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orcocan

Shadwell

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Interesting to see your post orcocan as you are looking in the same areas of East London as myself.

I also spotted this flat and noticed the sudden increase from 400k to 500k. I suspect that the flat went for 300k a couple of years ago.

Kelday Heights is not a bad building: I know a number of people who have lived in that building and the views from the top floors are indeed amazing but the outside is starting to look seriously grotty and looks more like council estate material now.

The other thing going for it is the proximity to Shadwell shadwell (100m away).

On the outskirts of the City, prices have exploded and I suspect that owners in places slightly further East such as Shadwell are hoping to take advantage of this explosion in prices. However, I haven't seen any proof that sold prices have increased particularly. Unlike the City "fringe" which has a large number of young City professionals which have increased in numbers alongside the Bangladeshi families and the hipster overspill from Shoreditch, Shadwell is really not in demand and very few people find it appealing. The only non-Bangladeshi people in the area outside the small gated developments like Hawksmoor Mews tend to be lower-paid foreign (a lot of Eastern European languages and Italian/French can be heard) workers and students renting a room in the council estate buildings. The area really hasn't "gentrified" that much as can be seen on the high street: Wimpy, Peacocks, Percy Ingle bakery whereas the West part of Whitechapel (near Aldgate East) has hipster cafes, Starbucks, loads of Sainsburys Locals and Tesco Metro/Express...

Have a look at this beauty a bit further East on Cable St. When it came on the market last September, I informed Foxtons that 550k was incorrect pricing: having seen several flats in the development, an almost identical flat sold for 355k and a "nicer" flat (larger outdoor area) sold for 375k just a couple of months earlier. The owner had noticed that a COMPLETELY different flat with views of the City skyline and of Canary Wharf, much larger and in nicer decorative state than this one had sold for >500k so had assumed that this was the chance to try their luck. Although I was keen to visit, I could not start negotiations at 550k: it was a waste of time considering that I (and anyone who knows the area well, like myself) would not offer more than 400k at the time.

Instead of attempting to address my concerns, I was told that this was a great opportunity and that the market was exploding (i.e. yes an expected >50% increase in 3 months was perfectly normal and that this was an opportunity as prices would probably be 700k in no time).

http://www.zoopla.co.uk/for-sale/details/30322472?search_identifier=6e2d19aab475be47fcd014cd228bb65f

Then again, people are falling over eachother to buy so maybe someone will eventually be silly enough but the fact that the flat is still there after 6 months is a case and point.

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All the comfort of social housing for £500k. An opportunity not to be missed out on.

Someone could assume that this is an exaggeration but the truth is, around Shadwell station, social housing is indeed just as nice as Kelday Heights (this would indicate that a lot of the social housing in Shadwell is actually very nice rather than suggesting that the flats in Kelday Heights are not decent). I think there is a certain amount of social housing in Kelday Heights itself.

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hi Sam, interesting to see that link, i notice both listings are foxton's (maybe not a coincidence). However what worries me is that they've revised the price up, as if they had so many viewings and people interested in the flat that they felt the could get away with a 30% increase. I hope that's not the case and I hope the flat will still be there in 6 months but I'm not that confident.

I had almost made up my mind thinking I should bite the bullet and buy, but looking at where prices have gone over the last 6 months is really putting me off... I really don't know what to do... probably just keep renting... although on the other hand I don't see the bubble bursting anytime soon.

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hi Sam, interesting to see that link, i notice both listings are foxton's (maybe not a coincidence). However what worries me is that they've revised the price up, as if they had so many viewings and people interested in the flat that they felt the could get away with a 30% increase. I hope that's not the case and I hope the flat will still be there in 6 months but I'm not that confident.

I had almost made up my mind thinking I should bite the bullet and buy, but looking at where prices have gone over the last 6 months is really putting me off... I really don't know what to do... probably just keep renting... although on the other hand I don't see the bubble bursting anytime soon.

Wish I could say something other than "I feel your pain!" :)

As someone who thinks "they know the area" of Whitechapel and Shadwell and having lived there for close to a decade and seen parts of it change massively, I still don't see any justification for the prices.

Whereas I can almost understand the prices in parts of London with middle-class couples (and familiies) with combined salaries of 100k - 200k (this not that being uncommon) and with a fair bit of savings: these people don't mind putting EVERYTHING into their home so 1 million for a standard family home doesn't sound that unfeasible, the prices in E1 do not make any sense.

Yes, the area is changing but this is investor speculation before the factors that justify the prices are actually present. The anticipation is WAY too early. Right now, the area is still full of students and very young graduates who apart from the BOMAD have little savings, are on good but still modest starting salaries.

Southeastern Asian investors are betting on a rise because they've been told (rightly or wrongly) that the area is changing, that these new buildings are all very luxurious and modern and well located. Their bet relies on the area changing in the next few years from an area with mostly students and young professionals and Bangladeshi families to a middle-class posh area or to an ubertrendy area. I think that's a pretty huge bet!

Until the area "gentrifies" so much, who is going to pay the rents that justify the original purchase? Probably noone.

Maybe this is wishful thinking and I'd be open to anyone's argument that the prices are indeed justified but simply claiming that the prices are justified because someone is willing to speculate that they might increase is not a valid argument in my book or anyone's book.

Like a lot of people and probably yourself, I am still in a "wait and see" mode although I am keeping my eyes open for the right place. Although speculation of this nature is annoying, I like to think that London is large enough to identify places where prices are justified and where long-term stability in prices can be expected.

As for Foxtons, they're absolutely useless. I don't know where they get their EAs from but these are probably the least knowledgeable EAs I've met with zero "local knowledge". Whereas some EAs might be pushy, those I've dealt with have rarely claimed to know the area (when they don't) to the point that they can inflate the prices so much.

These increases by Foxtons are more due to the lack of knowledge of people in their East London braches than anything else. For that other flat, the main argument I was given for the price was that there had once been a flat (that did not resemble this flat) in that area that had sold for 520k: a bit like me trying to sell my 15-year old Vauxhall Astra for 20k because a guy sold his Boxster that price last week.

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Blimey, The Ship on Cable Street has been turned into apartments.

http://shipapartments.co.uk/gallery.php

The first 1 bed apartment is already on sale for £410,000.

http://www.zoopla.co.uk/for-sale/details/31890362

The price just amazes me. Tiny aparments in a grim area. 3 friends of mine used to rent the whole building back in around 2002 after it closed as a pub. They were working part time as cycle couriers so weren't exactly flush with money, probably paid less than £1,000 / month for the whole lot. Bit of a dive though but fun for a party. I love that part of 2 of the apartments are in the old cellar.

Hope they've tidied up the outside a little too.

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