Monday property news update - 2 August
Industrial opportunities, pinnacle penthouses and insufficient housing
2 minutes to read
Penthouse premiums
New Knight Frank research this morning reveals the premiums buyers are willing to pay for penthouse apartments in new developments.
Knight Frank research across five global cities reveals penthouses are on average 129% larger than the average unit in the same development and can command a premium of 35% per square foot. Exclusivity, privacy and development configuration all contribute to price premiums.
“Buyers have sought out one-of-a-kind residences as a unique haven for them and their families, particularly within the last six months,” says Andrew Wachtfogel, Head of Research at Douglas Elliman in New York, where a penthouse commands an average premium of 40% per square foot compared to other units. “Plus, these homes frequently include a prized feature in any city – private outdoor space.”
The last mile
Last week we spoke about the ‘unsustainable’ residential property prices in Australia, this week we focus on the booming industrial development.
In the latest urban logistics report Katy Dean looks at the drivers behind increased rates of existing infill sites being re-purposed for last-mile use and discusses the opportunities for the industrial logistics sector.
From big sheds to small spaces, new industrial development on Australia's east coast is at its highest level since 2007. At the same time, as more businesses embrace the last mile as a key differentiator, there is an increased focus on urban locations as part of the logistics network.
As businesses expand their e-commerce capabilities, their warehouse and logistics requirements are growing and evolving, creating a huge opportunity for the industrial sector as a provider of real estate.
Closer to home our quarterly regional level commentary on occupier and investment market trends in the UK industrial and logistics sector was released at the end of last week - confirming continued robust demand - especially in key UK regional markets.
Modular moves
Housebuilder magazine reports that Places for People and the University of Cambridge have called upon the Government and the housebuilding industry to work together to help create more homes using modular construction.
The report – Deploying Modular Housing in the UK – sets out a vision for speeding up the wider adoption of modular construction in the UK to help reach new homes targets. The authors say housebuilding rates are “just half” of the 300,000 that are needed annually – “insufficient to meet accumulated need”.
Anna Ward reported last week on how supply chain issues and ongoing issues with securing land are further hindering housebuilders.
In other news…
World stocks eye six months of gains, NatWest to return £3bn to investors, German economy expansion below expectation, empty shop numbers rising, bumper profits and investor payouts, IAG narrowing of first half losses, driver shortage hits milk supply and UK undergoing disruptive climate change.