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The University of Melbourne’s New World-Class Campus

An artist’s impression of the University of Melbourne’s new Fishermans Bend campus (Image credit: The Age)

The University of Melbourne is building a new campus in Fishermans Bend as part of an ambitious A$1 billion plan to create a world-class engineering school in Victoria.

The university’s 2025 Engineering Strategy plan also includes upgrading the engineering facilities at its main Parkville campus site and developing the former Royal Women’s Hospital site. The plan is expected to provide an A$8 billion boost to Victoria’s economy and generate over 15,000 new jobs by 2035.

University of Melbourne’s new campus a catalyst to innovation 

The new campus — the institution’s eighth, to date — is located within Australia’s largest urban renewal project, right in the heart of Melbourne. Construction begins this year and it is expected to be ready in the early 2020s.

Vice-Chancellor Professor Glyn Davis said: “The university will be a catalyst for new collaborations and investments, connecting industry and research in the precinct.

“We have a proud history of innovation in this country. The new campus will give our researchers and students opportunities to work alongside industry, and pursue rich careers right here in Australia.

“When surrounded by start-up accelerators, business incubators, cutting-edge research, development and manufacturing facilities, and test sites, our students can immediately put ideas into action,” he said.

The move to Fishermans Bend will expand the University of Melbourne’s capabilities to undertake large-scale research and innovation, such as autonomous vehicles and smart grid technologies, with the inclusion of on-site facilities such as wind and water tunnels.

University of Melbourne School of Engineering Dean, Professor Iven Mareels said that the new campus would help to create entrepreneurial leaders and transformative technologies of the future.

“The Fishermans Bend campus will initially enable 1,000 engineering and IT students and academics to collaborate with world-leading local and international companies across industrial sectors as diverse as transport, energy, food, mining, infrastructure and water,” he said.

Fishermans Bend is Australia’s largest urban renewal project covering 485 hectares in the heart of Melbourne. It will consist of five precincts across two municipalities – the City of Melbourne and the City of Port Phillip – and connect Melbourne’s CBD to the bay. By 2050, the area is expected to provide housing for up to 80,000 people, and employment for 40,000.

The population growth rate of Melbourne has increased to 2.4%, which means 110,000 people are moving to the city every year. Vacancy rates in Melbourne continue to fall due to the severe undersupply of housing. New-build apartments like the upcoming Palladium Tower in Southbank, are being constructed to address the lack of housing, which is less than 5km away from the new campus, and can be reached by bike in less than 20 mins!

Nearer still, and just 5 mins away by bike from Palladium Tower is the University of Melbourne’s Southbank campus, which is also undergoing a A$200 million transformation. This transformation, expected to be ready by 2020,  will see the Conservatorium staff and students co-located with their colleagues and peers at the Victorian College of the Arts at the heart of the Melbourne Arts Precinct.

Palladium Tower has a walk score of a near perfect 98/100, which reflects how easy it is to get around without a car. With a self-contained Woolworths supermarket, and the Crown Casino & Entertainment Complex, Melbourne Convention & Exhibition Centre, Melbourne Arts Precinct and the Royal Botanical Gardens all within walking distance, Palladium Tower is strategically located at the nexus of all the city has to offer.

Keen to find out more about Palladium Tower or other projects in Melbourne? Give us a call at 03-2162 2260 or 016-221 8691/9150. Feel free to share and comment on this article!

By Ian Choong

Sources:

  1. https://www.alumni.unimelb.edu.au/university-announces-new-engineering-campus
  2. https://www.smh.com.au/national/victoria/students-set-to-take-the-bus-to-melbourne-unis-1b-future-of-engineering-20171221-h08ihg.html
  3. http://finearts-music.unimelb.edu.au/about/campus/southbank-campus-development

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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England Hits Highest Happiness Level

Despite concerns over the uncertainty of Brexit and the effects it might have on household budgets, the Office for National Statistics (ONS) has reported that England has hit its highest level of happiness since 2011.

Despite concerns over the uncertainty of Brexit and the effects it might have on household budgets, the Office for National Statistics (ONS) has reported that England has hit its highest level of happiness since 2011. On the other hand, there have been no significant improvements in happiness in neighbouring Scotland, Wales or Northern Ireland.

The method of research is fairly simple, depending entirely on citizens self-reporting their feelings; those aged 16 and over were asked to rate their “happiness”, “anxiety” and “worthwhile” levels out of 10.

The results from 2011 showed that for the most part, England’s overall happiness was faring well at an average rating of 7.29. Interestingly, this figure has now risen to 7.52. In terms of feeling “worthwhile” the average score has risen from 7.67 to 7.87. Even anxiety levels have dropped from 3.13 to 2.92  — why is this the case?

Happiness Level Related to Quality of Life

Silvia Manclossi, head of the quality of life team at the ONS, said, “People’s social connections and health status play an important part in personal wellbeing. However, some economic factors are also important, so perhaps this trend over time is not surprising as the country came out of the economic downturn. ”

It seems that England’s citizens have been, even with misgivings that accompany economic unpredictability, finding their own reasons to continue thriving.

Manclossi also mentions the large difference in overall happiness levels between those of different ages, giving the quality of life team at the ONS something to look further into. A quick look at said discrepancies reveal the following:

  1. The overall happiest age group are those between 65 and 80 years old
  2. The least satisfied aged group are those between 50 and 54 years old
  3. People aged 16 to 19 reported the highest levels of life satisfaction of any age group

Happiness Level: UK vs other countries?

In a dispatch called the World Happiness Report 2017, an initiative of the UN’s Sustainable Development Solutions Network, a group of independent experts including economist Jeffrey Sachs surveyed people in 156 countries to find out how highly they evaluated their lives on a scale from 0-10.

The top 5 spots were taken by Nordic countries; Norway tops the list, followed by Denmark, Iceland, Switzerland and Finland. The UK found itself taking the 19th place, right after Luxembourg. Worth noting is Australia’s title as the 9th happiest country in 2017 as it is also home to the World’s Happiest and Most Liveable City, Melbourne.

While explanations for this list are naturally complex, experts have condensed them roughly into six factors: income, healthy life expectancy, having someone to count on in times of trouble, generosity, freedom and trust, with the latter measured by the absence of corruption in business and government.

Evidently, the UK  has managed to remain resilient in the face of uncertainty following Brexit — if the citizens are getting happier, something must be working right!

Need to up your happiness level? Invest in England and get a slice of that happiness! For more information on the property market in the UK, check these articles out: https://csiprop.com/uk-property-outlook-2018/ and https://csiprop.com/regional-uk-property-tops-price-growth/.

By Nimue Wafiya

Sources:

World Happiness Report 2017

Overall UK happiness level given boost by English ONS Life Satisfaction Survey

Melbourne World’s Happiest City Survey

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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For Manchester United Fans: #ILOVEUNITED comes to Malaysia

Manchester United fans in for a treat with first ever #ILOVEUNITED fan party in Malaysia

Do you consider yourself a Red Devil? Well-versed in the interesting origin of the glorious Manchester United Football Club?

If you’ve said yes to either or both, you’re in for quite the treat:

 

For the first time ever, Manchester United is bringing its #ILOVEUNITED fan party to Kuala Lumpur on 10th March, 2018! To be held at Berjaya Times Square, Kuala Lumpur, the event will feature a live match screening of Manchester United’s highly anticipated home match against Liverpool and a chance to win a once-in-a-lifetime VIP trip to Old Trafford!

While the exultation of experiencing the match with fellow supporters might be enough to satiate fans, this event is offering much, much more.

Star Trek’s Captain Kirk: looking intrigued. Image from Know Your Memes dot com

Manchester United Ambassadors Dwight Yorke and Denis Irwin, together with club legend David May will be landing in Malaysia to meet fans and give pre-match views and half time analysis of the game!

The #ILOVEUNITED event will also feature an interactive, online hub linking fans around the globe, with the opportunity to upload and post their own videos and pictures expressing their support for the team.

There is still more to expect! Live entertainment, giveaways and competitions will be ongoing throughout the event to keep the crowd active and engaged.

Eager to grab a ticket? All you have to do to apply for free tickets is visit www.manutd.com/iloveunited latest by the 4th March, 2018. Applications will be entered into a ballot and successful applicants will be notified by email no later than the 6th March, 2018.

Fans who are Official Manchester United members simply need to submit their membership number during the application process to be guaranteed a ticket.

If  you find that your interest extends beyond football to include Manchester’s promising property market, you can contact us for assistance!

Oh, and if you haven’t already seen it, check out our article regarding Robbie Fowler and his decision to tour London tour in an effort to promote UK property investment to his fellow Brits here: csiprop.com/fowler-strikes-again-in-the-uk-property-market/!

P.S: Did you know that a number of EPL footballers have also invested in the UK property market? Read our article!

Article by Nimue Wafiya

Source:

#ILOVEUNITED is heading to Malaysia

The Day Manchester United was Saved by the Dog – A Tale From Early Years

Fowler Strikes Again in the UK Property Market 

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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Fowler Strikes Again In The UK Property Market

EPL football legend Robbie Fowler joins an established group of athletes to invest in the lucrative UK property market.

Recent news highlights Liverpool FC legend, Robbie Fowler, directing his attention towards building a property empire. In keeping with its slogan, “Build a property portfolio without the need of a footballer’s salary”, the Robbie Fowler Property Academy is holding a string of events in London this week to provide the average Brit with the necessary guidance to score in the property market.

Once acclaimed for his ability as a striker to string ball after ball into goals (he is the sixth-highest goal scorer in the history of the Premier League!), Fowler now owns and rents out a string of homes and apartments in Liverpool, Cardiff and Scotland. The ex-athlete is entrusting the property market to retain his fortune — £31 million to be exact — after leaving behind an illustrious football career.

So what does this major football star see in UK property investment?

After circulating the market, Fowler came to a definitive conclusion: “What the trained investor knows over and above everybody else is that there is money to be made in property.”

Many athletes investing in UK property market 

This ideology among football stars is not the first of its kind. Fowler joins an already established group of athletes who seek great yields from the UK property market.

Members of Liverpool FC and Arsenal FC have put club rivalries aside to invest their vast wealth in the property development business. Luis Suarez, Lucas Leiva, Jose Enrique, Mikel Arteta and Santi Cazorla are, today, the  directors of a Manchester-based company, Capital and Centric, which focuses on purchasing old buildings and developing them into private rented homes.

According to The Times, Capital and Centric, which has a number of other investors alongside the footballers, has already raised £50 million in equity. The money will be used  to purchase and develop residential property in Manchester, Liverpool, Birmingham and Bristol, with the hope of generating returns of between 8 and 10 percent a year while creating a £250 million property portfolio.

Additionally, Marcus Rashford, one of Manchester United’s younger players, has set up a property firm (Mucs Properties Ltd) to help him invest the fortune he has gained throughout his career. The sportsman, said to be following in the footsteps of fellow English footballer Dele Alli, is to buy homes to rent in northwest England.

Join Robbie Fowler and Luis Suarez – invest in the UK property market

The UK property market seems to be attracting quite the distinguished cohort. Evidently, it has proven time and time again to be the steadiest form of investment there is.

Even with Brexit on the horizon, recent data from ONS shows a steady growth in house prices throughout the UK; high demand for housing continues to strengthen the property market.

Also worth noting are the areas in which Fowler and his fellow athletes are focusing on — Liverpool, Manchester, Birmingham and Bristol are subject to impressive house price growth rates.

Should the idea of investing in UK property pique your interest, you can head over to https://csiprop.com/our-uk-projects/ to see what we offer and how we can help!

After all, you can build a property portfolio without the need of a footballer’s salary!

Article by Nimue Wafiya

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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Manchester & UK Regional Cities Lead Property Price Growth

Image credit: http://dailym.ai/2BG4GFG

The latest census on UK property price growth has been released by HM Land Registry and Office for National Statistics (ONS), showing tht UK regional cities top property price growth in the country.

