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Mrs Bear

Price of flats in capital plummet

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It was in Tuesday's ES, but only saw it last night.  Major article in traditionally  bullish ES.  

Quotes prices of flats falling most, 7%,  number of sales of one bed flats falling most sharply.  

Average price drop in year to November 17 was 4.1%.  

Unfortunately also said that prices of semis,  'most likely to be found in more resilient suburbs' rose by 4%.  Article did not clarify whether all this is based on asking or sold prices. 

One bed flats in prime London hardest hit - no surprise there, given prices they've been asking. 

 

 

 

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34 minutes ago, Sancho Panza said:

Any chance of a link please Mrs B?

Can never remember how to do links on iPad, sorry, but if you Google 'Flats are hardest hit as property prices plummet by 4% in capital' it will come up. 

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17 minutes ago, Mrs Bear said:

Can never remember how to do links on iPad, sorry, but if you Google 'Flats are hardest hit as property prices plummet by 4% in capital' it will come up. 

Cant really seem to find it on google with the exact wording.

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1 minute ago, warrior88 said:

Thanks a lot! For the new builds I would expect a 20% correction in price.

I think they'd be lucky to get away with 20%

I had a good trawl around the other day and found a flat in Westminster that looked "good value" at a mere half a million pounds. However when I looked at the property history these flats only cost £150k in 2000 and £300k in 2007. 

Their increase in value is purely speculative, and if speculative buyers stop buying then they must surely return to their utility value.

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https://www.propertytribes.com/investing-in-the-north-west-great-intel-t-127632761.html

 

Wouldn't surprise me if Manchester was next.  Cranes everywhere and I’ve wondered for a while what saturation point would be.  

Anecdotally, a friend of mine bought an off plan new build in Manchester in 2007, lost 50k almost immediately in the crash and selling prices are only just back up to what she paid in 2007.  The same signs of a crash are here now - constant building, easy to get mortgages, prices shooting up.

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Short leases?

Expensive to renew lease?

High ground rents and service charges?

.......could be better off renting, giving mobility and flexibility......also they are building flats like no tomorrow, might be no more land but there is still plenty of sky.;)

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In today's Manchester Unnerving News:

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/here-comes-skyscraper-alley-plans-14232159?utm_source=google_news&utm_medium=referral&utm_campaign=google_news&utm_content=sitemap

Plans for three more apartment blocks of up to 32 storeys are to go before councillors next week as a cluster of skyscrapers around the city centre’s southern gateway takes shape.

More than 400 homes are earmarked for land on Great Jackson Street, behind the vast towers already under construction on Owen Street.

Planners say the area is not ‘appropriate’ for affordable homes but believe developer DeTrafford should provide cash for cheaper housing to be built elsewhere in the city, although only if such a move is considered financially ‘viable’.

DeTrafford want to build blocks of 18, 26 and 32 storeys as council-led plans for the area - which would eventually create a new 6,000-home neighbourhood between Knott Mill and the Mancunian Way - get going.

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4 minutes ago, Mancunian284 said:

https://www.propertytribes.com/investing-in-the-north-west-great-intel-t-127632761.html

 

Wouldn't surprise me if Manchester was next.  Cranes everywhere and I’ve wondered for a while what saturation point would be.  

Anecdotally, a friend of mine bought an off plan new build in Manchester in 2007, lost 50k almost immediately in the crash and selling prices are only just back up to what she paid in 2007.  The same signs of a crash are here now - constant building, easy to get mortgages, prices shooting up.

I seem to remember Leeds was similar

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1 hour ago, Timak said:

I think they'd be lucky to get away with 20%

I had a good trawl around the other day and found a flat in Westminster that looked "good value" at a mere half a million pounds. However when I looked at the property history these flats only cost £150k in 2000 and £300k in 2007. 

Their increase in value is purely speculative, and if speculative buyers stop buying then they must surely return to their utility value.

I agree in theory but TPTB are fully supporting interest of these speculators - so a crash more than 20% seems highly unlikely

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27 minutes ago, Barnsey said:

I seem to remember Leeds was similar

Yes it was - I had a colleague who got stuck with a flat in Leeds at the same time.

