Research indicates that this is due to the good experience enjoyed by many foreigners in Japan which is spreading by word of mouth overseas and accelerating the demand for long-term residences in Fukuoka.”

 

 

As the fastest-growing major city in Japan outside the capital area, Fukuoka has been tempting workers and entrepreneurs away from the larger cities for decades through its lower prices and more relaxed lifestyle.

 

Fukuoka, the largest city in Kyushu Island in southern Japan, is becoming one of the top tech start-up cities in Asia.

Fukuoka is particularly attractive to investors due to its local and international transport connections. It is an economic and transportation hub on Kyushu Island.

Tax breaks, relaxed visa restrictions and convenient international travel are making Fukuoka property highly sought-after by foreign investors.

 

Rin Chiniku, Miyoshi Real Estate, explains:

“Rental trends in Fukuoka's real estate market remains positive.

Statistics showing that more than 60% of people living in Fukuoka are renting properties. Rental demand is consistently high and this is reflected in the increasing average rental rates.”

“We are seeing greater number of foreigners moving to Japan for education and advanced medical treatment, and they are also looking to rent or buy in the housing market. A number of these are choosing to reside permanently in Japan as well.

This segment of the market is not a new trend and we have had similar demands before. However, these is a recent boom in foreigners moving to Fukuoka not for sightseeing or short stay, but with the intention of residing on a long-term basis.

Research indicates that this is due to the good experience enjoyed by many foreigners in Japan which is spreading by word of mouth overseas and accelerating the demand for long-term residences in Fukuoka.”

 

 

As the fastest-growing major city in Japan outside the capital area, Fukuoka has been tempting workers and entrepreneurs away from the larger cities for decades through its lower prices and more relaxed lifestyle.

It's especially popular with younger generations, fueling high demand for rental units in the inner city that continues to drive up property prices.

 

Takahiro Yonei, Mitsubishi Jisho Residence, said:

“With the increasing population of young people comes increasing demand for family-type layouts such as 70-80 sqm layouts consisting of three or four bedrooms.

This is paralleled with higher demand for 40-60sqm units due to the rising number of single professionals moving to Fukuoka for work.”

 

Designated one of Japan's Special Economic Zones, Fukuoka has more to offer than just a strategic location. With residential and office rents up to 50 percent cheaper than Tokyo, the international city offers attractive prospects for overseas property investment.

Because of the tremendous social and economic activities in Fukuoka, investors can look forward to high rental yields. Fukuoka is an excellent choice to benefit the luxury of living while they invest in properties at a very low cost.

 

For further information contact JLL International Residential directly at +65 6220 3888 or internationalresi@ap.jll.com 

13 Mar 2019

The UK economic and political landscape has been dominated by Brexit over the past 2½ years. The next 2½ years are likely to be similar, albeit dealing with a different phase of the process.

Inevitably, the UK will collectively refocus attention on domestic policies as the sphere of influence from Brexit diminishes. And there are plenty of housing issues that need addressing – affordability, taxation, regulation in the private rental sector, affordable homes, housing supply, lack of skilled labour and digital construction are just some of the issues to address.

 

Highlights include:

• Loans to Build to Rent landlords have fallen 46% since the Brexit referendum and July 2018

• The UK is still far behind its target of 300,000 new homes a year by 2020, but delivery is speeding up

• Tech is likely to provide huge disruption over the next 5 years, with digital construction, building information modelling and smart tech all playing a role

• Central London house prices are forecast to grow at 15.3% over the next 5 years

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +6562203888

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13 Dec 2018

Despite several high-value transactions during Q3 2018, the Prime Central London sales market suffered a setback to its recovery during the quarter.

On average, prices fell marginally during Q3 having increased in the preceding two quarters and transaction volumes also slowed too. 

The lettings market benefited from a stronger quarter, if a little down on Q3 2017. Rental values increased across all price ranges while turnover experienced its usual Q3 boost. 

