Affordable Home Ownership Conference And ...
Affordable Home Ownership Conference and Exhibition B3: Managing the risk of open market sale Speakers:
Peter Sloane Director, Housing and Public Sector Savills Tim Willcocks Group Head of Home Ownership Radian
Chair:
Amy MacKay Head of Sales and Marketing Aster Group
Managing the risk of open market sale Moving from command to demand focused development
savills.com
Where are we now? Development attitude Site analysis Project development Sales and marketing
And the possible future
Where are we now? Stuffed! ..Nowhere near enough new homes being built - Google it! Massive squeeze on bank funding for property development – they’re still overexposed
HCA / DCLG move towards less social rented, more intermediate / affordable rent Wonderful opportunities for RPs Changing world where difference between affordable and private sector is blurring
Residential Investment – Build to Let – what else?
What’s going on – Not much, only London sh UK
London
All Prime London
Prime Central London
15%
Quarterly price growth
10%
5%
0%
-5%
Source: Nationwide and Savills
Q1 2012
Q3 2011
Q1 2011
Q3 2010
Q1 2010
Q3 2009
Q1 2009
Q3 2008
Q1 2008
Q3 2007
Q1 2007
Q3 2006
Q1 2006
Q3 2005
-10%
Development attitude Attitude change needed from command to demand led development The affordable housing industry has fundamentally been driven by need & funded by grant with an internally focused process. Development has been on a command basis where costs, quality and programme are heavily driven by statute Private development is demand led & margins are only made where aspirations are exceeded. A positive results driven environment is essential. ‘Managing the risk of open market sale’ Tony Pidgley, Harry Handlesman ... Would say ‘what a fantastic opportunity?
Have absolute belief in your ability to improve an environment and build something to be proud of. Integrate Development & Sales teams
Knowing what’s built and where Future supply – in planning, unlaunched
Committed residential supply
Source: Molior, Land Registry
7
Area demographics AFFLUENCE NW2 2 is an area of relatively lower affluence with only 39.3% of households classified as high or mid high, compared to approximately 50% in NW2, Brent, Camden and London, and 64.2% in Barnet. 32.9% of households are classified as low or midlow in NW2 2, compared to only 18.0% in NW2 and 26% in London as a whole.
High
Mid-high
Middle
Low-mid
Low
100%
80%
60%
40%
20%
Young No Children
Families
Empty Nesters
Retired Seniors
0% NW2 2
NW2
Camden
Barnet
Brent
London
100% 80%
60%
40%
20% 0% NW2 2
Source: Personicx
NW2
Camden
Barnet
Brent
London
HOUSEHOLD TYPE The balance of household types in NW2 2 is in line with the Barnet and London averages. NW2, Camden and Brent generally have higher proportions of Young No Children than NW2 2. In line with London, there is a greater proportion of Families and Empty Nesters in NW2 2 (49.1%) than in NW2 or the boroughs shown.
Detail, detail, detail Most notably on higher floors balconies would be better placed facing west, where they benefit from increased sunlight.
Where possible a clear distinction between living areas is preferred and sought after. Kitchens protruding into living areas reduces the ability to utilise space for different needs. Hallway storage for all unit types is essential. This should also include plumbing provisions for a washing machine. For units with two bedrooms or more, en-suites to the master bedroom are essential. Without they are less sought after, less suited to current market demands and uncompetitive with nearby schemes.