It also shows a promising annual growth rate of 5.2% recorded in the month of December, 2017 — a 0.2% increase from the previous month. The average house price in the UK stood at £226,756 in December, approximately £12,000 higher than in December, 2016 and £1,000 higher than last month.

Regionally, the Southwest, which includes the cities of Bristol, Plymouth and Salisbury, earned the best track record, with the highest annual growth rate of 7.5% approaching the month of December.

The Southwest is followed by the West Midlands, which includes the city of Birmingham, with an  annual growth of 6.3%. Meanwhile, the East Midlands also recorded similar property price growth levels.  

London experienced the lowest annual property price growth, at 2.5% — on the bright side, those looking to purchase homes in London for possible stay can enjoy affordable prices while they last.

Rising rates in the South West, East Midland and West Midland show positive outlooks for areas outside London (Img source: http://bit.ly/2C045Ql)

James Cameron, director of estate agency Vesper Homes, said landlords are selling up in London and looking for buy-to-let opportunities elsewhere, which is benefiting first-time buyers in the capital.

“Landlords are therefore selling up so they can invest outside of London or trade up to a larger property which frees up the smaller ones for first-time buyers,” he said.

Property price growth: what this means for investors

What can be derived from recent trends seen in areas outside England’s capital is that the regional market holds the greatest appeal to the savvy investor.

Savills identifies Birmingham, Manchester and the overall Northwest as the top places for buy-to-let investors, with the highest comparative returns. They predict a 4.5% average annual return for Birmingham and Manchester, and 4.1% for the Northwest. Mortgage brokers Private Finance place Liverpool at the top for nett rental yields in 2017 once mortgage costs are taken into account, at a whopping 8%.

Price change by local authority for the year till November 2017 (Source: Gov.uk)

While house prices in London remain the highest, the affordability and potential of regions outside London make investing in property outside the capital so much more attractive.

Addressing the elephant in the room

While Brexit continues to amass uncertainty within the property market, the house price growth indicates resilience in the housing market supported by the undersupply of housing in the UK.

Recent news regarding property in London illustrates the housing crisis. Micro-flats, housing units that can take up as little as 31 square meters in total, show the extent to which the UK must reach to meet the demands of a growing population.

Just this month, the Mayor of Watford, Dorothy Thornhill, voiced her concern after the council learned it might have to double the amount of houses it must build as part of the latest attempt by the Government to tackle the nationwide housing crisis.

In Birmingham, last month, a plot of land previously caught in a “store-wars” battle between a shopping centre owner and supermarket giant Sainsbury, has finally been claimed by Seven Capital, a property investment company in the UK. The plot of land, between Sutton road and Orphanage road, is being converted into new apartments, undoubtedly a consequence of critical undersupply of houses currently affecting the city.

Late last year, it was reported that the dire undersupply of houses in Brighton and Hove would scarcely be supported by the Prime Minister of England’s solution to deliver 5,000 houses a year throughout the UK, which would bring only around a dozen new houses to the previously mentioned areas. This leaves room for private developers to establish themselves where demand is exceptionally high.

The housing market in the UK is still growing and you can be a part of it – should the positive outlook on the property market in the UK pique your interest, do contact us to get involved.

Article by Nimue Wafiya

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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Melbourne Property is Fastest Selling in Australia

There is incredible demand for property in Melbourne – the fastest selling city in Australia and with extremely low vacancy rates

In Melbourne, house vacancy rates become tighter even as property flies off the market at amazing pace — a clear indication that the city’s property market is undersupplied. Melbourne property is the fastest selling in Australia

Melbourne property is currently the fastest selling amongst Australian cities, at an average period of 33 days. The city tied with Hobart at the top spot, according to a CoreLogic Property Pulse report.

The report revealed that properties sold privately in Australia last year took an average of 45 days to change hands. 40 days was the average for properties in the capital cities.

The average time taken to sell a property was 41 days in Adelaide, 42 in both Sydney and Canberra, 47 in Brisbane, 53 in Perth and 75 in Darwin.

CoreLogic state director for Victoria, Geoff White said that strong buyer demand was keeping Melbourne’s average days on market low, with properties in popular parts of the city commonly selling within a week. He also said that the days to market would remain low for the foreseeable future.

“It won’t change that much unless something significant happens, like an interest rate rise that cools buyer demand, or an influx in supply,”

During this recent Chinese New Year week, Chinese investors had Melbourne property in their sights — up to 125,000 Chinese nationals were Melbourne-bound to celebrate the Golden Week holiday

Carrie Law, the chief executive of leading Chinese property website Juwai.com said that this may be the biggest week of the year for Chinese property buying in Melbourne.

A recent survey done by the portal shows that Australia is the second favourite offshore investment destination for Chinese buyers, behind the US.

Realestate.com.au chief economist Nerida Conisbee said suburbs around Melbourne’s top universities continues to draw strong interest.

“There’s still very much an education focus for Chinese buyers,” she said. “They really continue to see educational institutions as aspirational locations and are looking close to Melbourne’s best universities, Melbourne Uni, Monash Uni, RMIT.”

Low Vacancy Rates & Housing Undersupply 

Even as houses fly off the market, rental prices are rising in Melbourne due to the low vacancy rates.

Figures from SQM Research show just 1.8% (9744 properties) of property in the city was available for rent, down from 2.1% (11,478) in December.

SQM director Louis Christopher said this shows that the dire warnings of apartment oversupply have not eventuated. On the contrary, it looks like there is a housing undersupply in Melbourne. 

“What’s happened here is the population growth rate is a lot faster than the Australian Bureau of Statistics expected and that’s absorbed the additional stock in the market,” he said, adding that  vacancy rates in the Southbank market fell to 3.9% from 6% in January 2017 and Docklands is at 2.8%.

A population growth rate of 2.4% indicates 110,000 people are moving to Melbourne every year. The vacancy rates continue to fall due to the severe undersupply of housing.

Melbourne’s price growth has lowered from the rapid rises seen previously, which will further increase rental take-up and sales. Yet, the city’s price growth continues to outpace all other mainland state capitals, at 7.3%.

Article by Ian Choong

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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UK Student Property: Favourite Investment of Institutional Investors

UK Student property is regarded as one of the strongest investment platforms today (Img source: http://bit.ly/2EhQLnQ)

This month, a Scottish property developer signed a £500m joint venture with a US company to build student accommodation across the UK. The Glasgow-based Structured House Group (SHG) said the agreement with Harrison Street Real Estate would lead to 5,000 apartments being built over the next five years, with potential sites already identified in the northwestern cities of  Manchester and Liverpool, and Scotland. Many institutional investors, both private and state-owned, are pouring money into UK student property, also known as purpose-built student accommodation (PBSA), today.

According to latest figures by the IE Business School in Madrid, sovereign wealth funds have quadrupled their investment in student housing in both Europe and the US, from under 4% a year between 2011 and 2015 to more than 15% in 2016. The sharp increase in investment in the sector is based on the potential growth of wealthier middle classes in emerging economies looking to send their children to study abroad.

In 2015 and 2016, Malaysia’s Felda Investment Corp Sdn Bhd (FIC) launched two investments in the student accommodation market in London worth £168 million.

And from Singapore down south, Mapletree and GIC spent a combined £1.2 billion on student housing in the UK in 2016, in cities like Leicester, Birmingham, Nottingham, Oxford, Edinburgh, Manchester and Lincoln. Singapore holds the title of being the largest investors in student property in UK (and beyond) in recent years.

UK Student Property: Most Favoured Investment

UK student property is regarded as one of the strongest investment platforms today, surpassing other traditional real estate classes. There an acute undersupply of student housing in the UK due to restrictions in building permissions, a challenging planning environment and the government’s support for housing development. This limits the existing residential housing stock that is available for students to rent.

Universities face many of the same problems with building student halls. Students are typically only guaranteed their first-year of accommodation, and left to seek a room of their own after that. Purpose-built student accommodation, thus, are designed to not only solve the dual problems of inadequate university-managed accommodation and residential housing to let, but to go further, and provide a higher standard of living for the discerning student.

In 2016-17 the number of students living in private accommodation increased to 141,210, a growth of 6.4% from 132,720 last year. This trend is predicted to continue, fuelled by the inability of university-managed accommodation to keep pace with student numbers, and a more discerning and affluent student population. Unite Group reports that 85% of second year undergraduates are now looking for quality, purpose-built student homes that fulfill all their needs (including peace and quiet and access to night-life). CBRE statistics shows that student accommodation generally has occupancy rates of about 99%, and, for investors, tenancy is virtually assured.

By 2017, the UK student accommodation market was estimated by Knight Frank to be worth some £46bn and growing. James Pullan, Knight Frank’s head of student property said that there are more investors in the sector now than there has ever been.

“It is one of the few sectors in the property world that has delivered consistent rental growth every year since the economic downturn. More than 70% of investment is coming from overseas buyers, from sovereign wealth funds and ultra high net worth individuals (people with investable assets of more than $30m) and private equity,” he said.

UK student property used to be the sole domain of the institutional investor. In recent years has it been packaged to be accessible by the individual investor, adding to the appeal of this investment class. Its price points are affordable at approximately £65K onwards per unit, which is a steal compared to the price of a London apartment which easily costs more than £500K — and which cannot fetch annualised returns that come close to the 8% that UK student property can. 

UK student property is a sought-after investment due to its returns. Image” CSI Prop

Student Arrivals Fuel UK Student Property Demand

Meanwhile, students continue to enrol into UK’s higher education institutions. The Government’s removal of the student cap will maintain a steady stream of foreign students applying to study in Britain, buttressing demand for proper accommodation and providing opportunities for investors.

In 2015-16, there were almost half a million non-EU students in the UK, about one-fifth (19.2%) of the 2.3 million total. In the 2017/18 academic year, non-EU applications had risen by 2.2% even while EU applications had fallen ostensibly due to Brexit.

The Higher Education Statistics Agency (HESA) reports that entrants to full-time first-degree, postgraduate taught and postgraduate research courses have increased considerably in the past 10 years (by 31.2%, 30.5% and 25.7%, respectively), and the proportion of 18-year-olds applying and entering higher education were at record levels.

London’s full-time student population alone is expected to rise by 50% in the next 10 years, whilst regional cities, particularly where there is a Russell Group university, is expected to see dramatic increases in student numbers. EU and non-EU students are the fastest growing segment, bringing a net benefit of £2.3 billion per annum to London’s economy supporting 60,000 jobs in the capital.

Ultimately, investors are in it for the returns: UK student property can fetch yields of more than 8% annually. Additionally, PBSAs are categorized as commercial property and, thus, benefit from tax exemptions that residential property does not qualify for. This allows the return on investments to be higher than other classes of real estate. In 2017, market transactions exceeded that of 2016 at £3.61 billion, but , with a further £1.05 billion under offer (unlike 2016) and £1.5 billion in the market, double the totals for 2016.

What makes PBSA such a property hotspot, at the end of the day, is the combination of internationally respected higher education, structural undersupply and steady rental growth. It has proven to be recession-proof and will be Brexit-proof, too. This offers investors a safe and stable place to put their money.

Hiew Yoon Khong, chief executive of Temasek’s real estate arm Mapletree, Singapore, sums it up best: “Student accommodation is a big business and relatively low risk.”

 

Article by Ian Choong

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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Cadbury, Our Chocolate Fantasies & Investing Practically

The best form of non-fiction is arguably the memoir — who wouldn’t want to know how Obama did it? From Anthony Kiedis’ wayward history in ‘Scar Tissue’ all the way to Frank McCourt’s harrowing upbringing in ‘Angela’s Ashes’, everyone seems to have lived long, tough and stupendous lives.

Yet, as monumental as these memoirs are, there may never be a story quite like the experiences of the lucky people who get to eat chocolate for money. Yes, for. At £9 per hour, to be exact.

