Barratt Homes sets its sight on buyers in Asia to move new product launches

Asian buyers drive marketAsian investors have been the driving force behind the London property market in recent quarters, says Carson. Investors from the Asia Pacific region accounted for 40.4% of buyers of newly-developed properties in Central London in 3Q19, according to the latest figures from international real estate advisor Knight Frank. This is the highest figure since 3Q17.

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As Asian investors seek out lucrative investments in the London property market, Barratt Homes is keen to tap this opportunity. On Oct 14, the developer will launch its Sterling Place project in Asia with Singapore-based One Global as its exclusive sales agent. The 456-unit new development is located in New Malden, an area southwest of central London.

In addition to Sterling Place, Barratt Homes is offering 42 new units for sale in Singapore at its Bermondsey Heights project. Bermondsey Heights is a 163-unit 26-storey development in London’s Zone 2 district. The average selling price of GBP800 psf ($1,327 psf) for the project is considered “the most affordable” for a new residential development in Zone 2, says Steve Thompson, managing director of Barratt East London, a regional office of Barratt Homes.

The 42 units offered for sale in Singapore will be a mix of one- to three-bedroom apartments on the top six floors of the 26-storey tower.

Recent data from international real estate advisor Knight Frank indicates that investors from the Asia Pacific region accounted for 40.4% of buyers of newly-developed properties in Central London in 3Q19, the highest figure since 3Q17.

Craig Carson, managing director of Barratt West London, acknowledges that “many market watchers, local buyers and overseas investors were taken aback last year at the pace in which residential property prices across the UK started to slip”. Despite this, inflation in the UK has moderated to an “acceptable” level of about 6.4%, and property prices have begun to level out.

Thanks to the relatively weaker exchange rate, overseas buyers, primarily Asian, are capitalising on the opportunity to pick up investment properties in London. “We have seen a strong rebound in demand for UK investment opportunities since the start of the year,” says Carson. “We hope to capitalise on this by launching a couple of new projects to buyers in Asia this quarter.”

Barratt Homes has made a name for itself by identifying areas throughout London that are primed for rejuvenation and this was exactly what the developer had identified at Bermondsey. House prices in Bermondsey are trading at a 23% discount to the Greater London housing market, however, rental demand is strong and capital values look likely to increase over the next few years on the back of regeneration schemes put forward by the government.

With domestic demand flagging due to high mortgage rates, Barratt Homes is looking to Asian buyers to move its pipeline of projects. The developer is eager to capitalise on the current investment opportunity and has launched two new projects in Asia this quarter. Asian investors have been the driving force behind the London property market in recent quarters and this is unlikely to shift anytime soon.