Looking forward, we expect a brighter future for both Prime Central London sales prices and rental values. We believe that some kind of Brexit deal will be agreed in the coming months which will remove a degree of uncertainty and instil much needed confidence into the Prime Central London market.

 

Key highlights include:

• Sales prices fall in Q3

• Transactions slowed further

• Rents rise in Q3

• Students bolster the market

 

 

If you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +6562203888

 

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14 Dec 2018

At first blush, the UK’s new tax laws which seemingly choke out small investors — combined with overall Brexit uncertainty — should create trepidation for investors eyeing the UK real estate market. However, based on government appropriations and investment patterns now is the time to be bullish on the UK property market, not bearish. 

 

Government Appropriations 

The National Needs Assessment (NNA), the UK’s vision for infrastructure, states that billions of pounds will be appropriated to the UK’s high-tech, scientific and digital economies.

With an already attractive GBP exchange, overseas investors will be interested to note specific points of the NNA as the UK in its entirety is expected to benefit from the projected transformation:

 

・ Infrastructure is undergoing revitalization in the UK with HS2 absorbing  £1 billion by 2026. The super-efficient connections made by HS2 will be nothing short of an economic boom. Birmingham, for example, will be within the range of becoming a commuter city for London workers, thereby economically benefiting both cities.

・ English city transport systems will benefit from a stimulus of £1.7 billion which is an additional injection to HS2 funding.

・ Over £500 million will be invested in a range of initiatives from 5G (and full fibre broadband) all the way to creating the world’s first national advisory body for artificial intelligence (AI). The action plan is designed to help scale-up businesses.

・ The main R&D tax credit will be increased to 12% in the spirit of increasing national productivity and growth.

 

 

Photo: Unsplash

 

Overdemand & Generation Rent

Adults are now renting for longer periods of time. Peer-to-peer lending platform Landbay reveals that single UK tenants outside of London spend an average of over 50% of their disposable income on rent.

Within the enviable capital city, the stats are even more staggering at nearly 89% of renters’ disposable income. According to a Frank Knight report, about 5 million households are privately rented in the UK, and this figure is expected to rise to 5.9 million by 2021. That equates to about 24% of the UK population.

Buy-to-let investors will appreciate the growing trend of more massive developments allowing for cost-effectiveness with its built-in management model, comparable to a five-star concierge service.

Such schemes also enable leveraged buying power for amenities such as gyms, rooftop bars, lounges, and even theatres. The net effect results in happier tenants (extended contracts) and landlords with less stress.

 

The buy-to-let trend is further fueled by a £3.5 billion build-to-rent fund. Within this legislative appropriation, funds are even allocated to stimulate loans to qualified landlords. 

The bottom-line is to buy and hold until the new implementation has had time to take effect. The rebound slowly emerging is projected to come into swing starting in a few years as some stated budgetary appropriations from the government will not effectuate until early next decade. The NNA even goes as far as 2050 with its milestones on this plan.

According to statista.com, UK housing is forecasted to have a cumulative growth of 12.6% between 2018 and 2022. Due to the fact that regulatory and tax changes are already creating upward pricing pressure on rental rates throughout the UK, the growing pains from such changes have created an exodus of small-scale investors.

The challenges imposed by the government’s tax changes are inevitably passed on to tenants’ rental rates priming the next stage for perhaps a more cautious approach to the economically-essential landlord side of the buy-to-let market. 

The infamous UK real estate issue of overdemand and undersupply play to the advantage of investors who have a steady hand as they weather beyond the short-term turbulence.

A lack of supply of UK housing may also help to explain the healthy average monthly rental rate increases which weighed in at 0.13% according to Landbay Rental Index. This is the most significant monthly increase since April 2016.

 

Photo: Kings Cross, London by Callum Chapman, Unsplash

 

Foreign Direct Investment (the numbers don’t lie)

Whereas concerns stemming from Brexit would be expected to dampen the parade for UK real estate, in 2016 (the year of the Brexit vote) Britain’s foreign direct investment increased to £145.6 billion.