If you haven’t heard, Cadbury, the second largest multinational confectionery company in the world, recently announced the yummiest news: they are looking for chocolate tasters to taste-test their latest inventions in Reading, UK,  before the products hit the shelves! Talk about doing what you love for a living; chocoholics finally get to embrace their ikigai.

As deliciously nuts as this news may sound, the UK is no stranger to unconventional occurrences like this. With the upcoming cheese festival in Reading, anti-Valentine’s day events in London and the annual sheep race that happens in Yorkshire, the UK pretty much has it all!

Because of the excellent job market (as illustrated by Cadbury), education market (we know this) and overall communal togetherness in the UK (people are nice), the UK property market  is allowed to flourish.

Like Cadbury, the UK property market can give you just as many sweet returns; a long list of satisfied local and international investors can vouch for this.

While the UK property market has taken some minor hits from the looming Brexit, recent price recoveries reveal its resilience in the face of political and economic upheaval.  And, unlike the volatile stock market, property, when invested in the right places, is known for its comfortingly steady returns!

CBRE’s 2018 Market Outlook forecasts continuing economic growth for the UK despite the uncertainties caused by Brexit. The report states that those uncertainties are likely to peak this year.

Underpinning the property market is the fact that there is a chronic undersupply of houses that will undoubtedly support price growth. Simply put, UK property prices are, in a way, a barometer to gauge the UK property market. To illustrate, here is a slightly more in-depth view of the current state of the property market in the UK:

The Royal Institution of Chartered Surveyors (RICS) expects prices to drift higher in some parts of the UK with the strongest gains in Northern Ireland, Scotland, Wales and northwest of England, which includes cities such as Manchester, Sheffield, Liverpool and Newcastle. But, a slump in asking prices across London and the South East will drag down prices in the rest of the UK so that overall growth remains flat.

The Government recently announced its ambition of building 300,000 homes a year in the Autumn Budget alongside a tranche of policies aimed at increasing the UK housing supply. However, RICS said that as many of these measures won’t come into effect until the mid-2020s, they will do little to alleviate the immediate housing crisis.

Which means that demand will continue to uphold price growth in the housing market. 

Back to Cadbury and its offer of a job of a lifetime — application closes on Feb 16 🙂 Time to get cracking on that resume. But if you’re not in a position to do so and want to invest in property instead, we can help you with that 🙂

Article by Nimue Wafiya

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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The Spiraling Growth of Melbourne CBD

Housing is a necessity in Melbourne. As the population continues to swell, so must housing supply.

Perhaps the easiest measure of how deserving Melbourne is of the World’s Most Liveable City title for the 7th consecutive year, is its increasing population growth. That, and the fact that it is perhaps the most populated state capital city in Australia, with 75% of the population of the entire state of Victoria living in Melbourne city alone.

In 2016, the Australian Bureau of Statistics (ABS) reported Melbourne as having the most epic population growth of any Australian city, making up almost a third of Australia’s population growth. The contrast is quite significant, with 2.4% in Melbourne compared to 1.2% in the rest of Australia.

Australia’s population growth is faster than many OECD countries including Malaysia, Philippines, Singapore and the UK. Image source & credit: ABS(For the record, Australia’s population growth is faster than many OECD countries including Malaysia, Philippines, Singapore and the UK. This is an interesting fact because a developed nation’s growth is typically slower than that of a developing nation, hence property prices should grow faster in a developing nation. Australia, however, is the exception.)

In ABS’ latest report, Melbourne (Victoria) continues to headline the country’s population growth of 388,100 people, with an increase of 2.3% year-on-year.

But first, a short lesson in geography: Melbourne, with its population of approximately 4.8 million people, comprises the broader metropolitan area (also known as Greater Melbourne) as well as the city centre. Altogether, it consists of 31 municipalities.

However, this article specifically refers to the city of Melbourne which encompasses the Melbourne CBD, Southbank, Docklands and many of the suburbs in Melbourne’s inner city.

