All

Portugal is one of Europe’s hottest property markets in more ways than one. It is not only seen as a safe haven that rarely makes the headlines with a stable political and economic landscape; it also has thousands of people relocating to its sunny shores every year.

Its golden beaches, 1,800 kilometres of coastline and world-class golf courses are major attractions, and Portugal ranks third in the world’s most peaceful countries behind Iceland and New Zealand.

Portugal is also widely viewed as a safe haven for foreign investors, and since 2009, has offered generous tax incentives for foreign buyers which last for 10 years.

On top of this, it has a very popular Golden Visa programme which offers residency permits through buying property investments.

 

Golden Visa

The Portugal Golden Residence Permit Programme is a five-year scheme which offers residency by investing in the country through a number of different ways. Property investment has by far been the most popular route. As a resident you can have visa-free travel across Europe’s Schengen Area which includes France, Germany, Italy and Spain and a Portuguese passport grants you visa-free travel to 185 countries.

Foreign investors also like the fact that Portugal has a quick turnover time to purchase property.

                                                                                                                                                    

Asians flocking

Since October 2012, 9,625 investors and 16,382 family members have benefited from the Portugal Golden Visa and 9,042 (90%) of Golden Visa Portugal applications were done through real estate investments. While the Chinese remain the largest single applicant cohort (over 50%), their share of the program is decreasing as other nationalities are applying for the program too.

The Portugal Golden Residence Permit Programme has been very successful and now the government is removing the cities of Lisbon and Porto from the scheme to focus on other parts of the country. The new rules, which also affect coastal areas, will come in from July 2021 although there is a transition period to complete sales by the end of the year.

 

Business buzz

While foreign investors have Portugal in their sights, it is also attracting plenty of talent particularly in the technology sector. Many international companies have set up regional headquarters in the country, such as Google which built a technology hub near Lisbon in 2018. Car-making giant Volkswagen also has major manufacturing operations in Portugal.

Up until the Covid pandemic which affected tourism the world over, Portugal’s tourist numbers had been very healthy given its high number of sunshine hours. In fact, the southwestern coastline of Algarve gets more sun each year than all of Europe. As its tourism sector grew, this led to a scarcity of rental properties which drove rental yields up. This is good news for investors with properties in tourist hot spots.

Algarve, Portugal

 

Sun, sea and golf

The Algarve is one of Portugal’s most popular destination, drawing sun-seeking tourists, beach lovers and golfers alike. One tourist hotspot is the Algarve, home to one of Portugal’s most prestigious golf resorts. The 5,000km stretch of coast is known for its golden beaches, golfing and picturesque fishing villages along with an array of bars and restaurants. 

Douro, Portugal

 

Lisbon and Porto

If the objective is exclusively housing, you need to meet your personal preferences. A house in the Algarve is compatible with warm climate lovers, Porto is for those who like a mild climate and Lisbon is the best city to develop a professional career.

If the objective is the return on investment, there is a clear advantage in one of the options.

Portugal’s two main cities, Lisbon and Porto, have been the main destinations of foreign investment given they are seen as a trendy hotspots while being far cheaper to buy property in compared to other cities in Europe.  

Lisbon is one of Europe's smaller capitals with properties there inexpensive in comparison to London, Paris or Madrid.

The main driver for investors used to be quality of life, its historical heritage, natural beauty and over 280 days of sunshine. But it’s a very interesting market for putting your savings and investments now too. You can get a return both on rental yield and in capital appreciation.

Porto has the same dynamic in terms of lifestyle. But it’s also the research and development hub of the country. It’s where much industry is based, and most of the money from Portugal’s wealthy families is concentrated here.

 

 

For investors looking for extra capital appreciation from their investments, Porto is the natural answer. House prices there are still 30% less than those in Lisbon, it has a lower square metre price to buy, so you have higher potential for investment returns.

‘Many investors start enquiring about Lisbon. But when they ask for something that has a higher yield or capital appreciation potential, we say: yes, we do. In Porto’ – says Filippo Simonato, Residential Business Development Manager for JLL, based in Lisbon.

 

Property Market

While property prices have been rising modestly during the pandemic, Portugal has seen above average increases. Prices rose by almost 6% during 2020, according to the Idealista Price Index.

According to JLL’s research ’Investir no Mercado de Arrendamento’ (Investing in the Rental Market), the residential rental yields in Lisbon are almost always above 3% and in Porto 4%; proof of a market where supply is scarce and vacancies tends to be absorbed quickly. It is a market with enormous potential for growth and income generation.

 

Who is buying & renting?

Portugal is still proving popular with overseas buyers, and 57% of purchases are currently made by international buyers. While Asian buyers have been very active, these foreign-buyer purchases are spread across 47 different nationalities.

Rental incomes have softened a little during the pandemic, although this is believed to be only temporary. Some landlords have put their holiday homes up for rent on the local market while they wait for tourism to return.

Conde de Lima, Lisbon

 

When tourists start to return to the many holiday hotspots Portugal has to offer, property owners should be well placed to reap the benefits, along with the tax and residency perks the country has to offer.

If you are keen to find out more about investment opportunities in Portugal and learn more about the Golden Visa Program, please contact JLL International Residential at +65 9671 9583 or internationalresi@ap.jll.com.

23 Apr 2021

Not only Portugal is ideal for investors looking for stable returns on investment at a range of property price points, but the tax regime is very attractive. It offers a low effective tax burden, combined with a special Non-Habitual Residents tax regime, the free remittance of funds, the absence of inheritance and gift tax and no wealth tax.

Moreover, the residence permit scheme (granting travels within the Schengen area) and the possibility to apply for Portuguese nationality and, consequently, a EU passport, make Portugal a very attractive location.

 

The most popular Golden Visa program in Europe

In 2012, Portugal approved special legislation designed to attract foreign investment, by offering a fast way for property investors (non-EU citizens) to receive a residence permit, making it a privileged entry into Europe and allowing such permit holders free circulation in Schengen countries.