The year 2015 was a mere fraction at £25.3 billion. In fact, according to Reuters UK, 2016 held the largest recorded figure since the beginning of data compilation. The first half of 2017 saw an impressive 14% of global commercial property transactions taking place in the UK, second only to the USA. (source: www.gov.uk)

Despite the aftermath of Brexit news, London currently ranks third for global cities as listed by Schroders:

“...we have made no negative revisions for London due to a perceived loss of growth from the vote to leave the EU. London remains one of our favoured places to invest.”

The overseas investor has the advantage of not being adversely affected, in a boots-on-ground sense, by the UK’s internal economic turmoil yet benefits from the currency arbitrage of a weaker British pound.

 

“Look before you leap for as you sow, ye are like to reap.”

—Samuel Butler

 

Concluding that the UK real estate market is ripe for investment simply due to statistics and county-wide budget allocations alone certainly would be a quixotic, half-witted assessment.

However, with an experienced real estate firm behind you and sufficient due diligence on the property and its location, the odds of enduring small economic storms and emerging smelling like a rose exponentially increase. 

Thanks to generous government appropriations, market dynamics and a low GBP exchange, the timing is ripe to invest. The history-steeped capital city with its world-class culture and education is becoming part of a stronger and well-diversified investment picture now encompassing the entire UK.

 

For more information about residential properties across the UK, please contact us directly at +65 6220 3888 or internationalresi@ap.jll.com 

 

10 Oct 2018

With several new residential developments and the opening of the new Elizabeth Line, interest in West London is once again on the rise, following several years of East London domination.

While the opening of the Elizabeth Line (Crossrail) has been delayed, the new transport options will nevertheless change the face of West London, opening up new areas not only for commuters into the West End but also into the City and Canary Wharf.

It will continue to be the catalyst for development, especially in close proximity to Crossrail stations. Furthermore, some locations not renowned as commuter towns will be transformed by new residents. So expect West London to see a major makeover during the next decade. 

In addition to Crossrail, it looks like the Heathrow expansion will be given the green light, adding a third runway to the airport by 2026.

The expansion of Heathrow Airport will bring important revitalisation to some areas of West London, creating around 60,000 jobs and generating around £70bn in economic benefits by the 2050s. The new runway will increase capacity from 86m to 130m passengers a year. 

These large scale infrastructure projects will mark a new chapter for West London.

 

Highlights include:

• Acton has been a buzz of development activity in recent years, with 1,425 unit completions since 2014

• Brentford and Kew Bridge have the most units currently under construction in West London with 1,265 units underway

• Ealing will benefit from the opening of the Elizabeth Line and is currently at the top end of new build pricing in West London, with properties reaching up to £1000 psf. 

• Hayes & Harlington and Southall, positioned to the northeast of Heathrow, will benefit from the Elizabeth Line, with the area being host to the most extensive planning pipeline in West London

• West Drayton and Drayton Gardens, one of the westernmost villages in London, has seen significant residential development, with 1,141 completions over the past 5 years

• Uxbridge has seen a surge of residential development activity in recent years, with 628 units currently in the planning pipeline. 

 

 

If you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +6562203888

 

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14 Dec 2018

The UK housing market is adjusting to varying levels of political and legislative change, but the 'New Housing Paradigm' is about a bigger, structural shift.

A supportive environment for capital flows into the housing market over recent years is expected to close. Digital construction will also play an increasingly important role in housing delivery. Our new report - JLL Forecasts: The new housing paradigm considers the impact of these changes on market performance over the next 5 years and looks at how the UK housing market is expected to perform in 2018 and beyond.

