Fabulous Fulham Going from strength to strength

Fabulous Fulham — The housing market in the prime ‘golden postcodes’ of Knightsbridge, Mayfair, Kensington and Chelsea have remained resilient to the recent recession. However, these haven’t been the only winners; Fulham has consistently outperformed the wider market. With average house price growth of 43% over the last five years, Fulham is doing fantastically.

The underlying investment dynamics of the period properties, set in winding tree-lined Fulham property market are compelling. rows, all of which helps create an attractive Despite dramatic capital appreciation, the village-like environment. market has a low risk profile, with very little volatility over the long term. It is a mature CBRE recently conducted a survey of housing market, with enduring popularity Fulham residents. It revealed that 75% of among cash buyers with deep pockets, respondents were drawn to the area making it relatively resilient to wider because of the pubs, bars and restaurants. economic shocks. Its rapidly expanding The community element was also cited private rented sector also reinforces its as a major draw, with most residents investor appeal and demand at choosing to stay in the area in order to be many levels. close to friends.

Fulham is still more affordable than Fulham defiantly bucks the traditional trend neighbouring Chelsea, but provides similar of residents migrating out of the city into local amenities and lifestyle. As a result a more suburban areas when they reach a bottle-neck of demand for prime property is certain life point. Fulhamites want to stay now being squeezed down the Kings Road Fulhamites for as long as possible. towards Fulham.

Alongside its sound investment credentials, this area has a strong reputation as one of the most sought-after places to live in the capital. It is proving relentlessly popular among both families and young professionals.

Located just north of the river Thames in south west London, Fulham boasts extensive river frontage and offers a generous amount of open green space. Its housing stock is dominated by traditional Fulham’s housing market goes from strength to strength — London’s housing market has been notably resilient to the recessionary conditions of the last five years.

Certain areas within London have Despite high capital values, and ongoing 25% of households in the performed particularly well, and it’s not just growth, the Fulham market has a the traditional prime pockets in remarkably low risk profile. This is a mature Parsons Green ward are Knightsbridge, Kensington and Chelsea. housing market with considerable depth owned outright; this Fulham has consistently performed better and breadth in demand, particularly from than the wider market over the last five cash rich buyers, which has offered it equates to over £9bn of years. It is one of the few areas outside of additional insulation from wider economic cash in an extremely Prime Central London where new-build shocks over the last five years. property has broken through the £1,000psf concentrated area. price barrier.

Despite its recent price rises, Fulham is still An apartment with a river more affordable than neighbouring Chelsea and as such, is seeing a considerable influx view can command a 10–15% of new buyers from the surrounding areas. price premium.

1. Uplift in house price growth 2. Average current house prices 3. Fulham market risk profile over the last five years

40 14 Prime Central London 35 43 30 12 £575,070 25 Fulham 26 20 £485,200 10 24

15 REWARD Greater London £393,730 PERCENTAGE 10 8

£245,600 England & Wales 5 0 6 Fulham Hammersmith Greater Fulham Hammersmith Greater England 2 4 6 8 10 12 14 16 18 & Fulham London & Fulham London & Wales RISK

— SOURCE: LAND REGISTRY — SOURCE: LAND REGISTRY, Q1 2013

New build snapped up super quick… — The unrelenting appetite for property is evident by the absorption rate of new build apartments. Across London, this is now at all-time high; 60% of units currently under construction have already sold. This beats the long-term average of 44%, by a considerable margin.

In the London Borough of Hammersmith In terms of large schemes (over 20 units), and Fulham, take-up rates are even more there are only three currently on the market pronounced; there are ten schemes in Fulham; the last phase of Imperial Wharf currently underway, totalling 843 units. Of still has a handful of penthouses, as does these, 570 — or 68% — have already sold. Fulham Reach, which sold the rest of the Furthermore, two schemes have completed units in under a year. This leaves Fulham in the borough over the last twelve months, Riverside, which is due to launch formally delivering a total of 123 new units to the in September. local market.

Fulham’s reputation as a sought-after place to live strengthens year-on-year; this is reflected in its rapidly increasing private rented sector. According to the most recent Census, nearly a third of all residents in Hammersmith and Fulham rent, compared with 25% across Greater London. This adds to the market’s investment credentials. Who lives in Fulham? — Fulham is a stand-out favourite with both young professionals and family buyers, with a long-standing reputation as one of the most sought after residential locations in the capital.

Hammersmith and Fulham had the second highest growth in working age population across London.

