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Daft Boy

Value Of Building Sites Drop By 90% In Ni

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I'm noticing more and more large houses which look to be approaching build cost. Sure, the developers likely have access to skilled/good working and/or cheaper materials, but the value of the underlying land has clearly collapsed for this to be the case. I'm still seeing land for sale at prices which don't reflect the aforementioned situation, but I don't see how they can continue to defy gravity.

I'm thinking that we're at the start of another 10-20% fall (from peak) over the next year or two, especially further up the price chain.

Would I buy any time soon? I'd consider it, but only if I planned on living in the house for a long time now. Having just got married, I won't have much choice but to keep saving though, with the plan to buy in a couple of years, I think. We will have to wait and see where the market is going though.

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Congratulations Traktion - I hope you will have a long and happy marriage. It's a whole different ball game this year I am finding. ON the recently added in propertynews there are a lot of relists at reduced prices. I think the petrol costs will make rural houses harder to sell now - which suits me.

Thanks - I hope our marriage is a long and happy one too! :)

IIRC, you're in the Downpatrick area, right? There seem to be some heavy cuts around there now on the rural front. I work from home and the other half is a teacher, so a nice country home would suit us down to the ground. The main problem is, my wife has only been working per year contracts since we moved here (her home), which the mortgage people don't seem to like!

TBH though, I think that is a big problem at the moment - the main NI employer (the government) is threatening cuts and redundancies, which can't be helping the market either. Relying on private sector wages in NI is sure to see prices slipping further. I think there are going to be a lot of developers who will be struggling again soon - if prices start to plunge again, patience from the banks may wear thin.

Edited by Traktion

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I'm seeing a lot of the mcmansions coming on - often half finished as the developers run out of money (although they say it's so you can put your own stamp on it!). I think too many built the 4 or 5 beds 3 reception house they aspired to - but found it difficult to afford taking all the other costs into account.(petrol - rates- heating bills)

Yup, definitely. I've seen a good few coming down from 450k to 250k or so. How low will they go? Well, looking back to pre-2005 valuations, they still have further to go (under £200k for the aforementioned, IMO). TBH though, they're starting to look like pretty good value, if you're planning on staying put. Holding out for the absolute floor may not be needed, after such big falls already, but it depends how you look at it.

Like you say though, they have to be heated, driven to/from, taxed... it all mounts up, especially when wages are stagnating and jobs are scarce. I don't see any of those problems getting better either. If anything, the opposite will be the case.

EDIT: P.S. I noticed some shells coming on at prices which can buy a completed house now too. The market seems to be all over the place for the larger country homes.

Edited by Traktion

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  • 311 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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