Kew A local market review - CBRE Residential UK
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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
something we anticipated and we welcome
has above average house prices 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
Private units under construction
50%
40,000
40%
30,000
30%
20,000
20%
10,000
10%
0 0
End 2007
2001–2006
average
End 2008
End 2009
End 2010
End 2011
End 2012
End 2013
End 2014
Q3 2015
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
Proportion of households
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%
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% 13%
10%
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, KewHouse prices and growth Average house price index
House price growth across Richmond-upon- 180
Thames has been extremely strong over the
Average house price index
past few years, with particular traction being 160
gained from 2012. Overall its pattern of
(Base = Jan 2007)
growth has echoed that of London, but with
140
averages consistently being higher than
the London average.
120
London overall experienced the strongest
growth of the post-recession period in 2014, 100
but this was even more pronounced in
Richmond-upon-Thames. Prices in the 80
2007 2008 2009 2010 2011 2012 2013 2014 2015
borough increased by 10% last year,
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
£1,000,000
an average of £814,225, 9% higher than the
borough average of £748,139 and 52% £900,000
Average apartment price
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
£400,000
On a local level, Kew is 16% more affordable
Richmond
Kew
Teddington
Twickenham
than Richmond, but more expensive than
both Teddington and 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
2,000mLocation
Kew is a picturesque and charming area in Average price increase over last year
10%
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
and most diverse collection of living plants,
together with beautiful Kew Palace. Serviced
by good transport links, the area is easily Average house price
£814,225
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
stadium by car.
Overall, Kew is a sought after residential Expected population growth to 2021
16%
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
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 PalaceContacts Jennet Siebrits Alex Greaves
Head of Residential Research Director
+44 20 7182 2066 +44 20 7182 2062
jennet.siebrits@cbre.com alex.greaves@cbre.com
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.You can also read
