One Global Group believes the UK property landscape will be a buyer’s market in 2023. A press release by the Singapore-headquartered real estate company points out that market conditions in the year ahead make it an ideal time for investors in Asia to purchase a home in the UK.
According to Eli McGeever, Director of Research and Rechnology innovation at One Global Labs, the UK has started seeing price corrections in certain markets, following a “property-buying frenzy” over the past two years. Looking ahead, he anticipates prices will further correct in some markets, while others will remain stable. “For example, areas in London such as Harrow, Hounslow and Newham will likely outperform the market, as will areas in Manchester, such as its city centre,” he adds.
Rising housing stock is also expected to provide balance to the property market, easing the tight supply that has underpinned a rapid increase in UK property prices during the pandemic. Citing data from Zoopla, One Global notes that housing stock has risen 40% over the past year.
In terms of exchange rates, One Global highlights that the pound sterling remains below levels seen a year ago, a factor in favour of investors in Asia. In addition, real mortgage rates are anticipated to come down below 5% in 2023, further easing from the highs of over 6% seen last year following the UK’s mini-budget unveiled in September 2022 which caused market turmoil.
McGeever observes that buyers in Asia are purchasing in a broad range of locations. For example, buyers in Hong Kong, which cover a diverse range of buyer types from seasoned investors to owner-occupiers, are purchasing homes in London as well as regional areas such as Manchester and Birmingham. Meanwhile, buyers in Singapore and Malaysia are still interested in London.