Micro
Macro
•
Design
• Leisure facilities
•
Specification
• Management
•
Architectural style – external/internal
• Security
•
Mix of units
•
Size of units
•
Pricing
•
Rate of sale
•
Competition
•
Market conditions
•
Technology
savills
• Unique selling features • Target market • Timing of sale • Car parking
• Landscaping • General adding value • Lettings
Sample of tenure mix interrogation needed to maximise income in a substantial regeneration BLOCK
STOREYS
TENURE
1B-2P
2B 3P
2B-3P WCH
2B-4P
2B-4P WCH
3B-5P
3B-5P MAIS
4B-6P House
TOTAL UNITS
TOTAL AREA SQM
TOTAL AREA SQ FT
BLOCK GDV
Av. £ / SF
10 storey
OUT. SALE SHAR. OWN SOC. RENT
42 0 0
10 0 0
0 0 0
10 0 0
0 0 0
0
BLOCK-A
0 0 0
0 0 0
62 0 0
3,238.2 0.0 0.0
34,843 0 0
£0
770.02
0
8 storey
OUT. SALE SHAR. OWN SOC. RENT
5 1 0
12 0 0
1 0 0
0 0 0
0 0 0
8 0 0
0 0 0
0 0 0
26 0 0
1,704.1 0.0 0.0
18,336 0 0
£0
722.89
BLOCK-C
6 storey
OUT. SALE SHAR. OWN. SOC. RENT
6 0 0
0 0 0
1 0 0
0 0 0
0 0 0
10 0 0
0 0 0
0 0 0
17 0 0
1,255.0 0.0 0.0
13,504 0 0
£0
699.81
BLOCK-D
8 storey
OUT. SALE SHAR. OWN SOC. RENT
0 7 1
0 8 0
0 0 0
0 6 3
0 6 4
0 0 0
0 0 5
0 0 0
0 27 13
0.0 686.4 2,140.6
0 7,386 23,033
£0
692.50
BLOCK-E
6 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 10
0 0 20
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 30
0.0 0.0 1,716.0
0 0 18,464
£0
709.48
BLOCK-F
5 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 4
0 0 0
0 0 0
0 0 12
0 0 0
0 0 0
0 0 0
0 0 4
0 0 20
0.0 0.0 1,565.4
0 0 16,843
£0
668.52
5 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 4
0 0 0
0 0 0
0 0 6
0 0 6
0 0 0
0 0 0
0 0 4
0 0 20
0.0 0.0 1,607.6
0 0 17,298
£0
663.09
OUT. SALE 1/5/6 storey SHAR. OWN SOC. RENT
15 0 0
0 0 0
0 8 0
0 0 0
0 0 0
15 0 0
0 0 0
0 0 0
30 8 0
2,019.0 569.0 0.0
21,724 6,123 0
£0
733.28
BLOCK-B
BLOCK-G
BLOCK-H
BLOCK-I
4 storey
OUT. SALE SHAR. OWN SOC. RENT
4 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
4 0 0
203.5 0.0 0.0
2,190 0 0
£0
776.30
BLOCK-J
3 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 8
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 8
0.0 0.0 428.8
0 0 4,614
0£
715.17
107
50
10
37
16
33
5
8
265
17,133.7
184,359
£000000
715.18
% MIX BY UNITS
40.4%
18.9%
3.8%
14.0%
6.0%
12.5%
1.9%
3.0%
% MIX BY BEDS
40.4%
TENURE SUMMARY No. UNITS
OUT. SALE
42.6%
SHAR. OWN
SOC. RENT
14.3%
3.0%
Unit Type
1B2p F
2B 3p F
2B4p F
3B5p
4B-6P House
139
35
91
% BY UNIT NO.
52.45%
13.21%
34.34%
Area (sqm)
5,146
3,759
3,908
3,349
970
% BY RESI AREA (sq ft)
49.14%
7.33%
43.53%
Average Unit Size (sqm)
48
65
72
85
120
11
With the reduction of Block A to 10 storeys there is potential to regain units by reducing the current average unit size. Increase the proportion of 1 bed units We have suggest the following should block a be reduced.: - Increasing unit allocation for Block A from 5 to 6 per floor. - Incorporating Blocks A, B and C as Outright Sale. -Block I designed for one beds units. - Unit size reduction in Blocks D and H to accommodate additional units. - Retail in Block D converted to residential. This produces a scheme a GDV of £000,000,000 assuming all units Outright Sale.
Branding, marketing, advertising An appropriate budget and measured spend Strong and relevant brand Doesn’t always mean the development needs an identity Make sure your own brand can carry a development
You can’t hide behind a private brand
An appropriate and targeted marketing budget PREDICTIVE GDV
£ 24,280,000
Assumptions: 1.
Overseas exhibitions based on current rates as of May 2011 and subject to change.
2.
Based on an estimated sales rate of 1 sales per week.
Creative / Brand Identity / CGI's
Total Budget £ 54,000
Signage
On site and local
24,000
0.10%
3.
All prices quoted are estimates.
Hoarding
On site hoarding incorporating creative
10,000
0.04%
4.
Posters Develop Website
On and off (train station etc) site posters Dedicated sales website.
20,000
0.08%
Site and construction to be reviewed to incorporate hoarding strategy.
15,000
0.06%
5.
Pre-launch costs & Brochure
Brochures, models, fythroughs, displays.
40,000
0.16%
Employer requirements have not been taken into account.
Interior design agency
60,000
0.25%
6.
