Kew A local market review Kew snapshot London overview

Kew is located in leafy In the post-recession recovery period Richmond upon Thames, to the London’s housing market has performed strongly, outperforming the wider UK market north-east of the borough. by a significant margin. Prices across the city Despite its almost rural location, are now 43% above their previous peak. it is around 30 minutes from Some of the strongest growth occurred in 2014 with annual growth peaking at 21% in Waterloo and served by good August. Towards the end of the year and transport links. Its popularity as moving into 2015, activity has slowed and a residential location means it growth started to cool. However, this is has above average house prices something we anticipated and we welcome an orderly slowdown. Fears of a London and experienced strong house house price bubble have subsided and the price growth over the last year. market is maintaining sustainable and robust growth, with 9% inflation in the year to September 2015.

Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,448 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years.

London’s new build market

70,000 80%

70% 60,000

60% 50,000

50%

40,000

40%

30,000

30% Private units under construction 20,000 20%

10,000 10%

0 0 average Q3 2015 End 2007 End 2008 End 2009 End 2010 End 2011 End 2012 End 2013 End 2014 2001–2006

Sold Unsold Proportion Sold (RHS) Demographics and demand Tenure profile for homes 100% Kew lies to the north-east of Richmond in However, despite this marked demand, only 90% the borough of Richmond-upon-Thames, 774 new homes have been built across the and with around 12,000 residents it borough since 2009 resulting in a significant 80% 62% 65% accommodates approximately 16% of shortfall of housing. As a result, and typical 70% its population. In 2011 this number stood of London overall, demand for homes is at 11,436, having increased by 1,991 hugely outweighing supply and this is 60% since 2001. fuelling price inflation. 50%

At borough level, the population of Across Richmond, 38% of units currently 40% Proportion of households Richmond-upon-Thames is currently being built have been sold off plan. 30% estimated at 199,632, having increased by 28% 22% 16% from 172,335 in 2001. This is expected 20% to grow to 216,613 by 2021, reflecting a 10% 10% 13% further increase of 9%. As a result of this growth, the number of households in Kew Richmond upon Richmond-upon-Thames increased by 5% Thames between 2001 and 2011 to 80,000, and this is Owner occupied expected to increase by a further 16% by Privately rented 2021, bringing the total number to 93,000. Socially rented This represents growth of approximately 1,300 households per year.

Emerald Gardens, Kew House prices and growth Average house price index

House price growth across Richmond-upon- 180 Thames has been extremely strong over the past few years, with particular traction being 160 gained from 2012. Overall its pattern of growth has echoed that of London, but with 140 averages consistently being higher than the London average. 120

London overall experienced the strongest (Base = Jan 2007) growth of the post-recession period in 2014, house price index Average 100 but this was even more pronounced in Richmond-upon-Thames. Prices in the 80 borough increased by 10% last year, 2007 2008 2009 2010 2011 2012 2013 2014 2015 compared with 4% across London. London Richmond Base

More specifically, properties within the district of Kew (TW9) tend to achieve higher asking prices than the wider borough. Kew affordability - flats The latest data shows units in TW9 sold for an average of £814,225, 9% higher than the £1,000,000 borough average of £748,139 and 52% £900,000 higher than the London average of £536,615. £800,000 Broken down further, apartments in Kew are achieving average prices of £501,530, 12% £700,000 more than the borough which averages at £600,000 £446,838 for a flat and 6% higher than London over all. £500,000 Average apartment price Average £400,000 On a local level, Kew is 16% more affordable than Richmond, but more expensive than Kew both Teddington and Twickenham. Richmond Teddington Twickenham

Property prices in the areas surrounding Kew

Below £150,000

£150,000 – £250,000

£250,000 – £350,000

£350,000 – £450,000

£450,000 – £550,000

£550,000 – £650,000

£650,000 – £750,000

£750,000 – £850,000

Above £850,000

Richmond upon Thames

Site

2,000m Location

Kew is a picturesque and charming area in Average price increase over last year the borough of Richmond upon Thames. It is home to attractions such as the Royal Botanic Gardens, where 326 acres, four of them under glass, contain the world’s largest 10% and most diverse collection of living plants, together with beautiful Kew Palace. Serviced by good transport links, the area is easily Average house price accessible to London with Charing Cross being only 32 minutes away by tube. In addition it is only 17 minutes from Heathrow airport and 14 minutes from Twickenham £814,225 stadium by car.

Overall, Kew is a sought after residential Expected population growth to 2021 area, popular with families and empty nesters wanting to downsize. It is inordinately ‘green’, with the fore-mentioned Botanic Gardens, Richmond Park, Syon Park and 16% Dukes Meadows Golf Club in close proximity. It boasts the feeling of a village, a plethora of restaurants and pubs, the aesthetics of the country and a complete absence of high rise buildings. In addition, the site is situated close to the river and offers good schools nearby. 5 year growth 2015 2016 2017 2018 2019 2015-19

UK 5% 3% 3% 4% 5% 22%

London 3% 3% 3% 5% 6% 31%

Westfield Kensington Palace

Latymer Prep School Chiswick House and Gardens Kew Palace Heathrow Airport Syon Park Kew London Wetland centre Kew Gardens

University of Twickenham Roehampton Richmond Park

Wimbledon

Hampton Court Palace Contacts Jennet Siebrits Alex Greaves Head of Residential Research Director +44 20 7182 2066 +44 20 7182 2062 [email protected] [email protected]

Sources CBRE, Molior, Rightmove, TFL

Disclaimer 2015 CBRE CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Images are computer generated. © 2015 CBRE Ltd.