The Portugal Golden Visa program has proven to be the most popular scheme in Europe with investors attracted to its flexibility and benefits. Since its inception in 2012, thousands of families have successfully relocated to Portugal.  An investment of €500,000 (or €350,000 reduced option) in real estate in Portugal will gain a residency permit for a family including dependent children.

In 2019, more than half of all real estate transactions in Portugal were purchased by foreigners and Portuguese real estate agencies have been actively wooing Chinese and Asian buyers.

According to a South China Morning Post article, Hong Kong is tipped to become one of the top sources of foreign investment in Portuguese property as residents seek a European haven from the civil unrest that has rocked the city since May 2019.

 

What are the main advantages of the Portugal Golden Visa?

The holders of a Portuguese Golden Visa have many advantages:

  • You do not need a visa to enter Portugal or travel through Europe (Schengen Area).
  • You can live and work in Portugal, even with residency in a different country.
  • Portuguese residency can be extended to family members.
  • It has extremely low minimum stay periods compared to other residency / citizenship programmes.
  • You can attain permanent residency after five years.
  • You can attain citizenship after six years.

The residence permit is granted for a period of one year, renewable for two successive periods of two years, and requires the maintenance of the investment for a minimum period of five years and the presence in Portuguese territory for 7 days (consecutive or not) in the first year and 14 days (consecutive or not) in the subsequent periods of two years. The authorization may be extended to the investor’s family members and the residence permit may be granted on a permanent basis after the initial period of five years.

 

Investment types

This type of investment includes:

  • Commercial or residential properties.
  • Real estate acquired in co-ownership, as long as the investor’s share is at least the minimum indicated value.
  • Properties that are acquired individually or through sole proprietorship companies in which the investor is a partner.
  • Leased properties.
  • Properties encumbered, by the amount that exceeds the minimum amount of the investment.

 

Portugal Golden Visa Changes in 2021

Source: Cruz Roque Semiao Advogados (CRS Lawyers)

Only this month, the XXII Portuguese Constitutional Government has finally established the revisions and changes on the Residence Permit for Investment Regime (Golden Visa), by means of the Law-Decree no. 14/2021 of 12th February, which represents the 8º alteration to the Law no. 23/2007 of 4th July (widely known as “Foreigners Law”).

The main goal, according to said alterations, is to make this regime more and more directed preferentially to the investment in the interior territories, to investment in job creation and to the urban and cultural heritage requalification.

With that in mind, the first essential and most relevant decision that was made was that these changes will only come into force/into effect on 1st January 2022, meaning that foreign investors have until 31st December 2021 to invest in the exact same terms and conditions, all over the country, towards their Golden Visa Applications.

As of 1st January 2022, the following changes, which will represent an increase in the minimum investment amounts, as well as affect the geographical area of application in the real estate investment for habitation purposes, will apply:

 

1. Real Estate Investment:

a. In the amount of € 500.000,00, for habitation Purposes, will only be allowed in the interior of Portugal, Azores, and Madeira.

b. In the amount of € .350.000,00, with rehabilitation investment, for habitation Purposes, will only be allowed in the interior of Portugal, Azores, and Madeira.

 

2. Capital Transfers:

a. The amount of investment for the Capital transfer with a value equal to or above 1 million Euros, changes to a minimum of 1.5 million euros.

b. The amount of investment for the Capital transfer for investing in research activities conducted by public or private scientific research institutions involved in the national scientific or technologic system changes from €350.000,00 to a minimum value of € 500.000,00.

c. The minimum amount on the Private Equity Funds investments, changes from € 350.000,00 to a minimum value of € 500.000,00.

d. The minimum amount on the capital transfer for incorporation of a Company in Portugal, combined with the creation of five (5) permanent working jobs, OR for the reinforcement of the share capital of an existing company in Portugal, with the creation or maintenance of said jobs, changes from € 350.000,00 to a minimum value of € 500.000,00.

 

In view of the above, and according to the remaining legal diploma that was published, it is essential to highlight that:

  • Foreign Investors will have until 31st December 2021 – almost a whole year – to submit their Golden Visa application, taking advantage of the current Law as it is and was from the past years (with the same minimum amounts, on the same locations, and with the same requirements).
  • As long as these applications, by the Investors, are submitted before the 1st January 2022, client(s) can benefit for the same rules and have their residence permits granted, even if the actual approval of the process happens after that date.
  • The geographical limitations that will happen on the real estate investments, by “pushing” the investment for habitation purposes to the interior and the Islands, will still give a lot of interesting and potential possibilities in terms places to invest in Portugal, which will help on the development of those areas.
  • On the real estate investments, only the ones for habitation purposes will be affected, meaning that for commercial/services or other purposes foreign investors will still be able to invest in the whole country, namely in Lisbon and Porto, just like before, after the 1st January 2022.
  • Family members can still benefit from the Family Reunification applications and benefits, even after 1st January 2022, as long as their Main Applicant/Investor has submitted his/her application before that (under the same law).

 

Gustavo Machado Dias associate lawyer of CRS Lawyers

 

The new regime comes into force on January 1, 2022 and is applicable to all applications for Residence Permits trough an Investment Activity (ARI) presented from this date forward.

But until the regulation takes off, there is still a window of opportunity to utilise the popular Golden Visa programme via property investment.

This new regime does not affect the processes in progress and which have been approved under the law currently in force. Meaning, existing renewal processes and granting /renewal processes for family reunification which associated investment has been made until the end of this year (still in the period of the current law).

 

For more details please contact JLL International Residential at +65 9671 9583 or internationalresi@ap.jll.com

 

To find out more about the Portugal Golden Visa program,  join our live webinar ‘Let’s Talk Property. Portugal’s Golden Visa – Residency Through Investment’ on Thursday, 22 April 2021 at 6pm.

Register here

 

 

23 Apr 2021

Tokyo is one of Asia’s most exciting and dynamic cities, and home to 14 million people. As the capital of Japan, it is the economic and political heart of the country. And it is also hosting the delayed 2020 summer Olympic games this year.