To ensure cost efficiency on-site negotiation tools have not been seen as required for Phase 1. Further analysis will be required for Phase 2 prior to launch.
7.
An additional 2% will be needed for sales agency & legal costs
Description Design Agency
Show Unit x 2 Media Ads/Advertorial PR Events E-campaigns/PPC (pay per click)
Comment
% of GDV 0.22%
Local and National Press
125,000
0.51%
Press events, agent events, investor events
15,000
0.06%
Digital advertising
15,000
0.06%
Landscaping & Maintenance
Gardening, cleaning, security
25,000
0.10%
Incentives
Furniture packs, solicitor fees
75,000
0.31%
478,000
1.97%
120,000
0.49%
598,000
2.46%
UK Marketing Total Overseas Exhibitions x 2 TOTAL
Singapore, Hong Kong, Kuala Lumpur etc
Above is our suggestion for a marketing budget to ensure the success. Given the two phases of the development we would advise that advertising is proportioned over the entire course of the development until the final completion of sale. Due to the timescales a show flat must be established in both Phase 1 & 2. All design, hoarding and pre launch material must be completed prior to the launch of Phase 1 and retained for Phase 2. Incentives must be adopted only if deemed necessary to aid sales rates.
Advertising Evolution of an advertising campaign Be clear of purpose Powerful of presentation And...
savills
advertising Minimal word Powerful image Simple English
Clear instructions Visually interesting
savills
Marketing collateral The developer must have every aspect of the marketing process ready 6 months before any launch, including: • • • • • • • • • •
Branding and Design Accommodation schedules Specification – both internal and external Web sites Hoardings Brochures Legal titles Service charges allocations Management structure Incentives
16
measured release of marketing funds Off Plan Launch The development should be launched off plan, to generate some pre-sales from buyers willing to commit early, with some selective local advertising.
Overseas sales if required
Pre Launch
Show Homes Launch
Prior to full details, brochures and prices being released, the development to be announced as coming soon on the internet, in order to solicit early enquiries. A development board could also be erected at the same time to ‘name gather’. A target of 800 applicants prior to launch should be set
Jan
Feb
Mar
Apr
Stock Plot Launch If any units are still unsold at point of physical completion, then specific sales particulars will focus on each type of individual units.
A full launch would then be scheduled to coincide with the launch of the show flat, with increased advertising and scheduled open weekends.
May
Jun
Jul
2014
17
Aug
Sep
Oct
Nov
Dec
Where are the buyers coming from - everywhere! UK
China & Pacific Asia
Eastern Europe and The CIS
North Africa and the Middle East
Western Europe including Nordic Countries
Africa
South Asian sub-continent
North America
Latin America 100%
Japanese Yen
90% 80%
Chinese Yuan China & Pacific Asia, 4%
Singapore Dollar
China & Pacific Asia, 37%
70%
Taiwan Dollar
60% China & Pacific Asia, 33%
50% 40%
Malaysian Ringgit Thai Bhat
UK, 76%
Hong Kong Dollar
30% UK, 52% 20%
US Dollar UK, 37%
UK Pound Sterling
10%
-50% -40% -30% -20% -10% 0%
0% 2009
2010
10% 20%
2011
Prime Central London - currency adjusted distance from peak
Source: Savills Research
18
On the lower floors terraces will be overlooking York Way, where noise levels would be higher, therefore reducing saleability. Where possible terraces are better suited facing South where light id further improved.
Data monitoring and rinsing There is a simple and effective conversion rate against key
contact areas of the database. Ratios fluctuate with market sentiment and must be monitored. Now it’s..
1/10 site visit from database 5/1 viewings to sale 1/7 fall through
Totality
E-campaigner
What’s emerging? Build to Let Residential Investment Funds New builders
The market’s not what it used to be....
Transactional activity is likely to remain subdued for many years and new developments difficult to fund
This is the big one Home ownership 70% (2004) to 55% (2020) Private rented
10% (2003) to 26% (2020) For the first time in many years, home ownership falls and private rental tenure increases as a % of occupation
You couldn’t make it up! If even four years ago someone in the pub said guess what housing will look like .....!!
