Gone baby gone Posted September 4, 2006 Share Posted September 4, 2006 Here's the Baltic Quay Penthouse, purchased back in 2004 for £550k, Today going to auction with a guide of £350k! Has the bubble finally burst? Certainly NO light at the end of the tunnel, remember rising unemployment, rising interest rates, ever increasing levels of debt, public sector deficits and a widening trade deficit!! Things are going to get very messy, so glad I'm sitting on the fence! Time for a remake of Repo man set on Tyneside? Quote Link to comment Share on other sites More sharing options...
dnd Posted September 4, 2006 Share Posted September 4, 2006 (edited) Sorry, I can't believe a thread about "newcastle-upon-tyne" has received 61,000 hits... edit:i just bumped it upto 62,000 Edited September 4, 2006 by dnd Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted September 4, 2006 Share Posted September 4, 2006 Sorry, I can't believe a thread about "newcastle-upon-tyne" has received 61,000 hits... edit:i just bumped it upto 62,000 It's the place to be... better snap up your BTL 1 bed micro-flat before it's too late... Quote Link to comment Share on other sites More sharing options...
njwd Posted September 4, 2006 Share Posted September 4, 2006 (edited) Not sure if this one has already been posted. Up for auction for £160,000+ http://www.eigroup.co.uk/auctioneers/templ...=1&l=425956 Or buy it now for £209,950 http://www.halifaxhomefinder.co.uk/HxHfDet...ref=78008541000 Bought in 2004 for £295,000!!! Half of me feel’s sorry for the poor bugger who has lost a fortune and the other half gets a sick satisfaction that something is finally happening with this crazy market. Some days I wonder if I’m doing the right thing not buying, today is not one of those days. To be honest I might have been tempted to make a bid if it was not what appears to be a prefab building. Another interesting thought is the owners of the 5 other 3 storey townhouses in Knightsbridge Court (which also cost nearly £300K) will witness a precedent being set on the values of their properties. Extrapolate that to the ~£200K 2 bed flats potentially seeing that a 3 storey house has also de-valued their properties in comparison. I believe Knightsbridge Court alongside The Bar are the two pioneers in what can be expected in other developments of the same nature. Edited September 4, 2006 by njwd Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 4, 2006 Author Share Posted September 4, 2006 Another interesting thought is the owners of the 5 other 3 storey townhouses in Knightsbridge Court (which also cost nearly £300K) will witness a precedent being set on the values of their properties. Extrapolate that to the ~£200K 2 bed flats potentially seeing that a 3 storey house has also de-valued their properties in comparison. I believe Knightsbridge Court alongside The Bar are the two pioneers in what can be expected in other developments of the same nature. I like the way you're thinking, this could be the beginning of the END! Quote Link to comment Share on other sites More sharing options...
njwd Posted September 4, 2006 Share Posted September 4, 2006 It seems as if there is some sort of movement downwards at the moment, particularly in new-ish build flats. In the hectic final swoop for developers to make as much money as possible a number of developments have been thrown up hastily. They tend to be in slightly worse areas and have that air of slightly lower quality. All of these new builds, all shiny and fresh, being bought at a premium because of their image and newness. Think in a year or so time, when the sheen has worn off and these places begin to look a little grubby. A saturation of 'executive city lifestyle' apartments. If the housing market dips, the older established properties in good areas will be the last to suffer. I believe that the following developments will be the first to show signs of downwards movement in prices. Some are already witnessing reductions, as I'm sure most are already aware of. The Bar Knightsbridge Court Baltic Quays Ochre Yards Curzon Place Lime Sq. Some of these developments have apartments that still remain unsold. Sanderson Young list quite a few of these. I pity the poor souls that have bought into the marketing of these places. Lest we forget the beauty queen's "free" Mini Cooper with the 2 year search for her perfect Lime Sq. apartment last year. Quote Link to comment Share on other sites More sharing options...
undersupply Posted September 4, 2006 Share Posted September 4, 2006 Ochre Yards losing money already Ochre Yards (Willbrook House) (Shed?!!!) Image Harbinger of doom/paranoid delusionism/element of truth - you decide - comments please ! Losing money already??? Gaining a grand in a day Quote Link to comment Share on other sites More sharing options...