The area also has a pronounced But it is not just the youngsters; once in 1. Increase over last decade international appeal, particularly among the Fulham, many wish to stay. This bucks the French, because of the Lycée school in the typical trend of families migrating out of area. Local agents are also seeing an influx town. We are told that much of the market 16 of Asian and US buyers, generally to house churn is borne out of a desire for existing 14 17 children who are hoping to come to London Fulhamites to remain in the area, but 12 to study. in accommodation more suitable to their 10

changing needs. There is also a big trend 8 10 However, the most dominant driver of for residents to extend current 6 housing demand in Fulham is from Brits. accommodation to match their PERCENTAGE 4 And this is true across all demographics: changing needs. Although the council are 2 from young professionals in their early keen to restrict development and protect 0 twenties, to those that are retired and just the atmosphere of the area, they are Population Households looking to downsize. It is also a family supportive of residents extending their friendly environment. homes, either via rear or side extensions, or basement and roof conversions. We have found that the most prevalent 2. Increase in working age population purchasers are first time buyers, despite the expensive entry point for housing. They 40 are generally backed by the most 71 recession-proof bank of all, the Bank of 35 30 Mum and Dad. The affluent population equates to cash rich buyers who have kept 25 20 64 the local market buoyant. 60 15 PERCENTAGE Indeed, Fulham is home to one of the 10 country’s most affluent populations, who 5 0 data company Experian officially classify as Hammersmith Greater England ‘Global Power Brokers’, ‘Urban Cool’ and & Fulham London & Wales ‘Bright Young Things’. Unofficially, these are the young trustafarians, the euro-elite and the yummy mummies. — SOURCE: Census

Why do people live in Fulham? — Fulham’s housing stock is dominated by traditional period properties. Victorian terraces offer highly desirable homes with all the original architectural features. These are nestled firmly within protected conservation areas, so the attractive street scene.

CBRE recently conducted a survey of This is in addition to a wide range of 50% of people live in Fulham young professionals in Fulham. It showed high-end shops, which meet the increasing that 75% of respondents were drawn to demands of the affluent residents. Fulham to be near the river. Fulham for the abundance of bars and Broadway is eagerly awaiting the opening restaurants in the area, for every palette of a Whole Foods Market. Just one of a few and every budget. Places to be seen London locations with this honour. include Parsons Nose Butchers on the Fulham Road, Elizabeth King on the New And the buzz is spreading through Fulham Kings Road, The Brown Cow, Amuse itself; the vibrant Wandsworth Bridge Road Bouche, The White House and of course, that abuts Parsons Green to the west is an the Michelin starred Harwood Arms. area that has rejuvenated itself from a street of furniture shops ten years ago, to a There is an also an array of coffee shops bustling hub of neighbourhood classics like — both independent and chain — that spill Joe’s Brasserie, Il Pagliaccio and Greedy out onto the pavements creating a relaxed, Buddah, which have now been continental buzz. complemented by relative newcomers such as Boma and Thaiphoon. 1. Reason for living in Fulham

60

40

20 PERCENTAGE (%) OF RESPONDENTS OF (%) PERCENTAGE

0 Closer to Low Area By the Green Young professional Closer relatives crime reputation river space /family area to friends

Did you know? Fulham has Another major draw is the abundance of Fulham remains a open green space, which doesn’t include 137 acres of parkland. those in the exclusive private members perennial favourite place to clubs, such as The Hurlingham. There are a live among Londoners. number of pockets of tranquillity, known only to locals, such as the hidden away This ongoing demand for South Park, complete with tennis courts and a spot of cricket on Saturdays, housing has supported price with an apparently legendary up-market growth. We expect this food van at weekends. demand to continue, with an The sense of community and the desire to additional 3,000 households live close to friends scored particularly highly in our survey. Also important was the over the next decade. we sense that ‘there is always something going expect house prices in Prime on’. There is the Fair on the Green every year and a weekly farmers market at Central London to increase Parson’s Green. by around 7% per annum

Another major pull is the quality of the local over the next few years with schools. There are eight primary schools in growth in fulham at least the area, four of which are deemed ‘outstanding’ by Ofsted and two that are matching that. heavily subscribed private schools. There are eighteen junior schools, almost half of which are private, and two are the renowned French schools, which have helped stir up an ever-growing mini-French community.

Jennet Siebrits Helen Gray Mark Collins Lisa Hollands

Head of Residential Research Residential Research Chairman London Managing Director Senior Director Associate Director Residential Executive Director Residential Executive Director

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