As of 2016, the estimated  residential population in the municipality of the City of Melbourne was 151,176. A whopping approximate of 903,000 people people were recorded as having travelled to, or were present in the municipality on an average weekday in that same year, an increase of 6% from 2014.

Statistics in the City of Melbourne’s Daily Population Estimates and Forecasts reveal that expansion in the city will continue, and is expected to hit 266,455 residents by 2037 due, largely, to births and immigration.  According to projection estimates, there will be over 1 million people in the city on an average weekday within the next 5 years, and 1.4 million by 2036.

By 2037, the population of Melbourne (CBD) is expected to reach 76,982. This is 44.68% higher than the population in 2017. Image redit & source: http://bit.ly/2rYxoi3

Recently, BIS Oxford Economics predicted that Melbourne is headed for an undersupply in housing. What makes this especially noteworthy is the fact that it was a complete reversal of its earlier prediction that the city would suffer a surplus of apartments! The consultancy has based its forecast on census figures that show Melbourne had 109,000 more people than previously expected.

“We thought it would get to a 20,000 excess (of apartments) in Victoria by 2018. We’re now saying in 2018, the market has still got an undersupply of about 2000 dwellings. We’re talking a 20,000 turnaround,” said BIS managing director Robert Mellor.

There are currently 25,321 private dwellings in Melbourne (CBD). By 2037, this is expected to increase to 56,838. Image source & credit: http://bit.ly/2rYxoi3

Spiralling Growth in the CBD

Figures by the ABS show that between 1991 and 2016, the population living within 10km of the CBD grew by 40%, from 743,000 to 1,042,000.

Melbourne’s CBD has also seen spectacular growth; with its population swelling from 1611 in 1911 to 15,249 in 2006 and 35,447 in 2016.

The increase in population is reflected by a sharply-tightened vacancy rate of 1.7% and 1.4% for apartment units and houses at as recent as Q3 2017.

According to Mellor, census figures show that the proportion of students rose to 27% demand for inner city apartments in 2016, from 20% in 2011. Students comprise a key demographic occupying apartments in the CBD, where Melbourne’s high-rise supply has been concentrated.

The increase in population is reflected by a sharply-tightened vacancy rate of 1.7% and 1.4% for apartment units and houses in Melbourne at as recent as Q3 2017. Image source & credit: Domain.com.au

According to SQM managing director Louis Christopher, the last time the figure slipped as low as 1.7% was in June 2007.

“This is quite remarkable — despite predictions of looming apartment oversupply in inner-city Melbourne, we are seeing vacancies fall rather than rise,” he said.

“Even in the Docklands the vacancy rate tumbled to just 2.4% (as at July 2017), down from a high of 6% in December.”

The tight vacancy rate is good news for landlords, especially if seen from the perspective of future population growth.

By 2037, the CBD’s population is expected to reach 76,982, 44% higher than the population in 2017. Interestingly, this growth forms 29% of the total projected population growth of the City of Melbourne within the same time frame — a significant percentage, particularly if you consider that the CBD spans an area of about only 6.2km2!

In terms of age, the CBD population will be dominated by the 25- to 34-year-olds, followed by the 35- to 44-year-olds by 2037. Logically and based on current property prices, the 25- to 34-year-olds represent the demographic that is most likely to rent a property.  Image credit & source: http://bit.ly/2rYxoi3

In terms of age, the CBD population will be dominated by the 25- to 34-year-olds, followed by the 35- to 44-year-olds by 2037. Logically and based on current property prices, the 25- to 34-year-olds represent the demographic that is most likely to rent a property.  

Meanwhile, housing looks set to increase too, with the number of private dwellings projected to grow to 56,838 in 2037, compared to 25,321 dwellings in 2017.

Back in the day, the CBD was probably last on a laundry list of choice residential areas, but this trend is changing. While the CBD may not be the cheapest area to live in Melbourne, there is a growing community of residents.

What will continue to draw the crowd and keep the CBD alive, are its industries and jobs, and its proximity to universities, festivals and the arts, food and beverage, services and retail.

Article by Vivienne Pal

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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