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Introduction
Personalised wealth management solutions that cater directly to our clients’ traditional asset management requirements are at the heart of Standard Bank Wealth and Investment’s philosophy. At the same time, we also understand and acknowledge the importance of other asset classes that could reflect our clients’ personal risk appetite and interests. With this in mind, we have established an association with Knight Frank, residential property experts who are well placed to help you in your property search. From luxury apartments and exclusive period houses through to new builds, townhouses, country estates, cottages and farms. Properties included within this brochure range from a £775,000 ideal home located in Hyde Park to a $9,500,000 luxurious villa in Kenya. We hope you find this monthly brochure insightful and we look forward to assisting you with any real estate requirements, you may have.
Properties of the Month - December 2016
Property purchase costs The following table sets out the major costs associated with the purchase of a UK property. In this example, we assume that the property is valued at £1m and is purchased in an individual’s own name. The stamp duty figure is for a property valued at £1m and includes the recently introduced 3% premium; which applies where the individual already owns another property situated anywhere else in the world. Purchase price
£1,000,000
Estimated stamp duty (SDLT)
£73,750
Estimated valuation
£1,500
Estimated legal & related costs
£6,000
Estimated loan arrangement fee*
£6,500
Estimated total costs
£1,087,750
*Loan to Value 65% subject to status. If you would like to calculate SDLT for a property with a different market value to the above, please use the attached link: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
Important Information Usage of this document and all information provided by Standard Bank Jersey Limited and affiliated entities, and any of their officers, directors, and personnel (collectively, “TOG”) is subject to disclaimers & Terms & Conditions. The historical data used in the brochure is provided by Knight Frank, an independent third party data source. The data and chart information provided within the brochure is not guaranteed by TOG to be accurate at all times, and that TOG is not accountable for any errors. TOG does not represent, endorse, warrant, or takes any responsibility as to the accuracy or completeness of any information contained herein, including the Knight Frank offering and any advertisements or third-party content in the brochure. TOG also does not represent, endorse, warrant, or take any responsibility that the Knight Frank offering is subject to, or in compliance with, reporting requirements imposed by the Jersey Financial Services Commission, or any other Bailiwick laws. TOG does not purport to provide a complete description of the Knight Frank services or developments to which reference is made and, thus, there may be instances when fundamental, technical, and quantitative opinions may not be in concert. TOG may express opinions about whether a particular service represents good, fair or poor speculative value. Such observations, which are generally linked to uncertain future outcomes and their probabilities and involve the interpretations are valid only at the time made. You are advised not to rely solely on this data, but rather to double-check any data points via your own independent sources. You are encouraged to use your own research to form your own assessments of value. You agree that any use of or reliance upon any information provided by TOG shall be at your sole risk. TOG accepts no liability to you or any other person whatsoever, whether in contract, in tort, for negligence, or otherwise for any direct or consequential loss of any kind arising out of the use of Knight Frank, (except insofar as any statutory liability cannot be excluded). TOG reserves the right, in its sole discretion and without any obligation, to make modifications to any portion of the brochure, or other materials, at any time. Information provided by TOG is not investment advice. TOG is not acting as a registered investment adviser. Under no circumstances should any content from this documentation be used or interpreted as a recommendation or invitation to buy or sell any type of security or property, or to partake in any other financial activity by way of any financial instrument, and is not calculated to lead directly or indirectly to persons doing so. Any investment decisions must in all cases be made by the user, in conjunction with his/her professional financial adviser. Standard Bank Jersey Limited is regulated by the Jersey Financial Services Commission. Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ. Registered in Jersey as Company No 12999. Telephone calls may be recorded.
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London, England
ÂŁ1,895,000 Investment Property
A 2 bedroom flat for sale in Kensington W8 set within Wycombe Square Wycombe Square, Kensington W8 A fabulous 2 bedroom, 2 bathroom apartment situated in an exclusive and fully-gated development in Kensington which benefits from a 24 hour concierge and offered in excellent condition. Approximately 1,185 sq ft.