With such strong fundamentals, it comes as no surprise that demand for real estate in Tokyo remains bullish.

High-rise condominiums are extremely popular in Tokyo where buyer activity has been relatively unaffected by the Covid-19 pandemic. Low interest rates and tax breaks have helped sustain property demand during this period.

Contrary to the trend in major cities where there was an exodus to the suburbs during the pandemic, Tokyo has seen the reverse, with an increased demand for new developments in central locations as people look to reduce their commuting times.

In summary, Tokyo boasts a resilient and healthy property market.

 

Beautiful neighbourhood of Shibaura

Located in the Minato ward in the south of Tokyo is Shibaura, a beautiful neighbourhood located between the eastern side of the Yamanote Line train and Tokyo Bay.

Why did we choose this area for property investment?

Continue reading!

‘Shibaura’ has great investment potential and is expected to see further growth due to multiple ongoing redevelopment projects. It is also a beautiful and enjoyable place to live in with the stunning Rainbow Bridge, scenic canals, and a futuristic cityscape.

It is also well connected, being close to the busy Yamanote Line and the Mita subway station.

 

View from Tamachi Station

 

The famous "Keio University", a leader in education, research and medicine, is near Mita Station, making it popular with university students.

 

Keio University

 

Shibaura consists mostly of artificial islands created by the excavation of industrial canals in the early 20th century. It was developed into a residential and commercial area as early as the early 2000s, and many corporate headquarters are now located at the area.

 

Shibaura House

 

The thriving community has excellent living facilities including parks, schools and supermarkets. As a result, the bay area is now very popular with middle-, and upper middle-class buyers and renters.

 

Canal side

 

End of the Rainbow

Nearby, and adding to the district’s attractiveness, is the symbol of Tokyo Bay - Rainbow Bridge, a suspension bridge crossing the northern part of the Bay. It is located between Shibaura Pier and the Odaiba waterfront development in Minato.

 

Rainbow Bridge

 

Conveniently located along the road from Tamachi station to the Rainbow bridge is a vibrant scene of supermarkets, restaurants, and stores. Residents and visitors enjoy the attraction of the Shibaura Canal Festival every September and the beautiful blossoms of sakura flowers in Spring.

Shibaura South Port Park is a scenic marine park under the Rainbow Bridge, which can be enjoyed during the day or night. This is where many Tokyo residents come to enjoy the first sunrise of the new year on January 1 and the park has open spaces, benches and a sports plaza where you can play baseball and football.

 

Park (under the bridge)

 

Investment opportunity: Branz Tower Shibaura

Within this bustling and exciting district, Tokyu Land Corporation has developed

Branz Tower Shibaura, a high-end residential building located in Minato-ku.

Situated in the center of Tokyo, the development allows residents to gain easy access to vibrant Shibuya, Ginza Shopping area and Otemachi, Shinbashi Office area.

The freehold development consists of 32 floors and 482 exclusive apartments. The tower is also equipped with impressive facilities for residents including a crown terrace, crown lounge, fitness studio and guest rooms.

With these facilities and its excellent location in one of Tokyo’s up-and-coming districts, Branz Tower Shibaura is sure to be a highly sought-after private residence this year.

And with Tokyo back on the global stage again this year as it hosts the summer Olympics, the timing couldn’t be better.

 

 

To find out more about this exciting development join our live webinar

‘Let’s Talk Property: Spotlight on Tokyo’ on Thursday, 15 April 2021 at 6pm.

Register here

 

We will talk about the Tokyo property market, the impact of redevelopment in Shibaura and also introduce Branz Tower Shibaura to the Singaporean investors.

Contact JLL directly for more information:  +65 9671 9583 / internationalresi@ap.jll.com

 

31 Mar 2021

Thanks to the university, Cambridge is seen as a hotspot for research, science and technology, which encourages leading companies to set up operations in the city and its suburbs (Astra-Zeneca, Microsoft and GSK).

After all, Cambridge is the home of world-changing discoveries such as the structure of DNA. But how attractive is the property market there?

 

Cambridge tops the charts for property investment

While Cambridge has a global reputation due to its university, there’s a lot more to this UK city than just a world-class education. It also has a thriving economy comprising leading hospitals and a science park that attracts global companies.

Having a world-renowned university comes with many benefits. Beyond the rental demand created by its large student population, the congregation of experts at the University of Cambridge has also created a research and development hub, bringing in professionals, scientists and international investors to the city.

As a result, there is a continuous demand for property in Cambridge and the surrounding area.

 

Students

The student population at Cambridge is enormous, with 20,000 students at the University of Cambridge and 22,000 students at Anglia Ruskin University.

Around one in five residents in Cambridge are students, including undergraduates and postgraduates undertaking study and research.

Moreover Cambridge also has a number of good schools catering to all age group with both state and private schools available.

 

Global companies

Thanks to the university, Cambridge is a hotspot for science and technology research, encouraging leading companies to set up operations in the city (Astra-Zeneca, Microsoft and GSK). After all, Cambridge is the home of world-changing discoveries such as the structure of DNA.

Home to the Cambridge Biomedical Campus, one of the largest centres of health science and medical research in the world, Cambridge is also a technology hub, boasting a large cluster of high-tech businesses from software, electronics and biotechnology to science and engineering, harnessing the very best talent from the University and beyond.

Cambridge’s science parks are a partnership between the university colleges and businesses. Together, they have helped make them a world leader in futuristic industries like software and biotechnology.

These have all brought highly-skilled, well-paid jobs to Cambridge and created huge demand for real estate.

Addenbrooke’s Hospital is a major teaching hospital and a world leader in medical research, along with nearby Royal Papworth Hospital. Both are huge employers with several thousand medical staff, researchers and support staff working there.

The Cambridge economy has regularly been the fastest-growing economy within the UK and is likely to remain so in the future.

 

Connections

Cambridge is already well connected, being close to two major motorways and just 50 minutes from London by Thameslink train. A new railway line , the East-West Rail project, is planned to be built within the next decade, connecting it to the cities of Oxford and Milton Keynes.