Retailers are among the most aggressive entrants in residential development. They work quickly & simply with absolute conviction in their focus to succeed savills
Managing the risk of open market sale Tim Willcocks Group Head of Home Ownership Radian
• • • • • • • •
Who are Radian Background Why explore market sale Challenges and opportunities How to approach it How we are doing it Results Challenges and opportunities
Questions [email protected] 07500 221411
Peter Sloane Director, Housing and Public Sector Savills Tim Willcocks Group Head of Home Ownership Radian
Chair:
Amy MacKay Head of Sales and Marketing Aster Group
Managing the risk of open market sale Moving from command to demand focused development
savills.com
Where are we now? Development attitude Site analysis Project development Sales and marketing
And the possible future
Where are we now? Stuffed! ..Nowhere near enough new homes being built - Google it! Massive squeeze on bank funding for property development – they’re still overexposed
HCA / DCLG move towards less social rented, more intermediate / affordable rent Wonderful opportunities for RPs Changing world where difference between affordable and private sector is blurring
Residential Investment – Build to Let – what else?
What’s going on – Not much, only London sh UK
London
All Prime London
Prime Central London
15%
Quarterly price growth
10%
5%
0%
-5%
Source: Nationwide and Savills
Q1 2012
Q3 2011
Q1 2011
Q3 2010
Q1 2010
Q3 2009
Q1 2009
Q3 2008
Q1 2008
Q3 2007
Q1 2007
Q3 2006
Q1 2006
Q3 2005
-10%
Development attitude Attitude change needed from command to demand led development The affordable housing industry has fundamentally been driven by need & funded by grant with an internally focused process. Development has been on a command basis where costs, quality and programme are heavily driven by statute Private development is demand led & margins are only made where aspirations are exceeded. A positive results driven environment is essential. ‘Managing the risk of open market sale’ Tony Pidgley, Harry Handlesman ... Would say ‘what a fantastic opportunity?
Have absolute belief in your ability to improve an environment and build something to be proud of. Integrate Development & Sales teams
Knowing what’s built and where Future supply – in planning, unlaunched
Committed residential supply
Source: Molior, Land Registry
7
Area demographics AFFLUENCE NW2 2 is an area of relatively lower affluence with only 39.3% of households classified as high or mid high, compared to approximately 50% in NW2, Brent, Camden and London, and 64.2% in Barnet. 32.9% of households are classified as low or midlow in NW2 2, compared to only 18.0% in NW2 and 26% in London as a whole.
High
Mid-high
Middle
Low-mid
Low
100%
80%
60%
40%
20%
Young No Children
Families
Empty Nesters
Retired Seniors
0% NW2 2
NW2
Camden
Barnet
Brent
London
100% 80%
60%
40%
20% 0% NW2 2
Source: Personicx
NW2
Camden
Barnet
Brent
London
HOUSEHOLD TYPE The balance of household types in NW2 2 is in line with the Barnet and London averages. NW2, Camden and Brent generally have higher proportions of Young No Children than NW2 2. In line with London, there is a greater proportion of Families and Empty Nesters in NW2 2 (49.1%) than in NW2 or the boroughs shown.
Detail, detail, detail Most notably on higher floors balconies would be better placed facing west, where they benefit from increased sunlight.
Where possible a clear distinction between living areas is preferred and sought after. Kitchens protruding into living areas reduces the ability to utilise space for different needs. Hallway storage for all unit types is essential. This should also include plumbing provisions for a washing machine. For units with two bedrooms or more, en-suites to the master bedroom are essential. Without they are less sought after, less suited to current market demands and uncompetitive with nearby schemes.