Properties of the Month - December 2016
London, England
ÂŁ775,000 London Home Portsea Place, Hyde Park, W2 Conveniently located on the prestigious Hyde Park Estate, this superb property is accessible via lift and offers ample living space throughout. With a range of modern specifications including a brand new fitted kitchen with breakfast bar, the property has been thoughtfully designed to provide a crisp and stylish finish. Accommodation includes a large reception room with open plan contemporary kitchen, featuring double doors that open on to a south-easterly facing balcony with beautiful views over the neighbouring rooftops. The bedroom offers ample storage space and lies adjacent to an attractive shower room with imported Italian tiling and an oversized walk-in shower. Approximately 529 sq ft.
Newly refurbished 1 bedroom apartment in a desirable block with lift access and 24 hour porter 5
London, England
ÂŁ1,195,000 Ideal Student Flat
Wigmore Street, Marylebone, W1U Immaculate 2 bedroom apartment with porter services, perfectly located in Marylebone. Comprising a large master bedroom with built in storage, 2nd bedroom with built in storage, modern bathroom, spacious reception/dining room and separate kitchen. Approximately 671 sq ft.
An immaculate 2 bedroom apartment for sale in Marylebone
Properties of the Month - December 2016
London, England
ÂŁ3,100,000 London Home
A magnificent 2 bedroom flat for sale in Knightsbridge
Lennox Gardens, Knightsbridge, SW1X A stunningly interior designed, 2 bedroom apartment on the raised ground floor of a beautiful Grade II listed building with air conditioning, offering superb views over the exceptional communal gardens of this leading Knightsbridge address. Approximately 1,226 sq ft.
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London, England
ÂŁ5,750,000 Development opportunity Hereford Square, South Kensington, SW7 A five storey period freehold house in this prime South Kensington SW7 garden square. This spacious family house offers flexible accommodation and has access to the beautiful garden square. Approximately 3,338 sq ft.
A spacious family house requiring updating in South Kensington
Properties of the Month - December 2016
Cape Town, South Africa
Guide Price R69,000,000 Holiday Home Bantry Bay, Cape Town, South Africa Located in the premium world-class destination of Bantry Bay, this luxurious property boasts fabulous forest and sea views. Four bedrooms en-suite with private lounge, gourmet kitchen, fireplace, dining room and an opulent entertainment area. Other features include a study with fireplace, suspended outdoor lounge with braai area, sauna, steam room plus shower, toilet, media room for home entertainment, an additional basement kitchen, generator, trampoline, swimming pool and a separate bachelor cottage. An established garden, staff accommodation, double garage and additional off street parking for three cars.
Extraordinary property for extraordinary living
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Off plan opportunity in the heart of New York
Properties of the Month - December 2016
New York, United States
Prices starting from $1,450,000 New York Home Seaport, New York, USA The first soaring residential tower at the Seaport is surrounded by the best of New Downtown including Brookfield Place, One World Trade Center and the Brooklyn Bridge. Rising 670 feet, the 80 homes are encased in floor-to-ceiling glass with elevated 11-ft ceilings and singular terrace experiences. The waterfront lifestyle includes two levels of amenities that overlook the river, featuring 360-degree views of New York harbour, bridges and landmarks that define Manhattan. One, two and three bedroom simplex and duplex residences designed by S. Russell Groves.
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Diani, Kenya
Guide Price US$9,500,000 Diani, Kenya Coast This is a unique collection of four private beachfront villas which overlook the azure waters of the Indian Ocean. Set on approximately 2.5 acres with a beach frontage of about 110 metres, the villas have exceptional access to the beautiful white sandy Diani beach. All villas have expansive verandas and tropical gardens. Three of the villas boast large private pools. The villas are sold fully furnished, finished in exquisite detail with artefacts from Africa and the Far East. They feature a bright and airy fusion of African and Caribbean style and have been photographed for a number of interior dĂŠcor magazines. Diani is a favourite holiday destination for A-list celebrities and these stunning villas are incomparable, redefining luxury and exclusivity to discerning clientele.
Properties of the Month - December 2016
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Marbella, Spain
Guide Price â‚Ź4,150,000 Newly built contemporary villa
Marbella, Spain Located in a very prestigious residential area of Sierra Blanca, offering a modern design and light neutral decoration. Reception room, 5 bedrooms and 5 bathrooms.
