Thursday, May 24, 2007
Things getting grim up North
this is money.co.uk: What next for city house prices?
Looks like Sunderland is not such a sunny place afterall. £200k for a 2 bed room flat, would you Adam and eve it?
Posted by gozbong @ 07:48 PM (156 views) Add Comment
6 Comments
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1. confused76 said...
Hilarious!!!!! Ah ah ah ahaaa!!!! cant stop laughing.... 200 grands for a place in SUNDERLAND?!!! This is madness, collective delusion... or worse!!
you can buy a decent place in freaking Paris, or Amsterdam or Berlin for €300k !!!
read the comments posted to the article...
Ross Clarke's article is spot on. I'm an investor from London and have been buying properties in Bradford over the past few years, including city centre appartments (cost £115-140,000). I am struggling to sell the appartments even at £10-15,000 LOSS on the prices I paid three years ago, whereas the cheap terraced and back-to-back houses have at least doubled in the same period.
- Javed, London
Since 1688 the UK has had 27 house price crashes - i.e. about every 12 years. The UK property market has always been cyclical with boom followed by bust followed by boom. It is becoming increasingly obvious, with rising interest rates, the economy declining, etc. that we are about to experience a crash in house prices. It is already happening in the US, Spain, France and Eire - the UK is about to follow suit. Fortunately this will enable the huge proportion of young generation who are priced out of property to get on the property ladder and have a proper home. The vast majority of current home owners will not be adversly effected by falling house prices so we should welcome house prices dropping rather than making estate agents, surveyours, etc. richer and richer whilst we become poorer and poorer.
- Dan, Birmingham
Incredible, 200k for a flat in Sunderland and people still think they'll boom. That must be knocking 10 times the local average wage for a flat.
- Simon, Chester
2. confused76 said...
"But there is a tendency for investors, especially from the South, to get overexcited at the first sight of a cappuccino bar and to overlook such fundamentals as local wages and the balance between supply and demand. "
"many who purchased off-plan in Manchester three years ago are now finding their completed flats are worth less than they paid for them"
"by paying a premium price in a relatively poor city where the population has fallen over the past 25 years, you are setting yourself a big task to make a profit"
but it is different now, prices only go up, there are Russians, Romanians, immigrants... people live alone, they divorce at a fast pace, the bricks the mortar... not enough houses built... where is all the usual b***s**t!!
3. enuii said...
Notice the common theme, apartments suck, houses are OK, apartments are for city living fashion victims. Houses, even our modest UK terraced ones are for living, and dare I say having a family, owning a dog and having somewhere to put your bulky or outdoorsy stuff.
4. Scott said...
Apartments are for people that cannot afford houses, or for speculators that already have a house to live in. I am very suprised at the £200k in Sunderland because that place is f*cked. I would prefer to live in North Korea than the North East.
5. harold said...
£200k for a 2 bed room flat in where?!!?*@!! Bubble-tastic.
6. Johno said...
In Australia for a long time there was two tier marketing. New appartments in South East Queensland were sold to buyers in other states who nothing about the local market. A well slick operation was put in place from the first phone call to the expenses paid trip to look at the appartments it was a bit like the Tv program "The Hustle". It wasn't till the unsuspecting buyers tried to remortgage or sell when they found the new builds were valued 30% less than they paid for and this was in a growing market. They seemed cheap to people from Sydney and Melbourne where prices were en par with London but were expensive to the local population.