Market Update

Market Update

Market Update

24th Feb 2010

We find that 'Oil rich investors' have a preference  for Mayfair and Belgravia but purchasers from both Europe and US have a huge preference for Westminster. At the moment Euro investors with their strong currency against Sterling are pouring into what they consider 'London's Capital'.

Ten years on 'canny' investors are happy with their purchases in the Ballymore project at St. John's which was the former Nurses Home attached to Westminster Hospital.This building has proved very popular for many reasons not least Ballymore's high standard of finish and good aftersales service. One group assembled by lpsdirect are involved in this prestigious developement since 1999. LPS added to their investment in 2006 in this site when they bought the Quinlan Private managed portfolio of 40 units. Rents have been consistent in this location with the only blip in 2002 following the 9/11 tragedy. Capital values are showing significant gains over the past decade with growth approching 200% for purchasers who bought off plan. Recently LPS sold two units in Westminster, a one bed achieved £625,000 with a two bed being sold for £850,000 both these sales represent prices in excess of £1000 per square foot.

In recent years LPS invested in the nearby Vincent Square Apartments, a developement of 49 units built on the site of the former Rochestor Row Police Station made famous by Sherlock Holmes. Penthouses and premium units on this site are proving very popular with both local and overseas purchasers looking for 'trophy assets'. As a result of their 'hands on' approach with a locally based office LPS have been successful in achieving strong rents with high occupancy levels for their clients.

LPS also manage numerous investments for their Irish clients in Canary Wharf, Aldgate and City locations. They have seen rents recover from the serious setbacks encountered in 2008 following the collapse of Lehman Brothers. The Docklands location of London is begining to see serious interest in anticipation of the 2012 Olympics, already large Corporations and service providers are planning their rental needs for 2011 and beyond. LPS are anticipating an improvement in the value of Sterling over the next two years which should further enhance the returns for their Irish investors. 

Looking at the generally depressed property market from a global viewpoint Central London seems to be different. Factors such as shortage of supply, its tradition as a financial Centre and the Olympic anticipation are contributing to a strong market. While the availability of investment finance is still an issue LPS has plans for some well located projects in City locations during 2010.