Properties of the Month - December 2016
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YEAR TO OCTOBER 2016 Notting Hill Sales
Rents
-2.6%
-2.9%
-5.9%
-7.8%
St John’s Wood Sales
Rents
3-month price change
0.0%
-1.7%
12-month price change
0.0%
-3.4%
Prime gross yield 2.97%
Hyde Park Sales
Rents
3-month price change
-4.5%
-3.0%
12-month price change
-8.2%
-7.2%
Prime gross yield 3.62%
Hampstead
Belsiz
Sales
Rents
3-month price change
-3.6%
0.0%
3-month price change
-1.2%
12-month price change
-1.2%
-0.7%
12-month price change
2.3%
Prime gross yield 2.73%
Sales
Prime gross yield 2.57%
Prime gr
Kensington Sales
-2.1%
-5.8%
Rents
-1.1%
-2.2%
Queen’s Park 3-month price change
Rents
0.4%
-2.0%
3-month price change
3.2%
-9.2%
12-month price change
12-month price change
Prime gross yield 2.66%
South Kensington Sales
Rents
-2.7%
-2.6%
3-month price change
-5.0%
12-month price change
-4.2%
Sales
Prime gross yield 2.67%
Knightsbridge
Prime gross yield 2.99%
Sales
Rents
-0.7%
-3.1%
3-month price change
-5.6%
-6.2%
12-month price change
Hyde Park
Prime gross yield 2.37%
Chiswick Sales
Rents
-0.1%
-4.7%
3-month price change
0.8%
-4.0%
12-month price change
Prime gross yield 3.29%
Barnes
Chelsea
Fulham
Sales
Sales
Rents
-3.7%
3-month price change
-2.1%
-1.1%
-1.8%
12-month price change
-10.9%
-3.9%
Sales
Rents
3-month price change
-2.7%
-0.6%
3-month price change
12-month price change
-9.9%
-7.4%
12-month price change
Prime gross yield 3.04%
Richmond Sales
Wimbledon Sales
Rents
Prime gross yield 3.50%
Wandsworth Sales
Battersea Sales
Rents
-2.6%
3-month price change
0.0%
-0.4%
3-month price change
-2.0%
3-month price change
-2.2%
-0.1%
3-m price
-1.6%
12-month price change
5.7%
-2.8%
12-month price change
-3.5%
12-month price change
-6.8%
-5.9%
12-m price
Prime gross yield 4.01%
Properties of the Month - December 2016
RESIDENTIAL RESEARCH Islington
ze Park -1.3%
3-month price change
-1.0%
12-month price change
Marylebone
Sales
Rents
0.0%
-2.5%
3-month price change
-3.7%
12-month price change
Rents
Sales
Rents
0.1%
-0.9%
3-month price change
-10.3%
12-month price change
Wapping 3.6%
ross yield 3.07%
-1.0%
Prime gross yield 2.85%
King’s Cross Sales
Rents
-0.8%
0.1%
3-month price change
-0.7%
0.2%
12-month price change
Sales
Rents
1.2%
-1.1%
3-month price change
3.8%
0.1%
12-month price change
Prime gross yield 2.99%
City & Fringe
Prime gross yield 3.78%
Sales
Rents
0.0%
-0.7%
4.8%
0.6%
Canary Wharf Sales
Rents
3-month price change
-0.1%
-0.6%
3-month price change
12-month price change
4.6%
-4.3%
12-month price change
Prime gross yield 3.46%
Belgravia
Mayfair
Sales
Rents
0.0%
-0.9%
-0.6%
-7.1%
Riverside
Sales
Rents
3-month price change
-0.7%
-0.9%
12-month price change
-0.5%
-2.7%
Prime gross yield 2.74%
Sales
Rents
3-month price change
-1.7%
-1.5%
12-month price change
-3.9%
-8.5%
Prime gross yield 1.94%
Tower Bridge Sales
Rents
3-month price change
0.0%
0.2%
3-month price change
12-month price change
2.6%
-0.1%
12-month price change
Prime gross yield 2.81%
Prime gross yield 3.24%
Prime central London
Clapham Sales
Rents
-1.6%
-0.4%
3-month price change
1.0%
-1.1%
12-month price change
Sales
Rents
-1.1%
-1.5%
-2.3%
-4.9%
Prime outer London Sales
Rents
3-month change
-1.4%
-1.2%
12-month change
-0.6%
-3.6%
Prime gross yield 3.28%
Dulwich Sales
month e change
-0.4%
3-month price change
month e change
0.7%
12-month price change
Prime gross yield 3.10%
Prime gross yield 3.17%
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RESIDENTIAL RESEARCH
PRIME CENTRAL LONDON RENTAL INDEX
Number of new lettings properties on the market rose 27% year-on-year between January and September Prime gross rental yield was 3.1% Macro View: The foreign exchange market since Brexit
However, while more transactions have taken place, rental values have fallen every month for the last year and annual growth declined to -4.9% in October. This is as a result of markedly higher stock levels. The number of new lettings properties coming onto the market rose 29% over the same three-month period and there was a 27% year-on-year increase between January and September. Demand has not been rising at the same pace, as figure 2 shows, which underlines the extent to which prime central London is a tenants’ market. Higher stock levels are the result of uncertainty over the short-term prospects for price growth in the sales market, which has led more vendors to let their properties. However, the flow of stock from the sales to the lettings market is not entirely one-way. As rental values decline and ahead of cuts to tax relief next year, a small number of landlords
