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Burbujista

Earl’s Court redevelopment site loses half of value in 4 years

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Some highlights from the article:

 

Capital & Counties, the developer that owns a majority of the site, said on Friday that its land holdings in the joint venture with Transport for London had shed 10.5 per cent of their value in the three months to the end of March.

That means Capco’s share of the site is worth £412m, according to a valuation by property agents JLL commissioned by TfL, down from a 2015 peak of £803m. Adjusting for capital investment, the decline amounts to a like-for-like fall of 53 per cent, said Robert Duncan, analyst at Numis Securities.

The land is slated for 3.4m sq ft of new development as part of a 2013 master plan for the area that includes 7,500 new homes. But a decline in the market for luxury homes, along with local opposition, means no home has been built on the old exhibition centre site despite London’s acute housing shortage.

Edited by dpg50000

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London does have a housing shortage, but not a shortage of luxury expensive homes, the type that are so often bought and left empty most of the time.......many people now born in London will never be able to buy a home there...... London's loss.😉

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8 hours ago, winkie said:

London does have a housing shortage, but not a shortage of luxury expensive homes, the type that are so often bought and left empty most of the time.......many people now born in London will never be able to buy a home there...... London's loss.😉

The main difference between a luxury flat and an affordable flat is the price. You can’t build an affordable house on unaffordable land. 

Edited by BorrowToLeech

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1 hour ago, BorrowToLeech said:

The main difference between a luxury flat and an affordable flat is the price. You can’t build an affordable house on unaffordable land. 

Of course you can, just build a few on top of each other on the same piece of land.😉

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2 hours ago, BorrowToLeech said:

The main difference between a luxury flat and an affordable flat is the price. You can’t build an affordable house on unaffordable land. 

The main difference between a luxury plot of land and an affordable plot of land is the price. The landowner just needs to realise that it’s not possible to build expensive housing because nobody will buy be able to afford it and he needs to price it in a way that developing is profitable somehow.

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I was taking to a banker at a large UK bank a couple of years ago. They had decided not to go near this development - way too high a risk to fund. Definitely a good judgement. 

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12 hours ago, Burbujista said:

The main difference between a luxury plot of land and an affordable plot of land is the price. The landowner just needs to realise that it’s not possible to build expensive housing because nobody will buy be able to afford it and he needs to price it in a way that developing is profitable somehow.

You can build smaller flats that sell for less, the question is how small can you get. 

What you can’t do is charge less than your input costs, the main one being the land the building sits on. 

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30 minutes ago, BorrowToLeech said:

You can build smaller flats that sell for less, the question is how small can you get. 

What you can’t do is charge less than your input costs, the main one being the land the building sits on. 

But the land doesn’t have a fixed price tag! Which was the point I made.

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8 hours ago, BorrowToLeech said:

Let’s hope the landowners don’t realise that and push the price up...

There is no shortage of land.....only land speculation.;)

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  • 312 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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