Apartments in the new Blackwall Reach E14 development on the Robin Hood Gardens site are being advertised as high yielding rental investments in Hong Kong.
A launch event held at the Mandarin Oriental hotel in Hong Kong in October this year boasted of the ‘best value two bedroom apartments in East London’ for sale from £565,000.
The investments are being marketed by the Hong Kong office of CBRE International Residential for wealthy Chinese investors who need a safe place for their money.
In China land ownership is forbidden and laws can change overnight on the whim of the ruling Central Committee of the Communist Party. As a result many Chinese investors exploit the financial benefits of buying property in areas of London such as Blackwall Reach E14.
There are currently more than 19,000 people on Tower Hamlets Council’s housing waiting list and there has been a 27 per cent increase in rough sleepers across Tower Hamlets since 2013.
The marketing material gushes of the new build being “More than just a new development, Blackwall Reach E14 is a new destination consisting of over 1500 brand new apartments located in the heart of one of Europe’s most dynamic regeneration schemes.”
Excited investors can download a research report or sales brochure (PDF) produced by CBRE International which illustrates the slightly different perspective that an investor has to Blackwall Reach than someone who sleeps outside every night. Below are a few key extracts:
Are you a high-calibre client? No? Then clear off.
Many Tower Hamlets residents do not earn £900 a week.
Thanks for reminding us about the housing problem – a nice touch.
We did ask Tower Hamlets Council for the official position on Blackwall Reach and the adverts above but no response was forthcoming at the time we pushed the ‘publish’ button.
Update – Council response:
“There is an agreement with the developers Swan defining how the properties are marketed. They were marketed first to Tower Hamlets residents for three months then made available more widely in London. Only after six months when some remain are the properties unsold are they marketed to overseas buyers.”
No a biggie really as we know the Council is as frustrated and annoyed with the massive housing issues that threaten the very fabric of London’s society as anyone but they are restricted by onerous regulations that effectively neuter any real power they need.
To understand the obscenity of luxury flats in Blackwall being flogged in Hong Kong while homeless Londoners live on the streets we urge you to read Anna Minton’s ‘Big Capital: Who is London for?, a slim volume that impressed us so much that we actually reviewed it (a first). Waterstone’s in Canary Wharf usually have copies.
To further understand the warped property market that afflicts Wapping as much as anywhere in the borough Moley would love to speak to one of the estate agents that work in in the numerous plush offices that are a feature of Wapping High Street. In total confidence of course.
The Wapping Mole would love to be able to confirm the rumour that the estate agents organise special trips from China for property investors who wish to purchase a slice of Tower Hamlets – or even several slices.
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