Property: Waves from Far East fail to brake home market

Does any buyer in a new London development ask about the effects of Far Eastern investment? Do they worry that a falling-off in sales will make waves in the home market? Not according to Tom Marshall of Cluttons Docklands office: "They never asked before and they aren't asking now.

"What they do want to know, though, is how many buyers from the Far East are owner-occupiers. That is far more important for them, because understandably they don't want to buy into a development that is predominantly rented out."

Although Far Eastern investors have been of enormous help to the London market as a whole in the past few years by providing a sold financial base for the developer, the strength of the home market is far more important.

Savills Research finds the percentage of Far Eastern buyers of new build in the Docklands to be eight per cent. At the present time, the success or failure of a development selling in the Far East is hard to determine. Tom Marshall saw two well-known developers in central locations return with entirely different stories - one had done well, the other very badly.

Barratt, for instance, might well have held its breath during the recent turmoil in the stock markets having sold 50 units at its Globe View development in Upper Thames Street to buyers in Hong Kong in September. Nevertheless, none of the buyers has withdrawn. Prices start at pounds 180,000, rising to pounds 700,000.

Barratt does not take more than 30 per cent of any development abroad. However, where UK buyers might benefit is where developers either decide it is not worth marketing in the Far East at all, or they cut the number of units for sale there, putting more the way of the British purchaser.

The quality of stock going to auction these days has vastly improved. No longer is it a course of last resort for the vendor, whether private or institutional. At Savills second national auction held in London last week, Thornbridge Hall, a grade II listed neo-Tudor house with a stable block, sold for pounds 850,000 to a Cheshire businessman who intends to restore it for his family's use.

Private individuals, as opposed to dealers, who imagine they can pick up a bargain may find themselves bidding against like-minded buyers. Even so, Robert Weaver of Savills finds it gives the most accurate picture of the current market since there can be no back-room negotiations: "No one's hand is being forced", he says. "Nor is there any reason to assume that the property has some inherent problem."

On South Ferry Island in Liverpool's Docklands, Crosby Homes is intending to launch the remainder of its Coburg Quay development over Christmas and the New Year. As the first residents move in, so the next phase, St Lawrence Quay, will be introduced. Apparently, the site appeals across the spectrum from "retired merchant seamen to young professionals." Prices at Coburg Quay start at pounds 88,950. Sales : 0151 7342220.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

Reach Volunteering: Trustees with Finance, Fundraising and IT skills

Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent