Page 1

INVESTING INTELLIGENTLY towards 2019/2020

CSIPROP INVESTMENT GUIDE Australia & United Kingdom 1


Research Report 2019/2020: 11 Australia & UK

01

Foreword

02

Australia

Perth 19 Melbourne 23 Sydney 37 Brisbane 40 Australia Purchase Cycle Guide 45

1

Corporate Profile

2

Making A Difference Our People 5 Our Mission 6 Our Portfolio 7 Our Office 9 Testimonials 10

16

3

United Kingdom

04 05

57

London 62 Northern Powerhouse Liverpool 71 Manchester 77 Birmingham 84 UK Purchase 90 Cycle Guide

Appendix

97

Reference

98

69

CONTENTS

03


Foreword 01

90% of all millionaires become so through owning real estate. — Andrew Carnagie

Property has been touted as one of the soundest investments out there, but the reality is, every investment comes with a risk. What makes all the difference in the world, however, is knowing when, where and what to invest in. And this is why ‘Knowledge’ has always been one of our core values, and the driver to the production of this Investment Guide. Our intention is simple: to share knowledge and research of the international property markets, and why we continue to focus on Australia and the UK. All this, with the aim of helping potential investors make informed decisions that will help them realise their aspirations and goals in the long-term. I’m proud to say that this is our second investment guide — the result of hours of hard work and research by our in-house team. It is a manifestation of our vision of Making A Difference, in that, while we are not literally increasing housing supply or putting the homeless into homes, we are somehow enabling our clients to do their part for society. We hope you will benefit from reading this guide and that it will make a difference in your own journey to realising your personal goals.

CSI PROP is not going to solve homelessness, but we will help the people who do reach their goals.

Foreword

— Virata Thaivasigamony

1

Virata Thaivasigamony Executive Director CSI PROP


CSI PROP is a real estate investment and research consultancy based in Malaysia and Singapore. We offer an impressive portfolio of real estate projects across Australia and United Kingdom, which we market through our licensed team of estate agents in Malaysia and Singapore, as well as strategic partners overseas.

Corporate 02Profile

Our highly-trained team brings with them more than 10 years’ experience in real estate investment and finance. As a full service agency, we offer assistance throughout the entire process, from property selection to rental management, tax, legal, financing and resale. While acknowledging the strengths of other investment vehicles in the market, we firmly believe in the soundness of property investment — specifically, strategically-located property. We offer a range of real estate investment projects, from luxury residential apartments, townhouses and landed property, to commercial student property and commercial care homes. What sets us apart is our deep dedication to service and research. We do not market investments that we do not believe in and have not thoroughly researched. We want to make a difference by understanding your aspirations and dreams, and equipping you with information that is crucial to your investment decisions. Our commitment lies in helping you build long-term wealth through research-backed investment opportunities with optimal yields and appreciation potential. Corporate Profile

We focus on fast-growing cities with high population and job growth, as well as investment potential. This presents opportunities for good returns and capital appreciation at lower risk.

2


Making A Difference

Making A Differences

As an organisation that focuses on people and aspires to remain relevant, we place great importance on ensuring our clients feel appreciated, remembered and respected. Here’s what sets us apart from our competitors:


Helping You Make Informed Decisions We help clients make informed decisions by conducting stringent due diligence on the projects within our portfolio. We thoroughly research the macro and the micro economics, picking the best locations for our projects, from the cities right down to the neighbourhood! Our website and social media platforms are updated with the latest news on the international property market, especially in Australia and the UK. Our due diligence doesn't stop at acquisition; we continuously monitor construction progress and keep clients informed every step of the way.

Making A Differences

Client Empowerment

Exclusive Community Investor Club This first-of-its-kind Investor Club is our effort to add value to our clients’ lives through education, fun and social networking. We organise investment-related talks, deliver property updates, and throw fun events like stand-up comedies and swanky dinners so clients gain knowledge, have a good time and get to know one another. The Investor Club is also our way of remaining connected, accessible and transparent to our clients.

Seamless Investment Journey Committed to You We believe in assisting our clients throughout the entire investment transaction. Our dedicated client service personnel provides concierge-type services, going beyond the call of duty to help follow up on concerns and queries that clients might have and providing support wherever needed. Through our panel of professional advisors, we are able to assist clients with property management, financing, legal matters, taxation and estate planning.

4


Our People We believe in empowering our team with personal development programmes and weekly training sessions, equipping them with tools that enhance their jobs as well as their personal aspirations. ‘Having Fun’ is one of our core values. Team members participate in monthly activities while Townhall meetings are held to celebrate quarterly milestones, recognise achievements and share the company’s vision.

Our People

CSI PROP is powered by the Business Development, Marketing, Communications & Research, Client Services, Events & Operations teams.

5


Our Mission

CORE VALUES

As a consultancy and service provider, we understand that relationships lie at the heart of customer service and company growth. We strive to Make A Difference by offering personalised services and going the extra mile for clients and colleagues alike, from the first enquiry to the final transaction.

Knowledge Innovation Service Having Fun Accountable

We pledge to continually offer solid and viable investment opportunities, provide sound advice and forge firm relationships with our stakeholders, based on our core values of ‘Service’, ‘Accountability’, and ‘Knowledge’.

Our Mission 6


Our Portfolio CSI PROP has an impressive portfolio of residential and commercial investment properties in cities across the United Kingdom and Australia. We market projects that have potential for good returns and capital appreciation at lower risk. These are concentrated in fast-growing cities with high population and job growth, education opportunities, or located in areas with an undersupply of homes.

Brisbane Gold Coast

Perth Sydney

Adelaide

Our Portfolio

Melbourne

7

Australia


Our Portfolio

Residential Property Office Commercial Student Property Commercial Care Homes

Cardiff

United Kingdom

8


Our Office

Our Office CSI PROP operates out of Cornerstone International Centre in Wisma Selangor Dredging, right across the KLCC Twin Towers in Kuala Lumpur. The space, which doubles up as a boutique events venue spanning an impressive 11,000 sq ft area, houses our head office and international property gallery. The space has been used for various purposes, including social and networking events, talks and seminars, product launches, award events, weddings, blood drives and meetings. Clients that have utilised the space include embassies, banks, non-profit organisations, private corporations, celebrities and individuals.

9


We are really impressed by what you guys have provided, so a big thank you!

One thing that stands out about CSI PROP is their service. If I have a problem, they will make sure it is dealt with, and they’re pretty fast with their solutions. I fully recommend this company.

— Dr Dhiraj Saini & Sheela Kulasingam

The UK student property that I invested with CSI PROP is very good; we are already getting returns from it. I appreciate CSI PROP’s effort to hold Investor Club events for clients. It makes us feel appreciated.

— Mr Shulhameed M

— Mrs Jesslyn C.

Our Relationship Manager, Hafizah, played an important role by providing me with helpful advice and laying out the facts. She always followed up and attended to all my enquiries, making the whole process easy. We also found the services of Raslan Loong to be efficient — CSI PROP made the right choice in assigning a reputable lawyer service.

I’ve always wanted to invest for my daughter and I found the properties in the CSI PROP portfolio, interesting. My Relationship Manager, Mr Soon, was patient, attentive and offered sound advice during the entire process — he gave great guidance. We have a good impression of the company and couldn’t be happier with our investment. I would certainly recommend Mr Soon and CSI PROP to others.

CSI PROP has to be recommended because the team’s professionalism has certainly set a standard that many other agents should aspire to. Our Relationship Manager, Michelle, was really efficient and prompt. She enhanced the whole client service experience and was resourceful in attending to us even after the deal was sealed. Dealing with a completely professional Relationship Manager like her saved me a great deal of frustration and stress. Thank you Michelle!

— SImon

Testimonials

Testimonails

Overall, my experience with them was smooth and the whole process was clear. I have recommended her and CSI PROP to my family and friends. — Gregorio Schiavon

— Mrs Tan

— Pn Azimah

10


Research Report 2019/20 03Australia & UK Overview The global economic landscape is shifting. The year 2018 saw a marked departure from an economy that was neither too hot nor too cold, to one dominated by trade conflicts and interest rate concerns. China’s continued slowdown, the intensifying trade war tensions between US and China, Fed interest rate hikes and looming uncertainties in the Eurozone — these are clouding the global economy and affecting emerging markets caught in the crossfire. Closer to home, Malaysia and Singapore deal with political change and challenges within the housing markets.

Beware the investment activity that produces applause; the great moves are usually greeted by yawns.

11

— Warren Buffet


In Retrospect: Brick & Mortar vs Stocks The global economic backdrop paints a bleak picture, emphasising more than ever the importance of financial prudence and savvy investing. What you choose to invest in will determine if you achieve your long term financial goals. And here’s where the Asian obsession in brick and mortar warrants merit. While the exciting short term gains of the stock market prove captivating, the numbers show that property outperformed stocks by a

wide margin over a span of 25 years (see Figure 1). Specifically, the gains from the Malaysian market have more than doubled: on average, a Malaysian who invested $100,000 25 years ago would have gained approximately $143,000 in stocks vs $327,000 in property. To be clear, this investment guide by no means disparages the stock market or any other investment vehicle. Our intention is to encourage investors to minimise risk by diversifying their investment portfolio.

Singapore & Malaysia: Property vs Stocks, 1993 - 2018 What is your $100,000 investment in 1963 worth today?

FTSE KLCI FTSE STI Singapore Property

0

$100,000

$200,000

$300,000

Figure 1: In the last 25 years, average property price growth in Malaysia and Singapore had significantly outperformed investment in stocks. Note: stocks are measured by investing in the FTSE KLCI and FTSE STI index, which is based on the top 30 stocks in each country and regarded as the benchmark of the Malaysian and Singaporean stock markets respectively. Source: NAPIC, URA, Yahoo! Finance.

Research Report: Overview

Malaysian Property

12


Property: How the Markets Measure Up Research by Knight Frank has found that property remains a preferred investment for the ultra-wealthy despite the growing popularity of cryptocurrency.

Australian and UK property, in particular, hold the greatest allure for Malaysian and Singaporean investors. While largely due to familiarity and sentiment, this is also due to the markets’ resilience and strong performance in terms of capital appreciation and returns.

NZ UK Australia Hongkong Malaysia US Singapore

House Price Index by Country, 1995 - 1H2018 500

400

Over the last 15 years, UK and Australia charted the strongest performance in house price growth after New Zealand (Figure 2), with London and Melbourne demonstrating the highest increase among the leading cities in both countries (Figure 3). Manchester and Sydney came in at an impressive second place with house price growth well above the national average.

300 200

100

1995

2000

2005

2010

2015

Figure 2: The UK and Australian property markets are the best performing markets for house price growth, after New Zealand (with the exception of Australians and Singaporeans, foreigners are not allowed to buy property in New Zealand). Source: Abelson & Chung, ABS, REIA, NAPIC, Data.gov.hk, URA, HM Land Registry, Economic Research Division, Federal Reserve Bank of St. Louis, & RBNZ

13


House Price Index (UK & Australia), 1995 - 1H2018

London Melbourne Manchester Sydney Perth UK Birmingham Australia Liverpool

500

300

100 1995

2000

2005

2010

2015

Figure 3: London, Melbourne, Manchester and Sydney top the national average in house price growth. Source: Abelson & Chung, ABS, REIA, NAPIC, Data.gov.hk, URA, HM Land Registry, Economic Research Division, Federal Reserve Bank of St. Louis, & RBNZ

Making Informed Decisions The strength of the housing market in these cities is unsurprising. These major cities have benefited greatly from large private and public investments into infrastructure, leading to jobs and population growth. With rapid economic expansion and population growth comes a surging demand for housing, driving growth in house price over time.

This investment guide tracks the economic, population and housing market trends in some of the core cities of Australia and UK, and is the fruition of many hours of research. Its main aim is to serve as a reference point for investors looking to diversify their investments to hedge against uncertainties in the local and global markets. All data provided within are researched by our own team and is accurate at time of writing and print.

14


15 Research Report: Australia


Housing is one of Australia’s largest assets and the foundation of its household wealth, financial system and economy. The Bank of International Settlements (BIS) pegged Australia as having the 6th highest rise in annual property prices in the world over the last 5 decades, with house prices surging 6556% since the 1960s at an average increase of 8.1% per year.

Research Report: Australia

Australia

16


AU/NZ House Price Growth Among Highest in the World

Index, 1970=100

NZ

7000 6000

UK Australia

5000

Ireland 4000

Norway Canada

3000

Research Report: Australia

US Japan

2000

Germany

1000 0 70

75

80

85

90

95

00

05

10

15

Research by BIS and UBS shows that Australia house price growth is among the highest in the world. Source: BIS & UBS

Data shows 9 out of 10 properties have been sold on the market at a profit in spite of the slowdown in the housing market. Indeed, the market saw a moderation in 2018 with Sydney being the hardest hit and, to a lesser extent, Melbourne, Brisbane, and Perth, due to stricter regulatory and lending measures which have affected investor appetite.

17

Yet, the Australian housing market remains underpinned by strong population growth which directly corresponds to demand for housing, especially in Melbourne, Sydney, Brisbane and, increasingly, Hobart. Australia’s population grew by another 1.6% to 24.7 million in the 12 months to the end of Sept 2017, adding another person every 1 minute and 26 seconds.


Annual %

Population Growth

1.59

1.5

1.26 1.10

0.71

0.65

Source: World Bank

0.09

0

0.19

0.51

0.43 0.42 0.39

Australia has been charting strong population growth, adding another person every 1 minute & 26 seconds.

Data by the Australian Bureau of Statistics (ABS) shows nett overseas migration (NOM) increased by 27% y-o-y, driven by the government’s acceptance of skilled migrants. Migration and a skilled workforce will boost productivity and the overall GDP, and continue to drive the need for housing, education and transportation. Research by the Australian Treasury and Department of Home

Japan

Italy

Singapore

Spain

France

Germany

South Korea

UK

US

Switzerland

Canada

Mexico

Malaysia

Australia

-0.5

-0.13 -0.16

Research Report: Australia

1.22

1.0

1.39

2

2017 Annual Percentage

Affairs shows that skilled migrants add to the country’s wealth and benefit the country’s economy more than existing residents, hence the government’s positive reception towards immigrants.

Quick Facts: Australia . . . . .

Strong governance, banking & judicial systems 27 Years recession-free growth Strong population growth driven by migration Good returns: strong property price growth Weaker & more accessible currency

18


Perth Historically, the housing market in Perth has been highly cyclical and reliant on the commodities market. However, it appears that the drag from Western Australia’s mining investment boom may be dissolving and the economy is improving. The housing market remains soft, yet is seeing a revival. But, it may be a while before Perth experiences the highs of its heydays in 2003 - 2013. In spite of this, Perth has shown one of the best growth patterns in house prices over the last 25 years. With signs of recovery and the market starting to bottom out, this could be an interesting time for investors to reenter the market.

19


Western Australia Key Economic Indicators

Western Australia (Perth)

3.1% 2.8%

State Final Demand Growth Year-ended to 4Q17

Retail Turnover Growth

1.6% 2.7%

Year-on-year to Mar 2018

Population Growth Year ended to 3Q17

Employment Growth

Year-on-year to Apr 2018

1.2% 0.1% 0.9% 2.0%

There is still some way to go, but Western Australia is showing a slow recovery. Source: JLL

Western Australia House prices in Perth have taken a plunge over the last four years, reflecting the stagnation in the employment market. The decline seems to be slowing, signalling that the market is in recovery and, possibly, bottoming out. Some studies predict that recovery in Perth will be a long, slow grind, but that strong growth is expected in 2020-21.

Research Report: Perth

Australia

#DidYouKnow Perth was one of the hottest markets in Australia prior to the mining downturn, with house values substantially outperforming the broader market between 2003 and 2013.

20


Recovery in Demand

Stellar Performance

While house prices are still down in general, demand is climbing. Perth saw the highest increase in demand over 12 months from July 2017, after Hobart and Canberra. Statistics show that prices in the city’s northwest had been on an upward trend.

