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Investors Snap Up Three Out Of Four Homes In Sa1


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http://www.thisissouthwales.co.uk/displayN...tentPK=11715837

'INVESTORS SNAP UP THREE OUT OF FOUR HOMES IN SA1 PROJECT

A Staggering three out of every four new homes being sold in Swansea's SA1 docklands scheme are going to investors, it has emerged. They are spending millions between them to buy up flats for future resale.

It means hard-pressed first-time house buyers are being squeezed out of the market for new homes.

A major agent acting for developers on some of the city's biggest projects today revealed 75 per cent of all their interest comes from investors rather than people looking to move into the properties themselves. Prices go from around £100,000 to close to £300,000. When finished the £200 million project will offer more than 1,000 new apartments and houses.

Today's revelation highlights the increasing interest of developers in the economic potential of Swansea but creates a further hurdle for many looking for their first property.

SA1 is the main focus area for the investors who are often buying two or even three properties at a time. But nearby St Thomas is also a hot spot, say experts.

Property company Knight Frank, which revealed the 75 per cent figure, is agent for many of the SA1 developments, as well as projects in the Marina's first phase and in Castle Buildings.

Spokesman Lauren Dawkins said today: "Our experience in Swansea so far is that most of our interest has been by investors.

"Swansea is perceived as the next hot-spot.

"Most of the developments are sold off-plan before they are even built, either to be rented or to be sold on. It is really a recognition of the confidence investors have in Swansea's potential."

However, one city property developer urged caution when interpreting the figures.

Paul Williams, director of property management company Flatfinders in Swansea, said: "In any project like this the developers are compelled to sell a proportion to investors off-plan, to help raise the money.

"By the time all the buildings are realised, I think there will be a lot more home owners living there. But for first-time buyers it is likely to be very difficult.

"Today a deposit could cost around £17,000, which they are unlikely to have and, even if they did, they would want to move in now and not wait two years for them to be completed."

James Hughes, a 26-year-old nurse who lives in a rented flat in The Grove, Uplands, Swansea, said he had hoped to buy in SA1 but added: "On my salary it is impossible.

"I did try for one scheme where the flats started at £95,000 but they were all gone by the time I joined the queue last autumn.'''

If anyone knows the links to the newspaper reports, links were published here earlier this year, about the same type of development where people who had paid desposits but who were now refusing to go through with the purchase, and are being sued by the property companies, can you please post them here. I feel a bear letter coming on for the post.

BTW, this SA1 development is the SAME development that the Post ran a story about, about 2 weeks ago, with one EA having a 'January Sale' as there had been so little interest in the properties. Come on, what is it!

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What sort of a journalist wrote this rubbish? Only a single "snapped up" in the entire article! Not nearly enough :P

God knows wher the expression comes from. Are crocodiles that choosey?

Though to be fair, the word "Hot spot" was quoted.

Still, lovely to see people (over) stretching themselves.

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