London's Fitzroy Place popular with Thai property investors

What are the key factors that actually prompt Thai investors to buy London property?
Thai investors have been buying London property for a long time. The cycle really kicked off in the mid-’90s when some prime Kensington properties were introduced to the Thai market. And the market in Thai buying went into a bit of a slowdown in the following intervening period.
About three years ago we found that there was huge demand from Thai investors looking to buy very prime real estate in London and we’ve seen that trend is very much on the upswing, driven at the back by various factors, one being the currency exchange, which is very much in the Thai favour.
There is an increase in Thai students going to university, to school in London. As well as it is fashionable. There is a very emotional trend and purpose right now.

How do you compare buying property in London to other financial centres or capitals in the world?
London is definitely No 1 from a Thai perspective. New York is No 2. Three would maybe be Sydney in Australia. But London is by far the No 1 choice. Probably because it is close to get to as in troubled times versus New York. They drive on the same side of the road as we do in Bangkok, which helps. And language.
So compared to other European cities, London is the easy option. And the property ownership laws are very much in the favour of foreign investors. A foreign buyer from Thailand or anywhere gets the same right as a British national, which makes it very easy to invest in London.

Can you tell us more about the project called Fitzroy Place? What is the location?
What’s interesting about Fitzroy Place and what sets it apart from the wider London market is its location. Proximity to Oxford Street. The Thais have a very strong interest in shopping and being in the shopping capital of the world. Fitzroy Place is only a three minute walk from Oxford Street. That’s pretty unique in the sense that there are very few other projects if any at all of that scale with proximity to Oxford Street. That is really what puts it on the map.

Where exactly is it located?
It’s just literally in Fitzroy, which is north of Oxford Street. Prime central London. It is considered to be the heart of the city.

What are the expected yields or capital gains for the project?
Well, it is in line with the wider London marketplace. We expect to see the market increase this year by 3 per cent. We go into a slight low in the following year, but due to various factors the market is said to continue a strong upward trend during the succeeding two years following that.
So the capital value growth of GNP is really quiet significant. This is underscored by huge demand from international purchasers. Particularly from other parts of Asia – Hong Kong, Singapore, China. Their buying trend is enormous into prime central London. And this is what is supporting the value growth.

Can you just update us on the project? What is the progress now?
Well, Fitzroy Place was launched early this year. It is considered to be the most successful new London development launched on record. The sales to date are really huge.
We had buyers from various countries around the world including the UK, Hong Kong, Singapore, Thailand. It is probably the most successful UK project that has been launched in Thailand so far. Interestingly we have an exhibition for Fitzroy Place, which will be held in Bangkok from October 26-28. So we ask potential investors to join us for that exhibition.
The development itself comprises 291 individual properties. The tenure on the long lease is 990 years. It is what you receive as a purchaser. That’s considered to be virtual freehold. And it is the best formal tenure available in London. So it is very good. And as I mentioned earlier, it’s the same tenure that a British person would have buying as any foreigner.

What can investors learn from this coming exhibit in Bangkok?
Well, we have this fantastic model of the development that will be there. We have an interactive programme, so interested parties can scan through any apartment for sale in the building. The common facilities. Where the universities are, where the shops are. Where the public transportation is. As well as getting a very good feel for the materials. We have a full range of material booths. Everything you would expect going into a showroom for a new project is what we made for the exhibition.

For the London property outlook, where are the main investment areas?
Thai like to live in certain areas. The traditional places for Thai investors have been the Kensington area. That trend is changing. Fitzroy Place, Fitzroy area is tops. Nobody has any problem investing in that.
The Thais have been looking into other parts of London. On the south side of the river there are a few buying pockets, in Hyde Park. Knightsbridge, again strong demand. From a Thai investor’s perspective they like to congregate with other Thai people. We see a very prime focus. Unlike the Hong Kong buyer. They are more prepared to buy in the City of London, Canary Warf. Thais haven’t really made this transition yet. We’re in a much earlier stage for Thai buying.

Who are the potential buyers for property in London?
The first group is families with children, who go to school or university in the UK. But certainly I find it is fashionably to buy property in London. The wives like to go shopping at Harrods. Kid’s education is a good excuse for what we’re seeing. But really it is a great investment.
And if you look at the capital value growth that has been seen in the last years and is projected to go forward, it is a compelling story for buying in London. The schooling, shopping and the social aspects only just support, but it is already a really good investment.

As to the percentage, can you give us the proportion of Thai investors compared to other countries?
Very small. In Thailand we have an office just handling the Thai investors investing in London. Probably we handled 99 per cent of those investors investing in London over the past two years. Compared to the number of buyers from Hong Kong and Singapore, it would be 5-10 per cent of the region.

How does Fitzroy Place compare to other projects Savills has launched in Bangkok?
It is the most successful so far. The project hasn’t really been launched yet. We advertised the project in May this year. Its sales volume just from a soft launch has been the most successful London project that we have launched in Bangkok in the last two years. Now we’re going to have a full launch in October. We really expect that the take-up is going to be quite spectacular. Based on the current interest we’re seeing, there’s really going to be demand for the project Fitzroy Place, which is located so well, matches the requirements of the Thai buyer. So we are expecting pretty big numbers.