Category Archives: Market News

Surge in demand from house-hunters as property market rebounds after restrictions are eased

Demand from house-hunters jumped 88 per cent across England as the market reopened earlier this month.

Property website Zoopla said the weekly increase occurred between May 12, the day it emerged the market in England would reopen, and May 19.

Demand rebounded particularly quickly in cities along the south coast and in northern England.

Strong growth was recorded in Newcastle and Leeds, while Oxford, Liverpool, and Manchester also had increases in demand.

Zoopla said research among 2,000 people found, around 60 per cent of would-be buyers across the UK intends to go ahead with their plans.

But around four in 10 potential buyers said they have put their plans on hold, citing market uncertainty, loss of income, and diminished confidence in future finances as deterrents.

Zoopla said buyer demand was 20 per cent higher than at the start of March as England’s housing market reopened.

The website said it expects a significant proportion of sales that had been agreed before the coronavirus lockdown to continue but said increased uncertainty over the economic outlook will test housing chains in the coming weeks.

Richard Donnell, director of research and insight at Zoopla, said: “The scale of the rebound in demand for housing is welcome news for estate agents and developers but it is also surprising given projections for a sharp rise in unemployment and a major decline in economic growth.”

Mr. Donnell said he expects people to be more cautious in the coming weeks.

He said: “We expect the latest rebound in demand to moderate in the coming weeks as buyers and sellers start to exert greater caution. Further support from the Government can’t be discounted and would help limit the scale of the downside risks.”

Source: Leicestershire Live

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    Manchester city center will have 100,000 more residents by 2025

    Supply of ready-built factories and warehouses in southern Vietnam will increase by 28 per cent this year to 2.7 million square meters.As more companies arrive from China after the pandemic, supply will rise by 25 per cent to two million square meters in the north, real estate consultancy CBRE reported.

    More than 19,000 additional people live in Manchester’s two most central wards today compared with 2004. The city center as a whole was forecast to be home to 65,200 residents by mid-2019, which is an increase of 5,000 in the past 12 months. There was even a 117% spike in people moving to Manchester in July this year compared to 2018.

    This north-western city has also retained its top spot as the UK’s most liveable city, an accolade the city has held each year since the Global Liveability Survey by the Economist Intelligence Unit began in 2011. This highlights the continued demand and appeal to live and work in Manchester.

    By 2025, Manchester’s population is forecast to surpass 635,000 as an additional 100,000 people are predicted to be living in the city center. Additionally, more students are choosing to remain in the city following graduation at Manchester’s multiple universities. This growth is expected to further fuel demand in the rental market.

    Both employment and population are growing more rapidly in Manchester than the average rate for England. There has been a large rise in the number of businesses opening and moving to the city. Increased job creation and a growing economy is attracting large scale development to Manchester, making it an exciting time to invest in this city.

    Employment growth in construction is projected to lead the way with the biggest increase in the number of jobs at 50.6% and the highest growth value added at 49.9%. This is likely driven by some of the major developments across the city, including Piccadilly, Mayfield, Great Jackson Street, and St John’s. The other sectors expanding the fastest include business and finance, cultural, creative, and digital and retail.

    Demand for additional residential housing is forecast to increase significantly as the city’s population and employment opportunities continue to grow. Property investment in Manchester, especially in the city center, will continue to be a lucrative opportunity for buy-to-let investors in the coming years.

    Source: Buy Association

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      Vietnam industrial property supply rises as companies exit China

      Supply of ready-built factories and warehouses in southern Vietnam will increase by 28 per cent this year to 2.7 million square meters.As more companies arrive from China after the pandemic, supply will rise by 25 per cent to two million square meters in the north, real estate consultancy CBRE reported.

      It added that the trend of companies seeking to reduce supply chain dependency on China is likely to benefit Vietnam.”Surging demand from foreign manufacturers seeking to relocate to Vietnam – and a desire to commence operations as soon as possible – are driving demand for ready-built industrial properties,” said Thanh Pham, associate director of research and consulting services, CBRE Vietnam.Hieu Le, director of the firm’s industrial leasing services, said demand for warehousing has been mainly driven by e-commerce companies who are expanding storage space and distribution networks.After the pandemic is contained, the average asking rent for warehouses would increase by 4-11 percent, he noted.”There is growing consumption and distribution of groceries and fresh foods, which are set to accelerate occupier demand for temperature-controlled storage.”