A study by CoreLogic of the top 100 suburbs for price growth over the past 25 years (1993 - 2018) based on change in median prices, showed a surprising discovery. Perth came in third for growth at a rate of 6.7% per annum, after Melbourne and Sydney.

Demand in Perth increased 6.4% y-o-y as at July 2018. While the northwest has seen prices consistently rising, the highest price rise was recorded in the northeast. In 1Q 2018, 410 new apartment sales was recorded, an increase from the previous two quarters. This was reportedly the highest number of surveyed sales recorded in two years.

That Melbourne and Sydney suburbs dominated the top two spots comes as no surprise. Suburbs for Perth, on the other hand, are unexpected, given the lower house price trends since 2014. Yet, this sheds clear light on the prominence of the Perth market — it was one of the hottest housing markets in the country between 2003 and 2013, prior to the mining downturn, substantially outperforming the broader market

Australia’s Housing Values over 25 Years House Values Median Value 2018 National Adelaide Brisbane Canberra Darwin Greater Hobart Melbourne Perth Sydney

$571,441 $462,049 $535,292 $678,765 $496,498 $452,935 $824,955 $487,992 $1,026,638

Unit Values

Annual Average annual percentage dollar value change, 25 yrs change, 25 yrs 6.8% 5.9% 5.9% 6.0% 6.3% 6.5% 8.1% 6.7% 7.6%

$18,397 $14,027 $16,290 $20,848 $17,937 $14,393 $28,325 $15,679 $34,426

Median Annual Average annual Value percentage dollar value 2018 change, 25 yrs change, 25 yrs $515,610 $328,274 $384,970 $435,072 $334,436 $353,292 $574,003 $400,717 $753,304

5.9% 5.2% 4.5% 4.7% 4.1% 5.5% 6.6% 6.0% 6.3 %

CoreLogic’s study on Australia’s housing trends over 25 years reveals Perth’s house values to be one of the best performers in the country. Source: Aussie, CoreLogic.

21

$15,671 $9,462 $10,255 $11,929 $9,424 $10,402 $18,331 $12,255 $23,594


Looking Forward The Perth property market is in recovery — albeit a slow one — and it appears that the worst could be over. Rental vacancy should improve on the back of moderated supply and a healthier economy. The state government’s commitment to diversify the Western Australian economy and the federal government’s commitment of A$2.6bn for transport infrastructure investment should help boost growth and jobs creation in the future. This should alleviate some concerns about the weak labour market. While it may be a buyers’ market (especially owner occupiers), the slow market offers opportunities to investors to receive higher gains from low purchase prices due to the lack of buying competition. BIS Oxford Economics has tipped Perth to have the second-fastest price growth of 10% by 2021 alongside Canberra. Nonetheless, history tells us that Perth is reliant on the commodities cycle. Perhaps the key to keeping informed on its house prices is through watching the price of iron ore and global economic recovery.

Quick Facts: Perth . 6.7% annual house price growth over 25 years (1993 - 2018) . 2nd fastest house price growth by 2021 . Strengthening job growth . Property demand increase of 6.4%

22


Melbourne Overall, Melbourne’s residential markets have held up well in spite of lower investor demand resulting from tightened lending regulations. The city is going through much change due to its expanding population — Victoria’s population is growing at a rate of 2.4% — requiring that policies be put into place to ensure that infrastructure can accommodate ballooning consumption levels. Going forward, the low interest rates, Melbourne’s growing population and its sound economic framework will continue to support rental values and prices.

23


Research Report: Melbourne

Victoria Key Economic Indicators

Victoria (Melbourne)

Australia

Demand Growth 4.3% 3.1% State Final Year-ended 4Q17 2.8%

Retail Turnover Growth

4.4%

1.6%

Population Growth

2.4%

Employment Growth

1.7%

2.7%

Year-on-year to Mar 2018 Year-ended 3Q17

Year-on-year to Apr 2018

Melbourne VS Sydney: Projected Population Growth

Population Melbourne shows strong key economic indicators. Source: JLL

At a current growth rate of 2.7%, Melbourne — the World’s Most Liveable City for 7 consecutive times — is home to a population of 4.9 million. The city, now just 200,000 below Sydney’s, is set to become Australia’s most populated capital by 2036 (previous estimates had predicted that Melbourne would overtake Sydney as the largest Australian city in 2050)!

Victoria

*2036=projection 7 6 5 4 3 2 1 0

3.7m

3.2m

1991

5.0m

4.6m

2016 Sydney

6.7m

6.8m

2036 * Melbourne

Previous estimates of Melbourne overtaking Sydney as Australia’s largest city in 2050 have been revised to the mid-2030s, if not earlier. Source: ABS 3218 population figures & Bernard Salt/ The Australian.

24


Melbourne VS Sydney: Y-O-Y Population Growth 34,994

Natural Increase

36,284

Nett Internal Migration

-18,120* 9166

Nett Overseas Migration

84,684 79,974

101,559

Research Report: Melbourne

Population Change

125,424 -2

-1

0

1

25

3

4

5

6

7

8

9

10

11

12

13

*More people had left Sydney for other parts of Australia than arrived. Sydney

Melbourne

Melbourne recorded the largest — and fastest — growth of Australia’s capital cities in 201617, surpassing Sydney, and increasing by 125,400 people. Source: ABS y-o-y regional population growth, Australia, 2016-2017

Quick Facts: Melbourne . . . .

2

World’s Most Liveable City Since 2011 Fastest-growing city overtaking Sydney by mid-2030s 50,000 students studying and living in Melbourne Tight vacancy rates of 1.9%


Annual Price Growth Driven by Undersupply

Australia experienced a weakening in overall house prices at the start of 2018 vs 2017 as a result of weakened investor demand. This is due to APRA's investor lending regulations, various policy changes and removal of off-plan stamp duty concessions.

March 2018) indicating that there is an undersupply in dwellings led by population growth: the Urban Development Institute of Australia (UDIA) predicts that if current trends continue, Victoria’s undersupply of houses could reach in excess of 50,000 houses by 2020.

However, property prices in Melbourne rose by 6.2% annually (March 2017 -

Residential Property Price Index 2016-2017 Dec Qtr ‘16 - Mar Qtr ‘17

Dec Qtr ‘17 - Mar Qtr ‘18

Melbourne

3.1%

-0.6%

-13.4%

6.2%

Weighted Ave of 8 capital cities

2.2%

-0.7%

10.2%

2.0%

Mar Qtr ‘16 - Mar Qtr ‘17

Mar Qtr ‘17 - Mar Qtr ‘18

Research Report: Melbourne

House prices have weakened overall in 2018, however, demand for housing in Melbourne remains. Source: ABS

26


Growth Areas MELBOURNE CITY Student Population Influences Housing Demand Melbourne’s city encapsulates the CBD and measures an area of about 36.2 km². More than 500,000 students study and live here as 5 of Melbourne’s top universities are located in the city, of which 2 are in the country’s top 10 list. The high international student enrolment has been driving the city’s housing market. There are 35,000 foreign students in Melbourne city alone. The University of Melbourne singularly has about 47,000 students, including >12,000 international students.

Boundaries of the City of Melbourne Source: whatson.melbourne.vic.gov.au

27


States

Victoria Australia

Estimated Deficiency/Oversupply of Dwellings (‘000s) as at June 2017

2015

2016

2017

2018f

2019f

9.9 92.3

7.7 56.5

3.9 6.9

-2.0 -32.1

-4.1 -51.2

Research Report: Melbourne

Underlying Demand & Supply

BIS Oxford Economics has predicted an undersupply of housing in Melbourne city. Source: BIS Oxford Economics & ABS Data

Pipeline Undersupply BIS Oxford Economics went on record this year, reversing their initial predictions of an oversupply of housing in Melbourne city, predicting instead, an undersupply due to faster-than-expected population growth. As it turned out, Melbourne had some 35,000 extra households than initially expected.

28


Research Report: Melbourne

Inner Melbourne Supply Pipeline Number of units 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

2016

2017

2018

Complete Currently Marketing Under Construction

2019

2020

2021

2022

Plans Approved Plans Submitted

The supply of apartments in Inner Melbourne has declined, a situation that looks set to continue over the next five years. Source: JLL Australia Melbourne Market Commentary 4Q17 Between 4Q16 and 4Q17, the number of apartments in the pipeline reduced by some 12,000, whilst apartments under construction dropped by 7,000 (33%) since 4Q16. JLL predicts that the number of apartments antici-

29

pated for completion over the next 5 years will decline further.


City of Melbourne’s Forecast Population The City’s current population is estimated to be 151,176 residents. By 2037, this is expected to increase to around 266,455 residents. 275k 250k 225k 200k 175k 150k 125k 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

The population of Melbourne City is poised to increase in the next few years due to immigration and births.

Research Report: Melbourne

Source: Geografia.com.au

Population Growth Projection The CBD itself has seen a population swell from 15,249 in 2006 to 35,447 in 2016. What will continue to keep the city thriving are its industries and jobs, and its proximity to universities, the arts, F&B, services and retail — all the things that are crucial to today’s dweller.

If you look at Melbourne, there’s 120,000 people moving to it per annum, but only 75,000 houses being built.

Statistics show that population growth will continue and is expected to hit 266,455 residents by 2037 (if not earlier), due to births and immigration. ABS reports that the population living within 10km of the CBD, meanwhile, had grown by 40% — from 743,000 to 1,042,000. This also hints at a reversal of trends, where cashed-up baby boomers are swapping their large suburban homes for apartments that are closer to the city, public transportation, cafes and restaurants.

- Ryan Felsman, CommSec Senior Economist

30


Melbourne City Rental Vacancy Rates Nov 2018

Number of vacancies Vacancy rate

8

4

1.9%

Rental vacancy rates as at June 2018 are at 1.9% indicating a respectably strong demand for rental housing in the city. Source: SQM research.com.au

31

Nov 18

Jul 18

Jan 18

Jul 17

Jan 17

Jul 16

Jan 16

Jul 15

Jan 15

0 Jul 14

Research Report: Melbourne

6


WEST MELBOURNE MELTON

Research Report: Melbourne

Melton

Located in the Northwest, Melton is an upcoming suburb on the urban periphery of Melbourne city. Source: CBRE Infrastructure & Real Estate: Key Melbourne Projects

32


City of Melton Forecast Population 500,000

400,000

300,000

Research Report: Melton

200,000

100,000

0

2016

2021

2026

2036

2041

2046

2051

The city of Melton is one of Victoria’s fastest-growing cities. Its population is forecast to hit 477,900 by 2051. Source: Population and Household Forecasts, 2016 to 2051, prepared by .id, July 2018.

Melbourne’s Population Growth Forecast by LGA 2011-2031 Melton is one of Victoria’s top growth areas, with a population that is projected to hit 175,000 by 2031. Its population growth rate is the second fastest of all Victorian LGAs (Local Government Area), and the most affordable of the top 3 LGAs, with over 70% of residents under the age of 45. Between 2008 and 2017, its population grew 61%. Projections indicate that the city’s population will exceed 374,700, almost equal the size of Canberra by 2041.

33

2031

Job Growth There is strong job growth in the Melton region; it has been ranked Australia’s second fastest-growing job market in the country in the 21st century. Latest ABS data reveals that the Melton LGA had a 52% job growth rate from 2011 - 2016 and that jobs creation had outstripped the number of dwellings being built.


According to Domain Group data, rents in suburbs that were once considered affordable have increased by up to 18% in the year to March 2018, while the number of properties available in the least expensive suburbs was as low as 10.

South and Melton West experiencing increases of 407% and 293%, respectively. In terms of rental vacancy, Melton’s vacancy rates stand at 2.1%.

Melton, known to be one of the most affordable areas, has been rated one of the best performing boomtowns in Melbourne with annual capital gains of up to 27%. Melton South, in particular, charted the highest annual growth from 2000 - 2017 according to data by the Real Estate Institute of Victoria (REIV).

TIP

Melton saw some of the biggest growth in auction volumes y-o-y in Sept 2017 with Melton

Research Report: Melton

Property Hotspot

We also recommend paying attention to Wyndham, located in the outer southwestern suburb of Melbourne. Data by CoreLogic in 4Q2017 shows that Wyndham was Australia’s top performer for dwelling value growth over the past 10 years.

Quick Facts: Melton . One of Victoria’s top population growth areas . 2nd fastest-growing job market in Australia . 8390 jobs created vs 7968 increase in private dwellings (2011 - 2016) . One of Melbourne’s property hotspots of 2018 . Vacancy rates at 2.1%

34


The Mernda rail project has brought accessibility, new jobs and integrated spaces to Mernda. Credit: Level Crossing Removal Authority

35


NORTHEAST MELBOURNE MERNDA

Improved Accessibility Thanks to state funding, Mernda residents no longer need to be heavily reliant on private vehicles for transport as passenger services for the South Morang train line extension to Mernda has commenced. It is the first time a passenger train has run to Mernda in 60 years. This award-winning project comprises 8km of new rail line and 3 new stations that will cater up to 8000 commuters a day. It will give passengers access to 982 services to the city every week. The project also brings with it new and realigned bus routes, walking and cycling paths that link the new stations, brand new community spaces and created more than 1,800 jobs in other businesses and industries.

Price Growth House prices have been growing in Mernda, with houses charting a median sales price increase of 69.2% over the past 5 years compared to units (apartments) at 30.7%. In 2Q2018, Mernda broke the record as Whittlesea’s strongest performing housing market, driven by the Mernda Rail Extension. The highest demand for rental is for units with a yield of approximately 4% over the past 12 months (data as of Aug 2018). In terms of rental vacancy, Mernda’s vacancy rates stand at 1.7%. Like Melton in the west, Mernda has been ranked among the top-charting suburbs for house price growth in the country.

Research Report: Mernda

Just over 20km northeast of Melbourne lies Mernda, a suburb of the City of Whittlesea. From one of the least glamorous places in Victoria, Mernda had by 2015 become one of the fastest-growing areas in Australia. When fully developed, it will accommodate over 30,000sqm of retail space and around 80,000sqm of commercial space for offices, small businesses, medical facilities, gym and child care. By 2041, the population of Mernda will grow from 16,800 (2015) to an estimated 32,080. Latest data by the ABS puts Mernda within the top 10 largest growth areas in the country, fuelled by the area’s relatively affordable real estate.

36


Sydney Sydney’s housing market, historically the most expensive Down Under, has been hit the hardest by APRA’s regulatory measures. House prices had declined through 2018 alongside weakened investor demand, affecting construction activity and supply levels in the future. However, strong economic conditions, population growth and the NSW government’s expenditure into infrastructure will help moderate the slowdown. Prices are expected to stabilise in 2019 before picking up in 2020.

37


New South Wales (Sydney)

Australia 3.1% 2.8% 1.6% 2.7%

State Final Demand Growth Over year to 4Q17

Retail Turnover Growth Over year to Mar 2018

Population Growth Over year to 3Q17

Employment Growth Over year to Apr 2018

3.0% 3.0% 1.6% 4.1%

NSW continues to boast a strong economy in spite of the slowdown in the housing market. Source: JLL, ABS

Hotspots Sydney’s eastern suburbs saw the lowest decline in demand as of July 2018. Suburbs like North Bondi sold quickly while Tamarama saw very high price increases. Freshwater, Paddington and Cammeray recorded the highest demand for houses while Fairlight, Cremorne Point and McMahons Point recorded high demand for apartments at the start of 3Q2018. The western suburbs of Sydney are showing some positives, with suburbs like Leppington, Parramatta and Blacktown listed on the HIA Hotspots Report as some of the Top 20 hotspots across Australia for building and population in 2018. The rate of population in these areas are faster than the national average and at least A$150m worth of residential building work was approved in 2016/17.

Of all the capital cities affected by tighter financing conditions and less investment activity in the property sector, Sydney is the hardest hit. Data shows that prices have dropped about 7.4% in the past 12 months. It’s not all gloom and doom: BIS Oxford Economics has predicted that Sydney will see a 3% price growth in the next 3 years. Low interest rates, the city’s relatively stable economic environment and population growth, as well as the state government’s A$15.3bn expenditure into infrastructure over 2018-19, could help in keeping the correction slight.

