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Lantern – SEP 2016

Latest construction update from the Lantern site in Collingwood, Melbourne

Cornerstone International Properties is pleased to bring you the latest construction update for the lovely Lantern Apartments in Collingwood, Melbourne.

A work of art, Lantern has a distinguishable lantern-like facade, hence its name. Only 3.2km from the CBD, Lantern lies in a historic neighbourhood of Collingwood, only 2.1km to the University of Melbourne.

Lantern Construction Update

Progress is going ahead as planned and now, Orange Building Solutions is in full possession of the site. The old building has been demolished bulk excavation is now underway.

The full retention system and basement is expected to be completed by Christmas. Following which, on return from Christmas, work on the structure will commence.

Settlement is anticipated for late 2017 and we will continue to keep you posted.

About Collingwood

Collingwood is one of the hottest property spots for young professionals. Hip, happening and increasingly gentrified, it is home to some of Melbourne’s best food and retail outlets, art, culture and fashion. This former industrial hub is now a magnet for creative people – artists, musicians, designers and their ilk.

Nestled between Ftizroy Garden’s miniature village (South), Yarra Boulevard’s cyclist and kayaker haven (East) and Carlton Gardens’ historical, manicured lawns (West), Lantern is centrally located. It cuts a striking silhouette in this modern Melbourne suburb. Head to Smith Street – just one block away from Lantern – for a trip to the vintage boutiques, inventive bars, street art, amazing eateries and lots of shopping.

Investment Highlights

  • 0.7% vacancy rate, tighter than Melbourne’s 4.4%
  • Only 3.2km to the CBD
  • Only 2.1km to Melbourne Uni
  • Accessibility: the iconic tram 86!
  • Increase in property median pricing in Collingwood
  • Average household income is 10% higher than Victoria
  • >50% of Collingwood population are young professionals and in managerial roles

Project Highlights

  • European-style kitchens
  • Upscale Bosch appliances
  • Porcelain benchtops & splashbacks
  • Grey oak timber floorboards
  • Roof top recreation deck & al fresco dining
  • 24-hr CCTV security & access to selected floors
  • Car parking for selected units


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

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.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Emerging Trends 80 Days After Brexit

Some 80 days have passed. What are the trends that have emerged in the property scene? Image credit: http://bit.ly/2cumEgw

It has been 2. 5 months since Brexit. By the end of Sept, the government will start to think steps to invoke Article 50, the ‘divorce process’ that will trigger the UK’s departure from the EU. The property market was among the sectors hit hardest by the referendum, with seven commercial property funds freezing trading within weeks, Reuters reports. However, some trends have emerged that allow for a better observation of the property sector, namely:

  • UK property market players and investors are still confident about the future prospects of the market. Regional cities like Manchester & Liverpool continue to outperform London
  • Alternative/specialist property like UK student property/purpose built student accommodation (PBSA) and hotels gained greater traction among investors due to its long leases and liquid returns
  • Private rental sector remains significant as housing supply unable to keep up with demand

 

  1. Future prospects of the market looks good. Regional cities like Manchester & Liverpool outperform London

Indeed, the first post-Brexit updates from property companies indicated greater caution. However, property auctioneers Network Auctions said that in the months since Brexit, little has changed in terms of investor confidence. There has emerged conditions favourable to investors such as the low inflation and low interest rate. Overseas investors are also taking advantage of the low pound.

New data shows that the UK’s housing market, despite having slowed down, is showing signs of healthy activity and resilience.

Using data representative of 90% of properties in the UK’s market, it was observed that the total number of properties had risen on 8th August compared to 22nd June with 866,179 properties were for sale across the UK before the vote.  Readings on 8th August shows this number increased by 1.7% on the market, but with less properties under offer (decrease of 4.3%) versus pre-Brexit.

The average asking price for a UK property also rose by £1,040 from £240,470 on 25th July to £241,510 in August while the average asking price for all properties for sale on the market had increased by 3% to an average value of £247,026 in the same period.

The latest Hometrack UK Cities House Price Index reveals that amid the annual rate of house price inflation slowing down by 9.5% in July after 12 months of higher growth across 20 cities in the UK, this is not the case in the large regional cities in the north of England and Scotland. The rate of annual house price growth in the Manchester, Liverpool, Leeds, Birmingham and Nottingham continues to rise by 7% – 8%.

 

  1. Increased interest in alternative/specialist property sectors e.g. UK student property (PBSA)

Reuters reports that property investors are are now favouring alternative property such as student property (PBSA), hotels and hospitals. Alternatives accounted for 16% of the total UK property investment in July — an increase from 13% in Q2.

Office and retail total returns fell 3.7% and 3.2% respectively in July while returns from alternative assets were down by only 1.4% in recent months, said CBRE Group Inc. Additionally, CBRE also observed rental growth for alternative assets while traditional property assets saw none.

Alternatives have gained traction due to their long leases and steady tenants, and tend to be less risky and more defensive, compared to traditional commercial property like office and retail spaces.

The PBSA sector demonstrated its comparative resilience during the global financial crisis, showcasing its strong fundamentals. Earlier this month, the A-levels results announcement showed some 424,000 students receive confirmed places in their respective universities, with the number of EU students increasing by 11% to 26,800 despite fears. Note: the UK is not dependent on EU students who represent only around 6% of full-time students.

The sector will continue to remain resilient, with demand for well-located student housing schemes remaining strong,  as structural undersupply underpins rental growth (JLL UK Student Housing Quarterly Bulletin 2016 Q2 Review).

 

iii. Private rental sector significant as housing supply unable to keep up with demand

The proportion of private tenants rose from 11% in 2003 to 19% last year. In Greater Manchester, it rose from 6% to 20% over the same period.

Much has contributed to the private rental sector, such as the relative unaffordability of house prices which corresponds with an acute shortage in housing supply and social housing. The fall in home ownership, according to data from non-profit organisation Resolution Foundation, is at a 30-year low, and corresponded with the rise in renting from private landlords.

Following the Brexit vote, the rental market remains steady as rents, supply and tenant demand did not significantly change in July. The latest monthly report released by the Association of Residential Letting Agents (ARLA) found that whilst just 12% of agents reported a dip in rent, a staggering three quarters (77%) saw no change in rental costs.

In a similar fashion, the supply of properties and demand for housing remained unchanged immediately after the vote as two-thirds (67%) of ARLA members reported no change in supply, and a further 64% reported no change in the number of prospective tenants looking for properties.

However, a shadow of ambiguity still hangs over the rental market as nearly half (45%) of letting agents witnessed uncertainty from landlords looking to let properties. Fewer entrants to the rental market could put further pressure on rents, as supply falls short of the substantial demand from tenants.

Looking forward, with the current lack of housing to buy, it does appear that the rental sector is going to remain significant for a while.

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

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.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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London’s City in the East

If you’ve been wandering around London recently, here’s one thing you would’ve probably noticed: the city is moving eastwards. Thanks, in part, to the London Olympics, the population is booming in east London with growth projections of a further 600,000 in the next 15 years. Today, more Londoners live to the east of the Tower Bridge than west of the city as a wave of regeneration sweeps the area.

Amazingly, east London – which encompasses Canary Wharf (London’s financial centre today) and the London Docklands – was once considered undesirable! It is now one of the city’s most eclectic spots, populated by finance sector workers; the design, digital and creative communities; and families. Transport for London has unveiled proposals for 13 new river crossings, most of which is in East London, beefing up the existing transport network which includes Crossrail links and the DLR.

A snapshot of numbers and plans in East London, courtesy of the London Mayor’s office.

According to Jones Lang Lasalle, property prices in East London for the year to Q1 2016 has shown a 7% growth compared to the city centre’s 1.3%. The chart below illustrates the price growth in various areas of London city.

During a recent trip, we explored East London by car, DLR/Tube and on foot. Signs of regenerative work are visible, particularly on the DLR and Tube rides from the heart of the city to the Excel International Convention Centre at the Royal Victoria Dock (travel time: 40 mins). A drive in the opposite direction on our return journey took about 40 mins in clear traffic – very similar to the time taken to drive/ride the LRT from Kelana Jaya to KLCC.

Canning Town: Signs of regeneration in East London are visible from the DLR.

Shadwell is also a place to watch. Walking from Limehouse Marina to Tower Bridge, we noticed this industrial area has seen an injection of residential developments along the main thoroughfare.

Telford Homes’ The Junction is currently under construction along the main thoroughfare of Shadwell.

London’s Docklands area, which includes the Limehouse Basin, Royal Victoria Dock, The Royal Albert Dock and Silverton Quays are transforming, too. The Royal Docks is set to be East London’s next first-time buyer hotspot with plans for 24,000 homes and 60,000 jobs to be created in the area. The Royal Albert Dock, particularly, will become London’s centre for Asian business thanks to the development of the Asian Business Port, creating 20,000 jobs, and generating £6bn to the London economy.

Construction of residences are still ongoing around the Royal Victoria Dock neighbourhood.

We spent some time at the Royal Victoria Dock, one of London’s fast-growing areas (Zone 3), which looks extremely promising.

The waterfront at Royal Victoria Dock is a fabulous place for the neighbouring community with wide pedestrian walks and spaces, beautiful apartments and greens.

The first of the royal docks, the Royal Victoria Dock has undergone massive regeneration and is extremely accessible by the Emirates Air Line (cable car), DLR, Underground and forthcoming Crossrail.

The Emirates Air Line is an attractive feature at the Royal Victoria Dock.

Residents living within the area enjoy access to the Thames waterfront and great quality of life minutes from the city centre, Canary Wharf, the O2 Arena, the forthcoming Asian Business Park and London Airport.

The O2 and cable cars can be seen from the Royal Victoria Dock waterfront.

The surrounding areas of Custom Excel is well established, with several hotels and waterfront residential apartments co-existing peacefully with the convention centre and commercial developments.

 

The DLR stops right in front of Excel London Convention Centre. Hop on and you’re in the heart of London in about 40 minutes – just about the time it takes to ride the LRT from Kelana Jaya to KLCC!

The forthcoming Crossrail will be a major game changer. Aside from increasing property values along the route, the Crossrail, which will also run through Canary Wharf and East London, will improve connectivity within the city. Travel time will be more efficient as the Crossrail connects Reading to Shenfield while Crossrail 2 runs from Broxbourne to Epsom.

The area is indeed looking up. With improved transport links and gentrification arising from infrastructural investments worth billions, East London is a place to watch.

To know what the government is doing for East London: http://bit.ly/2bY8G9w

East London’s post-Olympics boom towns: http://bit.ly/1SaQYNV

Numbers: Canning Town & Newham areas: http://bit.ly/1SaQYNV

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

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.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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VITA Student – AUG 2016

We are pleased to present the latest constuction update for VITA Student Village York.

Things are looking good at the construction site of VITA Student Village York. The steel frame works for Apple House, Minster House, Hazelwood House and Middlethorpe House is complete. Foundations have been installed for Barley House and Goldie House.

Brickwork and timber cladding have also commenced, and windows are currently being installed in several phases of VITA York.

Over the next four months, more drainage works will be done to the southern section of the site. Foundation work for the rest of the phases at VITA York will also commence then.

Background

VITA is UK’s top student property brand. CSI Prop is pleased to have marketed VITA York, which is VITA’s flagship student residence. This 528-apartment village is surrounded by lush landscape and sits within a listed 19th century site spanning 25,000sqm at the heart of the richly historical city of York. This is Vita’s largest ever student hub, complete with movie rooms, gyms, study and communal facilities and high-speed broadband. Assured up to 10% yields for five years.

Vita York Project Highlights

  • Fully integrated kitchen with SMEG appliances and Formica worktops with integrated four-ring hob
    • Floor to ceiling windows
    • Juliette or full balconies
    • Fitted wardrobes, drawers, under-bed storage, study desk and dining table and chairs
    • Fully fitted en-suite shower room with toilet and washbasin
    • Wood laminate flooring throughout
    • 40-inch Smart TV (wall mounted)
    • Secure key fob entry door with intercom

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

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.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260