London housing shortage, Eco World adds 2,773 units.

Reported in a local English daily. The London Plan is a plan by the London authorities to ensure sufficient housing demand in the city aims to build 42,389 homes per year. The reality? Well, in 2013 a total of 26,230 homes were built while in 2014, this increased to 28,733 units. In brief, huge shortage. In conclusion, no wonder the prices in London continued to rise despite the current uncertainty in Europe caused by Greece’s default. As a metropolitan, London recorded the fastest growth in population in Europe and it is now home to 8.6 million people since end of 2014. Let me repeat, 8.6 million. This is bigger than the whole of Hong Kong, at around 7.2 million in mid 2014.
Fortunately, Eco World Investment Co Ltd (EWI) has plans to add to the shortage. Yes, a Malaysian company helping London authorities. It will be launching 3 projects with total units of 2,463 private housing and 310 affordable homes. They include The The London City Island, Embassy Gardens and Warden London. Total gross development value is estimated at £2.257bil (RM13.33bil). Price range for these three projects ranges from £820-£1600 per sq ft (psf) and they are situated in different parts of London.
According to Tan Sri Liew Kee Sin , London faces housing supply limitation but the city has small pockets of land and regeneration sites. Though there are competition, he is confident of EWI because it is able to provide the best product, best service, best pricing and connectivity.
His confidence of EWI’s London project is supported by views from Savills Malaysia deputy managing director Paul Khong who said that with the recent Conservative’s election victory, the London property prices are on the rise again. In fact, it has forecasted that the prices in London market to rise 22.7% over the next 5 years. Assuming that he is right, it meant the ROI is likely to be huge if one were to pay just 10 percent and got the rest on loan. Thinking of London property market and wanted to buy something with familiarity? Happy investing.
written on 17 July 2015
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