New South Wales

Research Report: Sydney

New South Wales Key Economic Indicators

Tighter financing conditions and less investment activity have had the most impact on Sydney’s housing market conditions. Source: Australian Property Market Report July 2018, realestate.com.au

38


HIA National Top 20 Building & Population Hotpots 2018: Sydney

Statistical Area 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Mickleham - Yuroke Pimpama Cranbourne East Cobbitty - Leppington Riverstone - Marsden Park Wollert Docklands Beaconsfield - Officer Point Cook - East Truganina Melbourne Coomera Cranbourne West Melton South Tarneit South Brisbane Springfield Lakes Arncliffe - Bardwell Valley Southbank Homebush Bay - Silverwater

Statistical Area Level 4 Mickleham - North West Gold Coast Melbourne - South East Sydney - South West Sydney - Blacktown Melbourne - North East Melbourne - Inner Melbourne - South East Melbourne - West Melbourne - West Melbourne - Inner Gold Coast Melbourne - South East Melbourne - West Melbourne - West Brisbane Inner City Ipswich Sydney - Inner South West Melbourne - Inner Sydney Parramatta

State / Territory VIC QLD VIC NSW NSW VIC VIC VIC VIC VIC VIC QLD VIC VIC VIC QLD QLD NSW VIC NSW

Residential Building Annual Population Approved, Growth Rate (%) 2016/17($’000) 222,872 352,035 638,571 610,382 736,224 173,239 199,734 256,005 169,300 202,036 622,251 173,540 171,594 161,037 299,838 154,000 184,943 513,026 417,688 358,252

35.3 30.8 27.4 21.9 21.1 20.8 14.7 13.4 12.8 11.9 11.2 10.3 9.2 9.1 9.0 8.8 8.7 8.6 8.6 8.0

Four of Sydney’s suburbs made the HIA National Top 20 Building and Population Hotspots list in 2018. Source: HIA The inner west, western and northwestern corridors; as well as the outer northwest and outer southwest growth corridors also show potential for growth.

Quick Facts: Sydney . Strong job & population growth . Property prices expected to climb again in 2020-21 . Leppington, Parramatta, Blacktown & Arncliff ranked in Top 20 property hotspots

39

Suburbs showing signs of gentrification are great for investment. Data from the Property Investment Professionals of Australia has identified the following suburbs for a makeover in the near future: • Arncliffe • St Peters • Tempe


Brisbane Looks like the sun will be shining a lot more on the sunshine state. The fundamentals are improving with job growth and investments into infrastructure, bringing a slow but sure recovery to the economy. This, coupled with lifestyle attractions and comparative housing affordability, has driven population growth. Brisbane is seeing progress in tightened vacancy rates, stability in house prices, and reduction in apartment oversupply in the city core, providing further impetus to investment activity.

40


Queensland Key Economic Indicators

Australia

Research Report: Brisbane

3.1% 2.8% 1.6% 2.7%

Queensland (Brisbane)

State Final Demand Growth Over year to 4Q17

Retail Turnover Growth Year-on-year to Mar 2018

Population Growth Over year to 3Q17

Employment Growth Over year to Apr 2018

2.6% 1.6% 1.7% 2.8%

Queensland’s improving fundamentals and comparatively affordable housing has drawn the highest interstate migration of all Australian states. Source: JLL Previously described as ‘tepid’ or ‘flat’, Brisbane’s housing market is warming up. The sunshine state is showing improvement in its fundamentals, with recovery in job growth and increased migration. Data by CoreLogic has shown Brisbane to be one of the best performers in annual Australian dwelling values at +5.1% amid a nationally slower housing market.

41

Queensland


Brisbane: Change in Annual Dwelling Values 2018

Population Growth

Data by CoreLogic pegs Brisbane as one of the top performers in annual dwelling values even as housing values across Australia has fallen in general. Source: CoreLogic Hedonic Home Value Index

Brisbane now charts the fastest-growing population in Australia after Melbourne, thanks to local affordability and lifestyle advantages. There was a boost in interstate migration of +17,426 (up 50.5% from 2016). Data also shows that 12.7% of overseas migrants have settled in Queensland, driving demand for real estate which is comparatively more affordable. Demand for Brisbane apartments was at 4.5% and houses at 6.7% y-o-y (July 2018). This should bring down vacancy rates especially within the apartment sector which is currently seeing an oversupply.

Real Estate Recovery

Economy

With current underlying market drivers strengthening, house prices will continue its growth at a moderate pace of 3% to 5% this year, while apartment prices stabilise. Brisbane is forecasted to see the strongest growth with a 13% jump in median price over the next 3 years; and while prices have not risen as high as Melbourne and Sydney, 1 in 10 houses sold in Brisbane should fetch more than A$1m within these 2 years.

The economy is showing signs of improvement as job growth recovers, albeit slowly. Queensland, as a whole, recorded its highest annual job growth in March 2018 at an employment growth rate of 4.3%, surpassing Sydney’s 3.6%. Some 160,000 jobs had been created since 2015, according to data by the state government. The city’s A$146bn economy is predicted to grow more than A$217bn by 2031.

Month

0.2%

Quarter Annual

0.3%

1.1%

Total Returns 5.1%

Median Value $495,242

42


Forecasted Total Growth 2018 to 2021 (%)

Sydney Melbourne Brisbane Adelaide

Research Report: Brisbane

Perth Hobart Darwin Canberra 0

1

2

3

4

5

6

7

8

9

10

11

12

13

BIS Oxford Economics forecasts that Brisbane will see the strongest house price growth over the next 3 years Source: BIS Oxford Economics

Interest from foreign investors is rising. Brisbane recorded the biggest increase in investments from overseas buyers over the past year as rental vacancy rates decline. Suburbs that have been doing best include the premium areas, with East Brisbane and Indooroopilly seeing the highest demand for houses. The inner, middle and

43

outer ring suburbs also hold potential for growth with CoreLogic-Moody’s Analytics report forecasting a rise in home values in the inner and west markets. In regional Queensland, areas like Cairns and Gold Coast are seeing growth in demand. Gold Coast and Brisbane’s Inner City are listed in the HIA National Top 20 Building and Population Hotspots 2018 list.


Housing Outlook of Brisbane Metro Regions

Median price Median Price

Demand

Year-on-Year Quarter-on-Quarter % change % change

Year-on-Year % change

East

$556,000

5.7%

3.3%

16.7%

Inner City

$628,000

-3.7%

1.7%

13.7%

North

$540,000

1.9%

1.3%

6.0%

South

$635,000

1.6%

2.4%

-2.1%

West

$633,500

0.6%

0.6%

0.1%

Growth areas in the Brisbane Metro Region as at July 2018 Source: realestate.com.au

Research Report: Brisbane

Regions

Quick Facts: Brisbane . 2nd fastest population growth in Australia . Strong interstate migration fuelling population growth . Top in house price growth in 2018 at 5.1% . Forecasted to have strongest price growth over 3 years

44


Australia Purchase Cycle Guide You’ve decided to invest in Australian property but have no idea what the purchase process entails. This section will guide you through the stages of the investment process.

45


Property Reservation At CSI PROP, we recommend investments based on your goals and preferred cash allocation.

Research Report: Australia Purchase Cycle Guide

Once you have decided on the property for investment, you will need to sign Reservation Forms and a Solicitor Appointment Letter.

There are several payments required at this stage: Reservation Deposit*: A$5,000 (forms part of the purchase price and is non-refundable)

Legal Fees*: Approx A$2,000 *Payment can vary depending on project/developer/ solicitor

CSI PROP works closely with a panel of solicitors and mortgage brokers that are licensed in Australia. While we’re happy to recommend our panel, you may use solicitors or mortgage advisors of your own choosing.

46


Exchange of Contracts & 1st Payment Subsequently, you will sign the Contract of Sale for the property, and make your first payment through your solicitor. For apartments, this is 10% of the property price. For a land and house package, the first payment will be 10% of the land price and 5% of the building price. You will also need to make an application with the Foreign Investment Review Board (FIRB). This process is required of non-resident foreigners before purchasing any residential property in Australia. The cost for this (as of 2018-19) is A$5,600 for dwellings valued at A$1m or less.

Financing Application for financing can be done 3 to 6 months before settlement, and the banks will assess your financing position and eligibility. Documents which are typically required by the bank include:

Final Settlement & Stamp Duties Once your property achieves completion, the developer will send a Completion Notice to your solicitors. You will need to make full payment for the property at this stage, which is also known as the final settlement. At this point, you will also need to pay stamp duty to the State Government, also known as land transfer duty. Stamp duties differ in amount across the different states of Australia, and the following rates covered in this guide are applicable to residential property only. Different rates may apply to commercial property. Note that there may be stamp duty exemptions and that these may vary from state to state. Check with your mortgage advisor for details on eligibility.

47

3 to 6 months salary slips 3 to 6 months bank statements Income Tax Return Form There are typically no application and processing fees to finance your property. However, bank legal fees can incur up to 1.5% of the value of your property. There are several banks in Malaysia and internationally that offer financing; please get in touch with us to find out more.


Property Price

Stamp Duty Rate

A$0 - A$25,000

1.4%

A$25,001 - A$130,000

A$350 + 2.4% of the property price over A$25,000

A$130,001 - A$960,000

A$2870 + 6% of the property price over A$130,000

More than A$960,000

5.5% of the property price

Source: State Revenue Office Victoria Foreign property buyers pay an additional stamp duty surcharge of 7%.

Research Report: Australia Purchase Cycle Guide

Victoria (Melbourne)

48


Research Report: Australia Purchase Cycle Guide

Western Australia (Perth)

49

Property Price

Stamp Duty Rate

A$0 - A$120,000

1.9%

A$120,001 - A$150,000

A$2,280 + 2.85% over A$120,000

A$150,001 - A$360,000

A$3,135 + 3.8% over A$150,000

A$360,001 – A$725,000

A$11,115 + 4.75% over A$360,000

More than A$725,001

A$28,453 + 5.15% over A$725,000

Source: Department of Finance, WA Foreign property buyers pay an additional stamp duty surcharge of 7%.


Property Price

Stamp Duty Rate

A$0 - A$200,000

1.3%

A$200,001 to A$300,000

A$2,600 + 2.3% over A$200,000

A$300,001 to A$500,000

A$4,900 + 3.6% over A$300,000

A$500,001 to A$750,000

A$12,100 + 4.56% over A$500,000

A$750,001 to A$1,000,000

A$23,500 + 6.10% over A$750,000

A$1,000,001 to A$1,455,000

A$38,750 + 6.6% over A$1,000,000

More than A$1,455,000

4.73%

Source: ACT Revenue Office Foreign property buyers pay an additional stamp duty surcharge of 0.75%.

Research Report: Australia Purchase Cycle Guide

Australian Capital Territory (Canberra)

50


Research Report: Australia Purchase Cycle Guide

New South Wales (Sydney)

51

Property Price

Stamp Duty Rate

A$0 - A$14,000

1.25%

A$14,001 - A$30,000

A$175 + 1.5% over A$14,000

A$30,001 - A$80,000

A$415 + 1.75% over A$30,000

A$80,001 - A$300,000

A$1,290 + 3.5% over A$80,000

A$300,001 - A$1,000,000

A$8,990 + 4.5% over A$300,000

A$1,000,001 - A$3,000,000

A$40,490 + 5.5% over A$1,000,000

Over A$3,000,000

A$150,490 + 7.0% over A$3,000,000

Source:

Revenue NSW

Foreign property buyers pay an additional stamp duty surcharge of 8%.


Property Price

Stamp Duty Rate

A$0 - A$5,000

Nil

A$5,001 - A$75,000

A$1.50 + 1.5% over A$5,000

A$75,001 - A$540,000

A$1,050 + 3.5% over A$75,000

A$540,001 - A$1,000,000

A$17,325 + 4.5% over A$540,000

Over A$1,000,000

A$38,025 + 5.75% over A$1,000,000

Source: Queensland Government Foreign property buyers pay an additional stamp duty surcharge of 7%.

Research Report: Australia Purchase Cycle Guide

Queensland (Brisbane)

52


Property Management

Rental Income

When you exchange contracts with the developer you may sign an agreement to hire a letting agent. You may also choose to manage the property yourself.

When you receive your rental income, you will need to pay income tax to the Australian Government. Different income tax rates apply for Australian residents and non-residents.

The letting agent will ensure your property is well-maintained, taking care of all expenses involved, and collecting the rental on your behalf.

You may also be taxed again on your Australia income in the country you are residing. Malaysians and Singaporeans do not need to pay taxes on rental income from Australia to the Malaysian and Singaporean Governments due to the double taxation agreement that both countries have. If you live in another country, you will need to find out if there is such an agreement between your country and Australia.

Research Report: Australia Purchase Cycle Guide

Income Tax for Non-residents in Australia

53

Taxable income

Tax Rate

A$0 - A$90,000

32.5¢ for every A$1

A$90,001 - A$180,000

A$29,250 + 37¢ for each A$1 over A$90,000

A$180,001 and over

A$62,550 +45¢ for every A$1 over A$180,000

Source: Australian Taxation Office

Taxes need to be filed yearly. You can file your taxes yourself, or hire a tax agency to do it for you. CSI PROP can recommend a qualified professional in Australia to manage your taxes.


Deductions Many investors do not realise that they are entitled to claim a number of attributable costs relevant to the ownership of their investment property. These cost deductions, especially those related to depreciation, substantially reduces their taxes and saves them thousands of dollars.

These costs are deductible for taxation purposes during the period that you own the investment property and it is available for rent. Here is a summary of some of the common expenses and depreciation costs eligible for tax deductions:

A) Expenses Claimable Immediately:

These typically include the following: . Advertising for tenants . Body corporate fees and charges . Council rates . Water charges . Land tax

. . . .

Cleaning Gardening and lawn mowing Pest control Insurance (building, contents, public liability)

. Interest expenses . Property agent's fees and commission . Repairs and maintenance . Some legal expenses

Research Report: Australia Purchase Cycle Guide

. Interest on your investment property loan . Costs of repairs and maintenance . Tenancy cost (agent's fees, legal cost on lease agreement)

54


B) Expenses Claimable Over Several Years These expenses are broken down into:

Cost of Building Construction

Cost of Depreciating Assets

Borrowing Expenses

Deductions based on construction costs apply to capital works such as:

Involves writing off the cost of the item over a number of years or the effective life of the asset, such as:

•loan establishment fees •lender's mortgage insurance (insurance taken out by the lender and billed to you) •title search fees charged by your lender •costs (including solicitors' fees) for preparing and filing mortgage documents •mortgage broker fees •fees for a valuation required for loan approval •stamp duty charged on the mortgage

Research Report: Australia Purchase Cycle Guide

• buildings, or an extension, e.g: adding a room or garage • alterations, e.g: removing or adding an internal wall • structural improvements, e.g: adding a gazebo or sealed driveway.

55

Depreciation can be claimed up to 2.5% per year (max of 40 years). Total capital works deductions cannot exceed the construction costs. No deduction is available until the construction is complete.

•Dishwasher •Ceiling fans •Microwave •Furniture package •Curtains •Security system •Oven •Clothes dryer


Property Resale/ Exit

In Australia, capital gains are treated the same as income from other sources. Any nett capital gain from the sale of a property is included as part of the seller’s income and taxed together with their other income. Capital losses can be offset against capital gains. Residents qualify for a 50% Capital Gains Tax discount, as long as they have held the asset for at least 12 months before disposal.

Should you choose to sell off your property, we can recommend a property agent and solicitor to assist you. The agent’s commission rates, your advertising budget, and exclusivity will be decided by you and the agent. The agent will provide an appraisal of the property indicating how much they expect to sell the property for, and tell you how they plan to market your property. Agents fees vary according to state. Legal fees generally range between A$700 and A$1300. Take note that, unlike stocks, property is not a liquid asset, and you should always expect that it will take some time for the property to be sold.

