According to One Global Group, the UK real estate market will favor buyers in 2023
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One Global Group believes the UK property landscape will become a buyers’ market by 2023. A press release by the Singapore-headquartered real estate company points out that market conditions in the year ahead make it an ideal time for investors in Asia to purchase a home in the UK.
As per Eli McGeever, director of research and innovation in technology of One Global Labs, the UK has begun to experience price adjustments in certain markets in response to the “property-buying explosion” during the past two years. As for the future, he believes the prices will continue to rise in certain markets but other markets will remain steady. “For instance, certain areas of London like Harrow, Hounslow and Newham are likely to outperform the market and so will the areas of Manchester including the city’s central area,” he adds.
A rising stock of housing is anticipated to bring balance to the property market, which will ease the shortage of housing that has caused a rapid rise in UK property prices since the outbreak. Based on figures from Zoopla, One Global notes that the stock of housing has increased by 40% over the last year.
For the exchange rate, One Global highlights that the pound sterling has remained below the levels that were seen last year, which is an advantage for investors from Asia. Furthermore, real mortgage rates are predicted to drop to below five% by 2023. This is further delaying the peak of 6% that were recorded last year, following the release of the UK’s budget in September 2022, which created markets to teeter.
McGeever notes how buyers from Asia are purchasing homes in many different places. For instance, buyers from Hong Kong, which cover an array of buyers from experienced owners to investors buying homes in London and regional regions like Manchester or Birmingham. However, buyers from Singapore as well as Malaysia are also keen on London.
“What is the common thread that binds these investors is that they’re buying in one of these four motives: to provide an opportunity where their kids can reside during their studies, as the preservation of their wealth, to diversify their investments or to move and require a place to call their own,” McGreever says.
One Global, which is an agency that promotes several UK developments, reveals that the projects that are most sought-after by buyers are the London’s Graphite Square as well as Fulton & Fifth, located in Vauxhall and Wembley in Wembley and Vauxhall, respectively. Prices for these developments start at GBP 735 000 ($1.12 million) and GBP440,000. In addition, One Victoria, a project located in Manchester’s Victoria district, has been a hot topic with apartments starting at GBP199,000.