CBRE reports that increasing confidence of developers and investors coupled with a surge in demand for high-quality residential housing will transform London’s Southbank throughout the next decade.
As the Southbank’s transformation continues to attract over 22 million visitors per year, London’s developers have built momentum in redefining this central stretch of the River Thames into one of the most active pockets in the prime residential market.
The report coincides with production by CBRE of the first ever montage showing how the Capital’s Southbank will look in 2023.
The image shows a stunning skyline stretching from Tower Bridge to the redevelopment of Battersea Power Station, including One Blackfriars, South Bank Tower, Shell Centre and the US Embassy.
Through close proximity to the City and West End, as well as its extensive international transport connections, the Southbank continues to deliver a rare opportunity in which homebuyers can purchase in a river-fronting development which will soon become a landmark on the world-famous London skyline.
Lisa Hollands, Managing Director at CBRE Residential, comments:
“London’s Southbank is arguably one of the most exciting property stories this decade. The limited supply in traditionally prime locations, along with a plethora of style, scale and price points has allowed this formerly under-utilised region to enjoy a record growth both in property values and population.
“Since 2008, the average price for a new-build apartment has risen by 160%, from £500 per sq ft to £1,300 per sq ft. This record increase is also reflected in those properties in the heart of the Southbank, between London Bridge and Waterloo which regularly achieve over £1,800 per sq ft.”
“Many of these developments offer additional luxury amenities including 24-hour concierge, digital entertainment suites, business lounge, fitness suites and spa facilities – all of which are extremely popular with City workers, international purchasers and downsizers alike.”
Mark Collins, Chairman at CBRE Residential, comments:
“The Southbank is perfectly poised to capitalise on the increasing appetite for new-build property across Central London. Over 60% of apartments currently under construction on the southern fringe of the river have sold pre-completion and we can expect this trend to continue.
“Crucially, the redevelopment of London’s Southbank has so far committed £1.5billion via Section 106 agreements, which will help deliver new schools, increased policing, health and leisure facilities and significant investment toward the local transport infrastructure – all of which is crucial to the success of this brand new destination.”
Peter Burns, Executive Director at CBRE, comments:
““In the past 6 years, there has been £2.3bn of development deals on the Southbank, which is a healthy 10% of the central London market over the same period.
“Throughout this period the proportion of deals happening on the Southbank has been increasing, reflecting the growing acceptance of the area amongst developers who can build at scale.
“Overseas investors have joined the domestic UK players as they have been attracted to the ability to build high-rise schemes with premium levels of servicing, which is the norm in their local markets.”