Research Report: Australia Purchase Cycle Guide

Capital Gains Tax (CGT)

Disclaimer: CSI PROP does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

56


United Kingdom The clock’s ticking and it’s crunch time for Brexit. Concerns are mounting as to whether the UK will be able to weather its ‘divorce’ from the EU. For sure, there will be significant shockwaves affecting the British economy and the housing market, but we are positive that the political and economical turbulence, and slowdown in the property market will be a short-term one. What would affect the real estate market significantly, however, will be the agreements on future trade and migration arrangements, as a reduction in immigrants could result in labour shortages and further inflation. A shortage in labour in the construction sector will cause a slowdown of on-going developments.

Research Report: United Kingdom

This is no small matter. Brexit or not, one of the UK’s biggest issues has been the

57

critical undersupply of housing — research shows that England is facing a backlog of 4 million homes! The construction sector has already been hard hit, with worker shortages at a record high earlier in 2018. Further hits to the construction sector will inevitably cause a reduction in supply and increase in price. Affordability constraints coupled with lifestyle changes mean continued growth for the build-to-rent/ private rental sector. The number of households living in private rental housing has doubled over the last decade, and a Knight Frank report shows that 1 out of 4 households will be renting privately by the end of 2021.


58

Research Report: United Kingdom


60

40

20

0 1991

1996

2001

2006

2011

2016

2021

According to data by Knight Frank and the English Housing Survey, almost 1 in 4 households will be renting privately by 2021. Source: The Guardian, Knight Frank Tenure Distribution Model, EHS, DCLG Ultimately, and, despite the spectre of Brexit, UK property offers comparatively strong returns and lower risk compared to other countries. This, combined with the much weakened pound and low interest rates will continue to underpin demand from overseas investors. Meanwhile, property price inflation

59

has slowed down, rising at the slowest annual rate for almost five years, dragged by falling London property values. House price growth is now at 0.5% in the year to Dec 2018 compared to 2.6% in 2017. Needless to say, this relative affordability, coupled with the cheaper currency, has been a real draw for investors.

Tenured distribution in England (%)

Research Report: United Kingdom

Growth in Tenure of Private Rental Housing Private rented Owned or shared ownership Social rented


UK House Prices Since 1952 200

160 140 120 100 80 60 40 20

UK house price £-nominal (’000)

180

Q 4

19 Q 52 11 9 Q 55 2 19 Q 57 3 19 Q 59 4 19 Q 61 11 9 Q 64 2 19 Q 66 3 19 Q 68 4 19 Q 70 11 9 Q 73 2 19 Q 75 3 19 Q 77 4 19 Q 79 11 9 Q 82 2 19 Q 84 3 19 Q 86 4 19 Q 88 11 9 Q 91 2 19 Q 93 3 19 Q 95 4 19 Q 97 12 0 Q 00 2 20 Q 02 3 2 Q 00 4 4 20 Q 06 12 0 Q 09 2 2 Q 011 3 20 Q 1 4 3 20 15

0

Source: Nationwide

In light of the circumstances, investors have become more risk averse, hence, investments with long-term and secure income streams have become more highly-prized. The investments that fall within this category are usually commercial property, e.g, offices, purpose-built

student property and retirement/care housing. Institutional investors from Singapore, such as GIC, Mapletree, Singapore Press Holdings and the Malaysian Retirement Fund (Incorporated) (KWAP), have invested heavily in these asset types, proving the continued viability of such investments.

Research Report: United Kingdom

UK house prices have continued growing since 1952. A clear recovery in house price growth is evident after the economic downturn in the mid-2000s, demonstrating the market’s ability to turn around, spurred by the underlying shortage of housing and improved fundamentals.

60


Research Report: United Kingdom

UK House Price & Rental Forecasts 2018-2022 (%)

%

2018

2019

Rent

2.5

2.5

Price

1.0

2.0

2021

2022

Total

2.5

3.0

3.0

14.0

3.0

3.5

4.0

14.2

2020

Knight Frank predictions of house prices and rental forecasts up to 2022. Source: Knight Frank UK Residential Market Forecast 2018

On the residential front, cities like Birmingham in the West Midlands, and Liverpool and Manchester in the northwest, have charted the best performance in house price growth. The Hometrack UK Cities House Price Index (Nov 2018) places Manchester as the top city for annual house price growth (6.6%), with Liverpool (5.2%) and Birmingham (6.3%) in the top 5. In short, uncertainties are inevitable, but there will be recovery and opportunities, too. Because, underneath the broiling Brexit surface, is the continued lack of housing stock that will help prop the market from collapse. After all, the need for housing is not going to go away, and neither will opportunities for property investors.

61

Quick Facts: United Kingdom . . . . .

Housing undersupply: backlog of 4 million houses Continued growth of the private rental sector Weakened pound (30-year low) means the UK is still ‘on sale’ Fast growth in cities like Manchester, Liverpool & Birmingham Purpose-built student property & care homes defy circumstances with long-term income stream


London Perhaps the busiest city in England, London has been most sensitive to housing demand-supply issues and the impending Brexit. The house price growth rate has plummeted to a negative, driving price falls across the nation. Uncertainty is inevitable as the UK negotiates its divorce from the EU, affecting business/labour as well as house prices. East London and West London, however, hold potential for house price growth, thanks to the Crossrail and improved infrastructure.

62


London Key Economic Indicators

London

UK 66m

Population

4.2%

Unemplyment rate

8.8m

ONS

House price growth in London this year is expected to be slightly better but subdued, with predictions hovering from -0.2% to 0.5%. Meanwhile, price growth over the next 5 years is expected to be around 13%. That said, it is important to note that London is a market within a market, with characteristics of its own. While London’s economy has grown significantly faster than other UK regions in the past, the uncertainty surrounding Brexit will be reflected in the drag on business investment and labour market. PwC expects UK growth to be more balanced across the regions in 2018-19, with London no longer growing significantly faster than the UK average.

5.1%

ONS & Nomis

3.3% Average House Price Growth -0.1% Hometrack & ONS

Research Report: London

London

63

London remains one of the most dense cities in the UK. However, house price growth has fallen, driving price falls across the UK.


Research Report: London

The meteoric rise of London real estate has come to a halt with asking prices (which had risen by over 50% between 2011 and their peak in 2016) now driving price falls across the UK to its lowest annual rate in 5 years. Perhaps the ongoing wrangling over Brexit has taken a toll on the capital city: house prices here fell at the fastest annual rate since the depths of the financial crisis, while rents dropped at the fastest rate in 8 years.

London posted the lowest annual growth in the UK. Sales volumes have dropped, too. A key issue behind the housing crisis in London is the gap between prices and earnings, underpinned by an undersupply of housing stock in the city. PwC estimated that an additional 110,000 new homes between 2011 and 2016 would have been needed to keep up with the population growth experienced.

Slowdown in London House Prices Affecting Growth Across England

Southwest Southeast London East West Midlands East Midlands Yorkshire and the Humber Northwest Northeast -3

-2

-1

0

1

2

3

4

5

6

12-month percentage change London recorded the lowest annual house price growth, decreasing at -0.7% as of June 2018. Source: HM Land Registry & ONS

64


EAST LONDON

Hackney City of London

Royal Docks Canary Wharf

Wapping Bermondsey

Stratford

City Airport Surrey Docks

North Greenwich

Research Report: London

Isle of Dogs Greenwich

Lewisham City in the East: London is moving eastwards, with areas like Canary Wharf, the Royal Docks and Stratford getting their fair share of the limelight. Source: ONS & Nomis

The city continues to move eastwards with more people living east of the Tower Bridge. East London, which encompasses Canary Wharf and the Docklands, has become one of the city’s most eclectic spots for culture and entertainment. Key factors driving this rejuvenation are comparative affordability, jobs creation and improved transportation links, driving potential for investment.

65

Woolwich Charlton

Canary Wharf Currently London’s financial centre and a key financial district in Europe, Canary Wharf has evolved to become a prime residential address in London. Many of the residents living in and around Canary Wharf are high-earning homeowners and professionals in their 20s and 30s. There has been a concerted focus on delivering new housing, workspaces and retail in the area. Canary Wharf will be home to potentially 30,000 new residents over the next 10 years.


Research Report: London

Royal Docks

Source: London’s Royal Docks

London’s Royal Docks was built in the mid-19th century, covering an area the size of central London. The Royal Docks, which encompasses the Royal Albert Dock, the Royal Victoria Dock and the King George V Dock, is poised to be the capital’s third financial district. It has excellent transportation links, serviced by Crossrail and DLR services for local travel and London City Airport for international travel.

Nearby, Silvertown could see the delivery of 5 million sqft of commercial space, 21,000 jobs and 3,000 new homes. Meanwhile, 30,000 jobs could be created at Royal Albert Docks, thanks to the new Asian Business Port which will include 3.5 million sqft of work spaces. Over 1,100 homes have been built in the Royal Docks since 2015, demand of which is driven by London workers in their 20s and 30s. An increase of 7.1% in Royal Dock’s population has been forecast over the next decade.

66


Crossrail: Travel Times The Crossrail, to run as the Elizabeth Line, will make travel times shorter from the east to the west of the capital. Source: London Eastern Opportunity Report 2017/18 Knight Frank

Crossrail Once completed in 2019, the Crossrail — to start running as the Elizabeth Line — will change London forever. Costing £15bn, the Crossrail will increase London’s rail capacity by 10% while reducing travel times throughout the capital. The Elizabeth Line will run from Canary Wharf and Custom House Stations, connecting Canary Wharf, the Royal Docks and the Queen Elizabeth Olympic Park, to central London and all the way to Heathrow. By 2017, house prices along the Crossrail route had outperformed the wider local markets by an average of 7%. The Crossrail will continue to be a catalyst for house price growth, especially for property in close proximity to the stations.

67

Crossrail in numbers . . . . .

42km of new tunnels 100km — the total length of the line 41 stations £42bn — the estimated amount that Crossrail will boost the economy by More than 130 million working hours have been completed on the project so far . 34 minutes — the time it will take to get from Heathrow to Liverpool Street Station . More than 1,000 apprenticeships have been created by Crossrail 90,599 new homes along the route are planned by 2021


West London

The West End will stand to benefit once the Elizabeth Line opens in London. Combined with a possible green light for a third runway at Heathrow by 2026, West London will experience a wave of regeneration, driving house demand and prices, JLL suggests in a new analysis. Heathrow’s expansion could create up to 60,000 jobs and generate around £70bn in economic benefits by 2050. Plans are afoot to build 13,000 new homes in the area, which has been forecasted to outperform both Greater London and Central London in terms of sales price and rental growth over the next 5 years.

Quick Facts: London . . . . .

Lowest annual house price growth in the UK Price growth expected to improve in 2019 at a subdued rate Crossrail expected to drive house price growth along its path Population growth and housing demand expected in East London West London to benefit from Crossrail and possible Heathrow expansion

68


Northern Powerhouse Encompassing the core Northern cities of Manchester, Liverpool, Leeds and Sheffield, the Northern Powerhouse was established in 2014 to boost economic growth in the North by attracting investment into its cities and towns. The Northern Powerhouse aims to address the north-south imbalance via improvement into transport links, investment in science and innovation, and the devolution of powers. A network of some 175 businesses and organisations have pitched in to shape the direction of this initiative. The High Speed 2 (HS2) — an opportunity for urban regeneration — will link London and Birmingham with the North. Imagine traveling from Manchester to London in only 1 hour!

69


Quick Facts: Northern Powerhouse . Home to 8 of Europe’s top 200 universities . If the Northern Powerhouse was a country, it would have the 10th largest economy in the EU worth £350bn . Home to over half of Britain’s best buy-to-let postcodes: Liverpool, Manchester, Newcastle, Sheffield . Accounts for more than 25% of the UK’s total manufacturing output . Nearly half of the UK’s total medicinal exports come from the North . 7 of the UK’s 27 key tech clusters are located in the North, with the largest in Manchester

14.8% 16.4% 12.6%

Research Report: Northern Powerhouse

5-Year House Price Forecast, Northern Powerhouse: 2018 - 2022

The Northern Powerhouse regions are flourishing while rental rates and house prices struggle in London. House prices are predicted to grow over 5 years in the Northwest, Northeast and York & Humber at 16.4%, 14.8% and 12.6%, respectively. Source: Knight Frank

70


Liverpool A major port city of the British Empire, Liverpool was one of the UK’s biggest cities for most of the 19th and 20th centuries. When the docks declined, the city experienced a massive exodus, bringing the population to an all-time low of 442,000 in 2001. Liverpool has seen a renaissance in the past 15 years, becoming one of the UK’s fastest-growing cities in terms of population (2008 - 2015), and economy (1998 - 2018). City living has gained a foothold in this city — house prices and rents are poised for growth over the next 5 years.

71


Liverpool Key Economic Indicators Liverpool City Region

UK Liverpool is a city to watch for house price growth and rental yield. Ranked the second largest regional economy in the North, this city has been cited by some as the true Northern Powerhouse: data from the Centre for Cities (derived from the ONS) reveals that it ranks within the top 5 of 12 major cities to have doubled the size of its economy from 1998 - 2018 (and is the only Northern Powerhouse city to have done so).

66m 4.2% 3.3%

Population

1,544,400

Unemployment Rate

4.2%

ONS & Nomis ONS & Nomis

Average House Price Growth 5.3% Hometrack

That’s an average annual growth rate of 4.2%, almost as fast as London.

Research Report: Liverpool

The booming growth of Liverpool’s economy is thanks, in part, to the significant investments the city has experienced over the last 10 years, including the £5bn Liverpool Waters project that will see a facelift of the city’s waterfront. Liverpool

Economic Growth A survey on the UK’s 24 leading urban economies in 1Q2018 ranked the Liverpool City Region within the top four hotspots in the country for economic growth potential, echoing data by the Centre for Cities. Liverpool came in fourth nationally behind Edinburgh, Oxford and Cambridge.

London

72


UK Core CIties: Economic Growth (1998 - 2016)

London Edinburgh Cardiff Liverpool Bristol

Research Report: Liverpool

Manchester Leeds Newcastle Glasgow Sheffield Birmingham Nottingham

Since 2008, Liverpool’s economy grew by a factor of approximately 2.1 — almost as fast as London and more than any major British city except London, Edinburgh or Cardiff. Source: Centre for Cities,ONS, CityMetric.com

Liverpool City Region Liverpool is home to 13,800 businesses, and is the economic, knowledge, transport and cultural centre of a wider City Region area of almost 2 million people, 70,000 businesses and 1 million jobs. Employment had increased faster than the national average by 12.4% (25,140 jobs) over the last decade. Research shows that from 2010 - 2015, Liverpool was among the few British cities that outpaced global cities like Paris and Tokyo in employment growth and was projected to grow faster than Berlin over the 2015-2020 period. The city has

73

been recognised as one of the UK’s fastest-growing hubs for digital companies outside London. Under a devolution deal with Whitehall, Liverpool will receive £900m over 30 years on top of other investment injections including the aforementioned Liverpool Waters and Liverpool2 — one of the most advanced shipping terminals in northern Europe and one that will offer British businesses a competitive new route to international markets.


KNOWLEDGE QUARTER

Education remains one of Liverpool’s biggest exports and job sources. With three universities, a teaching hospital, science park and more, education and the commercialisation of knowledge accounts for 15% of the goods and services produced in the city. The £2bn 450-acre Knowledge Quarter will catapult Liverpool’s economic progress, establishing the city as a world-class destination for science, innovation, education, technology and the creative and performing arts. The area straddles several universities including the world-renowned University of Liverpool and Liverpool John Moores University.

Sensor City is a global hub for the development of sensor technologies and rapid prototyping. Image Credit: Vanceva.com

A major development site in the Quarter is Paddington Village, recognised as a key area of economic growth for the city and the wider regions. It is home to the Royal College of Physicians northern base, a world-leading proton beam cancer treatment centre, the Royal Liverpool Hospital, Sensor City and the Liverpool International College. Upwards of 10,000 jobs will be created in Paddington Village, driving demand for housing.

74


Population on the Rise

Research Report: Liverpool

Population growth is one of the main forces behind the extensive regeneration experienced by the city. Liverpool’s renaissance is seeing stronger investments into property, ranking this northern city as one of the UK’s best performing property investment locations with average rental yields of 6.2%. During 2017 alone, average 2-bedroom flat rents rose by 2.8% while sales prices of property in the city centre increased by 5.1%. House prices in the city centre are predicted to grow by 19.3% while rents are tipped to increase by 17.6% from 2018 - 2022.