 

Key Highlights:
• More moderate UK house price growth for the next 5-10 years
• Brexit will remain a short-term drag on the UK housing market
• New Housing paradigm good for government, the economy, buyers, sellers and industry participants
• UK house price growth are set to ease
• UK transactions will improve at a moderate rate
• UK housing starts to remain buoyant

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20 Apr 2018

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London’s City Fringe is broadening its geography, with areas such as Shoreditch, Hoxton, Aldgate and Whitechapel now considered bona fide City Fringe locations. New digital businesses are a driving force but a significant increase in residential development, to support a new and younger demographic and the growing trend towards city living, has also been instrumental. 

 

With much residential development and expansion to the east, especially around City Road and Aldgate, The Elizabeth Line (Crossrail) is also bringing City Fringe contender Whitechapel into the mix. Furthermore, western fringes of the City are also growing as residential locations, with several developments in the Chancery Lane area. Construction activity has never been as high as it is today, with 4,339 units under construction. The outlook is also exciting with almost 5,000 units likely to be built over the next 5-10 years.

 

Here is a sneak peek of what you will find inside.

CITY & CITY FRINGE

 

• Central City, although usually muted for development, has several schemes under construction

• Momentum is gaining along City Road with a number of developments nearing completion

• Whitechapel, situated on the new Elizabeth Line, will benefit from better connectivity to Canary Wharf, the City and West End

• More than 1,150 private units have been completed in Aldgate in the last 5 years

• Developments in the most central locations of the area can push above £2,000 psf

• The lettings market is very active, with over 600 new unit completions each year over the past four years, meaning plenty of developments to choose from.

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +6562203888

15 Oct 2018

Traditionally, Germany has not been a priority market for Singaporean overseas property investors. Most Singaporeans usually look at the UK, Australia and the US when it comes to purchasing a second home or an investment property overseas.

However, in the space of the last few years, more and more discerning investors have been increasingly looking at other countries such as Germany, as they look to diversify their property portfolios and mitigate risk.

 

With the current uncertainties in the world, such as the sentiments around Brexit and the ongoing trade issues between the US and China, many investors in Asia are naturally looking towards less volatile, safe haven markets to invest in.

 

  • ✔ Germany has the largest and most stable economy in Europe accounting for 20% GDP of the EU, and fundamentally provides an exciting backdrop for real estate investment.

 

  • ✔ Germany is one of most politically stable countries in the world, with a strong government that aims to promote continuity, stability and sustained growth in the country.

 

  • ✔ Germany has a well-established housing market which offers attractive returns with lower risks. A PricewaterhouseCoopers (PwC) survey titled ‘Emerging Trends in Real Estate Europe 2018’ named the German capital, Berlin, as ‘the most desirable city by investors’ for the fourth consecutive year.

 

  • ✔ Along with Berlin, three other German cities - Frankfurt, Hamburg and Munich - were ranked within the top ten most desirable cities in the world to live in.

 

So let's have a closer look at why Germany is probably one of the most attractive places in Europe to consider investing in right now!

 

Is it a safe investment?

With the highest GDP and the largest population in Europe, Germany boasts a well-established market with a diverse, highly developed economic, cultural and social framework.

The ‘Made in Germany’ label is well-known for the highest quality. Together with the US and China, Germany is one of the world’s top three exporting countries, making it a favourite destination for international investors. And, because of its progressive educational, work and social policies, Germany has one of the lowest unemployment rates in the world.

Property values in Berlin have increased over the past 18 months, generating €9 billion in property deals in the first three quarters of 2017 alone, making this country Europe’s second most active market after London.

Why has there been a recent increase in interest in properties in Germany? There are many reasons, including the current political and social changes that are now sweeping across Europe.

 

Is the growth sustainable?

There is usually a shortage of suitable properties in Germany. Germany’s strict housing policies only allow a limited number of new-build constructions each year, contributing to the restriction of the housing supply. This prevents speculative developments, like in many other areas around the world, which tend to drive prices downward.

