Malaysians look to lease London property during Olympic games

Rentals in London during the Olympic games will be up by three to four times the normal rates.

Investors in London’s real estate market, including a number of Malaysians, are looking to make a killing with short-term leases when the Olympics arrive in the city in late July.

Rentals are expected to be three to four times the usual rate, Henry Butcher Real Estate (Damansara) Sdn Bhd told the (Malaysia) Star. Director Jazmine Goh said that some clients have brought up the opportunity.

“It will be a bonus for three months around that time,” she said.

Among some of her projects that will be nearing completion include The MatchMakers Wharf in Stratford, located 1.5km from the Olympic Village, Pacific Court in Caspian Wharf, Bow, and New Festival Quarter, Bow Common Lane, Bow. These projects will be nearing completion.

Usually, the rental rate is about £200 to £250 (US$316 to US$395) per week for these units, which are located far out of the city. Central London prices will be even higher.

“If their units have not yet been tenanted and if there are potential tenants seeking out short leases during that period, and there is that possibility of a match, they will be happy to take that opportunity,” she said.

Goh’s agency has been aggressively UK properties among Malaysians since 2009, generating between 20 and 30 sales over a weekend. Goh said 60 per cent  bought to rent while 40 per cent bought for their own stay or for their children who were studying there.

London-based Benham and Reeves Residential Lettings managing director Anita Mehra told the Star that while leases during the Olympics would be good, property owners should take a long-term view.

“During the Wimbledon season, it is common for owners to move out of their homes in order to let out their properties for £10,000 (US$15,800)  for just two weeks. But I would suggest to take the longer-term view,” she said.