Rent prices of flats seem to be going down (in Manchester).  Where I currently rent a 2 bed flat, the price was 850 per month until recently. There are suddenly a lot of them on the Rightmove and the prices have dropped (showing as reduced on Rightmove) to 750 per month and they’re sitting there for ages.  I don’t know if rent prices usually drop before a property crash or if there are different market forces at work.  I’ve been told that 1 and 2 bed flats always get hit first though - I don’t know why as I’m still new to property price research.

this one is similar to the one I live in:

http://www.rightmove.co.uk/property-to-rent/property-52255221.html

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1 hour ago, Mancunian284 said:

Yes it was - I had a colleague who got stuck with a flat in Leeds at the same time.

Rent prices of flats seem to be going down (in Manchester).  Where I currently rent a 2 bed flat, the price was 850 per month until recently. There are suddenly a lot of them on the Rightmove and the prices have dropped (showing as reduced on Rightmove) to 750 per month and they’re sitting there for ages.  I don’t know if rent prices usually drop before a property crash or if there are different market forces at work.  I’ve been told that 1 and 2 bed flats always get hit first though - I don’t know why as I’m still new to property price research.

this one is similar to the one I live in:

http://www.rightmove.co.uk/property-to-rent/property-52255221.html

Yes, Stretford Rd.

Like living on the hard shoulder of the M25. :)

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16 minutes ago, Nomadd said:

Yes, Stretford Rd.

Like living on the hard shoulder of the M25. :)

Yes, a fair bit of traffic noise but cheaper than the city centre and has parking.  Expensive for what it is but I’m not planning on staying long.  Hoping for an HPC, like many on here, so I can buy a 3 bed semi in a safe area.

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2 hours ago, Mancunian284 said:

Yes, a fair bit of traffic noise but cheaper than the city centre and has parking.  Expensive for what it is but I’m not planning on staying long.  Hoping for an HPC, like many on here, so I can buy a 3 bed semi in a safe area.

Would be interested on your perspective on current prices.

From the relatives I spoke to in Sale/Alty/Hale/Didsbury/etc. over the Xmas period, it seems the prices are more mental than ever. And the young buyers I spoke to think nothing of overpaying as "It's OK, I'm getting a 35 year mortgage..."

An HPC in the North West seemed further away than ever to me.

Still, things can change quickly, of course.

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54 minutes ago, Nomadd said:

Would be interested on your perspective on current prices.

From the relatives I spoke to in Sale/Alty/Hale/Didsbury/etc. over the Xmas period, it seems the prices are more mental than ever. And the young buyers I spoke to think nothing of overpaying as "It's OK, I'm getting a 35 year mortgage..."

An HPC in the North West seemed further away than ever to me.

Still, things can change quickly, of course.

I think the city centre and surrounds such as Hulme are looking shaky due to over supply and also because very few people buy these flats as homes - it’s all either BTL or investors buying new builds to flip for a profit.  It’s being treated like an investment market so is behaving like one - volatile.

The areas you mention are different as the bulk of the buyers are people buying family homes and there isn’t much space left to build new ones in those areas, so I think the supply of properties on to the market is low which is keeping prices up.  Didsbury and Hale are out of my price bracket so I don’t track them.  I do track Alty and Sale though, based on recent asking prices (I don’t know until they hit the land registry whether or not asking prices are being achieved) prices seem to have shot up over the last few months.  Although I met an Alty based conveyancer last week who said he thinks prices are starting to soften, apparently there are a few BTL landlords in the area quietly selling up parts of their portfolio.

There are some odd things happening though.  I posted a link to a property I was interested in on Osborne Grove in Sale in a thread I just started on the Manchester market which has been on and off the market.  The same thing happened with one on Beech Grove - I’ll be interested to see if they do actually sell.