      Analysts have said Vietnam’s industrial real estate could benefit from foreign investors moving production out of China. Apple, Google, and Microsoft are reportedly making plans to begin production in Vietnam this year. Customers have found some Apple wireless earbuds AirPods Pro carrying the ‘Assembled in Vietnam’ label rather than the traditional ‘Assembled in China’ tag.Vietnam’s average industrial land price is 43 per cent lower than that of Thailand and 54 percent lower than that of Malaysia, and its corporate income tax rate of 20 per cent is among the lowest in Southeast Asia.The country’s many trade deals, especially the EU-Vietnam Free Trade Agreement, which is set to come into effect this year, would be another factor in attracting foreign investors, it added.Vietnam has 260 industrial parks with an occupancy rate of 76 per cent, according to the Ministry of Planning and Investment. Another 75 are under construction.Source: VN Express

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        HCMC pushes ahead with ‘Vietnam’s Silicon Valley’ plan

        The prime minister’s support for the ‘Vietnam’s Silicon Valley’ initiative has prompted HCMC to push ahead with a plan to merge three districts into one administrative unit.The plan, which will combine Districts 2, 9, and Thu Duc into one administrative unit and make it an “innovative urban area,” has been submitted by the municipal Home Affairs Department to the Ho Chi Minh City People’s Committee.

        The department has come up with the plan following a meeting between Prime Minister Nguyen Xuan Phuc and the city.

        The plan to make a “city within a city,” temporarily called the “Eastern Town,” won the PM’s endorsement.

        This area has been in the making since 2017. City authorities said back then that the plan would generate a bright future for both local residents and businesses.

        It would encompass the hi-tech park in District 9, the university precinct in Thu Duc District, and the new urban area and financial center on the Thu Thiem Peninsula in District 2 to make one innovative hub to serve the city’s biggest plan to turn itself into a smart city.

        The “Eastern Town” is also expected to contribute to the establishment of value-added chains based on high technology, modern technical and social infrastructure of international standards, and effective financial support for businesses.

        It was to play a key role in linking scientific and technical research with commercial production to lift residents’ lifestyles to “international standards.”

        Le Van Thanh of the HCMC Institute for Development Studies had said: “This will be Vietnam’s Silicon Valley.”

        The innovative hub would cover more than 22,000 hectares (54,300 acres) with a population of over 1.1 million. Once the plan is implemented, HCMC will have 22 instead of 24 districts.

        PM Phuc, while endorsing the merger of districts, said its official name will be decided later. He also assigned the Ministry of Justice to guide the city on the next steps to take.

        Source: VN Express

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          Gamuda Land’s greening initiative and township developments

          “Every inch of land is gold,” is not a false proposition. It is especially true in real estate. Developers often own large plots of land with a large constructible area, which can easily be used to optimize profit. Yet now, property developers are intentionally going against this traditional formula.

          Gamuda Land chose to add to Gamuda City and Celadon City to its portfolio of hundreds of products in Vietnam. In fact, Gamuda City in Hanoi and Celadon City in HCMC have become the largest private parks and some of the most valuable developments in each of the cities.Township developing with greening- initiatives have become an iconic trademark of Gamuda Land – from creating the concept its first visions to entering the Vietnamese market in 2007.

          In Malaysia, Gamuda Land’s Kota Kemuning Wetland Park project, before receiving its prestigious awards for landscape construction, was a pioneering example in the field of urban development. Gamuda Land turned the pristine Klang Valley in Malaysia into one of the most livable residential areas on the island nation.When Gamuda Land came to Vietnam, the miracle of the Klang Valley Kota Kemuning Wetland Project was recreated in Gamuda City in Hoang Mai, Hanoi.From a swampy, deserted land, Yen So Park has become one of the friendliest eco-parks in the capital, attracting countless visitors. Locals and expatriates come to relax and picnic on the weekends. At the same time, Yen So Park also functions as a water conditioning system against flooding during the rainy season and even as a natural air conditioner during dry seasons.

          Businesses usually do not “do it first, and think later.” But Gamuda Land’s bold approach in connecting the community with infrastructures first before building any residential precincts show to be extremely effective.  After the Yen So Park and its wastewater treatment was completed, Gamuda City became an international model for urban development. The township masterplan is now considered to be a “gold mine” in Southern Hanoi with skyrocketing investment potential, increasing year by year.Thanks to its greening initiatives, Gamuda Land’s value has significantly increased while its products are often associated with a safe and healthy living environment.While Gamuda Land focuses on providing luxury products the properties are close to nature, a trend which has shown to be essential to the middle- to high-income class buyers. Its ‘greening’ strategy has not only strengthened its credibility and but has also helped Gamuda Land establish brand trust among investors.Source: NHIP Cau Dautu

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