Kew A local market review - CBRE · the London average. London overall experienced the strongest...
Transcript of Kew A local market review - CBRE · the London average. London overall experienced the strongest...
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KewA local market review
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Kew snapshot Kew is located in leafy Richmond upon Thames, to the north-east of the borough. Despite its almost rural location, it is around 30 minutes from Waterloo and served by good transport links. Its popularity as a residential location means it has above average house prices and experienced strong house price growth over the last year.
London overview
In the post-recession recovery period London’s housing market has performed strongly, outperforming the wider UK market by a significant margin. Prices across the city are now 43% above their previous peak. Some of the strongest growth occurred in 2014 with annual growth peaking at 21% in August. Towards the end of the year and moving into 2015, activity has slowed and growth started to cool. However, this is something we anticipated and we welcome an orderly slowdown. Fears of a London house price bubble have subsided and the market is maintaining sustainable and robust growth, with 9% inflation in the year to September 2015.
Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,448 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years.
London’s new build market
80%70,000
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Demographics and demand for homes
Kew lies to the north-east of Richmond in the borough of Richmond-upon-Thames, and with around 12,000 residents it accommodates approximately 16% of its population. In 2011 this number stood at 11,436, having increased by 1,991 since 2001.
At borough level, the population of Richmond-upon-Thames is currently estimated at 199,632, having increased by 16% from 172,335 in 2001. This is expected to grow to 216,613 by 2021, reflecting a further increase of 9%. As a result of this growth, the number of households in Richmond-upon-Thames increased by 5% between 2001 and 2011 to 80,000, and this is expected to increase by a further 16% by 2021, bringing the total number to 93,000. This represents growth of approximately 1,300 households per year.
However, despite this marked demand, only 774 new homes have been built across the borough since 2009 resulting in a significant shortfall of housing. As a result, and typical of London overall, demand for homes is hugely outweighing supply and this is fuelling price inflation.
Across Richmond, 38% of units currently being built have been sold off plan.
Tenure profile
Kew Richmond upon Thames
100%
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40%
30%
20%
10%
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port
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ouse
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Owner occupied
Socially rented
Privately rented
28% 22%
10%
65%
13%
62%
Emerald Gardens, Kew
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House prices and growth
House price growth across Richmond-upon-Thames has been extremely strong over the past few years, with particular traction being gained from 2012. Overall its pattern of growth has echoed that of London, but with averages consistently being higher than the London average.
London overall experienced the strongest growth of the post-recession period in 2014, but this was even more pronounced in Richmond-upon-Thames. Prices in the borough increased by 10% last year, compared with 4% across London.
More specifically, properties within the district of Kew (TW9) tend to achieve higher asking prices than the wider borough. The latest data shows units in TW9 sold for an average of £814,225, 9% higher than the borough average of £748,139 and 52% higher than the London average of £536,615. Broken down further, apartments in Kew are achieving average prices of £501,530, 12% more than the borough which averages at £446,838 for a flat and 6% higher than London over all.
On a local level, Kew is 16% more affordable than Richmond, but more expensive than both Teddington and Twickenham.
Property prices in the areas surrounding Kew
Average house price index
2007 2008 2009 2010 2011 2012 2013 2014 2015
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Kew affordability - flats
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£150,000 – £250,000
£250,000 – £350,000
£350,000 – £450,000
£450,000 – £550,000
£550,000 – £650,000
£650,000 – £750,000
£750,000 – £850,000
Above £850,000
Richmond upon Thames
Site
2,000m
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2015 2016 2017 2018 20195 year growth
2015-19
UK 5% 3% 3% 4% 5% 22%
London 3% 3% 3% 5% 6% 31%
Location
Kew is a picturesque and charming area in the borough of Richmond upon Thames. It is home to attractions such as the Royal Botanic Gardens, where 326 acres, four of them under glass, contain the world’s largest and most diverse collection of living plants, together with beautiful Kew Palace. Serviced by good transport links, the area is easily accessible to London with Charing Cross being only 32 minutes away by tube. In addition it is only 17 minutes from Heathrow airport and 14 minutes from Twickenham stadium by car.
Overall, Kew is a sought after residential area, popular with families and empty nesters wanting to downsize. It is inordinately ‘green’, with the fore-mentioned Botanic Gardens, Richmond Park, Syon Park and Dukes Meadows Golf Club in close proximity. It boasts the feeling of a village, a plethora of restaurants and pubs, the aesthetics of the country and a complete absence of high rise buildings. In addition, the site is situated close to the river and offers good schools nearby.
Heathrow AirportSyon Park
Kew Palace
Kew
Kew Gardens
Chiswick House and Gardens
London Wetland centre
Latymer Prep School
Westfield Kensington Palace
Richmond Park
Hampton Court Palace
TwickenhamUniversity of Roehampton
Wimbledon
Average price increase over last year
10%Average house price
£814,225Expected population growth to 2021
16%
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Jennet Siebrits Head of Residential Research +44 20 7182 2066 [email protected]
Alex Greaves Director +44 20 7182 2062 [email protected]
CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Images are computer generated. © 2015 CBRE Ltd.
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