Micro
Macro
•
Design
• Leisure facilities
•
Specification
• Management
•
Architectural style – external/internal
• Security
•
Mix of units
•
Size of units
•
Pricing
•
Rate of sale
•
Competition
•
Market conditions
•
Technology
savills
• Unique selling features • Target market • Timing of sale • Car parking
• Landscaping • General adding value • Lettings
Sample of tenure mix interrogation needed to maximise income in a substantial regeneration BLOCK
STOREYS
TENURE
1B-2P
2B 3P
2B-3P WCH
2B-4P
2B-4P WCH
3B-5P
3B-5P MAIS
4B-6P House
TOTAL UNITS
TOTAL AREA SQM
TOTAL AREA SQ FT
BLOCK GDV
Av. £ / SF
10 storey
OUT. SALE SHAR. OWN SOC. RENT
42 0 0
10 0 0
0 0 0
10 0 0
0 0 0
0
BLOCK-A
0 0 0
0 0 0
62 0 0
3,238.2 0.0 0.0
34,843 0 0
£0
770.02
0
8 storey
OUT. SALE SHAR. OWN SOC. RENT
5 1 0
12 0 0
1 0 0
0 0 0
0 0 0
8 0 0
0 0 0
0 0 0
26 0 0
1,704.1 0.0 0.0
18,336 0 0
£0
722.89
BLOCK-C
6 storey
OUT. SALE SHAR. OWN. SOC. RENT
6 0 0
0 0 0
1 0 0
0 0 0
0 0 0
10 0 0
0 0 0
0 0 0
17 0 0
1,255.0 0.0 0.0
13,504 0 0
£0
699.81
BLOCK-D
8 storey
OUT. SALE SHAR. OWN SOC. RENT
0 7 1
0 8 0
0 0 0
0 6 3
0 6 4
0 0 0
0 0 5
0 0 0
0 27 13
0.0 686.4 2,140.6
0 7,386 23,033
£0
692.50
BLOCK-E
6 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 10
0 0 20
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 30
0.0 0.0 1,716.0
0 0 18,464
£0
709.48
BLOCK-F
5 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 4
0 0 0
0 0 0
0 0 12
0 0 0
0 0 0
0 0 0
0 0 4
0 0 20
0.0 0.0 1,565.4
0 0 16,843
£0
668.52
5 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 4
0 0 0
0 0 0
0 0 6
0 0 6
0 0 0
0 0 0
0 0 4
0 0 20
0.0 0.0 1,607.6
0 0 17,298
£0
663.09
OUT. SALE 1/5/6 storey SHAR. OWN SOC. RENT
15 0 0
0 0 0
0 8 0
0 0 0
0 0 0
15 0 0
0 0 0
0 0 0
30 8 0
2,019.0 569.0 0.0
21,724 6,123 0
£0
733.28
BLOCK-B
BLOCK-G
BLOCK-H
BLOCK-I
4 storey
OUT. SALE SHAR. OWN SOC. RENT
4 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
4 0 0
203.5 0.0 0.0
2,190 0 0
£0
776.30
BLOCK-J
3 storey
OUT. SALE SHAR. OWN SOC. RENT
0 0 8
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 8
0.0 0.0 428.8
0 0 4,614
0£
715.17
107
50
10
37
16
33
5
8
265
17,133.7
184,359
£000000
715.18
% MIX BY UNITS
40.4%
18.9%
3.8%
14.0%
6.0%
12.5%
1.9%
3.0%
% MIX BY BEDS
40.4%
TENURE SUMMARY No. UNITS
OUT. SALE
42.6%
SHAR. OWN
SOC. RENT
14.3%
3.0%
Unit Type
1B2p F
2B 3p F
2B4p F
3B5p
4B-6P House
139
35
91
% BY UNIT NO.
52.45%
13.21%
34.34%
Area (sqm)
5,146
3,759
3,908
3,349
970
% BY RESI AREA (sq ft)
49.14%
7.33%
43.53%
Average Unit Size (sqm)
48
65
72
85
120
11
With the reduction of Block A to 10 storeys there is potential to regain units by reducing the current average unit size. Increase the proportion of 1 bed units We have suggest the following should block a be reduced.: - Increasing unit allocation for Block A from 5 to 6 per floor. - Incorporating Blocks A, B and C as Outright Sale. -Block I designed for one beds units. - Unit size reduction in Blocks D and H to accommodate additional units. - Retail in Block D converted to residential. This produces a scheme a GDV of £000,000,000 assuming all units Outright Sale.
Branding, marketing, advertising An appropriate budget and measured spend Strong and relevant brand Doesn’t always mean the development needs an identity Make sure your own brand can carry a development
You can’t hide behind a private brand
An appropriate and targeted marketing budget PREDICTIVE GDV
£ 24,280,000
Assumptions: 1.
Overseas exhibitions based on current rates as of May 2011 and subject to change.
2.
Based on an estimated sales rate of 1 sales per week.
Creative / Brand Identity / CGI's
Total Budget £ 54,000
Signage
On site and local
24,000
0.10%
3.
All prices quoted are estimates.
Hoarding
On site hoarding incorporating creative
10,000
0.04%
4.
Posters Develop Website
On and off (train station etc) site posters Dedicated sales website.
20,000
0.08%
Site and construction to be reviewed to incorporate hoarding strategy.
15,000
0.06%
5.
Pre-launch costs & Brochure
Brochures, models, fythroughs, displays.
40,000
0.16%
Employer requirements have not been taken into account.
Interior design agency
60,000
0.25%
6.
