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Little Appetite To Buy Industrial Property In Wales

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Little appetite to buy industrial property

May 27 2010 by Sion Barry, Western Mail

EVEN the most entrepreneurial of property developers have little appetite in the current market to acquire empty industrial space in South Wales, a property event in Cardiff was told yesterday.

In delivering DTZ’s Money into Property 2010 Report, its senior director for Wales, Rhys James, said there is currently a disconnection between what developers are willing to pay for empty industrial property and what owners are prepared to accept.

Speaking at the St David’s Hotel, Mr James said: “In the current market, buying empty industrial property in South Wales is not a profitable pastime, even from the most entrepreneurial of developers. They have become disenchanted with the market, There is a gap between what owners are prepared to accept and what speculators are willing to pay.”

Mr James said that in the current market, in which tenants are in a far stronger position to negotiation on terms, speculators are also being put off because of the added costs caused by the ending of empty property relief.

On the office market in Cardiff, Mr James said a considerable acceleration in deals is required in the second half of the year to “get anywhere near” pre-recession levels.

On the residential front he said, following the sector effectively grounding to a halt in 2008 as a result of the financial crisis, there are tentative signs of recovery in the South Wales market.

He added: “National house builders are slowly coming back to the market, although residential land values had fallen by 40% or 50% in the last 18 months.

“A further indication of the improving market is that some development sites, mothballed two years ago, have now been re-started, although the concentration now is on conventional two-storey family housing rather than three-storey housing and apartments, for which there is now little appetite.”

Mr James said that the housing association sector is likely to remain active in the next 12 months, with the only “real question mark” relating to the availability of funds from the Assembly Government.

Of the eight UK markets, the prime London City office market is now considered to be the only “hot” investment location in the UK.

http://www.walesonline.co.uk/business-in-wales/business-news/2010/05/27/little-appetite-to-buy-industrial-property-91466-26530461/

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surely there must be still some welshmen ready to sell dodgy caravans and campers somewhere in wales. after all, where else can you find a knackered old camper shill bidded to 3 times its worth anywhere else in the country ?

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surely there must be still some welshmen ready to sell dodgy caravans and campers somewhere in wales. after all, where else can you find a knackered old camper shill bidded to 3 times its worth anywhere else in the country ?

Swansea... A friend just travelled 200 miles to buy a camper as it was cheaper... Even camper vans are different in Swansea...

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In delivering DTZ’s Money into Property 2010 Report, its senior director for Wales, Rhys James, said there is currently a disconnection between what developers are willing to pay for empty industrial property and what owners are prepared to accept.

WTF is the bit about companies willing and able to occupy those premises to actually do something tangible and useful with it?

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In delivering DTZ’s Money into Property 2010 Report, its senior director for Wales, Rhys James, said there is currently a disconnection between what developers are willing to pay for empty industrial property and what owners are prepared to accept.

WTF is the bit about companies willing and able to occupy those premises to actually do something tangible and useful with it?

QUANGOLAND!

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The problem with all these business units is business rates which have been rising very quickly, and landlords being forced to pay even if they are empty...

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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