore Beijing, my experience of living in this intoxicating city leads me to advise fellow travellers to only partly immerse yourself, and avoid the numerous offers to buy memorabilia or cheap knock-offs- of which there are endless, and instead, dive head first into the more traditional and less well-known areas, where there is so much more you can find.

Touching down at Beijing Capital International Airport, the worlds 2nd busiest airport for passenger traffic, was when I began to truly realise the environment I was entering. Modern buildings such as the CCTV Headquarters (China Central Television) in the centre of the business

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By taking a deep breath and going off the beaten track, you can avoid the crowds of tourists and truly see the city for what it is. Taking the time, like I did, to understand this city from its roots, allows you to visit lesser known temples, like the Lama Temple (Yonghe Temple) which is home to the worlds largest single carved Maitreya Buddha statue standing at a mesmerizing 26m tall, explore hidden destinations such as a small working

Beijing, China

town under the mountains surrounding the city carved from ice, and wander along Beijing’s traditional narrowed streets or ‘Hutongs’.

A word of warning though; visiting those less well travelled places are not for the faint hearted, and you need to be prepared to embrace a culture and way of living in stark contrast to the common perception of skyscrapers and apartments influenced by Western culture. Yet the consequence of not doing so is to not truly understand Beijing and its people.

Returning back to the centre from its rough edges, the endless stream of attractions and destinations are enough to keep you busy from the break of dawn to the black of night, which in my opinion, is best seen from the revolving restaurant at the Central Television Tower that allows you a 360 degree tour the city.

Back down at street level, picturesque temples lined with handcrafted

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statues and artworks from floor to ceiling are dotted everywhere, and visiting as many as possible is not a mistake, as they all hold their own traits. International destinations such as the Bird’s Nest and Water Sports Aquatic Centre are a must, and visiting Chairman Mao’s resting place is unusual but worth a visit - if you don’t mind half of China tying to look at him at the same time. Once all of the hustle and bustle is out the way though you can return to putting your feet up and resting in one of Beijing’s numerous tearooms, even getting involved with local games of Mahjong, which can be highly competitive – so be warned!

Having recharged your batteries one thing I was advised to do, and would advise anyone to do, is to visit the night markets throughout the city, as these show the true food culture of Beijing, with rows of delicatessens to try and at times avoid, giving you energy to tackle the comical arcades that are continuous mazes surrounding the food markets. Blinding neon lights and unusual cartoon figures are in abundance, although don’t

Beijing, China

expect them to be aimed at children, as numerous members of Beijing’s older generation can be found within their walls.

Yes, I can’t deny that in my time spent in this immense city I walked around the courts of the Summer Palace and travelled to the Great Wall of China, tackling the endless crowds to capture a poorly shot photo after climbing the uneven stairs, but I truly feel I experienced a greater, more profound experience by seeing both sides of the coin.

So if you are looking for a new environment offering a take upon life which is very different to the one you are accustomed to, with new opportunities, different destinations and attractions to explore, and new experiences that you thought had passed you by, then make Beijing your home. Or if not your home, then at least your next tourist destination!

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Specialists at providing buy-to-let properties to the private investor market, Knight Knox has a wide range of developments available across the UK. Working alongside a team of experienced developers, solicitors and agents allows Knight Knox to provide expert advice and guidance on a range of investments.

Over the next 32 pages you will see a selection of the investment opportunities available through Knight Knox.

+44(0)161 772 1370 www.knightknox.com Market Leaders In Worldwide Property Investment

X1 MEDIA CITY Salford Quays PRICES FROM :

ÂŁ94,950 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shops Most exclusive development outside of London

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With 1,036 apartments covering an area of approx.

544,820sqf, X1 Media City is the largest residential development in the North West.

The development itself consists of four iconic towers, each containing a mixture of studios, one, two and three-bedroom apartments. With spectacular views over the city and MediaCityUK, the apartments are available fully furnished in a high-end, elegant flair.

ADELPHI WHARF Salford PRICES FROM :

ÂŁ94,995 > 6% NET rental returns Yields assured for 1 year 10 minutes walk to central Manchester Experienced managing agent Great transport links and close to shopping Chronic undersupply of housing in Manchester and Salford 90

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Adelphi Wharf contrasts city and country living. Located in Salford, bordering directly on Manchester city centre, Adelphi Wharf is a picturesque property overlooking the beautiful River Irwell. It is a ÂŁ75million development comprising a total of 580 designer apartments.