A study by TotallyMoney, which looked at 580,000 properties across England, Scotland and Wales, has found Liverpool to be one of the most profitable cities in the UK for landlords — far exceeding that of London. Liverpool has been earmarked as a property hotspot in 2019, poised to experience a population increase of 12% between now and 2041 as more talented young people are attracted to the city’s thriving service, healthcare and knowledge sectors.

Quick Facts: Liverpool . Student population alone is a staggering 70,000 . Named top buy-to-let spot in the UK (again) for 2018/19 . The Knowledge Quarter will see upwards of 10,000 jobs created . House prices will increase 19.3% from 2018 - 2022 . Rents are projected to grow 7.6% from 2018 - 2022

75


19.30% 17.60%

Liverpool House Price & Rental Growth, 2018 - 2022 House Price Growth Forecast % p.a Rental Growth Forecast % p.a

*

Cumulative

4.50%

4

3.50%

3.50% 3% 3%

3.50%

3.50%

3.50% 3.50%

3%

2

0

2018

2019

2020

2021

2022

2018-2022*

Population growth will continue to spur demand for housing in Liverpool, driving house price and rental growth over the next few years. Source: JLL

Research Report: Liverpool

House Price & Rental Growth Forecast % p.a

6

Housing Renaissance The decline of the docks in the mid-1970s saw a drastic fall in Liverpool’s population, which bottomed out at 442,000 in 2001. The last 15 years, however, has seen a reversal in trends, with Liverpool’s population now approaching the 500,000 mark. Its city centre alone has now reached circa 50,000, while its student population is at a cool 70,000. Centre for Cities, using fig-

ures from the ONS, has found Liverpool to have the fastest-growing city centre in the UK from 2002 - 2015, with a growth rate of 181%. This growth is due to the increased number of young people, including students: its city centre student population grew by 6,300 (208%)!.

76


Manchester Growth in the UK’s most liveable city has been rapid. In the last 10 years alone, Manchester charted an impressive 50% growth, thanks to huge investments that have gone into the city as part of the British government’s Northern Powerhouse push. Jobs and population are on the rise, driving demand for housing and, consequently, causing prices to skyrocket. Manchester is a city to watch as all indicators point to it becoming the shining beacon of Northern England.

77


Manchester Key Economic Indicators UK

4.2%

Population ONS & Nomis

2,768,800

Unemployment Rate ONS & Nomis

3.3% Average House Price Growth Hometrack

4.5% 6.6%

Manchester is a remarkable city. From a humble manorial township, Manchester exploded into the limelight during the Industrial Revolution to become the world’s first industrialised city. It is currently the fastest-growing city and one of the most interconnected regions in the UK — with the completion of the HS2, travel time between Manchester and London will be reduced from 2 hours to just over an hour. Today, Manchester is among the world’s top 10 cities for foreign direct investment and one of Europe’s most dynamic and exciting places in which to live and work. It is regarded as the UK’s second city and one of Europe’s largest and most important tech hubs with an economic output (GVA) of £16.1bn of the 6 UK cities within the Northern Powerhouse. Ernst & Young predicts an

Manchester

Research Report: Manchester

66m

Greater Manchester

London

annual GVA increase of 2.4% by 2020, while JLL forecasts an expansion of an average of 2.7% p.a. between now and 2022.

78


Manchester Leads in GVA growth by 2020 2014-17 % GVA Growth (CAGR)

5

2017-20

4 3 2 1

Dundee

Aberdeen

Glasgow

Edinburgh

Perth

Inverness

Stirling

East Anglia

Cardiff

Cambridge

Exeter

Cornwall

Bristol

London

South Coast

Thames Valley

Southampton

Luton

Reading

Milton Keynes

Oxford

Portsmouth

Manchester

Birmingham

Sheffield

Liverpool

Hull

Leeds

Newcastle

Teeside

-1

Sunderland

Research Report: Manchester

0

Manchester has consistently shown some of the highest GVA growth rates among the UK cities. Between now and 2020, EY predicts that Manchester will see an annual GVA increase of 2.4% while JLL forecasts a GVA growth of 2.7% p.a. by 2022. Source: EY UK Regional Economic Forecast, 2017/18

High Graduate Retention Typically, the rate of graduate retention varies hugely from region to region in the UK. Data shows that in the academic year ending as recent as 2015-16 , the Northwest and London have come up tops with a retention rate of 66%. The retention rate of postgraduate leavers is higher in the Northwest (66%) than in London (65%).

79

Graduate retention rate in the Northwest is led by Manchester, which is home to 4 leading universities, contributing to a student population of approximately 100,000. About 51% of Manchester’s graduates choose to remain in the city for work — second only to London in the UK. With such an active student market, city living has gained strong momentum in Manchester.


UK Cities Graduate Retention Rates, 2013/14 - 2014/15 London Manchester Belfast Birmingham Glasgow Aberdeen Edinburgh Middlesbrough

Swansea Bradford Liverpool Sheffield Bristol Stoke 0

20

40

60

Retention rate (%)

80

Research Report: Manchester

Newcastle

According to the most recent data by Centre for Cities (released Jan 2017), Manchester boasts an impressive graduate retention rate, second only to London. Source: Centre for Cities.

80


Vibrant Talent Pool

Research Report: Manchester

Manchester has earned a reputation as the hotbed of tech and startup talent in the UK. Its vibrant talent pool, coupled with world-class transport links has made it one of the best cities in Europe to do business in. It is now seen as the regional centre for finance, commercial and retail, with major corporations the likes of the Co-operative Group, Amazon, Royal Bank of Scotland, as well as BBC and ITV setting up key operations within the city. Between 2010 and 2015, Manchester and Salford jointly created some 14,000 jobs in a variety of sectors. With the relocation and start-up of major corporations and small businesses, comes the creation of new jobs. In the shorter term, Manchester is expected to witness employment growth averaging 1.3% during 2018 - 2022, four times the regional average. A study by Cushman & Wakefield predicts that around 3,100 new jobs will be created per year to 2034 across Manchester.

Fast-growing Population With job growth and the strength of its higher learning institutions, there's little wonder that Manchester’s population is growing. From 2002 - 2015, Manchester’s city centre had grown 149% from 14,300 to 35,600 people. When measured by a combination of jobs and population increase, Manchester had seen the fastest city centre growth in England and Wales within that period. The city is on track to experience a 14.1% increase in population between 2018 and 2041.

Quick Facts: Manchester . UK’s 2nd city and one of Europe’s largest, most important tech hubs . One of the world’s top 10 cities for foreign direct investment . A 100,000-strong student population & graduate retention rate of 51%

81


House Price Inflation, Nov 2017 & 2018 8% %yoy 12 months ago %yoy current

6%

2%

0%

-2%

Aberdeen

Cambridge

London

Oxford

Southampton

Bournemouth

Belfast

Portsmouth

Bristol

Sheffield

Leeds

Glasgow

Newcastle

Cardiff

Leicester

Liverpool

Nottingham

Birmingham

Manchester

-6%

Edinburgh

-4%

Manchester is among only 4 cities in the UK to chart higher house prices than a year before. Source: Hometrack Nov 2018

Research Report: Manchester

% Year on year

4%

Highest House Price & Rental Growth in the UK Manchester is one of the 4 cities in the UK where high competing land values and policy restrictions cause barriers to development. Thus, in spite of strong demand, pipelines of new stock remain low, resulting in increasing property prices. More than any city in the country, landlords in Manchester are getting the best returns on their investment as house prices have been increasing consistently, exceeding the UK average in 5 out of the last 6 years. In the last 12 months to July 2018, prices had risen just under 9% while London saw a drop of 1%. It is among

only 4 cities in the UK where price growth by Nov 2018 was higher than at the same time in 2017. Regeneration in the city and a severe constraint in housing supply will continue to push property prices. This city is one to watch as residential prices are forecast to grow at an average of 4.2% annually over the next 5 years compared with the 2.4% across the UK.

82


Manchester House Price & Rental Growth, 2018 - 2022

22.80%

House Price Growth Forecast % p.a Rental Growth Forecast % p.a

*

17.60%

Cumulative

6.50%

House Price & Rental Growth Forecast % p.a

Research Report: Manchester

6

4

4% 3.50%

3.50% 3%

3.50% 3.50%

3.50% 3.50%

3%

2

0

2018

2019

2020

2021

2022

2018-2022*

Manchester is forecasted to show consistent house price growth over the next 5 years, increasing at an average of 4.2% annually compared with 2.4% across the UK. Source: JLL

The cost of renting in Manchester, meanwhile, has gone up by a staggering 30% in the last 4 years. In the 12 months to Sept 2018 alone, rent in Manchester had gone up by 7%, driving among some of the highest rental returns in the UK. A recent survey shows average rental yield of as high as 7% in some areas of the city.

Quick Facts: Manchester . Expected employment growth averaging 1.3% for 2018 - 2022, 4 times regional average . Forecasted 14.1% increase in population between 2018 and 2041 . Residential prices forecasted to grow at a cumulative 22.8% (2018 - 2022)

83


Birmingham Birmingham has been through a roller coaster ride. After a consistent period of growth, this highly industrialised city suffered steep economic decline in the 1970s with 200,000 jobs lost, but has since rebuilt itself. Especially in the last few years, the City of A Thousand Trades has been given a shot in the arm, thanks, in part, to its Big City Plan which aims to expand the city core and add £2.1bn to the city’s economy. The Brummie tale is still being written — with the Commonwealth Games in 2022 and the targeted opening of the HS2 in 2026, you need to watch this space.

84


Birmingham Key Economic Indicators Greater Birmingham & Solihull

UK 66m 4.2%

Population ONS & Nomis

2,031,300

Unemployment Rate ONS & Nomis

3.3% Average House Price Growth Research Report: Birmingham

Hometrack

Regarded as the world’s first manufacturing hub, Birmingham grew from a medieval market town to the leading nucleus of the Industrial Revolution in Britain. In the last decade, the city made great strides in growth as a result of careful planning and infrastructural development. Central to this is the Big City Plan, an ambitious 20-year city centre masterplan aimed at supporting Birmingham's continuing transformation into a world-class city centre and expanding the city core by 25%. As the regional capital for the West Midlands and UK’s second most populous metropolis, the city centre accounts for a third of Birmingham’s economic output, accommodates more than 150,000 jobs and attracts more than £2bn of shopping expenditure every year. It is also home to over 30,000 people. The Big City Plan will ensure that Birmingham continues to be the key driver of the region’s economic growth.

85

5.5% 6.3%

Birmingham

London


Economic Performance & Talent Attraction

In terms of economic advancement, the city’s GVA is expected to expand by an average of 2.1% annually from 2018 - 2022, just above regional and national

averages. The Commonwealth Games in 2022 alone is expected to generate around £750m for the local economy. Despite a slightly lacklustre employment rate, Birmingham is expected to witness employment growth averaging 0.6% annually from 2018 - 2022 — marginally above the 0.4% West Midlands annual average. Assuming similar or increased trajectory bolstered by the HS2 and other infrastructural developments, this could mean an increase of 14,000 jobs by 2025, and the Big City Plan of creating over 50,000 jobs and contributing £2.1bn to the economy each year by 2031, could well be achieved.

Fastest-growing City Centre Populations Thousands 0

5

10

15

20

25

30

181% 163%

Liverpool Birmingham Leeds Manchester Bradford Leicester Sheffield Newcastle Milton Keynes Southampton Cardiff Bristol Nottingham Coventry Northampton

146%

149% 139%

94% 88%

10

45

2015 2002

113%

81% 5

150%

40

145%

113%

0

35

Research Report: Birmingham

Birmingham may well be the most entrepreneurial UK city outside London. As of 2017, it had been the top regional destination for business start-ups for 5 consecutive years. Its capacity for business growth (coupled with more affordable real estate) has attracted a number of businesses from London. Deutche Bank, for example, opened a major office here with more than 2,000 employees while HSBC relocated its retail and commercial arm from London. Office take-up exceeded 1 million sqft in 2017, 51% above the 10-year average, while the region’s tech and digital sectors are poised for growth.

85%

81%

78% 15

20

25

30

35

40

45

Thousands

It’s unsurprising that Birmingham is the second most populous city in the UK; data shows that it grew 163% from 2002-2015, faster even than London. Source: Centre for Cities, BBC.

86


Rising Population Numbers Birmingham is one of the fastest-growing populations of the UK, increasing 163% between 2002 and 2015 according to Centre for Cities. Its population now stands at 1.1m, of which 65,000 are students enrolled in the 4 univerisities within its boundaries. Of this number, 49% of graduates choose to remain in Birmingham for work — the 6th highest graduate rentention rate in the UK. Increasingly, Birmingham has become a popular destination for those leaving London. ONS figures confirmed that it is the top destination for Londoners leaving the capital with over 7,000 relocating in 2017, while 2016 saw the arrival of 6,500 people from the capital!

Knight Frank predicts that the nunber of people living in Birmingham will hit 1.3 million by 2039, bringing with it increased demand for new homes. The HS2, once operational in 2026, will cut travel time to and from London from 1 hour 20 minutes to only 49 minutes. This will boost the local economy while attracting people in the short and long term, further driving population numbers and housing demand

Birmingham: Top Destination for Those Leaving London, 2016

7,000 6,000

87

4,000 3,000

Birmingham is a top choice for those leaving London with 6,500 people relocating from the capital in 2016.

2,000

Source: ONS, UK Migraton Statistics, Knight Frank

1,000

Leicester

Coventry

Nottingham

Luton

Basildon

Leeds

Canterbury

Welwyn Hatfield Slough

Hertsmere

Reigate and Banstead

Manchester

Bristol Elmbridge

Dartford

Epping Forest Meadway

Brighton

Thurrock

0 Birminghaam

Number of People

Research Report: Birmingham

5,000


Together with the North, the Midlands region, where Birmingham is, saw the strongest growth over the last four years to Sept 2018. Little surprise, then, that PwC’s Emerging Trends in Real Estate report, which looks at future prospects of European cities, placed Birmingham as one of Europe’s top 20 most investable cities, outranking London and Manchester.

Research Report: Birmingham

Housing Growth

Annual & Cumulative Price Growth in Prime Regions, 2014 - 2018 Prime Central London

Other Suburban London

Commuter Zone

Wider South

Midlands/ North

Scotland

Annual growth

-3.8%

-3.1%

-2.8%

-1.6%

-1.2%

2.5%

2.0%

Four-year growth

-18.3%

-7.6%

-3.2%

3.8%

6.9%

6.1%

4.0%

The Midlands and the North led the charge in house price growth over the last four years, both cumulatively and annually. Source: Savills Research

88


With average residential values charting a 31% increase over the last 5 years in Birmingham alone, this city will continue to lead the charge in house price gains in the region.

Spurring price growth is the increasing desirability of the city centre as a place to live for young professionals, especially in the last 2 - 3 years, and the corresponding undersupply of housing development in meeting demand. This has underpinned the lettings market and rental values. Overall, the outlook for Birmingham’s residential market is positive, with above average but stable growth in rents and prices expected.

Research Report: Birmingham

Birmingham Property Growth Forecasts

89

2018

2019

2020

2021

2022

House price growth forecast

4%

3%

31/2%

4%

41/2%

Rental growth forecast

3%

21/2%

3%

31/2%

31/2%


UK Purchase Cycle Guide

Research Report: UK Purchase Cycle Guide

You’ve thought long and hard, and have decided to invest in UK property. What happens next? This article will guide you through the different stages of the investment process.

Property Reservation

Anti Money Laundering Checks Property Management

Financing

Rental Income

Exchange of Contracts & 1st Payment Final Settlement & Stamp Duties

90


Property Reservation

Research Report:UK Purchase Cycle Guide

We recommend investments based on your goals and budget, and once you have decided on the property for investment, you will need to sign Reservation Forms and a Solicitors Appointment Letter.