Although there has been a dramatic increase in property purchase prices and rental rates, especially in cities like Berlin, industry watchers believe that this growth is sustainable due to good management practices in place, as well as a strong focus on the renovation of existing properties.

 

What about urban infrastructure?

With a high number of established, historic cities and urban areas - more than 70 German cities have more than 100,000 inhabitants each - the country has a great infrastructure, an important consideration when it comes to the attractiveness of a location.

German cities offer a holistic mix of residential and commercial areas, pleasant public spaces and highly efficient transport, resulting in a quality of life that is one of the best and safest in the world.

The search for a good work-play balance is shaping many cities and urban areas in Europe. The boundaries between work and lifestyle are increasingly overlapping, but German cities are well-poised to embrace these changes for future generations.

 

 

Can my kids study in German universities for free?

Buying an overseas property is both a great investment and a way to provide the comforts of home to children studying in university. German people believe education should be free. Therefore, many public universities in Germany offer tuition-free university education for both domestic and international students. More and more Singaporean parents are choosing to send their children to study in German universities, which are ranked as some of the best and most prestigious in the world.

For example, Munich’s Ludwig Maximilian University, founded in 1472, is one of Europe’s best research universities, with 34 Nobel laureates associated with it. In Heidelberg, the University of Heidelberg has been associated with at least 33 Nobel prize winners, and is one of the most popular universities in Germany for foreign students. It has a student population from at least 130 countries worldwide.

Its progressive educational policies and quality vocational training has resulted in Germany having one of the lowest unemployment rates in Europe and the world, as well as having a highly skilled workforce that will continue to drive its vibrant economy.

 

How about long term visas for non-EU nationals?

To further drive the German economy, the German Residence Act allows qualified foreign investors and entrepreneurs to obtain long-term ‘D’ visas and temporary two- or three-year visas, which can be prolonged into permanent residence status with a minimum investment of €200,000 to 250,000 (2017) in the country.

Family members of visa holders also get residency status in Germany, and can also qualify for German citizenship after eight years’ residency in the country.  Germany is also a member of the EU, which allows its citizens and residents free trade and passport-free movement between its 28 member states.

Thus, buying in a property in Germany is not only one of the best investment decisions a Singaporean investor can make in terms of long-term returns, but it also opens up the doors  for you and your children to be able to live and work freely in any country in Europe as well!

So as you can see, there are many reasons to invest in German properties right now. Where do you start? As with any investment, the best approach is to do your research, and get as much relevant information as possible before you make any decisions. Read our Investment Guide or talk to a real estate professional who specialises in overseas property investments, and they can guide you in making the best decisions for yourself and your family.

 

View investment properties in Germany

Schedule a meeting with our real estate agent here

 

 

For further information please contact JLL International Residential directly at +65 6220 3888 or internationalresi@ap.jll.com 

13 Feb 2019

The half-yearly publication provides a detailed market analyses of the residential property market in Berlin. All relevant parameters for the market analysis are presented in detail and are broken down into the individual districts. Supported by charts and tables, the series provides a unique overview of the most important residential markets in Germany.

Here is a sneak peek of what you will find inside.

Tables and charts including: 

✔   Rental prices for building periods and unit sizes per district

✔   Purchase prices and purchase price bands per district

✔   Selected transactions

✔   Rental price maps of the districts

✔   Residential property clock and rental price bands per district

✔   Economic, demographic and jobs-related indices

✔   Number of private households and residential buildings per district

✔   Residential property stocks and vacancy rates

✔   Stocks, completions, average building sizes and vacancies per district 

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13 Dec 2018

For investors looking to find new homes in other countries or grow their money in the long term, investing in international properties is an excellent bet. As local real estate markets display sluggish performance and modest opportunities at best, looking beyond your borders can present bountiful prospects for capital appreciation. Popular investment regions include the UK, Japan, Germany and USA. Here’s an in-depth look at why investing in overseas properties is a wise move.