With the first phase set to be completed in August 2016, residents of Adelphi Wharf can pick from a range of high-end studios and luxury townhouses, as well as bespoke one, two and three-bedroom apartments.

X1 EASTBANK Manchester PRICES FROM :

ÂŁ110,000 > 6% NET rental returns Phase 1 - 112 apartments / 40 parking spaces Phase 2/3 - 172 apartments with private parking Assured rental yield available Walking distance to Manchester city centre High rental demand in local area

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X1 Eastbank is enviably located on the edge of Manchester city centre in the thriving area of Ancoats and New Islington.

This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city.

X1 LIVERPOOL ONE, PHASE TWO Liverpool PRICES FROM :

ÂŁ69,950 > CIrca 7% NET rental returns Assured 7% rental income for 3 years Fully-furnished Phase 2 comprises 133 apartments Located in the centre of Liverpool city centre High rental demand in Liverpool

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Built by X1 Developments, (the developer behind the successful Liverpool student accommodation projects X1 Borden Court and X1 Arndale House), the facilities in X1 Liverpool One are second-to-none.

This luxurious accommodation offers students a highspec gymnasium, cinema room, and communal areas in which to relax after a hard day studying. Normally, such an enviable location comes at the cost of space, but these amenities offered prove X1 Liverpool One is fully dedicated to creating the epitome in luxury student accommodation.

X1 THE TERRACE Liverpool PRICES FROM :

ÂŁ109,950 > 6% NET rental returns Assured 6% rental income for 5 years Fully managed and let by X1 lettings Great central location High-end fixtures and fittings Assured yield period

The Terrace is the fourth phase of the highly successful X1 The Quarter development (Phase 1 The Gallery and Phase 2 The Courtyard are fully tenanted with Phase 3 The Studios in construction).

This development is set to be a 101-unit new-build in the vastly popular city of Liverpool, launched as a direct response to the incredible demand for prime residential apartments in the region, shown by the incredible success of the previous phases.

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BELLS COURT Sheffield PRICES FROM :

ÂŁ69,995 > 7% NET rental returns Assured 7% rental income for 1 years Fully-furnished Excellent city centre location Luxury studio apartments High rental demand in Sheffield

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Bells Court is a brand-new residential project in the highly popular student city of Sheffield!

Bells Court is a new residential development, providing a mix of luxury studio apartments, perfect for both students and young professionals alike. Demand is high for prime accommodation in Sheffield, with its rising house prices and thriving rental market.

X1 THE EXCHANGE Salford Quays PRICES FROM :

ÂŁ97,500 > 6% NET rental returns 140 residential 1 and 2-bed apartments 6% assured NET yield for year 1 10 minutes from Manchester city centre Private parking on selected units 10 storey building

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Comprised of 140 high-end apartments, this 10-storey building will be furnished to the highest standards and ready to accept residents by Q2 2016.

Built by the experienced developer behind the successful X1 Salford Quays Phase 1 (completed) and Phase 2 (under construction), X1 The Exchange is one of the most exciting developments to hit the Manchester market so far this year.

X1 MEDIA CITY TOWER 2 Salford Quays PRICES FROM :

ÂŁ104,950 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shopping Most exclusive development outside of London

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With 1,036 apartments covering an area of approx.

544,820sqf, X1 Media City is the largest residential development in the North West.

The development itself consists of four iconic towers, each containing a mixture of studios, one, two and three-bedroom apartments. With spectacular views over the city and MediaCityUK, the apartments are available fully furnished in a high-end, elegant flair.

THE STUDIOS AT X1 THE QUARTER Liverpool PRICES FROM :

ÂŁ64,500 > 7% NET rental returns 7% assured NET yields for 5 years In construction Parking available on selected units Perfect for students or young professionals Fitness suite and communal area

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As the UK’s private rental sector continues to grow, prime buy-to-let developments in large regional cities like Liverpool present the perfect opportunity for savvy investors to expand their portfolio.