A new motorway-standard road, the Oxford-Cambridge Expressway, will also connect Cambridge to the M1 and Oxford.

 

Property market

Given the high demand and limited supply, Cambridge’s house prices are some of the highest in the UK. Property prices have risen 85% since the 2008 global financial crisis, putting it among the highest in the UK’s major cities including London.

In 2020 there has been a 9% increase in new sales compared to 2019 (Zoopla). Rightmove has recorded it's busiest ever start to a new year in 2021, with visits to the site up 30% compared with a year ago. Buyer enquiries to agents are currently up 11% year-on-year, rental enquiries up 22% (02.01.21-06.01.21 v 04.01.20 -08.01.20). According to ONS, average rental values across the UK rose by 1.4% in the year to November. The South West had the largest increase (2.3%) and Scotland had the smallest increase (0.6%) (source: JLL Research, 2021).

With particularly strong demand for rented homes, Cambridge properties can earn landlords some of the highest rents in the country.

 

 

North West Cambridge Development

The North West Cambridge Development is the most significant capital project in the University’s history.

It is set to be a billion-pound urban district and the masterplan includes architecture that has been inspired by Cambridge: college courts, active street life, homes, research facilities, parks and amenities needed to sustain a city.

The first phase of this development, Eddington district is already hugely successful, with plenty more to come.

 

 

Eddington and the wider North West Cambridge Development seeks to secure the University’s long-term future and contribute to the City’s growth by providing homes for key workers, students and the public in a vibrant place to live.

It is a vibrant, new community with a school, nursery, shops, market square, sports facilities and more than 50 hectares of open space for residents to enjoy. It has been carefully planned to minimise its environmental impact with a forward-thinking approach to travel, energy, landscaping and construction.

 

 

Investment opportunity

JLL is marketing a new development called Knights Park in Eddington, north west Cambridge developed by Hill - the third largest privately-owned housebuilder in the UK.

The first homes have been completed and some of them have already been released for sale on the open market.

Five minutes’ walk from Knights Park is the University of Cambridge Primary School. Rated Outstanding by Ofsted, it is the first primary University Training School in the UK.

For older children, there is a choice of Good or Outstanding rated secondary schools across the city, while the Cambridge Academy for Science and Technology offers a STEM curriculum at GCSE and A-Level.

There are also a number of independent schools in the area catering to students of all ages, in addition to the historic and internationally renowned University of Cambridge.

 

Unique selling points:

•  Catchment area for University of Cambridge Primary School

•  Thriving tech hub in Cambridge City Centre; Astra-Zeneca, Microsoft and GSK

•  Hyatt Hotel coming soon to Eddington

•  53 minutes* to King's Cross London

•  Innovative, modern homes set within beautiful green spaces with cycling and pedestrian friendly routes

•  1, 2, 3 bedroom apartments & 3 & 4 bedroom houses*

•  First phase of the development

•  Prices from £369,950*

 

Join us at our webinar on 25 March 2021 to learn more about the Cambridge Property Market and Knights Park.

25 March, 5.30pm Register here

 

 

Disclaimer: Jones Lang LaSalle Property Consultants Pte Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that the particulars do not constitute, nor constitute any part of an offer or a contract. All statements, contained in these particulars as to this property are made without responsibility on the part of Jones Lang LaSalle Property Consultants Pte Ltd, or vendors or lessors. All descriptions, dimensions, and other particulars are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of the each of them. No person in the employment of Jones Lang LaSalle Property Consultants Pte Ltd has any authority to make or give any representation or warranty whatever in relation to this property. This form was produced solely for preliminary orientation on the property and is not a sales documentation. It does not constitute any offer or part of any contract for sale or otherwise. It contains data that has been provided to JLL by third parties and while we believe it is reliable, we have not independently verified it and take no responsibility for it. The projections, opinions, assumptions or estimates are included for examples only and may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the Property and transaction. This is an overseas investment. As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand. Computer generated images are indicative only.  *Prices and details correct at point of publication. Terms and conditions apply.

23 Mar 2021

When most people think of the cities of Europe, London, Paris and Barcelona spring to mind, for living in as well as buying property. As a result, this tends to push their property prices up given the investor demand. But Europe is a huge continent with lots of bustling cities when plenty of potential if you are willing to look further afield.

One of these cities is Hamburg, which is Germany’s second largest city after its capital Berlin. Traditionally, Germany has not been a priority market for overseas property investors based in Asia. Most usually look at the UK, Australia and the US when it comes to purchasing a second home or an investment property overseas.

But more discerning investors have been looking at Germany as a way to diversify their property portfolios and improve their yields. Germany is also seen as lower risk than other markets like the UK post-Brexit. It also has the largest and most stable economy in Europe accounting for 20% GDP of the European Union (EU), which helps provide strong support for its real estate investment.

Plus Hamburg, along with other German cities of Frankfurt and Munich are regularly ranked in the world’s most desirable places in the world to live.

 

 

Strong backdrop

Did you know that there usually a shortage of suitable properties available in Germany? This is because it has strict housing policies that only allow a limited number of new-build constructions each year, restricting the housing supply. This also mean there are no wild swings in property prices but more stable and sustainable growth instead.

Germany has a very accessible education system with free education provided up to high school and no general tuition fees for public universities. At the same time, many German universities are ranked as some of the best in the world and more foreign students are now studying there. This opens up opportunities for graduates to work there, and across other parts of Europe.

It may come as a surprise but in Germany many people prefer to rent rather than buy. It is heavily embedded in the German culture. This strong demand for rental properties means there is a strong Buy-to-Let market which offers a steady source of income to property investors.

 

Why Hamburg?

Hamburg has around 1.8 million inhabitants and is both a city as well as a state. The metropolitan area is seven times greater than Paris and two and a half times greater than London. As a result, Hamburg has the largest average living space of all major cities in the world, leading to high standards of living and housing.

The city is known for its beautiful tree-lined waterways and lush parks. In fact, Hamburg boasts 2,302 bridges, which is more than Venice combined with Amsterdam.