There are several payments required at this stage: Reservation Deposit*: Approx £5,000 (forms part of the purchase price, non-refundable)

Legal Fees*: Between £700 to £2000 *Payment can vary depending on project/developer/ solicitor

CSI PROP works closely with a panel of recognised solicitors in the UK. We’re happy to recommend our panel, but you may use solicitors of your own choosing. Before proceeding with the contracts to purchase your property, your solicitor will activate the Anti-Money-Laundering process.

91


Anti Money Laundering Checks

Exchange of Contracts & 1st Payment Once you have completed the Anti Money Laundering process, you will need to sign the Sale and Purchase Agreement. This is normally done within 28 days of your solicitors receiving the contract from the seller’s solicitors. Together with this Agreement, you will make your first payment to the developer via your solicitors. This amount varies from one developer to another.

Financing

Progress payments apply for some projects, and the timelines for these payments will be stipulated in the Agreement. Research Report:UK Purchase Cycle Guide

The Anti Money Laundering process is a very important part of buying UK property, and is done by your solicitor on behalf of the UK Government to ensure that your purchase funds are not related to suspected money-laundering and terrorism links. Your solicitor will ask for proof of your identity, residential address, availability of funds and its sources.

You may apply for financing while purchasing UK residential property with a value in excess of £100,000. Application for financing can be done 3 to 6 months before settlement, and the banks will assess your financing position and eligibility. Documents which are typically required by the bank include: • • •

3 to 6 months salary slips 3 to 6 months bank statements Income Tax Return Form

There are typically no application and processing fees to finance your property. However, the legal fees can incur up to 1.5% of the value of your property. There are several banks in Malaysia and internationally that offer financing. Please get in touch with us to find out more.

Anti Money Laundering documents that will need to be submitted . Proof of Identity . Proof of Residency . Proof of Availability of Funds

92


Research Report:UK Purchase Cycle Guide

Final Settlement & Stamp Duties When your property is nearing completion, the developer will send a Completion Notice to your solicitors. You will need to make full payment for the property at this stage, which is also known as the final settlement, and pay any applicable stamp duties to HM Revenue & Customs (HMRC). Stamp duty is a percentage of the property price, which varies based on the value of the property, and whether it is categorized as residential or commercial (e.g. offices, hotels, UK commercial student property or

Stamp Duty for UK Residential Property

Stamp Duty for UK Commercial Property

You will be entitled to stamp duty rebates if this is your first or only residential property purchase globally. Most investors already own a house, hence the following stamp duty rates will apply:

For commercial property, you don’t pay any stamp duty up to £150,000. You pay stamp duty of 2% for the next £100,000 (the portion from £150,001 to £250,000). Any portion above £250,000 is charged at 5%.

Purchase Price

Stamp Duty

Purchase Price

Stamp Duty

Up to £125,000 £125,001 - £250,000 £250,001 - £925,000 £925,001 - £1.5 million £1.5 million and above

3% 5% 8% 13% 15%

Up to £150,000 £150,001 - £250,000 £250,001 and above

0% 2% 5%

Stamp Duty for Individuals Owning Multiple Houses

93

care homes). CSI PROP can recommend a tax agency to assist with filing and paying the tax on your behalf. Otherwise, you can file the return and pay the taxes yourself.

Buying Commercial Property as an Individual


Research Report:UK Purchase Cycle Guide

Property Management When you exchanged contracts with the developer, you may have signed an agreement to hire a letting agent. You may also have chosen to manage the property yourself.

Buyers will have to use the letting agent prescribed by the developer for the whole duration of the assurance period to qualify for the rental assurance.

The letting agent will ensure your property is well-maintained, taking care of all expenses involved, and collecting the rental on your behalf. Note that a condition applies when buying UK property with a rental assurance (such as UK commercial student property).

Rental Income You will need to pay income tax to the UK Government once your property starts generating rental income. We can recommend a qualified professional in the UK to manage your taxes. You may also file your rental income taxes to HMRC through self-assessment (using form NRL1). You may be eligible for the standard personal allowance if it is included in the double-taxation agreement between the UK and the country you live in. This is the amount of income you don’t have to pay tax on every year. For example, Malaysians qualify for this allowance but Singaporeans do not. You get a standard personal allowance of £11,850,

unless your income is £100,000 or above. The allowance decreases incrementally (see table below) if your income is above £100,000. Your personal allowance can vary if you apply for Marriage Allowance or Blind Person’s Allowance.

Income

Personal Allowance

Under £100,000

£11,850

£100,000 to £123,700

Decreases from £11,850 by £1 for every £2 you earn, until it reaches £0

Over £123,700

£0

Personal Allowance for UK Income Tax

94


Research Report:UK Purchase Cycle Guide

If you have the standard personal allowance of £11,850, you pay 20% tax on the next £34,500 of your income. If you do not have any personal allowance, you are taxed at 20% up to £46,350 of your income.

Band

For the the portion from £46,351 to £150,000, you pay 40%, and for the portion above £150,000, you pay 45%.

Taxable Income

Tax

Personal Allowance

Up to £11,850

0%

Basic Rate (Without Personal Allowance)

Up to £46,350

20%

Basic Rate (With Personal Allowance)

£11,851 - £46,350

20%

Higher Rate

£46,351 - £150,000

40%

Additional Rate

£150,001 and above

45%

UK Income Tax Bands

Property Resale/Exit Should you choose to sell off your property, we can recommend a property agent and solicitor to assist you.

due to the smaller price quantum of the property. This rate can be negotiated.

The agent’s commission rates, your advertising budget, and exclusivity will be decided by you and the agent. The agent will provide an appraisal of the property indicating how much they expect to sell the property for, and tell you how they plan to market your property.

The solicitor’s fees are approximately £700 to £2000, depending on the value of your property.

Agents normally charge between 2% and 3% of the sale price of residential property, whilst the resale of commercial student property can cost up to 5% of the sale price

95

Take note that, unlike stocks, property is not a liquid asset, and you should always expect that it will take some time for the property to be sold. The sale of UK property is subject to Capital Gains Tax (CGT).


Capital Gains Tax (CGT) Capital Gains Tax (CGT) is paid on any gains you make when you dispose of your property.

Your taxable gain is the difference in price between the purchase and sale of your house, after taking away any allowable expenses and your personal allowance (if selling as an individual).

All non-UK residents get an annual personal allowance of £11,700 for CGT. Allowable expenses include the stamp duty paid upon the purchase of the property, agent fees and legal fees incurred during the purchase or sale, and payments for valuations made on the property.

Taxable gain

Capital Gains Tax (CGT) Rate

£46,350 or less

18%

More than £46,350

UK Capital Gain Tax (CGT) Rate

28%

Research Report:UK Purchase Cycle Guide

CGT is currently only applicable to residential property. Commercial property such as student property and care homes will be subject to CGT from April 2019.

96


Appendix 04 Costs associated with buying and selling Australian and UK property based on current rates.

Australia

Malaysia

Hong Kong

UK

US

NZ

SG

Stamp Duty Legal fees* Total buying costs*

12.3% 0.4% 12.7%

3.6% 1.2% 4.8%

30.0% 0.2% 30.2%

5.5% 0.4% 5.8%

1.5% 1.0% 2.5%

0.0% 0.2% 0.2%

22.2% 0.4% 22.6%

Agent fees** Legal fees** Selling costs**

2.6%

2.5% 0.8% 3.3%

1.0% 0.1% 1.1%

2.5% 0.3% 2.8%

5.5%

0.1% 2.8%

0.2% 5.7%

3.5% 0.1% 3.6%

3.0% 0.3% 3.3%

Capital Gains Tax ***

34.5%

15.0%

0.0%

22.1%

30.0%

33.0%

0.0%

Mortgage Interest Rates

3.90%5.50%

4.505.00%

2.503.00%

3.505.50%

4.005.50%

4.005.00%

2.00%2.50%

Margin of Financing

60-70%

70-80%

70-80%

70-80%

60-75%

60-65%

45-75%

* of a purchase price of equivalent USD 500,000 ** of a sale price of equivalent USD 600,000 ***on a capital gain of USD 100,000

97


05References Overview 1. Sharen Kaur, Ultra-wealthy Prefer to Invest in Stocks, Properties, Apr 2018, https://www. nst.com.my/property/2018/04/356292/ultra-wealthy-prefer-invest-stocks-properties 2. Sharen Kaur, Malaysian Investors Eye Property in UK, Australia, Singapore: Knight Frank, Apr 2018, https://www.nst.com.my/business/2018/04/353498/malaysian-investors-eye-property-uk-australia-singapore-knight-frank 3. Singapore is top Asian Property Buyer in the US, UK and Australia, Surpassing China, https://www.straitstimes.com/business/property/singapore-is-top-asian-property-buyer-in-the-us-uk-and-australia-surpassing-china

Australia: Overview 1. David Chau, Australia House Prices Surge 6556% since the 1960s, BIS Says, Oct 2017, https://www.abc.net.au/news/2017-10-16/australian-property-prices-rose-6556-percent-since-1961/9055066 2. Stuart Marsh, Nine out of 10 Australian Properties Sell for a Profit, Mar 2018, https:// finance.nine.com.au/2018/03/20/12/02/nine-out-of-ten-australian-properties-sell-for-aprofit 3. Australian Bureau of Statistics, 6416.0 - Residential Property Price Indexes: Eight Capital Cities, Sep 2018, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0 4. Australian Bureau of Statistics, 3101.0 - Australian Demographic Statistics, Jun 2018, http://www.abs.gov.au/ausstats%5Cabs@.nsf/mediareleasesbyCatalogue/CA1999BAEAA1A86ACA25765100098A47?Opendocument 5. The Treasury Department of Home Affairs, Australian Government, Shaping A Nation,

98


Population growth and immigration over time, 2018, https://cdn.tspace.gov.au/uploads/ sites/107/2018/04/Shaping-a-Nation.pdf 6. Stephen Letts, Australia’s Population Increases by One Person Every 86 Seconds as it Exceeds 25 Million, Mar 2018, https://mobile.abc.net.au/news/2018-03-22/australia-population-increases-by-one-person-every-86-seconds/9575262?pfmredir=sm 7. Knight Frank, Wealth Report Attitudes Survey 2018, 12th edition, https://content.knightfrank.com/resources/knightfrank.com/wealthreport2018/the-wealth-report-2018.pdf

Australia: Perth 1. JLL, Perth Housing Market Overview, June 2018, https://www.jll.com.au/content/dam/ jll-com/documents/pdf/research/apac/australia/australia-perth-housing-market-overview-june-2018.pdf 2. Kate Emery, Strong Perth House Price Growth Still Two Years Away, BIS Oxford Economics Perdicts, June 2018, https://thewest.com.au/lifestyle/real-estate/strong-perth-houseprice-growth-still-two-years-away-bis-oxford-economics-predicts-ng-b88876006z 3. Australian Property Market Report — July 2018, https://www.realestate.com.au/australian-property-market/pdf/australian-property-market-report-july-2018.pdf 4. Sasha Karen, The Most In Demand Perth Suburbs for July 2018, July 2018, https://www. smartpropertyinvestment.com.au/research/18280-the-most-in-demand-perth-suburbsfor-july-2018 5. David Cresp, Urbis, Perth Downsizer Market Pushes Apartment Sales, Jun 2018, https:// urbis.com.au/insights-news/perth-downsizer-market-pushes-apartment-sales/ 6. Aussie, CoreLogic, 25 Years of Housing Trends, 2018, https://www.aussie.com.au/content/dam/aussie/documents/home-loans/aussie_25_years_report.pdf

99


7. Daniel Butkovich, Three Smart Property Moves for Investors in the Face of Falling House Prices, July 2018, https://www.domain.com.au/advice/three-smart-property-moves-forinvestors-in-the-face-of-falling-house-prices-20180629-h121qy-752283/ 8. David Chau, Brisbane, Perth, Canberra to Lead Property Price Rises as Sydney Slows, Analyts Say, June 2018, https://www.abc.net.au/news/2018-06-25/bis-oxford-economics-australian-property-market-slowdown/9899774 9. Ross Greenwood, Why Perth Might be the New Hot Property Market, Jan 2018, https:// www.9news.com.au/national/2018/01/29/10/30/commonwealth-bank-report-compares-state-economies

Australia: Melbourne 1. JLL, Melbourne Housing Market Overview, June 2018, https://www.jll.com.au/content/ dam/jll-com/documents/pdf/research/apac/australia/australia-melbourne-housing-market-overview-june-2018.pdf 2. Barbara Miller, Melbourne, Sydney and Brisbane Populations Soar but Growth Drivers Differ, Apr 2018, https://www.abc.net.au/news/2018-04-24/melbourne-sydney-brisbane-populations-soar-growth-drivers-differ/9693470 3. Australian Bureau of Statistics, 3218.0 - Regional Population Growth, Australia, 2016-17, Apr 2018, http://www.abs.gov.au/ausstats/abs@.nsf/latestProducts/3218.0Media%20Release12016-17?OpenDocument 4. JLL, Melbourne Apartment Market Commentary 4Q2017, Jan 2018, https://www.jll.com. au/content/dam/jll-com/documents/pdf/research/apac/australia/au-melbourne-apartment-market-commentary-4Q17.pdf

100


5. Erin Munro, Why Downsizers are Flocking to Melbourne’s Inner City Suburbs, Jul 2018, https://www.domain.com.au/news/why-downsizers-are-flocking-to-melbourne8217s-innercity-suburbs-20180704-h127sx-750913/ 6. SQM Research, Residential Vacancy Rates - City: Melbourne, https://sqmresearch.com. au/graph_vacancy.php?region=vic%3A%3AMelbourne&type=c&t=1 7. CBRE, Infrastructure & Real Estate: Key Melbourne Projects 8. Bernard Salt, Melbourne Set to Overtake Sydney, May 2018, https://www.theaustralian. com.au/business/bettercities/melbourne-set-to-become-nations-most-populous-cityby-2030s/news-story/59ab02029829655b7be9e894a0133cbc 9. Rohan Smith, Melbourne population to soar past Sydney within decade, Apr 2018, https://www.news.com.au/finance/economy/australian-economy/melbourne-population-to-soar-past-sydney-within-decade/news-story/e88a537f61de7b74c2897d102a40cc10 10. Australian Bureau of Statistics, What's driving population growth in Australia's cities?, 3218.0 - Regional Population Growth, Australia, 2016-17, http://www.abs.gov.au/ausstats/ abs@.nsf/latestProducts/3218.0Media%20Release12016-17?OpenDocument 11. Global liveability has improved for the first time in a decade, The Economist, Aug 2017, https://www.economist.com/graphic-detail/2017/08/16/global-liveability-has-improvedfor-the-first-time-in-a-decade 12. About Melbourne, Melbourne Facts & Figures, https://www.melbourne.vic.gov.au/ about-melbourne/melbourne-profile/Pages/facts-about-melbourne.aspx 13. Australian Bureau of Statistics, 6416.0 - Residential Property Price Indexes: Eight Capital Cities, Sep 2018, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0

101


14. MEASURING THE ACTIVITY OF VICTORIA’S RESIDENTIAL DEVELOPMENT INDUSTRY, UDIA VICTORIA RESIDENTIAL DEVELOPMENT INDEX, Urban Development Institute of Australia (UDIA) Victorian Division, Aug 2017, https://www.udiavic.com.au/getattachment/News-Research/Industry-News/FIRST-HOME-BUILDERS-SAVE-UP-TO-$60,000COMPARED-TO/UDIA-RDI-Report-Final.pdf 15. Staff reporter, BIS now forecasts no Melbourne apartment oversupply, Sept 2017, https://www.propertyobserver.com.au/finding/residential-investment/75890-bis-forecasts-no-melbourne-apartment-oversupply.html 16. Melbourne Universities in the CBD and Northern Suburbs, lestudent8, https://www. lestudent8.com/studying-in-australia/living-in-melbourne/universities/ 17. Top Universities in Australia 2018, QS Top Universities, June 2018, https://www.topuniversities.com/university-rankings-articles/world-university-rankings/top-universities-australia-2018 18. Rohan Smith, Melbourne Population to Soar Past Sydney Within Decade, Apr 2018, https://www.news.com.au/finance/economy/australian-economy/melbourne-population-to-soar-past-sydney-within-decade/news-story/e88a537f61de7b74c2897d102a40cc10 19. Education Boom changing the face of cities centres, Aug 2017, http://www.theaustralian.com.au/higher-education/international-students/education-boom-changingthe-face-of-cities-centres/news-story/4f1554c1687aacc99382a085895980bf&memtype=anonymous 20. Michael Bleby, No surplus after all: Melbourne population surge means apartment shortfall – BIS, Sept 2017, https://www.afr.com/real-estate/no-surplus-after-all-melbourne-population-surge-means-apartment-shortfall--bis-20170913-gygfmx 21. Population Forecasts, City of Melbourne, https://www.melbourne.vic.gov.au/about-mel-

