Malaysian property owners in London await 2012 Olympics ‘windfall’

[richard]

With the London 2012 Olympics just a couple of months away, Malaysians who have bought London properties are mulling over the possibility of short-term leases to make the most of the season when rentals are expected to be three to four times the normal rate, according to Henry Butcher Real Estate (Damansara) Sdn Bhd.

Director Jazmine Goh said while there were not many of them, some of her clients had brought this matter up as they viewed this as an opportunity.

“If their units have not yet been tenanted and if there are potential tenants seeking out short leases during that period, and there is that possibility of a match, they will be happy to take that opportunity,” she said.

Generally, the rental rate is about £200 to £250 per week ordinarily for these units, which are located far out of the city. Central London prices will be a lot higher than £200 a week.

Among some of her projects that will be nearing completion include The MatchMakers Wharf in Stratford, located 1.5km from the Olympic Village, Pacific Court in Caspian Wharf, Bow, and New Festival Quarter, Bow Common Lane, Bow. These projects will be nearing completion.

Goh said the influx of international visitors would directly and indirectly impact rental. “It will be a bonus for three months around that time,” she said.

Henry Butcher has become one of the most aggressive agents to promote UK properties among Malaysians since 2009, generating between 20 and 30 sales over a weekend. She said 60% of them bought to rent while 40% bought for their own stay or for their children who were studying there.

London-based Benham and Reeves Residential Lettings managing director Anita Mehra said while leases during that period would be good, she said property owners should take a long-term view when it came to renting out their units.

“During the Wimbledon season, it is common for owners to move out of their homes in order to let out their properties for £10,000 for just two weeks. But I would suggest to take the longer-term view,” she said.

Mehra was in Kuala Lumpur as part of her Singapore-Dubai visit to encourage Malaysian owners to list with them. She said Benham and Reeves was one of London's largest independent property leasing agencies. Her visit is indicative of the growing presence of Malaysian property owners in the financial hub since 2009.

London will be hosting the Summer Olympics 2012 from July 27 to Aug 12.

The City of London has, for the last several years, prepared for this event and has undertaken massive urban regeneration infrastructure works in Stratford and surrounding townships to enhance the look and feel of this Zone 3 location.

It has improved connectivity by enhancing road and rail transport, upgraded housing and other amenities and added much retail and buzz into an otherwise lacklustre and dowdy location.

Probably the most important thing to come to the Stratford community and surrounding townships is the Stratford central transport terminal where bus and rail links provide local and regional connectivity. While the Stratford transport terminal will serve the community long after the Olympic Games are over, it is the brand new London Olympic Stadium in the former industrial land in Stratford, a Zone 3 township, that visitors and locals will be heading to during the Games.


Source
By THEAN LEE CHENG
http://thestar.com.my/