On the economic front, Hamburg is a huge gateway to the world and home to Germany’s largest port. This has helped make it an extremely international and culturally-diverse city that has attracted more than 3,500 international firms and employers.

 

 

City in a city

Within Hamburg, a mini city called ‘HafenCity’ is being developed as part of its maritime district. More than 7,500 residential units for around 15,000 residents are being built, as well as business premises offering in excess of 45,000 job opportunities (of which 35,000 will be in offices), plus educational institutions, restaurants and bars, retail, cultural and leisure amenities, with parks, plazas and promenades – after overall completion, 80,000 visitors per day are expected.

This exciting project started in 1997 and is expected to be finished by 2030. This has opened up the number of properties available for purchase in Hamburg and its Buy-to-Let market is starting to flourish.

JLL is selling a unique complex within HafenCity called Roots. The residential tower is 19 floors high and the tallest wood hybrid building in Germany. The development is also home to the German Wildlife Foundation, and includes a museum and restaurant while sitting in a waterfront location.

Along with panoramic views over the River Elbe, buyers also enjoy guaranteed rental yields should they choose it as an investment property. These all make a very strong case to put Hamburg and the newly-developed Hafencity on your property radar.

To find out more about property investing in Germany sign up to our livestream event on Facebook on 18 March.

17 Mar 2021

The housing market has got the extended holiday many were hoping for and the clock is now effectively ticking for new buyers who haven’t yet started the process of purchasing a home to take advantage of a reduced Stamp Duty charge.

 

Stamp Duty Extended Holiday

 According to Rightmove data it has taken an average of 54 days to sell a home since the holiday was introduced in July, down from an average of 70 days in the 12 months prior.

Assuming the average time to sell a home remains at the current level, aspiring buyers have until 7th May to begin a purchase to take advantage of the holiday extension.

Overall the Stamp Duty holiday has provided a much-needed confidence boost to the housing market following its full closure in March last year. However, its previous cliff edge ending on 31st March always risked seeing sales fall through increasing anxiety for aspiring purchasers. The extension will provide welcome relief to those purchasers and open the door to additional buyers. There now needs to be clear signposting introduced to ensure the cliff edge is not just pushed further down the road.

 

2% overseas Stamp Duty surplus

This tax represents a big shift in UK Government policy away from an open trade policy – until now there has never been a consideration of an investors origin if they are looking to buy an investment home.

This tax will undoubtedly create some market resistance for an initial period until it becomes accepted. It should be noted that many other competing cities already provide higher levels of overseas taxation so the UK’s major cities should remain competitive on the international stage.

 

First Time Buyer Mortgages

95% mortgages have been all but non-existent for some time now so the Government’s mortgage guarantee scheme is hugely welcome news for aspiring home owners who have long faced mounting affordability issues.

 

Capital Gains Tax changes

The UK has obviously seen a significant increase in its debts as a result of supporting the country through the COVID pandemic. Those who can pay more tax, should pay more – that is only right and it fits with the levelling up agenda.

Nearly half of the UK’s privately rented homes are in suburban locations owned by small scale buy-to-let landlords. There could now be an increase in demand for this kind of housing stock from first time buyers looking to take advantage of the new mortgage guarantee scheme. The proposed changes to Capital Gains Tax could prompt of flurry of sales from landlords looking to exit before the changes take place. However, if there isn’t sufficient lead in time before the CGT changes take effect, it could reduce the volume of rental stock coming to market. CGT is ultimately a discretionary tax, and if homes become bloated with that tax, many landlords will opt to sit on their asset and wait.

 

Wholesale Review of Residential Taxes

Looking ahead, the Government has announced a Tax Day on 23 March and this could include the commencement of a widespread review of residential property taxes.

Reviewing how residential properties are taxed in the UK is long, long overdue.

Council Tax is based on residential values from 1991, which frankly are a very poor reflection of the current market. Meanwhile, Stamp Duty is a hugely inefficient tax which is ultimately a potential hindrance to the future economic prosperity of the UK. It makes no sense for people to find themselves ‘locked-in’ to their current home because of the tax burden of moving. People need to be able to migrate towards opportunities as easily as possible in the 4th Industrial Age and as part of the levelling up agenda.

Government also needs to acknowledge that we have an ageing population and SDLT is a hugely punitive tax for those looking to descend the housing ladder and right-size in later life. Without enabling more people to downsize, we face many people continuing to live inappropriate homes for their needs which in turn forces Government to have to increase expenditure on health and social care.

However, any significant changes in the tax system must be carried out with care, following a detailed consultation and with a sufficient lead-in time. Any replacement residential tax should carry a similar starting burden for individuals. The variance should then occur over time to allow householders to adjust their finances accordingly.

 

Overall Budget Conclusion

There are many welcome announcements within this Budget. However, solutions to the housing challenge must also focus on providing homes to suit a greater variety of end user needs. Society has changed and we must move away from the concept of blanket home ownership. We need measures to support an increase in purpose-built rental homes which will professionalise the private rented market, providing long-term, secure housing, and raising the profile of renting as an aspirational lifestyle choice.

And we need attractive, specialist later life housing which will help free up family homes and make more efficient use of existing stock.  With people living longer, the UK’s ageing population is typically under occupying family homes, but appropriate alternatives will encourage right-sizing.

Measures to address the housing market should be targeted at increasing all forms of supply, not just increasing demand for Private Sale housing only. 

 

Nick Whitten - Head of UK Living Research

12 Mar 2021

One of the big lessons from this year in real estate has been the pandemic’s resulting increase in demand for second lifestyle homes, not only among the ultra-wealthy but also the generally well-heeled, a trend that’s only gained steam as the year has unfolded.

With a vaccine still over the horizon, this shift out of city centres and into more spacious suburbs is spilling over into even more remote locales: mountain resorts, which have been growing in appeal with global investors.

