Fenton Whelan, a UK property developer, has announced a major roadshow aimed at wealthy Thai investors and those from Southeast Asia, presenting a special deal for the luxurious Park Modern project located in central London, with prices starting at £2.2 million per unit.

Mr. Lars Christiaanse, co-founder and managing director of Fenton Whelan, revealed that the company is preparing to hold its first roadshow in Thailand and Southeast Asia to showcase the Park Modern project, a luxury development in London, England. The project is situated south of Hyde Park and Kensington Palace Gardens, covering an area of 190,000 square feet, with a development value exceeding £500 million.

The Park Modern project is notable for its prime location, offering unobstructed views of Hyde Park and Kensington Palace Gardens. The contemporary design by architect Lee Polisano of PLP Architecture emphasizes luxury, featuring a unique porte cochère entrance with valet parking leading to a lobby with double-height ceilings. The main entrance boasts large doors framed by stone columns with bronze edges, showcasing some of the finest park-side architecture in Hyde Park, which is a key foundation for the revitalization of the Queensway area, transforming Bayswater into one of the most efficient areas in central London.

The Park Modern project features beautiful residences in a 9-story building with high ceilings and floor-to-ceiling windows that open onto private balconies, allowing residents to enjoy unobstructed views of the park and the city skyline.

The project consists of 57 units ranging from 1 to 6 bedrooms, including stunning apartments and 3 exclusive penthouses, with 30,000 square feet of 5-star hotel-style amenities, including concierge services, guest lounges, and top-tier restaurants and cafes. The luxurious entrance (porte cochère) offers valet parking, and the building features health service areas, including a 25-meter swimming pool, gym, spa, cinema, and treatment rooms.

Since the project's launch in the UK, more than half of the Park Modern units have already been sold in advance. The success of these sales reflects the project's quality and its prime location in central London, making it one of the fastest-selling luxury developments in decades.

According to a report by Knight Frank, the UK residential market saw a price growth of 9.2% in London during the third quarter of 2022, with an average increase of 1.1% per month from January to July 2022. The average price of residential properties in London is £543,547, with prime area prices increasing by 2.4% last year until May 2022, and a projected price growth of 25% over the next five years in prime areas of London.

In terms of rental value growth in central London, it reached a record high in February 2022, recovering from the pandemic, with rental values increasing by 19.9% until August, down from 29.2% in April, which was the highest figure in over 20 years. Meanwhile, outer London areas saw a rise to 15.2% in August.

With rising prices and rental opportunities providing investment returns, the weakening pound, world-class education attracting students globally, and relatively low transaction costs in real estate, London remains an attractive destination for investors worldwide.

UK Residential Market Q3 2022

The global residential property price index shows the average property prices by region in September. Overall, the growth of residential property prices in the UK has slowed in recent months, gradually decreasing to single-digit growth.

Property prices in London grew by 9.2% in the year to July 2022, with a month-on-month increase of 1.1%. The average price of residential properties in London is £543,547, according to land registry data published by the Office for National Statistics (ONS) shortly after Nationwide's report. Although land registry data is more comprehensive and detailed, it should be noted that July figures were affected by the end of the stamp duty holiday in England.

According to a household sentiment survey by IHS Markit, the rise in property prices is closely linked to the index. A key point in September is that while the sentiment index remains positive (above 50), it is weakening, and the future price index for residential properties is currently lower than the figures from March 2020 when the UK was in lockdown (until May).

Monthly transactions in the UK real estate sector have decreased from last year's record highs during the end of the stamp duty holiday but remain at 3% in July, above the 5-year average of 104,000 transactions in 2019. The graph shows significant volatility, partly due to the stamp duty holiday in England and Northern Ireland. In August, housing transactions were relatively resilient, increasing to nearly 105,000 transactions from the previous month, accounting for almost half of the peak in June last year at 205,000 transactions.

Despite the increase in bank interest rates in the UK (green line) to 2.25%, the number of mortgage approvals, a key indicator of future demand, exceeded 74,000 transactions, higher than pre-pandemic levels (the average number of approvals for the 12 months until March 2020 was 66,000 transactions).

The 5-year fixed-rate mortgage swap rate determines the pricing of fixed-rate mortgages in the UK, having risen above 5% in early October, up from less than 3% in early July when we last forecasted property prices. This trend indicates a worsening outlook for borrowers, prompting us to revise down our housing market forecasts for the UK over the next two years.

We expect UK property prices to decrease by about 5% next year and in 2026, totaling nearly a 10% decline, bringing prices back to levels seen in the summer of last year. Next year, property prices in the capital will face more pressure due to higher loan-to-income ratios.

We believe that higher borrowing costs will impact the entire housing market, particularly in prime central London (PCL), where property prices are expected to drop by 3% next year before seeing slight increases in subsequent years.

Transactions in central and outer London have been restructured as of September.


 

The growth of rental values in central London reached a record high in February as the market began to recover from the pandemic, with rental values increasing by 19.9% year-on-year until August, down from 29.2% in April, the highest figure in over 20 years. Meanwhile, outer London areas increased to 15.2% in August.

In addition to rising inflation, real estate is becoming an increasingly attractive asset class as other asset types are relatively volatile. The volatility index has risen since August, partly due to the strengthening US dollar in recent weeks, as more investors seek safe-haven assets.

Ms. Victoria Garrett, head of residential at Knight Frank Asia-Pacific, stated that data from the latest wealth report survey shows that 62% of high-net-worth individuals globally are considering access to green spaces closely associated with unique views. With excellent local amenities and access to green spaces, residents of Park Modern find London an attractive destination for international buyers.

Mr. Christiaanse, co-founder of Fenton Whelan, remarked that the transformation of this park-side development combines contemporary design with unique features. The Park Modern project offers a fresh contemporary experience for the London market, providing a truly elevated living experience with views of Hyde Park. Park Modern presents residences of various sizes, layouts, and features to suit all lifestyles, showcasing an outstanding project to clients in Southeast Asia.

The starting price for units in the Park Modern project is £2,200,000 (SGD 3,527,804.13 / USD 2.5 million).