Why New Malden is London's Best-Kept Secret for Property Investors

New Malden, a growing community in south-west London, is becoming a promising investment hotspot with its impressive property growth, affordability compared to neighbouring areas, and strong rental yields. Learn everything you need to know about investing in New Malden with us here!

Alexandra Ricarte

September 11, 2024

In the ever-evolving landscape of London's property market, savvy investors are always on the lookout for the next promising area. While districts like Wimbledon and Richmond have long been in the spotlight, there's a neighbouring locale that's quietly been building its reputation as an investment hotspot. Enter New Malden, a vibrant community in south-west London that's rapidly becoming a focal point for property investors.

Location, Location, Location

Situated just 10 miles from central London, New Malden offers an excellent mix of urban convenience and suburban living. With excellent transport links, residents can reach London Waterloo in a mere 20 minutes, making it an ideal base for commuters.

But it's not just about easy access to the city – New Malden is surrounded by some of London's most desirable areas, including Wimbledon, Richmond, and Kingston upon Thames.

‍Interested in seeing how New Malden's location could benefit your investment portfolio? Contact our team to discuss available properties at Sterling Place.

Impressive Growth Potential

One of the most compelling reasons for investors to consider New Malden is its remarkable growth potential. Over the past decade, New Malden has consistently outperformed both its neighbours and the broader London market:

In the last 5 years, property values in New Malden have grown 17.1%, which is 8% more than the London average.
Over a 10-year period, New Malden has seen an impressive 75.2% increase in property values, compared to 58.5% for Greater London.

These figures demonstrate that New Malden is not just keeping pace with London's property market – it's setting the pace.

Affordability in a Premium Location

Despite its proximity to some of London's most expensive neighbourhoods, New Malden offers significantly better value for money. Consider these comparisons:

Wimbledon is 12% more expensive than New Malden
Richmond is a staggering 46% more expensive

This affordability, combined with the area's growth potential, presents a unique opportunity for investors to enter a premium market at a more accessible price point.

Strong Rental Yields

For buy-to-let investors, New Malden presents an attractive proposition with its strong rental yields. The area boasts an average rental yield of 4.3%, placing it among the top three 'KT' postcodes for rental returns.

This is particularly noteworthy when compared to some of London's more traditionally popular investment areas.

Want to learn more about the rental potential of properties in New Malden? Our team can provide detailed yield projections for Sterling Place apartments

A Robust Local Economy

New Malden isn't just about residential property – it's home to a diverse and strong local economy. The area has a rich history of commerce, once being the home of Bradbury Wilkinson & Co., renowned printers of banknotes and stamps.

Today, it continues to attract a mix of businesses, from global corporations to innovative start-ups, ensuring a steady demand for both commercial and residential properties.

Education Hub

Investors looking to attract families will be pleased to know that New Malden is situated in one of London's top educational hotspots. Merton, the borough in which New Malden is located, is in the top 10 in London for the proportion of Ofsted rated 'Outstanding' schools. With over 85 schools to choose from in the area, it's a major draw for families, ensuring a consistent demand for quality housing.

Future Development and Infrastructure

The future looks promising for New Malden, with several development projects in the pipeline. The potential Crossrail 2 project, if it progresses, could further enhance the area's transport links and property values. Additionally, local regeneration plans, such as the transformation of the town centre by Kingston Council, promise to add new amenities and further boost the area's appeal.

A Diverse Community

New Malden is known for its multicultural community, particularly its significant Korean population. This diversity has contributed to a rich local culture, especially evident in the area's fantastic range of restaurants and shops. For investors, this means properties in New Malden appeal to a wide range of potential tenants and buyers, from young professionals to families and international residents.

The Green Factor

With a sixth of New Malden's area designated as public green space, the district offers a quality of life that's increasingly sought after in London. Proximity to large Royal Parks like Richmond Park and Wimbledon Common adds to its appeal, making it attractive to those seeking a balance between urban living and access to nature.

New Malden represents a unique combination of factors that make it an exceptional opportunity for property investors. Its mix of strong growth potential, affordability relative to neighbouring areas, excellent transport links, and high quality of life create a compelling case for investment. As London continues to expand and evolve, areas like New Malden that offer value, growth, and lifestyle benefits are likely to see increasing demand.

For those in the know, New Malden isn't just a well-kept London secret – it's an opportunity waiting to be explored. As with any investment, thorough research and due diligence are crucial, but for those looking to invest in London's property market, New Malden certainly deserves serious consideration.