Not only are these areas less densely populated, making it easy to adhere to social distancing, but the rise of work-from-home (WFH) supported by modern technology infrastructure has made it a realistic alternative for the slightly more affluent.

Activities like skiing and (in the summer months) golf are being indulged in across central Europe’s mountainous regions as a welcome pandemic escape, with home offices and ultrafast broadband ensuring work life is not put on the back foot.

Indeed, the whole idea of moving back to nature where life happens at a slower and more relaxed pace, and where homeowners can focus on wellbeing and health, has been a key trend in the real estate sector in a year that will be forever remembered for COVID.

But even so, there have undoubtedly been winners and losers among those offering luxurious remote living.

 

COVID escape: Health and wellness done sustainably

Developments that focus on advancing net-zero carbon goals, where buildings are highly energy efficient and powered by renewable sources, and where the promotion of green living is central to the development’s core concept, will thrive as a matter of future-proofing investments.

Premium mountainous real estate developments like Andermatt Swiss Alps in Switzerland, along with a handful of others in Europe, the US, and Asia, tick these sustainability boxes.

With well-established local infrastructure and connectivity, homeowners can be online 24 hours a day seven days a week, remaining productive at the (home) office despite their apparent remoteness.

At the same time, investors benefit from year-round activities that include those already mentioned (skiing and golf) but also extend to healthy lifestyle staples like trekking and cycling.

We expect to see more families prioritising “naturesque” safe-haven homes, for all or part of the year, in the decade to come.

In Switzerland in particular, not many areas allow for foreign ownership of real estate.

This means that, in the long run, investment in these developments is likely to yield strong returns as supply inevitably outstrips demand, putting pressure on prices to appreciate.

According to new research by JLL, health and wellbeing themes have emerged as measurable physical attributes that real estate investors increasingly look for in light of the pandemic, in order to secure a better quality of life for themselves and their families.

Notably, Asian buyers too are feeling the pull of Europe’s snowy peaks as COVID drags on.

As just two examples, studio houses in ‘Frame’, a new apartment block at Andermatt Swiss Alps that has been on the market since summer and will be finished in Q3 2021, has seen 10 per cent of all sales from buyers in Singapore.

With an expected completion date of Winter 2021, newly launched apartment block ‘Alma’, which comprises ten expansive half-floor residences and one whole-floor penthouse, is already 70 per cent sold – despite the pandemic’s impact on global property inflows.

 

 

Roughly 1 in 4 buyers across Andermatt’s multibillion-dollar development now hail from key Asian cities such as Singapore and Hong Kong.

Moreover, we’ve seen a 45 per cent increase in apartment rates for all units at Andermatt as of July 2020 (compared to the same period last year), with total sales increasing by 53 per cent.

Such data points act as further evidence of the growing appeal of Alpine living.

 

Why Switzerland fits the bill

With COVID firmly established as the backdrop du jour, Switzerland has emerged as an ideal investment destination – and there are a few key reasons for this.

Thanks to a strong domestic consumer that continues to drive sales of second homes in mountainous regions away from densely populated cities, local economies in these areas have proven resilient despite the global shock.

As already touched on, sustainability does matter to a new generation of real estate investors.

Andermatt Swiss Alps is leading by example on this front, with a five-year plan towards achieving carbon neutral underway despite so much of the development already being integrated with the surrounding natural environment.

 

 

Specific green initiatives include careful management of natural resources, golf courses that provide areas for nesting birds, a no ‘cold beds’ targets for holiday apartments, noise reduction, cooperation with local businesses, environmental impact monitoring, carbon neutral heating, and electric power from 1,005 renewable energy sources.

Green credentials aside, Switzerland is no slouch on hard investment economics, either.

Its record speaks for itself; returns on investments in a diverse selection of properties at Andermatt Swiss Alps has averaged 8 to 10 per cent per year over extended periods of time.

 

 

Once you factor in property appreciations along with rental yields, the return profile is clearly competitive with US equity market averages after dividends.you send us the test first??

Moreover, the security of the Swiss Franc, the prospect of growth in capital values, and the viability of rental demand continues to speak well to buyers.

 

A safe, central hub during a pandemic

In general, ownership in mountain regions tends to be a part-head and part-heart decision, where investors can enjoy the health and wellness elements of mountain living without sacrificing access to major European hubs like London, Frankfurt, Paris, and Rome.

It’s now beyond dispute that the Coronavirus crisis has made people all over the world consider how they plan to live in future.

Contrary to initial expectations, demand for property and sales volume in regions like Andermatt has grown substantially this year, as well-heeled buyers come to appreciate the safety, flexibility, and health opportunities such locations represent.

More broadly, the luxury housing market in Switzerland has performed well with prices increasing by 3.6 per cent over the last 12 months, according to Wuest Partners.

In our view, demand should continue to grow as the feasibility of remote working improves and the necessity to be within proximity of the office becomes less of an imperative.

 

 

For further information contact JLL International Residential directly at internationalresi@ap.jll.com.

01 Dec 2020

Shortage in supply of new-built condominium pushes up demand in resale market

The sustainable growth of the Japan property market has been supported by a steadily growing population in the metropolitan areas. As such, the shortage in supply of new-built condominium is leading more people to turn their eyes towards relatively new condominiums in the resale market.

The Japanese traditionally favour new-built housing, but recent trends tell us that there has been a change in people’s perceptions towards the age of a building or property. In this report, we will look at more insights from the recent trend in the resale market.

 

Demand for housing remains strong

The population growth in metropolitan areas like Tokyo have been showing a steady increase. COVID-19 has changed our living and working styles in various ways, but the impact on housing demand is limited. Market observers commented that more people from the city central areas are moving to spacious houses in countryside when working from home (WFH) was being introduced during the state of emergency in April 2020. Indeed, according to the survey by Tokyo Shoko Research survey, 56% of companies adopted WFH at the time. However, in August, the number of companies who continued to WFH was reduced to 34.40%.

 

Survey on Working From Home 2020

 

Large companies have higher adoption rate of 61.31%, which is almost double that of mid-to-small size companies.