To ensure cost efficiency on-site negotiation tools have not been seen as required for Phase 1. Further analysis will be required for Phase 2 prior to launch.
7.
An additional 2% will be needed for sales agency & legal costs
Description Design Agency
Show Unit x 2 Media Ads/Advertorial PR Events E-campaigns/PPC (pay per click)
Comment
% of GDV 0.22%
Local and National Press
125,000
0.51%
Press events, agent events, investor events
15,000
0.06%
Digital advertising
15,000
0.06%
Landscaping & Maintenance
Gardening, cleaning, security
25,000
0.10%
Incentives
Furniture packs, solicitor fees
75,000
0.31%
478,000
1.97%
120,000
0.49%
598,000
2.46%
UK Marketing Total Overseas Exhibitions x 2 TOTAL
Singapore, Hong Kong, Kuala Lumpur etc
Above is our suggestion for a marketing budget to ensure the success. Given the two phases of the development we would advise that advertising is proportioned over the entire course of the development until the final completion of sale. Due to the timescales a show flat must be established in both Phase 1 & 2. All design, hoarding and pre launch material must be completed prior to the launch of Phase 1 and retained for Phase 2. Incentives must be adopted only if deemed necessary to aid sales rates.
Advertising Evolution of an advertising campaign Be clear of purpose Powerful of presentation And...
savills
advertising Minimal word Powerful image Simple English
Clear instructions Visually interesting
savills
Marketing collateral The developer must have every aspect of the marketing process ready 6 months before any launch, including: • • • • • • • • • •
Branding and Design Accommodation schedules Specification – both internal and external Web sites Hoardings Brochures Legal titles Service charges allocations Management structure Incentives
16
measured release of marketing funds Off Plan Launch The development should be launched off plan, to generate some pre-sales from buyers willing to commit early, with some selective local advertising.
Overseas sales if required
Pre Launch
Show Homes Launch
Prior to full details, brochures and prices being released, the development to be announced as coming soon on the internet, in order to solicit early enquiries. A development board could also be erected at the same time to ‘name gather’. A target of 800 applicants prior to launch should be set
Jan
Feb
Mar
Apr
Stock Plot Launch If any units are still unsold at point of physical completion, then specific sales particulars will focus on each type of individual units.
A full launch would then be scheduled to coincide with the launch of the show flat, with increased advertising and scheduled open weekends.
May
Jun
Jul
2014
17
Aug
Sep
Oct
Nov
Dec
Where are the buyers coming from - everywhere! UK
China & Pacific Asia
Eastern Europe and The CIS
North Africa and the Middle East
Western Europe including Nordic Countries
Africa
South Asian sub-continent
North America
Latin America 100%
Japanese Yen
90% 80%
Chinese Yuan China & Pacific Asia, 4%
Singapore Dollar
China & Pacific Asia, 37%
70%
Taiwan Dollar
60% China & Pacific Asia, 33%
50% 40%
Malaysian Ringgit Thai Bhat
UK, 76%
Hong Kong Dollar
30% UK, 52% 20%
US Dollar UK, 37%
UK Pound Sterling
10%
-50% -40% -30% -20% -10% 0%
0% 2009
2010
10% 20%
2011
Prime Central London - currency adjusted distance from peak
Source: Savills Research
18
On the lower floors terraces will be overlooking York Way, where noise levels would be higher, therefore reducing saleability. Where possible terraces are better suited facing South where light id further improved.
Data monitoring and rinsing There is a simple and effective conversion rate against key
contact areas of the database. Ratios fluctuate with market sentiment and must be monitored. Now it’s..
1/10 site visit from database 5/1 viewings to sale 1/7 fall through
Totality
E-campaigner
What’s emerging? Build to Let Residential Investment Funds New builders
The market’s not what it used to be....
Transactional activity is likely to remain subdued for many years and new developments difficult to fund
This is the big one Home ownership 70% (2004) to 55% (2020) Private rented
10% (2003) to 26% (2020) For the first time in many years, home ownership falls and private rental tenure increases as a % of occupation
You couldn’t make it up! If even four years ago someone in the pub said guess what housing will look like .....!!
Retailers are among the most aggressive entrants in residential development. They work quickly & simply with absolute conviction in their focus to succeed savills
Managing the risk of open market sale Tim Willcocks Group Head of Home Ownership Radian
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Who are Radian Background Why explore market sale Challenges and opportunities How to approach it How we are doing it Results Challenges and opportunities
Questions [email protected] 07500 221411
