LONDON PROPERTY PRICES: Tower Hamlets

• Tower Hamlets has the highest residential development activity in all London. It has severely deprived neighbourhoods cheek by jowl with gentrified locations, such as Canary Wharf, one of London’s most-popular office markets.

• Tower Hamlets is at the heart of London’s East End. It borders the City of London on its west side. At just 20 sq km, the borough is one of London’s smallest, but is its fourth-most densely populated, with 12,853 residents per sq km.

• Tower Hamlets’ population has grown faster than anywhere else in the country. It is projected to increase by 16% (or 44,000 persons) over the next decade, the second-highest in London.

• It is one of the more disadvantaged areas in London, and major regeneration ongoing in the area. There are over 10,500 residential units currently under construction, the most rapidly growing housing stock in London. There are a further 13,263 units with planning permission. Among these are several towers in excess of 60 floors.

• Canary Wharf is Tower Hamlets most recognisable brand name. This huge office market employs over 100,000 people and the residential areas immediately surrounding it are attracting an increasing number of young professionals. Average prices in these areas are around £715 (RM4,231) psf due to their location near the Canary Wharf office estate.

• Apartments within 250m of the office estate are 23% more expensive than those located between 250m and 500m away. Properties in the 750–1000m radius are priced around 30% lower than those closest to the estate.

• The opening of a Crossrail station in the area in 2018 will increase the capacity of the existing extensive public transport network by 50%. CBRE anticipates Crossrail will improve residential values by 3.6% per annum.

• At present there is no residential on the Canary Wharf Estate, but Wood Wharf will deliver 4,500 new properties. Phase 1, due for completion in 2020, will see 900 apartments and 200,000 sq ft of office space.

• Developments outside Canary Wharf include St Georges’ London Dock, a 1,800-unit scheme in Wapping, Baltimore Wharf (over 1,000 units), Barratt Homes’ Aldgate Place (300 units) and Eco World Ballymore’s London City Island (1,700 units).
   

source: London living: A borough by borough showcase by CBRE