Designer1234 Posted September 5, 2006 Share Posted September 5, 2006 Not sure if this one has already been posted. Up for auction for £160,000+ http://www.eigroup.co.uk/auctioneers/templ...=1&l=425956 Or buy it now for £209,950 http://www.halifaxhomefinder.co.uk/HxHfDet...ref=78008541000 Bought in 2004 for £295,000!!! Yes, it was mentioned before in post #716, but still a good example. Just checked this morning on rightmove - 13 more properties for sale on the Knightsbridge Court development! A similar number at the copy-cat Collingwood Mews site half a mile down the road. I blame the developers. They've already got their money for these 3-storey shoeboxes. Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 5, 2006 Author Share Posted September 5, 2006 A similar number at the copy-cat Collingwood Mews site half a mile down the road. Where? I take it you mean Clarendon Mews, what about Grove Park? Loads For Sale there too! Quote Link to comment Share on other sites More sharing options...
Designer1234 Posted September 5, 2006 Share Posted September 5, 2006 I take it you mean Clarendon Mews No, Collingwood http://www.rightmove.co.uk/viewdetails-779...=4&tr_t=buy Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 5, 2006 Author Share Posted September 5, 2006 (edited) No, Collingwood http://www.rightmove.co.uk/viewdetails-779...=4&tr_t=buy Sorry, I know where you mean now, another quality development from Adamson Developments! Edited September 5, 2006 by neilrich Quote Link to comment Share on other sites More sharing options...
undersupply Posted September 5, 2006 Share Posted September 5, 2006 It seems as if there is some sort of movement downwards at the moment, particularly in new-ish build flats. In the hectic final swoop for developers to make as much money as possible a number of developments have been thrown up hastily. They tend to be in slightly worse areas and have that air of slightly lower quality. All of these new builds, all shiny and fresh, being bought at a premium because of their image and newness. Think in a year or so time, when the sheen has worn off and these places begin to look a little grubby. A saturation of 'executive city lifestyle' apartments. If the housing market dips, the older established properties in good areas will be the last to suffer. I believe that the following developments will be the first to show signs of downwards movement in prices. Some are already witnessing reductions, as I'm sure most are already aware of. The Bar Knightsbridge Court Baltic Quays Ochre Yards Curzon Place Lime Sq. Some of these developments have apartments that still remain unsold. Sanderson Young list quite a few of these. I pity the poor souls that have bought into the marketing of these places. Lest we forget the beauty queen's "free" Mini Cooper with the 2 year search for her perfect Lime Sq. apartment last year. Yes the facts back you up http://www.houseprices.co.uk/e.php?q=+Lime...1+2BN+&n=10 Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 5, 2006 Author Share Posted September 5, 2006 Yes the facts back you up http://www.houseprices.co.uk/e.php?q=+Lime...1+2BN+&n=10 Congratulations, so you've found the one and only Quayside apartment to have appreciated in value this year, plenty fools still about. Quote Link to comment Share on other sites More sharing options...
Smarter than the average bear Posted September 5, 2006 Share Posted September 5, 2006 (edited) Congratulations, so you've found the one and only Quayside apartment to have appreciated in value this year, plenty fools still about. I'm surprised to see such the drops in the price being asked for a few of these new apartments — that most here noisily and repeatedly proclaim they wouldn't want to live in — being greeted with such glee. Surely, rather than getting so excited, the news should be being greeted with a big "so what"? If they're suddenly more affordable, does that also make them suddenly more inhabitable? Once again, I'm confused by another apparent inconsistency in the bearish ideology. Edited September 5, 2006 by Smarter than the average bear Quote Link to comment Share on other sites More sharing options...
SpoonUnit Posted September 5, 2006 Share Posted September 5, 2006 Surely, rather than getting so excited, the news should be being greeted with a big "so what"? If they're suddenly more affordable, does that also make them suddenly more inhabitable? You have got to be joking. A big "so what"?? This website is called housepricecrash! The clue is in the name! So, if we see a few houses/flats whatever crash in price we are obviously going to call attention to it. Do you go onto mumsnet and admonish everyone on the forums there for banging on about babies all the time? Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 5, 2006 Author Share Posted September 5, 2006 I'm surprised to see such the drops in the price being asked for a few of these new apartments It's okay, I'm sure you are surprised as it was you who expected all vendors to simply sit tight. That's why there won't be a "housepricecrash". Sure £100K might be all it's worth or all you can afford (or both), but the vendor obviously doesn't need or want to sell at that price, or indeed anything close to it. So they won't. They'll sit tight. Repeat scenario nationwide. Result: no crash in prices. If they're suddenly more affordable, does that also make them suddenly more inhabitable? No, I believe that posters including myself are simply highlighting the evidence, prices are in fact falling. What we are seeing now is just the beginning, the tip of the iceburg! Once again, I'm confused by another apparent inconsistency in the bearish ideology. I'm not confused, no inconsistency in what I'm reading and it's you who proclaims to be smarter than the average bear. Quote Link to comment Share on other sites More sharing options...