102


bourne/research-and-statistics/city-population/pages/population-forecasts.aspx 22.Infrastructure & Real Estate: Key Melbourne Projects, CBRE, Apr 2017, http://cbre. vo.llnwd.net/grgservices/secure/Australia%20Major%20Report%20-%20Infrastructure%20and%20Real%20Estate%20-%20Key%20Melbourne%20Projects_April_2017.pdf?e=1547190383&h=0e8e167b3f7457c41c12e50b367f8df8 23. City of Melton - Economy Profile, https://www.economyprofile.com.au/melton/ 24. City of Melton Population Forecast, forecast.id, https://forecast.id.com.au/melton 25. Stella Tzobanakis, Melton Jobs Figures on the Rise, Dec 2017, http://www.starweekly. com.au/news/melton-jobs-figures-rise/ 26. Bernard Salt, Where the Jobs of the Future Will Be, May 2017, https://www.theaustralian.com.au/business/bettercities/job-growth-in-australia-points-to-future-prosperity/ news-story/4e6b4a314798e41a602254513f03aaf2 27. Alex Ritchie, Melbourne Dominating Building and Population Growth, June 2018, https://www.ratecity.com.au/home-loans/mortgage-news/melbourne-dominating-building-population-growth 28. Samantha Landy, Melbourne’s outer west, north lead nation for house price growth, Apr 2018, https://www.news.com.au/finance/real-estate/melbourne-vic/melbournes-outerwest-north-lead-nation-for-house-price-growth/news-story/9815750dbbe163e15e588e16c8a645af 29. Residential Vacancy Rates - postcode 3338, SQM Research 30. Jemima Clegg, Soaring Rent Costs and Not Enough Properties for Lease: Melbourne’s Leases Crisis, Apr 2018, https://www.domain.com.au/news/soaring-rent-costs-and-notenough-properties-for-lease-melbournes-lease-crisis-20180414-h0yqrf/

103


31. Samantha Landy, Melbourne Notches Strongest Annual House Price Gains Since 2010, Jan 2018, https://www.news.com.au/finance/real-estate/melbourne-vic/melbourne-notches-strongest-annual-house-price-gains-since-2010/news-story/b7d2b1a217566171f12a0d37526f9792 32. Scott Carbines, Melbourne’s Star Property Suburbs of 2017, Oct 2017, https://www. news.com.au/finance/real-estate/melbourne-vic/melbournes-star-property-suburbs-of-2017/news-story/6795ac240c47d4bc47e5a1cd3e218823 33. Place Snapshot: Mernda, https://www.whittlesea.vic.gov.au/building-planning-development/future-development-plans/place-snapshots-a-guide-to-development-in-yourarea/place-snapshot-mernda/ 34. City of Whittlesea Population Forecast, https://forecast.id.com.au/whittlesea/home 35. Australian Bureau of Statistics, 3218.0 - Regional Population Growth, Australia, 201617, http://www.abs.gov.au/ausstats/abs@.nsf/mf/3218.0 36. All Aboard at Mernda, https://levelcrossings.vic.gov.au/media/news/all-aboard-atmernda 37. Mernda Takes A Look Back, https://levelcrossings.vic.gov.au/media/news/merndatakes-a-look-back 38. Mernda, https://www.realestate.com.au/invest/unit-in-mernda,+vic+3754 39. Scott Carbines, Regional Victorian Homes Prices on the Rise, Jul 2018, https:// www.news.com.au/finance/real-estate/melbourne-vic/regional-victorian-home-prices-on-the-rise/news-story/66c17b25e1857901e07c3abb0c733081 40. Laura Michell, Mernda House Prices Track Upwards Thanks to Rail Line, Jul 2018, http://

104


www.starweekly.com.au/news/mernda-house-prices-track-upwards-thanks-to-rail-line/ 41. Residential Vacancy Rates: Postcode 3754, SQM Research, https://sqmresearch.com. au/graph_vacancy.php?postcode=3754&t=1

Australia: Sydney 1. Sarah Gerathy, NSW can Bank on a Property Recovery Around 2020, Treasurer Says, Dec 2018, https://mobile.abc.net.au/news/2018-12-18/nsw-holding-out-for-a-property-recovery-around-2020/10630988?pfmredir=sm 2. Aline Tanner, Extremes of Australia’s Property Market Growth and Decline Revealed, Jul 2018, https://www.realestate.com.au/news/extremes-of-australias-property-market-growth-and-decline-revealed/ 3. Bianca Dabu, Property Market Update: Sydney, June 2018, June 2018, https://www.smartpropertyinvestment.com.au/research/18233-property-market-update-sydney-june-2018 4. Martin Farrer, Sydney House Prices See Biggest Fall for 30 Years, Dragging Rest of Australia Down, Nov 2018, https://www.theguardian.com/australia-news/2018/nov/01/ sydney-house-prices-fall-at-fastest-rate-in-30-years-dragging-rest-of-australia-down 5. Michael Yardney, Property Predictions for 2021 Revealed, Dec 2018, https://propertyupdate.com.au/property-predictions-for-2021-revealed/ 6. Sydney, Australian Property Market Report — July 2018, https://www.realestate.com. au/australian-property-market/property-report-july-2018/#NSW 7. Housing Industry Association Ltd, Melbourne Dominates Australia’s Housing Hotspots List, https://hia.com.au/-/media/HIA-Website/Files/Media-Centre/Media-Releases/2018/ national/melbourne-dominates-australia-housing-hotspots-list.ashx

105


8. Property Investment Professionals of Malaysia, Gentrification coming to these suburbs in your city, Jun 2018, http://www.pipa.asn.au/news-and-events/pipa-in-the-news/443gentrification-coming-to-these-suburbs-in-your-city

Australia: Brisbane 1. CoreLogic Hedonic Home Value Index, July 2018 Results (national media release) https://www.corelogic.com.au/sites/default/files/2018-07/2018-07--CL_INDICES.pdf 2. David Chau, Property Prices Drop for Ninth Straight Month, as Regional Markets Outpace the Capitals, Jul 2018, https://www.abc.net.au/news/2018-07-02/property-pricedrop-9th-straight-month-corelogic-june/9930562 3. Australian Bureau of Statistics, 3218.0 - Regional Population Growth, Australia, 2016-17, Apr 2018, http://www.abs.gov.au/ausstats/abs@.nsf/mf/3218.0 4. Michael Yardney, A State-by-state Property Market Update from April, May 2018, https://www.smartcompany.com.au/industries/property/state-by-state-property-market-update/ 5. Michael Yardney, Property Predictions for 2021 Revealed, Dec 2018, https://propertyupdate.com.au/property-predictions-for-2021-revealed/ 6. Brisbane, Australian Property Market Report — July 2018, https://www.realestate.com. au/australian-property-market/property-report-july-2018/#WA 7. Stuart Layt, Queensland Enjoys Highest Job Growth Rate in Nation, Apr 2018, https:// www.brisbanetimes.com.au/national/queensland/queensland-enjoys-highest-jobgrowth-rate-in-nation-20180419-p4zamf.html 8. Brisbane City Council, Brisbane’s Key Economic Facts, https://www.brisbane.qld.gov.

106


au/about-council/governance-strategy/business-brisbane/growing-brisbanes-economy/ brisbanes-key-economic-facts 9. Michael Yardney, What’s Ahead for Brisbane’s Property Market, Dec 2018, https://propertyupdate.com.au/whats-ahead-brisbanes-property-market/ 10. Elizabeth Tilley, Overseas Buyers, Bargain Hunters Driving Surge in Demand for Brisbane Property, Jul 2018, https://www.news.com.au/finance/real-estate/brisbane-qld/ overseas-expats-bargain-hunters-driving-surge-in-demand-for-brisbane-property/ news-story/df3851ac77f1412cfc437ef26315500b 11. Elizabeth Tilley, House Prices to Fall 10 Per Cent in Sydney and Melbourne, Brisbane to Weather the Storm: ANZ, Jum 2018, https://www.news.com.au/finance/real-estate/ brisbane-qld/house-prices-to-fall-10-per-cent-in-sydney-and-melbourne-brisbane-toweather-the-storm-anz/news-story/0a606339c90206d7e63a8d5df049ac62 12. Brisbane, Australian Property Market Report — Jul 2018, https://www.realestate.com. au/australian-property-market/property-report-july-2018/#WA 13. QLD Excerpt From The 2018 September Market Report, https://www.yourinvestmentpropertymag.com.au/market-report/qld/qld-excerpt-from-the-2018-september-marketreport-254295.aspx 14. Australian Bureau of Statistics, 3218.0 - Regional Population Growth, Australia, 2016-17, Apr 2018, http://www.abs.gov.au/ausstats/abs@.nsf/mf/3218.0 15. David Chau, Property Prices Drop for Ninth Straight Month, as Regional Markets Outpace the Capitals, Jul 2018, https://www.abc.net.au/news/2018-07-02/property-pricedrop-9th-straight-month-corelogic-june/9930562

UK Preface

107


1. National Housing Federation, England Short of Four Million Homes, May 2018, https:// www.housing.org.uk/press/press-releases/england-short-of-four-million-homes/ 2. Josie Cox, UK Construction Worker Shortage Hits Record, Warns Trade Association, Jan 2018, https://www.independent.co.uk/news/business/news/uk-construction-worker-shortage-recruitment-brexit-eu-nationals-citizens-europe-trade-association-a8172466.html 3. Knight Frank, MULTIHOUSING 2017 PRS RESEARCH, https://kfcontent.blob.core.windows.net/research/707/documents/en/the-uk-tenant-survey-2017-4743.pdf 4. Julie Kollewe, Quarter of Households in UK Will Rent Privately by End of 2021, says Report, Jum 2017, https://www.theguardian.com/money/2017/jun/12/one-in-four-households-in-britain-will-rent-privately-by-end-of-2021-says-report 5. Office for National Statistics, UK House Price Index: June 2018, https://www.ons.gov.uk/ economy/inflationandpriceindices/bulletins/housepriceindex/june2018 6.Nationwide House Price Index, Dec 2018, https://www.nationwide.co.uk/-/media/ MainSite/documents/about/house-price-index/2018/Dec_Q4_2018.pdf 7. Tejvan Pettinger, UK Housing Market, Sept 2017, https://www.economicshelp.org/ blog/5709/housing/market/ 8. CBRE, UK Outlook Report 2018 9. UK Cities House Price Index — Nov 2018, https://www.hometrack.com/uk/insight/ukcities-house-price-index/november-2018-cities-index/

UK: London 1. PwC, UK Economic Outlook, July 2018, https://www.pwc.co.uk/economic-services/

108


ukeo/ukeo-july18-uk-housing-market-outlook.pdf 2. Jonathan Cable, Brexit Puts a Ceiling on London Housing Demand, Prices - Reuters Poll, Jun 2018, https://www.reuters.com/article/uk-britain-property-poll/brexit-puts-a-ceilingon-london-housing-demand-prices-reuters-poll-idUSKCN1J20DJ 3. Office for National Statistics, Population Estimates, 2017, https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates 4. Office for National Statistics, UK Labour Market: July 2018, https://www.ons.gov.uk/ employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/ uklabourmarket/july2018 5. Office for National Statistics, UK House Price Index: June 2018, https://www.ons.gov.uk/ economy/inflationandpriceindices/bulletins/housepriceindex/june2018 6. Nomis Official Labour Market Statistics - London, https://www.nomisweb.co.uk/reports/lmp/la/1967128593/printable.aspx 7. Julia Kollewe, London Property Slump Puts Brake on UK House Price Growth, Aug 2018, https://www.theguardian.com/business/2018/aug/15/london-property-slump-putsbrake-on-uk-house-price-growth 8. London House Prices, Are London House Prices Heading for 1990s-style Crash?, Jan 2019, https://www.theweek.co.uk/london-house-prices 9. Jonathan Cable, Brexit puts a Ceiling on London Housing Demand, Prices - Reuters Poll, Jun 2018, https://www.reuters.com/article/uk-britain-property-poll/brexit-puts-a-ceilingon-london-housing-demand-prices-reuters-poll-idUSKCN1J20DJ 10. Knight Frank, Eastern Review 2017/18, (London Eastern Opportunity Report 2017/18) 11. David Spittles, Where to Buy a Property in London in 2016: East London's New

109


Post-Olympics Boom Towns, Jan 2016, https://www.homesandproperty.co.uk/property-news/buying/new-homes/where-to-buy-a-london-home-in-2016-east-londons-newpostolympics-boom-towns-a98526.html 12. About Us, London’s Royal Docks, https://www.londonsroyaldocks.com/about-us/ 13. Julian Glover, Elizabeth Line News: How the £15 billion Crossrail Project will Change London, Aug 2018, https://www.standard.co.uk/news/transport/elizabeth-line-newshow-the-15-billion-crossrail-project-will-change-london-a3917756.html 14. Knight Frank, CROSSRAIL ANALYSING PROPERTY MARKET PERFORMANCE ALONG THE ELIZABETH LINE 2017, https://content.knightfrank.com/research/520/documents/ en/2017-4695.pdf 15. JLL, Residential West London Report 2018, http://residential.jll.co.uk/insights/research/west-london-2018-report 16. Transport Initiatives Set to Boost Housing Markets in West London, https://www.propertywire.com/news/uk/transport-initiatives-set-boost-housing-markets-west-london/

UK: Northern Powerhouse 1. CONNEXIN JOINS NORTHERN POWERHOUSE PARTNERSHIP, Oct 2018, https://www. insidermedia.com/insider/yorkshire/connexin-joins-northern-powerhouse-partnership 2. Knight Frank, UK Residential Market Forecast, May 2018, https://content.knightfrank. com/research/367/documents/en/uk-housing-market-forecast-may-2018-5544.pdf 3. PwC, UK Economic Outlook, Prospects for UK Debt and the Economy in the 2020s, Nov 2018, https://www.pwc.co.uk/services/economics-policy/insights/uk-economic-outlook.html

110


4. Mathew Lawrence and Grace Blakeley, Institute for Public Policy Research, NORTHERN POWERHOUSE IN ACTION, SEVEN CASE STUDIES FOR A MODERN INDUSTRIAL STRATEGY, Nov 2016, https://www.ey.com/Publication/vwLUAssets/ey-northern-powerhouse-in-action/$File/ey-northern-powerhouse-in-action.pdf

UK: Liverpool 1. Office for National Statistics, Population Estimates, 2017, https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates 2. Office for National Statistics, UK Labour Market: July 2018, https://www.ons.gov.uk/ employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/ uklabourmarket/july2018 3. Office for National Statistics, UK House Price Index: June 2018, https://www.ons.gov.uk/ economy/inflationandpriceindices/bulletins/housepriceindex/june2018 4. Nomis, Labour Market Profile — Liverpool City Region, 2017, https://www.nomisweb. co.uk/reports/lmp/lep/1925185547/report.aspx?c1=1925185554&c2=1925185545 5. Hometrack, UK Cities House Price Index, Nov 2018, https://www.hometrack.com/uk/ insight/uk-cities-house-price-index/ 6. Jonn Elledge, Since 1998, A Major Northern City has Grown Almost as Fast as London — and It is Not the One You Think, May 2018, https://www.citymetric.com/business/1998major-northern-city-has-grown-almost-fast-london-and-it-s-not-one-you-think-3898 7. CSI PROP, Liverpool’s Massive Facelift, Aug 2017, https://csiprop.com/liverpools-massive-facelift/ 8. Arcadis, Investing in Britain, 2018, https://www.arcadis.com/media/0/B/4/%7B0B465BA1-9362-40C2-9AD4-C03F93AB8655%7DArcadis%20Investing%20In%20Brit-