Head of London Residential Research
“As rental values decline and ahead of cuts to tax relief next year, a small number of landlords have begun to explore a sale. It is an early indication of how the lettings market may self-correct, supporting rental values as stock levels reduce” Follow Tom at @TomBill_KF For the latest news, views and analysis on the world of prime property, visit Global Briefing or @kfglobalbrief
Properties of the Month - December 2016
Higher stock has had another effect. With more properties on the lettings market that were originally destined for sale, landlords have to increasingly ensure their properties are refurbished to a high standard to prevent void periods. Demand in the super-prime market (£5,000plus per week) remained strong in October due to higher levels of stamp duty in the sales market. Similarly, demand below about £1,500 per week also remained robust The performance of middle segment, which is typically driven by senior executives, remains patchier. As figure 4 shows, it is where the steepest rental value declines have been registered. In areas including Chelsea it has had the effect of boosting activity, while demand remains slow in other areas. The trend has also increased demand in markets like Mayfair, where rental values have started to look relatively better value. FIGURE 2
FIGURE 1
Rental value growth in prime central London
Supply and demand grow in the lettings market Year-on-year changes, 2016 versus 2015
3%
12-month change 6-month change Quarterly change Monthly change
2% 1%
Jan-Sept July-Sept
35% 30% 25%
0%
20%
-1%
15%
-2%
10%
-3%
5%
-4%
0%
-5% Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16
TOM BILL
have begun to explore a sale. It is an early indication of how the lettings market may self-correct, supporting rental values as stock levels reduce.
Source: Knight Frank Research
Source: Knight Frank Research
Applicant Viewings
Annual rental value growth fell to -4.9% in October
The number of tenancies agreed in prime central London in the three months to September increased by 25% year-on-year.
New Applicants
The number of tenancies agreed rose 25% year-on-year in the three months to September
High stock levels mean rental values continued to decline in October but there are signs the balance is beginning to self-correct, says Tom Bill
Tenancies Agreed
October 2016
TENANTS RETAIN CONTROL IN THE PRIME CENTRAL LONDON LETTINGS MARKET
Instructions
This report analyses the performance of single-unit rental properties in the second-hand prime central London market between £500 and £5,000-plus per week. For an analysis of the build-to-rent market and the institutional private rented sector in London and the rest of the UK, please see our Private Rented Sector Update report here.
PRIME CENTRAL LONDON RENTAL INDEX
DATA DIGEST
FIGURE 3
Rental value growth in prime central London by area in the year to October 2016
The Knight Frank Prime Central London Index, established in 1995 is the most comprehensive index covering the prime central London residential marketplace. The index is based on a repeat valuation methodology that tracks rental values of prime central London residential property. ‘Prime central London’ is defined in the index as covering: Belgravia, Chelsea, The City& Fringe, Hyde Park, Islington, Kensington, King’s Cross, Knightsbridge, Marylebone, Mayfair, Notting Hill, South Kensington, St John’s Wood and Tower Bridge. ‘Prime London’ comprises all areas in prime central London, and in addition Canary Wharf, Fulham, Hampstead, Richmond, Riverside*, Wandsworth, Wapping and Wimbledon. * Riverside in prime central London covers the Thames riverfront from Battersea Bridge in the west to Tower Bridge in the east, including London’s South Bank. The City Fringe encompasses the half-mile fringe surrounding most of the City including Clerkenwell and Farringdon in the west and Shoreditch and Whitechapel in the east.
