The London property market has been challenging in the past few years, but is making a slow and steady recovery, with a new report suggesting that the cycle is heading back upwards.
According to a report by Winkworth estate agents, the market showed signs of improvement, with buying and selling of properties increasing in the first quarter.
The report suggested that the London property market was meeting new demand set by the result of Brexit, with growth in the number of domestic buyers and buying interest from China, Greece, Italy and Middle East.
It was also reported that the whole of England needed to build four million new houses until 2031, or 340,000 houses per year, to deal with a shortage of housing supply.
Seeing the opportunities that are available in the overall the United Kingdom (UK) housing market, property developers are gearing up to build more houses.
Malaysian listed property developer Eco World International Bhd (EWI) and Willmott Dixon Holdings Ltd, UK’s 42nd largest private company aim to deliver more than 10,000 new houses across London and the southeast of the UK.
They recently launched EcoWorld London, which will develop 12 sites in Greater London and the South East, with an estimated gross development value (GDV) of over £2.6 billion (RM13.9 billion).
The launch follows the recent completion of a significant joint-venture, whereby EWI acquired a 70 per cent stake in Be Living, the residential development arm of Willmott Dixon.
It signals a new era for housing and reflects confidence from EWI in the long-term potential of the UK economy.
Through EcoWorld London, EWI would expand from its high-end projects with the Ballymore Group into the mid-market, with houses for open market sale as well as build to rent, it said in a statement.
EcoWorld London chairman Sir Edward Lister said the new JV was very much needed by the city of London.
“The capital is facing a chronic housing shortage. The launch of EcoWorld London will play a significant part in alleviating this, ensuring the delivery of much needed new houses that are accessible to those on middle-income group.
“For many, London remains the de-facto capital of the globe, and it is imperative that together we provide enough housing to sustain its future. By combining the construction and middle-market expertise of Willmott Dixon with the vision and EWI’s best in class international development experience and operations, the new entity is well placed to serve the local market and the broader international audience that calls London home,” said Lister.
“London is the most important international market for the EcoWorld brand and we continue to firmly believe in the growth prospects of the residential property market here. Our substantial investment in EcoWorld London signifies our long-term commitment to build a strong and sustainable business in the UK,” said EWI executive vice-chairman Tan Sri Liew Kee Sin.
EWI currently has 4 ongoing projects in the UK, and two in Australia, with a total GDV of RM16 billion.
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