111


ain%20Cities%20Built%20for%20the%20Future.pdf 9. Core Cities UK, Liverpool, https://www.corecities.com/cities/cities/liverpool 10. Beyond the City: Britain’s Economic Hotspots, Oxford Economics, June 2015, https:// pwc.blogs.com/files/ifb_beyond-the-city_june2015.pdf 11. Ian Cobain, The Future of Liverpool: Does the Great Port City Still Face Out to Sea?, Apr 2017, https://www.theguardian.com/cities/2017/apr/27/capital-itself-liverpool-future-mayoral-election 12. Richard Frost, £2BN KNOWLEDGE QUARTER VISION UNVEILED, Oct 2016, https:// www.insidermedia.com/insider/northwest/2bn-knowledge-quarter-vision-unveiled 13. Core Cities UK 2030 — Global Success, Local Prosperity, https://www.corecities. com/sites/default/files/field/attachment/94274%20Core%20Cities%20UK%20Cities%20 2030_FINAL_DIGITAL.pdf 14. Regenerating Liverpool, Paddington Village, http://regeneratingliverpool.com/project/paddington-village/ 15. Office for National Statistics, Small Area Population Estimates, England and Wales: mid-2015, https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bulletins/annualsmallareapopulationestimates/mid2015 16. Paul Swinney & Andrew Carter, The UK's Rapid Return to City Centre Living, Jun 2018, https://www.bbc.com/news/uk-44482291 17. Warren Lewis, Where will 2019's Housing Hotspots Be?, Nov 2018, https://www.propertyreporter.co.uk/property/where-will-2019s-housing-hotspots-be.html?fbclid=IwAR103CLkO_6ecCuAwKdPzuAKYx4Fwsqdvxer-VuGOFMQttnS08UZamdUlaY

112


18. Warren Lewis, Nottingham and Liverpool Battle it out to be Crowned the UKs Number 1 BTL Hotspot, Jan 2018, https://www.propertyreporter.co.uk/landlords/nottingham-andliverpool-battle-it-out-to-be-crowned-the-uks-number-1-btl-hotspot.html 19. Buy-to-Let Rental Yield Map 2018/2019, http://www.totallymoney.com/buy-to-letyield-map/ 20. Sophie Christie, Why Landlords Should Look to Liverpool for the Best Buy-to-let Returns, Jun 2018, https://www.telegraph.co.uk/property/buy-to-let/landlords-should-lookliverpool-best-buy-to-let-returns/ 21. JLL, The New Housing Paradigm Residential Forecasts - Northern England, Feb 2018

UK: Manchester 1. Office for National Statistics, Population Estimates, 2017, https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates 2. Office for National Statistics, UK Labour Market: July 2018, https://www.ons.gov.uk/ employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/ uklabourmarket/july2018 3. Office for National Statistics, UK House Price Index: June 2018, https://www.ons.gov.uk/ economy/inflationandpriceindices/bulletins/housepriceindex/june2018 4. Nomis, Labour Market Profile — Greater Manchester, 2017, https://www.nomisweb. co.uk/reports/lmp/lep/1925185547/report.aspx?c1=1925185554&c2=1925185545 5. Hometrack, UK Cities House Price Index, Nov 2018, https://www.hometrack.com/uk/ insight/uk-cities-house-price-index/ 6. Stuart Greer, Manchester Named Among Top Global Cities for Foreign Direct Invest-

113


ment, Sep 2018, https://www.manchestereveningnews.co.uk/business/business-news/ manchester-foreign-direct-investment-ibm-15103754 7. Nick Ismail, What are the Biggest Tech Hubs in the UK - and Which is Right for Your Business?, Jun 2018, https://www.information-age.com/biggest-tech-hubs-uk-right-business-123472568 8. GLOBAL REAL ESTATE OUTLOOK 2018, https://info.ipglobal-ltd.com/global-real-estate-outlook-2018 9. EY, UK Regional Economic Forecast Rebalancing the economy: Time for a New Push, 2017-18, https://eydigital.cld.bz/EY-UK-Regional-Economic-Forecast 10. Eleanor Harvey, Graduates Staying on in University Cities Could Offer Investment Opportunity, Jan 2018, https://www.buyassociation.co.uk/2018/01/12/graduates-staying-after-university-cities-investment-opportunity/ 11. Housing Market Growth is Top in Manchester for Five Out of Last Six Years, Nov 2018, https://www.propertywire.com/news/uk/housing-market-growth-is-top-in-manchesterfor-five-out-of-last-six-years-2/ 12. Centre for Cities, The Great British Brain Drain: Preston, 2016, https://www.centreforcities.org/reader/great-british-brain-drain-analysis-migration-preston/introduction/ 13. LIVERPOOL AND MANCHESTER JOB GROWTH TO OUTPACE INTERNATIONAL RIVALS, Jun 2015, https://www.insidermedia.com/insider/north-west/142026-liverpool-and-manchester-job-growth-outpace-international-rivals/ 14. Paul Swinney & Andrew Carter,The UK's Rapid Return to City Centre Living, Jun 2018, https://www.bbc.com/news/uk-44482291 15. Manchester Dominates Job and Population Growth in England and Wales, Mar 2018,

114


https://www.investinmanchester.com/latest-news/2018/3/23/manchester-dominatesjob-and-population-growth-in-england-and-wales-a2572 16. Warren Lewis, Where will 2019's Housing Hotspots Be?, Nov 2018, https://www.propertyreporter.co.uk/property/where-will-2019s-housing-hotspots-be.html?fbclid=IwAR103CLkO_6ecCuAwKdPzuAKYx4Fwsqdvxer-VuGOFMQttnS08UZamdUlaY 17. Knight Frank, UK STUDENT HOUSING: RENTAL UPDATE 2018/19, https://content.knightfrank.com/research/169/documents/en/uk-student-housing-rental-update-201819-5813.pdf 18. Hometrack, UK Cities House Price Index - November 2018, Nov 2018, https://www. hometrack.com/uk/insight/uk-cities-house-price-index/november-2018-cities-index/ 19. JLL, The New Housing Paradigm Residential Forecasts - Northern England, Feb 2018 20. Where to Invest in the North, Oct 2018, https://www.propertyreporter.co.uk/landlords/where-to-invest-in-the-north.html 21. Dan Gledhill & Steve Robson, This is How Much the Average Rent Costs in Every Greater Manchester Borough, Dec 2018, https://www.manchestereveningnews.co.uk/news/ greater-manchester-news/how-much-average-rent-costs-15591274 22. Buy-to-Let Rental Yield Map 2018/2019, http://www.totallymoney.com/buy-to-letyield-map/

UK: Birmingham 1. Office for National Statistics, Population Estimates, 2017, https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates

115


2. Office for National Statistics, UK Labour Market: July 2018, https://www.ons.gov.uk/ employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/ uklabourmarket/july2018 3. Office for National Statistics, UK House Price Index: June 2018, https://www.ons.gov.uk/ economy/inflationandpriceindices/bulletins/housepriceindex/june2018 4. Nomis, Labour Market Profile — Greater Birmingham & Solihull, 2017, https://www.nomisweb.co.uk/reports/lmp/lep/1925185547/report.aspx?c1=1925185554&c2=1925185545 5. Hometrack, UK Cities House Price Index, Nov 2018, https://www.hometrack.com/uk/ insight/uk-cities-house-price-index/ 6. Birmingham City Council, Big City Plan, https://www.birmingham.gov.uk/info/20054/ planning_strategies_and_policies/298/big_city_plan 7. Tom Hodson, How Birmingham Will Attract Top Tech Talent Over London, 2018, https:// sevencapital.com/birmingham-property-news/how-birmingham-will-attract-top-techtalent-over-london/ 8. Birmingham Remains Britain’s Leading Regional City for Start-up Creation, Jan 2017, http://www.birminghamupdates.com/birmingham-remains-britains-leading-regional-city-for-start-up-creation/ 9. Eleanor Harvey, Why Birmingham is a Top Property Investment Hotspot Right Now, Apr 2018, https://www.buyassociation.co.uk/2018/04/05/why-birmingham-top-property-investment-hotspot-right-now/ 10. Tim Oscroft, Birmingham Set for Exciting Future, Dec 2018, https://www.buyassociation.co.uk/2018/12/10/birmingham-set-for-exciting-future/ 11. Paul Swinney & Andrew Carter, The UK's Rapid Return to City Centre Living, Jun 2018,

116


https://www.bbc.com/news/uk-44482291 12. Warren Lewis, Where Will 2019's Housing Hotspots Be?, Nov 2018, https://www.propertyreporter.co.uk/property/where-will-2019s-housing-hotspots-be.html?fbclid=IwAR103CLkO_6ecCuAwKdPzuAKYx4Fwsqdvxer-VuGOFMQttnS08UZamdUlaY 13. D’mitri Zarpzala, The rise of Birmingham, Dec 2018, https://www.propertyweek.com/ comment/the-rise-of-birmingham-/5100349.article 14. JLL, The New Housing Paradigm Residential Forecasts - West Midlands, Mar 2018 15. Birmingham City Council, Birmingham Mid-2017 Mid-year Population Estimates, 2017 16. Knight Frank, Birmingham and Surrounds Residential Market Insight 2018 17. PwC, Emerging Trends in Real Estate: Europe 2018, https://www.pwc.com/gx/en/industries/financial-services/asset-management/assets/pwc-etre-europe-2018.pdf 18. Savills, UK Residential Property Forecasts — Autumn 2018, https://pdf.euro.savills. co.uk/uk/residential---other/report---residential-property-forecasts---autumn-2018.pdf

APPENDIX Australia: Stamp Duty: Stampduty.calculatorsaustralia.com.au Legal Costs: realestate.com.au/advice/hidden-costs-buying-home Capital Gains Tax: hallandwilcox.com.au/a-guide-to-taxation-in-australia Agent Fees: finder.com.au/typical-real-estate-agent-fees Malaysia:

117


Stamp Duty: lowpartners.com/malaysia-law-statutes/legal-fees-stamp-duty-calculator Legal Costs: malaysiahousingloan.net/legal-fees-calculator lowpartners.com/malaysia-law-statutes/legal-fees-stamp-duty-calculator Capital Gains Tax: loanstreet.com.my/learning-centre/rpgt-in-malaysia Agent Fees: miea.com.my/faq/estate-agency-fees Hong Kong: Stamp Duty: placeproperty.com/buying-hong-kong-property/residential-property-in-hong-kong Legal Costs: c21newcourt.com/en/resource/legal-fees Capital Gains Tax: placeproperty.com/buying-hong-kong-property/residential-property-in-hong-kong deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-hongkonghighlights-2018. pdf Agent Fees: placeproperty.com/buying-hong-kong-property/residential-property-in-hong-kong/ UK: Stamp Duty: gov.uk/stamp-duty-land-tax Legal Costs: moneyadviceservice.org.uk/en/articles/estimate-your-overall-buying-and-movingcosts Capital Gains Tax: gov.uk/capital-gains-tax/rates Agent Fees: which.co.uk/money/mortgages-and-property/home-movers/selling-a-house/estate-agent-feesand-contracts-an2n90t09n2g USA: Stamp Duty: globalpropertyguide.com/North-America/United-States/Buying-Guide Legal Costs: globalpropertyguide.com/North-America/United-States/Buying-Guide

118


Capital Gains Tax: nycasas.com/resources/tax-implications-for-foreign-nationals-buying-property-in-new-york.php Agent Fees: mortgagecalculator.biz/c/commissions.php New Zealand: Stamp Duty: newzealandbuyingguide.com/content/nz-cost-buying-property-new-zealand Legal Costs: newzealandbuyingguide.com/content/nz-cost-buying-property-new-zealand Capital Gains Tax: en.wikipedia.org/wiki/Taxation_in_New_Zealand#Capital_gains_tax ird.govt.nz/property/property-selling/ Agent Fees: wiseup.nz/estate-agents-fees/real-estate-commissions Singapore: Stamp Duty: propertynet.sg/what-is-stamp-duty Legal Costs: propertyguru.com.sg/singapore-property-resources/singapore-mortgage-andloan-guides/cost-of-purchasing-a-property-in-singapore-2825 Capital Gains Tax: iras.gov.sg/irashome/Property/Property-owners/Selling-renting-out-carrying-out-works/Selling-your-Property Agent Fees: propnex.com/commissionguidelines

Financing Costs Australia: Mortgage Interest Rates: HSBC Internal Documentation & hsbc.com.au/home-loans/products/rates/ Margin of Financing: HSBC Internal Documentation & hsbc.com.au/home-loans/products/rates/ Malaysia: Mortgage Interest Rates: imoney.my/home-loan

119


Margin of Financing: iproperty.com.my/guides/guidelines-for-foreigners-buying-a-house-in-malaysia Hong Kong: Mortgage Interest Rates: property.hk/eng/mortgage_rate.php Margin of Financing: hsbc.com.hk/mortgages/products/home-loans/ UK Mortgage Interest Rates: CIMB Internal Documentation & expat.hsbc.com/1/2/hsbc-expat/products/mortgages-and-lending/buy-to-let-mortgages/ types-of-rate Margin of Financing: cimbbank.com.my/en/personal/products/loans/property-loan/loans/products/overseas-mortgage-loan/london.html USA: Mortgage Interest Rates: valuepenguin.com/mortgages/average-mortgage-rates#nogo Margin of Financing: us.hsbc.com/home-loans/products/international-borrowers/ New Zealand: Mortgage Interest Rates: hsbc.co.nz/borrowing/products/mortgages/fixed-mortgage/more-details Margin of Financing: bnz.co.nz/support/home-loans/buying-a-home/loan-to-value-ratios Singapore: Mortgage Interest Rates: icompareloan.com/home-loan

120


Words VIVIENNE PAL

Research VIRATA THAIVASIGAMONY VIVIENNE PAL IAN CHOONG

Design & Layout AHMAD MUNAWAR ABD RAHIM JANE TAN

MARKETING AGENT (SINGAPORE) CS PROP Pte Ltd (E.A. License No. L3010808F | Co. Reg. No. 201731379K) Level 22, Tower B, Ngee Ann City, 391B Orchard Road, 238874 Singapore

MARKETING AGENT (MALAYSIA) CI PROPERTIES Sdn Bhd (E (1) 1797 | Co. Reg. No 1254857-K) Level 3, North Block, Wisma Selangor Dredging, 142D Jalan Ampang, 50450 Kuala Lumpur, Malaysia

+65 3163 8343 info@csiprop.com

+603 2162 2260 info@csiprop.com

PROJECT MANAGER CSI PROP Pte Ltd @ 2019 CSI PROP Pte Ltd. First Edition. All rights reserved. This publication is the sole property of CSI PROP Pte Ltd (trademark: CSI PROP) and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of CSI PROP Pte Ltd. All descriptions and other particulars are given in good faith and are believed to be correct but any intending readers, 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 each of them. The Marketing Agents and The Project Manager shall be held responsible for any negligence, consequential loss or damage arising from the use of this information. No person in the employment of the Marketing Agents nor the Project Manager has any authority to make or give any representation or warranty whatever in relation to these investments and properties. This is an overseas investment. As overseas investments carry additional, financial, regulatory and legal risks, investors are advised to do the necessary checks as well as research on the investment beforehand. Investors are also advised to seek independent and qualified legal, financial and tax advisors. Past performance is not necessarily indicative of future performance even if the same strategies are adopted.


INVESTING INTELLIGENTLY TOWARDS 2019/2020

Most Active Agency in Malaysia Most Active Agency in Singapore ranking by: Soho Property Pte Ltd

123

Profile for CSI Prop (Cornerstone International Properties)

UK & Australia Investment Guide CSIPROP2019  

UK & Australia Investment Guide CSIPROP2019  

Advertisement