With prices in central London on the slide, albeit, a gradual one, central London is losing its shine.
Singaporeans have a major love for the UK and London property in general, but it's becoming harder to find that perfect spot for an affordable amount nowadays -- especially one that will yield good returns.
Central London pricing has become ludicrously expensive -- and projections indicate that it's now going in reverse. Tom Bill, Head of London Residential Research at Knight Frank, says, "Heightened sensitivity to price among buyers has resulted in a flight to quality."
September marked the start of the autumn selling season in prime central London, a time of year when transactions traditionally rise and activity has increased following a subdued summer period with buyers coming to terms with an increase in stamp duty and a July Budget that curbed exemptions surrounding 'non-doms.'
Interestingly, some high-quality stock has come onto the market, which has driven demand. The volume of sales in September has risen since August and was on track to match September 2014.
What does this mean for Singaporeans buying London stock? Look outside central London and focus on up and coming areas in South London like Mitcham -- in the London Borough of Merton -- which offers an oasis of tranquility and affordability.
When industrialisation happened in the 18th century, Mitcham quickly grew to become a town and most of the farming area was swallowed up in the expansion. There were many lavender fields -- peppermint and lavender oils were also distilled.
Today, Mitcham is incredibly well connected and, using public transport, commuters can reach central London in minutes from the local stations. The area is also connected to the south London tram network -- meaning Wimbledon is moments away. One-bedroom flats start from £210,000 -- making them affordable and a good investment; with a buoyant rental market in the area, yields will be solid.
Recently converted, Brook House in Mitchum is currently on sale in Singapore through DWG. For more information on Mitchum and London property, please contact email@example.com or call 9336 7266.
The views expressed in this column are the author's own and do not necessarily reflect this publication's view, and this article is not edited by Singapore Business Review. The author was not remunerated for this article.
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Alexander Knight is a Singapore-based property commentator.