Quarterly Property Report April 2016
Wednesday, May 04, 2016 | by Douglas & Gordon
Applicants under forty flock to ‘Emerging Prime’ areas of London
Emerging Prime (-0.2%) has outperformed Prime (-0.9%) for a second consecutive quarter and has done so for 14 of the 17 quarters covered by the Douglas & Gordon Emerging Prime Index since its inception
Southfields stands out as the big mover in Emerging Prime areas, with property values up 4.3% in the first quarter of 2016
Douglas & Gordon’s Emerging Prime Index shows prices for three bedroom houses in the Southfields area grew by 5% in the same period. Demand was strong across the board, with one bedroom flats and four bedroom houses increasing in value by 4.7% and 4.6% respectively
The growth in values has been matched by spectacular growth in sales in the area. Douglas & Gordon has seen sales in Southfields grow by 64% year-on-year in March as gentrification continues apace. Douglas & Gordon’s Southfields office has seen applicants for rentals up 74% on March 2014 and sales revenues increase 87% year-on-year
In areas covered by Douglas & Gordon, 90.5% of applicants aged under 40 are looking in Emerging Prime locations with nearly half of these (46%) looking in East Putney, Southfields and Clapham
The current weakness of the pound against the dollar has opened a window for international buyers to invest in London property. The Douglas & Gordon Emerging Prime Index shows residential property values in London’s Prime and Emerging Prime areas have declined 1.9% overall since June 2014, but this figure translates to 18.5% in US$ terms, thanks to its relative strength against sterling over the last two years
With the markets expected to remain uncertain until the outcome of June’s Brexit vote, overseas buyers who act fast are finding the currency discrepancy can effectively ‘cancel out’ SDLT
Sarwah Shawki and Youssef Fakhreddine are house hunting in Southfields through Douglas & Gordon
When first-time buyers Sarwah Shawki and her husband Youssef Fakhreddine began house hunting, their search took them from Notting Hill and Holland Park, and then west to Fulham and Putney. They found a two bedroom apartment in a new build development that ticked all their boxes, but when their thoughts turned to expanding their family, their prospective new home suddenly started to feel a bit small.
“A flat would have been perfect for the two of us, but not so great if we had a family,” says Sarwah. “So we thought about what our dream home would have in the context of the next five to 10 years, and one of the things that kept coming up was space – bedrooms for kids, room for entertaining, a garden, and lots of storage. That made us consider other areas that would give us more for our money.”
The couple, who are both in their 30s, have friends who have recently moved to Southfields, and after a few visits they grew fond of the area’s ‘villagey’ feel, and how family friendly and safe it felt.
“We were also impressed with Southfields’ public transport links and the number of good schools in the area,” says Sarwah. “There are beautiful parks close by, yet it is still close to central London – attributes that are important to us.” With a budget of £1m to £1.3M, the couple contacted Douglas & Gordon’s Southfields office to see what was on the market, and were impressed to find three, four and even five bedroom houses within their budget. The team has arranged several viewings and after a making a couple of tentative offers, Sarwah and oil broker Youssef feel they are getting closer to their dream home.
With a budget of £1m to £1.3M, the couple contacted Douglas & Gordon’s Southfields office to see what was on the market, and were impressed to find three, four and even five bedroom houses within their budget.
The team has arranged several viewings and after a making a couple of tentative offers, Sarwah and oil broker Youssef feel they are getting closer to their dream home.
The D&G Emerging Prime Index was established in 2014 using our proprietary data stretching back to December 2003. The index is valuation based and covers the following areas of London: Battersea Park, Battersea, Balham, Clapham, East Putney, West Putney, Southfields & Earlsfield, Hammersmith, Shepherd’s Bush, Pimlico & Westminster and Fulham.
Alex Black, Alice Carr and Hannah Talbot
Office: +44 (0) 20 7758 3900