Comprised of 225 fully-furnished studios and containing a private fitness suite and communal areas on the ground floor, this 10-storey building will appeal to both students and young professionals alike, due to its proximity to both the town centre and Liverpool universities.

EAST POINT Leeds PRICES FROM :

ÂŁ100,000 > 6.5% NET rental returns Currently in construction 6.5% NET rental yields High rental demand in local area Located in the heart of Leeds city centre Luxury one-bedroom apartments

East Point is the perfect place for the young professional, just a minutes walk from Leeds City Centre, complete with excellent shopping facilities and vibrant club scene for when weekend arrives.

Recent research has revealed that approximately half of people living in the city are aged between 26 and 35.

Approximately 60% of city apartments are occupied by two people and of these 73% are couples and 23% are housemates sharing a home.

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THE QUEEN’S BREWERY Manchester PRICES FROM :

£91,000 > 6.5% NET rental returns 73 luxurious 1 and 2-bedroom apartments Private courtyard and parking 10 minutes from Manchester city centre High-end fixtures and fittings Extensive refurbishment of a landmark Grade II listed building 104

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Housed in a beautiful period building converted to the highest of standards by professional developers, The Queen’s Brewery will be divided into 73 luxurious apartments, as well as providing amenities for residents including private on-site parking.

Easily accessible to local amenities such as bars, restaurants, shops and theatres in just 10 minutes, residents of Queen’s Brewery have the best of both worlds in that they have the benefits of living just on the outskirts of a busy city, but also have easy access to the thriving city centre.

NEW BANK HOUSE Sheffield PRICES FROM :

ÂŁ64,995 > 8% NET rental returns Lettings and management company in place Private communal facilities Great central location Built by an experienced developer High demand in local area

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In partnership with Fortis Developments, Knight Knox introduces the newest development in luxury student accommodation: New Bank House. Situated in the heart of Sheffield, the new conversion project, set to be finished September 2015, will consist of 178 large, contemporary student apartments.

The student housing market in Sheffield is suffering from a chronic lack of bespoke student accommodation in the area, which is why New Bank House is set to ease this deficit.

THE COURTYARD AT X1 THE QUARTER Liverpool PRICES FROM :

ÂŁ89,950 > 6% NET rental returns Finance options available Experienced Management company in place Proven rental demand 5 minute walk to Liverpool ONE Opposite Liverpool Marina

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Built by an experienced developer in the residential buy-to-let market, The Courtyard at X1 The Quarter presents a unique concept in luxury living for the residents of Liverpool.

Upon completion in September 2014, the development will contain 77 modern 1, 2 and 3 bed apartments, in addition to 3 bed townhouses. Offered at an extremely competitive purchase price and with virtually no maintenance required due to the new-build status of the development.

SPECTRUM Manchester PRICES FROM :

ÂŁ172,950 > Circa 5.5% NET rental returns Completed and tennanted development Private landscaped gardens Great central location Built by experienced developer High quality fixtures and fittings

Spectrum delivers the best of both worlds, combining chic, urban living with the tranquility of private landscaped gardens.

The studio, one, two and three-bedroom apartments are finished to the highest specification, with floor-to-ceiling windows and full-length balconies to most apartments.

Light floods into the living space and views across the city are a constant reminder of how close you are to everything you could want.

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BENTO Sheffield PRICES FROM :

£279,000 > 8.62% NET rental returns Designed by award-winning architects Unique townhomes design High quality fixtures and fittings ECO-friendly investment Highly sought-after area

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Bento is a new high-tech concept in student accommodation, designed for to the modern student.

As well as fully fitted designer bathrooms, Bento’s interior is beautifully decorated in minimalist white and grey to enhance the already Zen ambience, which is further recognised in the installation of three beautiful private gardens, located on each of the development’s three floors. Furthermore, the development is eco-friendly, meaning that Bento is a perfect amalgamation of high-tech yet sustainable living.

LANDCROSS HOUSE Manchester PRICES FROM :

ÂŁ61,950 > 7% NET rental returns Experienced student accommodation developer Rental assurance available On-site management company Private communal facilities available Secure bycycle storage

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Launched by an experienced developer in the residential market, these self-contained studios are the perfect solution for students or young professionals who are looking for a competitively priced property that is close to the city centre.