 

 

Participant Rate of Working From Home - Aug 2020

In terms of participant rate, majority of large companies responded that no more than 30% of their employees adopted WFH. Even so, majority of these employees WFH only partially, i.e. biweekly or a few days in a week. Therefore, relocating to countryside is not a practical option for the majority, as commuting to work is still required and thus good connectivity remains important.  

Looking at the demographic movement in Tokyo, COVID-19 did affect the population movements, but not to the extent to call it as a population outflow. Indeed, demography by nationality showed the decrease in population was largely contributed by foreign residents returning to their countries. As of August 1, Japanese population has increased by 58,114 comparing with January, while foreigner population has reduced by 4%.

 

 

In the long term, population growth is still in an upward trend.  If we look at the population growth oOn year –on- year basis, the Japanese population remains in healthy growing trend compared to last year. Therefore, the impact of COVID-19 on population growth is limited to the foreigners which attributes to a short-term factor and has not affected the long-term growth greatly.

Here I would like to highlight that in the long-term, population is growth has not been affected that much. Though there wasn't the regular April population growth due to state of emergency, but population is still in growth trend, so COVID-19 didn't hinder the population growth much. Y0Y basis, it is still in growing trend 

 

Fortunately, real estate sales activity has sprung back to what it used to be before COVID-19. There is still a great demand for condominiums from the local owner-occupiers and the decrease of foreigners do not seem to affect sales. When businesses resumed after the state of emergency, local buyers started actively looking for housing like before. On year-on-year basis, there were even more transactions in the resale market in August 2020.

 

Shortage of supply in new-built condominiums

In recent years, the supply of new-built condominiums in Tokyo has been decreasing, despite the growing population and housing demands. The choice limitations turned buyers to the resale market for secondary alternatives. Land acquisition has always been very competitive in the already developed central areas in Tokyo. As city urbanization continues, the shortage of supply in new-built properties is expected to push up the demands of resale apartments.

The next graph shows the transaction volume of resale versus new-built properties in Tokyo 23 wards over the past ten years. The transaction volumes of resale market showed a gradual increase, while the new-built condo supply slowed down after 2013.

Properties below 20 years are actively sought after

New-built housing has always been the most preferred option for Japanese, because historically, houses in Japan were built by wood. It was believed that the newer the house, the better would be its durability. However, the situations are different today. With fewer new-built options and the advancement of superior construction qualities, resale apartments are generally now more accepted.

As more buyers opt for resale markets as a substitute for new-built apartments, it resulted in most transaction volumes concentrated in the relatively new buildings with age below 20 years. In terms of the transaction ratio against the supply, the buildings aged between 6 to 10 years show the highest demand last year, followed by those of 11 to 15 years, 16 to 20 years and 0 to 5 years.

 

Recommendation is up to 15 years old

The observations showed that the highest transaction volume is for resale properties within 20 years old. Therefore, investing in property below 15 years is the best recommendation when we consider the exit timing as well. Although buildings of 20 years old may sound “old” for overseas investors, the locals feel differently. Traditionally, the Japanese adore new-built properties, but more people are now realizing that the construction qualities after the turn of the millennium have become excellent to provide strong durability. This is especially so for properties from established developers which are well-maintained in very good conditions, that makes  little difference when compared to the new-built ones.

Many Japanese developers have their own prestige brand names for their condominiums. Therefore, they put in their utmost efforts in maintaining their quality and reputation. Often, the building management is by developer’s subsidiary company so as an assurance that the same brand quality will be achieved.

Because of the superior construction quality, it is unlikely that owners of such condominiums will need to pay substantial amounts for maintenance in the first 10 years. That is why many property management companies offer guarantee plans that cover minor repair costs, as there is not much expense expected during that timeline.

After the first decade, some replacements of appliances like air-cons, dishwashers, water-heaters may be required due to service lifespans, but in general, the properties will look no inferior to new-built ones and are equally competitive in the markets.

 

Property price continues to grow in prime locations

Both resale and new-built condominiums in Tokyo have been on a steep price growth since 2013. The growth until 2016 were largely affected by the great expectations towards Tokyo Olympic game, which has brought significant impacts on the property markets not only in Tokyo central, but also to surrounding areas. The growth in the most recent years was due to more sustainable and rational factors. Good connectivity, prime locations, redevelopment and superior quality apartments are enjoying appreciation, whereas those properties without these factors are being left behind from the continuous growths.  

The demand for a good property in terms of quality and location is expected to remain strong in central area, as working in office is still a daily norm for majority. The shortage of new home supply will continue, as land acquisitions will remain competitive in prime locations, which in turn will push up values of the existing good properties. It is therefore a good opportunity to widen your options to consider resale properties with strong growth factors.

Back in 2013, almost any property near Tokyo could have price appreciation, but now, the real "good" property can continue to grow.  

 

 

For more details you may contact JLL International Residential at +65 9671 9583 or internationalresi@ap.jll.com

 

 

19 Nov 2020

Latimer Homes launches high-spec apartments and townhouses in the heart of thriving Salford Quays, home of MediaCityUK

 

The UK's fastest-growing economy outside of London, Manchester in North-West England offers the best of modern city living at more affordable prices than the British capital. The former textile powerhouse is today best known for its sports and culture scenes, but a thriving economy and strong and stable property returns are making Manchester a compelling option for overseas property investment in Europe.

As employment, educational and social opportunities continue to draw professionals and students to Manchester from far and wide, the supply of new housing is struggling to meet the high demand, driving up prices and creating opportunities for developers and investors. Property values in Manchester have grown by 19 percent since 2016, according to the Land Registry, and Jones Lang LaSalle (JLL) is projecting a further 17.1% increase in the next five years, with consistent growth of 3 to 3.5 percent per annum in sales and rental prices.

Manchester's urban regeneration is creating opportunities for developers to address this shortfall and add more homes to sought-after areas, particularly in the popular waterfront district Salford Quays. New developments such as Amplify Apartments by Latimer Homes are providing contemporary homes within walking distance of local attractions and a short tram ride from the city center.