 

 

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7 hours ago, Option5 said:

In today's Manchester Unnerving News:

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/here-comes-skyscraper-alley-plans-14232159?utm_source=google_news&utm_medium=referral&utm_campaign=google_news&utm_content=sitemap

Plans for three more apartment blocks of up to 32 storeys are to go before councillors next week as a cluster of skyscrapers around the city centre’s southern gateway takes shape.

More than 400 homes are earmarked for land on Great Jackson Street, behind the vast towers already under construction on Owen Street.

Planners say the area is not ‘appropriate’ for affordable homes but believe developer DeTrafford should provide cash for cheaper housing to be built elsewhere in the city, although only if such a move is considered financially ‘viable’.

DeTrafford want to build blocks of 18, 26 and 32 storeys as council-led plans for the area - which would eventually create a new 6,000-home neighbourhood between Knott Mill and the Mancunian Way - get going.

Wasn’t aware of this.  I think the powers that be in the town hall desperately want Manchester to be a major global city but are trying to force it to happen too quickly by building a shed load of flats before we’ve got the population to live in them.  Do you know if any of them are 3 or 4 bed flats suitable for families? Again, my understanding of the Manchester flat market is that it’s full of two bed flats aimed at young professionals rather than bigger ones that would allow families to build a life in them - families live in flats in NEw York etc as they have family sized flats and facilities for families  but there are no big parks or decent schools in central Manchester either.  There’s no opportunity to build a community in central Manchester due to this and it ends up being a transient place as young single professionals just move to the suburbs when they get married and have kids.

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7 hours ago, Option5 said:

In today's Manchester Unnerving News:

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/here-comes-skyscraper-alley-plans-14232159?utm_source=google_news&utm_medium=referral&utm_campaign=google_news&utm_content=sitemap

Plans for three more apartment blocks of up to 32 storeys are to go before councillors next week as a cluster of skyscrapers around the city centre’s southern gateway takes shape.

More than 400 homes are earmarked for land on Great Jackson Street, behind the vast towers already under construction on Owen Street.

Planners say the area is not ‘appropriate’ for affordable homes but believe developer DeTrafford should provide cash for cheaper housing to be built elsewhere in the city, although only if such a move is considered financially ‘viable’.

DeTrafford want to build blocks of 18, 26 and 32 storeys as council-led plans for the area - which would eventually create a new 6,000-home neighbourhood between Knott Mill and the Mancunian Way - get going.

What are your thoughts on Manchester at the moment?  Are you currently living here/want to buy?

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29 minutes ago, Mancunian284 said:

What are your thoughts on Manchester at the moment?  Are you currently living here/want to buy?

I'm originally from Salford so I keep an eye on the area. I have no desire to return, having said that I'm currently based in SE London which is a lot worse ?

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1 hour ago, Mancunian284 said:

Wasn’t aware of this.  I think the powers that be in the town hall desperately want Manchester to be a major global city but are trying to force it to happen too quickly by building a shed load of flats before we’ve got the population to live in them.  Do you know if any of them are 3 or 4 bed flats suitable for families? Again, my understanding of the Manchester flat market is that it’s full of two bed flats aimed at young professionals rather than bigger ones that would allow families to build a life in them - families live in flats in NEw York etc as they have family sized flats and facilities for families  but there are no big parks or decent schools in central Manchester either.  There’s no opportunity to build a community in central Manchester due to this and it ends up being a transient place as young single professionals just move to the suburbs when they get married and have kids.

Hmm manchavster or Manhatten hard decision.

I am guessing profit is the main driver of slung up flats.

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1 hour ago, longgone said:

Hmm manchavster or Manhatten hard decision.

I am guessing profit is the main driver of slung up flats.

Will there be any profit though? I don’t think there are enough people to buy/rent all these new flats.  Rent prices in central Manchester already seem to be dropping.

Either this EA is terrible at pricing properties for rent or something is going on - two pages of properties for rent and all bar a couple are reduced.

http://www.rightmove.co.uk/property-to-rent/find/Cherry-Picked-Properties/Heald-Green.html?locationIdentifier=BRANCH^59619&propertyStatus=all&includeLetAgreed=true&_includeLetAgreed=on

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      • down 5% +
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