Located in the heart of Fallowfield, Manchester’s most sought after student area, Landcross House gives tenants great access to both the University and the city centre.

X1 LIVERPOOL ONE, PHASE ONE Liverpool PRICES FROM :

ÂŁ69,950 > CIrca 9.16% NET rental returns Assured 7% rental income for 3 years Fully-furnished Phase 1 comprises 92 apartments Located in the centre of Liverpool city centre High rental demand in Liverpool

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This luxurious development offers students a high-spec facilities that include a gymnasium, cinema room, and communal areas in which to relax after a hard day studying.

Normally, such an enviable location comes at the cost of space, but these amenities offered prove X1 Liverpool One is fully dedicated to creating the epitome in luxury student accommodation.

WODEN STREET Manchester PRICES FROM :

TBC > COMING SOON Assured NET rental yields Lettings and management company in place Private communal facilities Great transport links and close to shopping Built by an experienced developer

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Wodent Street is enviably located on the edge of Manchester city centre in the thriving area of Castlefield.

This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city.

It also sits within walking distance of MediaCityUK, the new home of the BBC.

GEORGE LEIGH STREET Manchester PRICES FROM :

TBC > COMING SOON City centre location Private parking available Highly experienced developer In Manchester’s trendy Northern Quarter Close to Manchester Victoria train station

Ranked by HSBC as being the second best ‘Buy-to-Let Hotspot’ in the country in 2014, Manchester is a city which has a chronic undersupply of housing, in relation to its population.

Manchester has seen price rises of 18% in Q1 2014 bypassing even London, making this the perfect time to invest in this booming city.

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OVERSEAS PROPERTY BUYING GUIDES: YOUR ONE-STOP SHOP REGISTER NOW TO DOWNLOAD YOUR FREE GUIDES TO BUYING A PROPERTY OVERSEAS, PACKED WITH THE ESSENTIAL INFORMATION YOU WILL NEED TO MAKE SURE YOU CAN BUY INTERNATIONAL PROPERTY SAFELY, SECURELY AND WITH CONFIDENCE.

INSIDE THE OUR BUYING GUIDES YOU WILL FIND: • Information on the most popular regions for buying a property in each country, whether on the coast, in the cities or in the countryside • Detailed explanations of the process of buying a property in your chosen destination

• Pointers on the potential for buying investment property overseas, including letting potential and visa or residency offers • Legal and financial issues to be considered • Ten Top Tips to make sure buying your property abroad is a succes

BuyAssociation has Buying Guides for property in more than 30 countries worldwide, written by independent industry experts and regularly updated with the latest investment information. For all you need to know about buying property overseas in one place, visit www.buyassociation.co.uk

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THE BEST OF

BUY-TO-LET

A market leader in the UK buy-to-let sector, Knight Knox has launched 50+ developments onto the UK market, totalling more than 4,500 units at a value in excess of ÂŁ427million.

By forging strong relationships with a select number of developers, we work in partnership with them on their projects and, as such, are able to provide our investors exclusive access to prime developments across the country.

Knight Knox Market Leaders in Worldwide Property Investment Tel: 0161 772 1392 Web: www.knightknox.com

Missed the motorway exit.

Missed the turn to the office.

There are days when everything works out perfectly.

The new Cayenne.

For further information call 0115 986 0911 or visit www.porsche.co.uk/cayenne

Porsche Centre Nottingham Electric Avenue Riverside Retail Park, Queens Drive Nottingham NG2 1RS info@porschenottingham.co.uk www.porsche.co.uk/nottingham

Official fuel economy figures for the Porsche Cayenne range in mpg (l/100km): urban 17.8 - 37.2 (15.9 - 7.6), extra urban 31.7 - 47.1 (8.9 - 6.0), combined 24.6 - 42.8 (11.5 - 6.6), CO2 emissions: 173 - 267 g/km. Official fuel economy figures for the Cayenne S E-Hybrid in mpg (l/100km): urban N/A, extra urban N/A, combined 83.1 (3.4), CO2 emissions: 79 g/km. The mpg and CO2 figures quoted are sourced from official EU-regulated test results, are provided for comparability purposes and may not reflect your actual driving experience.