FIGURE 4
Rental value growth in prime central London by price bracket and property type
Prime Central London Index
£750 £1,000 £1,500 -£1,00 pw -£1,500 pw - £2,000 pw
£2,000+ pw
167.7
£250 -£500 pw
£500 -£750 pw
Flat House
1 month
-0.4%
-0.5%
-0.4%
-1.3%
-1.1%
-0.7% -0.6%
-1.0%
3 months
-0.4%
-1.5%
-1.0%
-2.1%
-1.7%
-1.7% -1.2%
-2.1%
6 months
-0.7%
-2.0%
-3.4%
-4.3%
-3.2%
-3.5% -2.4%
-4.2%
1 year
-1.1%
-2.4%
-5.3%
-8.0%
-5.4%
-6.3% -4.2%
-6.8%
YTD
-1.0%
-2.4%
-4.3%
-6.9%
-5.0%
-5.4% -3.7%
-5.9%
THE FOREIGN EXCHANGE MARKET SINCE BREXIT Sterling has weakened by more than 15% versus the US dollar since the EU referendum, boosting the interest of buyers denominated in overseas currencies. The decline has had a more modest impact on the number of transactions for two reasons. First, part of the demand is opportunistic in nature, based on an erroneous belief that the decision to leave the EU has triggered sudden price declines across prime central London. This has caused some buyers to seek doubledigit price reductions on top of a favourable double-digit currency swing, to which vendors are resistant. As we have discussed here before, higher rates of stamp duty are the biggest influence on pricing and demand and the referendum result should be seen in that context. The second reason that the decline in Sterling has not had a more marked impact is that some buyers are anticipating further currency weakness. The current high levels of volatility in the
Sterling/Dollar exchange rate, which now moves following interventions by key politicians, underline the risks of this strategy. Savvas Savouri, chief economist at asset manager Toscafund believes buyers should think longer-term. “For anyone planning to be cute on currency with a property purchase, I would suggest there is no way on earth the pound will be as low as it is today in two years’ time,” he said. Furthermore, Savouri believes London will remain a significant financial services centre after Brexit. “Nobody is suggesting there won’t be satellite offices opening in the EU but I would argue that entirely new firms will more than fill whatever space is vacated, for the most part these will arrive from far outside the EU. “They will have ambitions to operate from London not as some Trojan Horse to enter continental Europe, but as a secondary-hub to complement their operations in their domestic markets, from Singapore and Sydney to Sao Paolo and Shanghai. They will, in short, not give a hoot about passporting rights.”
RESIDENTIAL RESEARCH Tom Bill Head of London Residential Research +44 20 7861 1492 tom.bill@knightfrank.com RESIDENTIAL LETTINGS Tim Hyatt Head of Lettings +44 20 7861 5044 tim.hyatt@knightfrank.com PRESS OFFICE Harry Turner +44 20 3861 6974 harry.turner@knightfrank.com Jamie Obertelli +44 20 7861 1104 jamie.obertelli@knightfrank.com
Important Notice
© Knight Frank LLP 2016 - This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.
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Contact us If you would like more information regarding any of the properties listed within this brochure or any real estate enquiries, please contact your Wealth Manager or a member of the Business development team who will be more than happy to help.
Jonathan Sprigg Head: Business Development Jonathan.Sprigg@standardsbg.com +44 (0) 7776 456346 +44 (0) 20 31675594
Gerry Gowans
Stephen McCormack
Business Development Manager
Business Development Manager
Gerry.Gowans@standardbank.com +44 (0) 7700 881302 +44 (0) 1534 881435
Properties of the Month - December 2016
Stephen.McCormack@standardbank.com +44 (0) 7700 881230 +44 (0) 1534 881230
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Properties of the Month - December 2016