by kennynah » Wed Feb 09, 2011 2:44 am
hi peter...
psf ranges from GBP500-1000 depending on location, not surprising.
in the heart of the city, it is easily GBP600 psf, depending on whether it is near mrt, amenities, height of the building. view is a priced commodity bcos it is a very heavily build up city. thus, buildings with river view, park view, aerial view or view of some very prominent touristic spots; like london eye, tower bridge, etc, can command anything from GBP800 psf upwards...
south kensington, regent's park, hyde park, brompton areas, and a few others, these are very sought after locations...why? i oso duno...just like you ask why bkt timah 6th ave commands a premium when there is nothing much to rave about, in terms of amenities, easy access to mrt, etc...
these places go for anything between GBP1500 - 3000 sqf...
in fact, 1 Hyde Park, a new condo went on sale recently and one penthouse was sold for GBP6million..i recall it could be abt 2K sqf...
generally, north of the river thames command higher premium than boroughs in the south of the river thames...the reason being that their "shenton way" is situated in the north bank....lesser big time commercial buildings are situated in the south, with the exception of a few that are located just by the river bank....walk 5 mins southwards inland, you get small offices and residentials, including their "HDB" flats/houses/apartments...
this is also why the Strata is going at GBP450K onwards...it is situated in the south bank and at a once upon a time notorious council, Elephant and Castle...today, due to the upcoming Olympics, the gahmen has spruced up many of such "hoods", beautifying the walkways, tearing down old "HDB" flats and building new parks... but becos it is more affordable to stay here, you still get the blue collar workers in such areas...
now, of cos, there are suburban areas where you can buy a 2 storey apartment, 3 bedrooms, a small garden, etc for less than GBP150K...but that's outside the city area and the prospect of capital gains is slooooowwwww....it is not regarded as investment grade properties..
the main reason why people are not buying is becos they cannot easily obtain a mortgage loan...the banks have been very reluctant to lend, which is why the uk gahmen has been pressuring the banks to lend, or they will legislate against banks' bonus payouts...
when the residents cannot get the loans, they have no choice but to rent. this has driven up rental costs over the last few months.
Options Strategies & Discussions 
.(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas
..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................