 

1. Derive sizeable passive income

Renting out your property is a sure way to generate a passive income. Having these proceeds can mean different things for different people. Depending on the amount and regularity of this income, it can help finance a mortgage, be used for future investments, or even be a key source of earnings for someone to live on. The relatively stable nature of real estate (as opposed to stock markets, for example) makes it a safe asset to have even in the face of property price swings and market volatility.

 

2. Diversify your portfolio with a global edge

Real estate is a valuable addition to your current investment portfolio. Just as diversifying your portfolio can provide security and greater potential for returns in different sectors, so does investing in property globally, which lets you enjoy the economy of more than one country by generating cash flow in different currencies. This means that you are not restricted by the economy in which you’re based, as the future of your investments is not wholly determined by your country’s economic performance.

Additional benefits include (a) ensuring that you pay close attention to markets across different regions which can also boost opportunities for your other investments, and (b) expanding your real estate know-how as you mingle with international networks and discover the limitless potential you have for investing.

 

3. Leverage robust growth rates internationally

Investment benefits abound overseas, and these same advantages may not always be available in the country you now live in. Economies that are opening to free market policies as well as emerging markets across Asia have higher growth rates, which are impacted by factors such as corporate revenue, regeneration, migration and fertility rates.

Examples of international property investment benefits include:

-  Protection against inflation, as real estate is a tangible asset with an inherent value separate from paper currency and its constant fluctuations

-   Multiple uses to generate further income by renting out your property, converting it from a permanent residence to cater to the tourism industry, or using it for other commercial purposes

-   Appreciation in value leading to a significant rise in income, as rapid development and regeneration around major property sites worldwide enhance the value of your property

 

4. High rental yield and worthwhile returns

Expect to score high rent income from properties in regions with rapid growth in terms of economy and human capital, where public transport connectivity brings different parts of community together and where cosmopolitan culture thrives.

Consider also the stability of your returns by studying historical trends and up-to-date forecasts. The UK, for example, offers a 17.6% average return on investment (for rental) from 2017 to 2021. As one of the leading real estate markets worldwide, London has a lot to offer for potential investors.

Japan has seen a 7% rental growth between 2012 and 2016, and will likely see a greater increase in coming years as Tokyo gets ready for the 2020 Olympic Games.

Long-term investors might also want to set their sights on Germany, where the 4.2% - 12.3% increase in rental reflects the flourishing world-class financial hub in Berlin, which is also positioned for growth with its currently emerging tech scene. Demand exceeds supply in most of Germany’s major cities, with vacancy rates below 1.5%.

 

5. Retirement home or holiday getaway

Besides the abundant perks of exchange rate benefits, owning hard assets to insulate your investments from market crashes, generating a side income, and building a diverse portfolio for optimal growth, having several properties overseas also gives you the freedom to make it your retirement or holiday home.

As markets are always unpredictable and it’s hard to tell what things will be like in several decades, you could either relocate to a chosen property for lifestyle reasons during retirement or even sell it in the future and make a huge profit. Either way, having international real estate is a sure win for the long term.

While investing in property around the world may not always be easy as it requires a thorough understanding of different markets, loan procedures, local regulations and various costs around acquisition and letting, it is worth your while to dedicate some time and learn about this in greater depth to expand your investment potential. Reputable consultants are always available to provide advice and insights on financing and legal-related questions.

 

6. Double your investment returns by investing in both education and real estate

One of the greatest gifts you can bestow on your children is to invest in their education. With the UK being home to some of the finest universities in the world, it is no surprise that many Singaporeans jump at the chance to study in the prestigious Oxbridge or London colleges. By investing in a residential property at the same time, you can divert rental costs into a property for your children to live in for the duration of the studies, and to reap rental yields after their graduation. What better way to invest than to provide both an education and a home for them at the same time.

 

For further information please contact JLL International Residential directly at +65 6220 3888 or internationalresi@ap.jll.com 

13 Feb 2019