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London popular among SA property investors

The Filaments in Wandsworth.
The Filaments in Wandsworth.
Cape Town - For South Africans investing in property abroad, London remains a premier destination - and for a variety of reasons, says Dr Andrew Golding, CE of the Pam Golding Property group.

“London offers sound options for those looking at residential property including purely from an investment perspective,” said Golding.

“According to a report by a leading UK real estate agency, housing market activity has been doing well for some time now, with mortgage lending, house prices and transactions picking up significantly this year (2013), even outside the bright lights of London.

“According to Savills World Research report, average house prices are up 4.1% over the year while across prime London prices rose 2.5% between April and June, bringing annual growth up to 6.6% from 5.5% at the end of the first quarter."

The strongest growth was seen prime South West London – an area which has long been a favourite investment hub for South Africans and where annual growth now stands at 8.5%.

SW London includes areas such as Clapham, Wimbledon, Fulham, Battersea, Chiswick and Wandsworth,” said Golding.

The Savills report also makes the point that London needs at the very least 50 000 new homes a year, twice as many as are currently being built, in order to keep pace with demand.

This is based on the levels of employment growth that are forecast by Oxford Economics.

“For the buy-to-let investor, London, and particularly the Greater London area, remains attractive due to its sound track record of rental and capital growth," said Jane Clough, London sales manager for Pam Golding Properties International & Projects Division.

The largest city in Europe, London is considered one of the largest rental markets alongside New York. It contributes 20% of the GDP of the UK and is home to 75% of the Fortune 500 companies’ offices.

Greater London has a population of 8 million, and with 13 000 people living on each square mile in London, tenant demand is strong and consistent.

Rental yields currently average at 5% per annum, with rentals increasing at approximately 3% per annum.

Pam Golding Properties is marketing a number of residential apartments and townhouses, the bulk of which are well positioned in Greater London, he said.

- Fin24

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