 

Thriving waterfront community

Salford Quays can trace its history back to the Victorian period when it was one of the UK's busiest commercial docks. Following the closure of the docks, this prime real estate close to the city center was transformed into a fashionable business and leisure district, incorporating notable cultural venues such as The Lowry Theatre and Imperial War Museum, watersports centers and media hub MediaCityUK, the new home of the BBC and ITV Studios.

Salford Quays is less than 15 minutes from Manchester city center and business parks, making it a convenient address for living and working in the city. World-class facilities and international connections at nearby Manchester Airport have convinced many leading global brands, including Google, Amazon, Adidas and 80 of the FTSE 100, to establish regional offices in Manchester. With more than 1.4 million people working in the Greater Manchester area across sectors ranging from legal and accounting to fashion, media and retail, the city's diverse economy is projected to grow by 2 percent per annum, above the UK average.

Manchester is also a major university city, where over 100,000 students attend 10 notable institutions including the local Salford University, University of Manchester and Manchester Metropolitan. With a 59 percent student retention rate, most young people prefer to continue living, working and renting in Manchester after graduating, contributing to the steady demand for well-connected property.

 

Riviera lifestyle

Amplify Apartments at Salford Quays combines scenic waterfront living with access to the best Manchester has to offer via convenient tram and road links. Buyers have a choice of one, two or three-bedroom apartments and duplex townhouses, with a help-to-buy scheme and Shared Ownership options offering a choice for every budget.

All residences are appointed with high-spec fittings including integrated Bosch appliances, connected media services and full-height windows making the most of natural light and views over The Quays from the higher floors. More views can be enjoyed from the private residents' rooftop garden, while a hotel-style concierge in the entrance lobby can take care of all requests.

 

For more details about Amplify, you may contact JLL International Residential at +65 9671 9583 or internationalresi@ap.jll.com

02 Nov 2020

Despite the challenges posed by Covid-19, new housing schemes, developments and initiatives in the UK continue unabated.

The beauty of a city like London is that it has such a wide variety of vibrant districts spread across its vast metropolis. Most of these are steeped in rich heritage, dating back to Victorian times and beyond.

One of the lesser-known areas in central London, is called the Silk District and sits in the east of the city. Back in the 17th century, the Hugenots were forced to flee France and brought their silk-weaving skills to this part of London. Before that you couldn’t buy silk in England.

While most Londoners will know the area as Whitechapel, the Silk District is being revitalised thanks to some new regeneration projects. This historic part of the city currently ranks in The Telegraph's Top 20 Places to Invest in London.

 

Whitechapel vision

The Mayor of London’s “Whitechapel Vision” is a £300m investment to improve the local area, creating a new shopping destination, public squares and first-class educational opportunities.

The regeneration plan aims to create 5,000 new local jobs, a new street market, seven public squares, a research campus, parks and a medical research centre.

 

Widya Lesta, Head of International Residential, JLL Singapore said:

“Whitechapel's proximity to both London's major financial districts and ongoing regeneration promises it to be a key destination for impressive buy to let investment growth.”

 

Up-and-coming neighbourhood

The area is a magnet for city execs, technology workers and creative types with the ultra-cool Shoreditch enclave close by.

A major part of the regeneration includes the opening of the high-speed Crossrail train network in 2021. When this opens, residents can reach Central London in 10 minutes or less. This improved connectivity is likely to spur healthy rises in property values in locations that have Crossrail access.

“There is currently huge appetite to invest in Whitechapel,” Peter Gibney, director at JLL, commented.

This area was first identified by JLL’s Crossrail tool as offering the highest price growth potential compared with other Crossrail stations.

Together with the emerging creative commercial hub and unparalleled convenience of location for both work and leisure, Whitechapel looks set for demand for residential investment opportunities to continue to outstrip supply.”

 

 

“Neighbouring high-performing areas like Old Street and Spitalfields have seen staggering returns over the last five years, which demonstrates the best is yet to come.

The Bouchon (the last phase of The Silk District) offers a great opportunity for savvy buyers and investors, and it’s the last chance to buy in this up-and-coming development.”

Even without Crossrail, the Silk District and wider Whitechapel is on the edge of London’s city centre located in the Zone 1 transport network.

In fact, the Silk District is excellently located in between two of London’s largest financial districts, the City of London and Canary Wharf.

 

Strong growth

This part of London is predicted to grow strongly by 2024. The average price growth of the Silk District development is expected to be more than twice that of other new builds in the same postcode.

While London’s financial districts are very close, so too are a number of world-renowned universities including Queen Mary University, UCL, London Metropolitan University and King's College, which are all within 15 minutes.

The Silk District’s close proximity to these financial and educational centres guarantees a steady influx of people looking to rent or buy properties. And with a low price per square foot compared to neighbouring boroughs, the Silk District is ranked top by JLL for future price growth potential.

 

New developments

The Silk District development is designed by Stockwell Architects and features a 24-hour concierge, secured underground parking, a cinema room, a private gym, rooftop gardens and a large commercial space.

 

 

We have already successfully launched three phases of the development and now the fourth phase is ready to launch. For investors, a two-bedroom rental property in the Silk District could command a premium rental price and capital appreciation over the next few years.

Ongoing area regeneration and Crossrail’s arrival is the catalyst for a 25% projected price growth by 2024.

This weekend, 16th – 18th October, JLL Singapore will launch the final phase of The Silk District – The Bouchon.

It is the tallest building in the development, rising to 25 floors, offering stunning views of Canary Wharf and the City.

“The Bouchon offers would-be buyers the last chance to buy within our development, The Silk District, which is scheduled for completion in spring 2024,” Jon Hall, sales director at Mount Anvil.

Could Whitechapel’s Silk District be the investment opportunity you are waiting for?

Register your interest here.

 

Download our brochures for more information:

The Silk District, The Bouchon
Download Brochure

The Silk District, The Bouchon
Download Factsheet

Whitechapel Investment Guide
Download PDF
14 Oct 2020