njwd Posted September 5, 2006 Share Posted September 5, 2006 Yes the facts back you up http://www.houseprices.co.uk/e.php?q=+Lime...1+2BN+&n=10 And your point is? I said some are witnessing reductions, which they are. I also said some remain unsold, which they are. Check out Sanderson Young and Lime Sq Discounts I think it is pertinent to comment on these, as they are substantial slice of Newcastle's housing stock. Sure, they aren't my cup of tea, but if the impact effects the market, I am damn sure I'll be paying attention to them. Look further than the end of your nose. These impact market sentiment in Newcastle and also introduce negative equity, something rarely seen in the last 10 years. Quote Link to comment Share on other sites More sharing options...
undersupply Posted September 5, 2006 Share Posted September 5, 2006 And your point is? I said some are witnessing reductions, which they are. I also said some remain unsold, which they are. Check out Sanderson Young and Lime Sq Discounts I think it is pertinent to comment on these, as they are substantial slice of Newcastle's housing stock. Sure, they aren't my cup of tea, but if the impact effects the market, I am damn sure I'll be paying attention to them. Look further than the end of your nose. These impact market sentiment in Newcastle and also introduce negative equity, something rarely seen in the last 10 years. Thanks for posting the link to the discounts, but the prices don't seem like discounts to me weighing in at well over £200 per square foot, before you spend £12000 for your parking space. I remember when they were giving away the ahem FREE mini, the cheapest 2 bed was £200k, sorry £199950 and I think that included a parking space. Now the cheapest 2 bed is £180k if you take a parking space but you don't get your mini It is common for developers to offer pretend discounts on overvalued new build prices they have already dreamed up for the novice investors wellbeing. Quote Link to comment Share on other sites More sharing options...
njwd Posted September 5, 2006 Share Posted September 5, 2006 ... before you spend £12000 for your parking space. Of course that parking spot is also 'discounted' by 20% £15K for a parking spot at the Ouseburn. The mind boggles. I was amazed when I first found out that the parking spaces for 55 degrees were £10K. That's inflation for you. Quote Link to comment Share on other sites More sharing options...
Smarter than the average bear Posted September 6, 2006 Share Posted September 6, 2006 Most of these car parks (55 Degrees North excepted) are actually owned by the City of Newcastle and £12K is the going rate to buy a space. Being charitable to the City, maybe it's part of their policy to discourage car ownership. In fairness, if we are following the continental model of more people living in city centre apartments, we have to give up our distinctly un-continental obsession with cars and parking! Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 6, 2006 Author Share Posted September 6, 2006 How to loose £50k in less than two years........ These went on sale 'from £152k' for a one bedroom, one actualy SOLD at auction last month for £104k! Pattinson.co.uk Auction Results - August 2006 Since these went on sale at the beginning of 2005, big banner draped down the side said 'selling fast', the developer has only managed to sell 62 of the 143 apartments, of the 62 listed as completed only 3 SOLD for less than £160k! Quote Link to comment Share on other sites More sharing options...
Designer1234 Posted September 6, 2006 Share Posted September 6, 2006 How to loose £50k in less than two years........ Good reporting neilrich. I don't suppose you or anyone else know which flat number this was? Have you noticed that the ground floor commercial space under "the Bar" or is it "St Jame's Gate" has still to be developed. This means anyone moving in today probably has at least a year of construction work to endure once this is sold. Also the entire adjacent office block appears to be still unlet. This price is a good correction but I guess it should still drop to around 60K for a one-bedder based on local incomes. To give readers some indication of values, I bought a new 4-bed townhouse (which includes Garage and gardens) in Gateshead for £84K in 2001 - this was one of the most expensive houses in the area at the time and I was worried I had paid too much! I also expect that I could have obtained a discount off the asking price at the time as the market was slow. A year later, Persimmons were banging out 2 bed flats for 45K in Windmill Way on the Tyne Views estate also in Gateshead. These were quickly sold on up to around 115K but are not moving now, even at 100K. It just goes to show how cheap houses can be built. Bricks and labour costs have not gone up 300% since 2001. It is the builders who are largely to blame. The true construction cost of each flat in the Bar is probably something like 30K when you take economies of scale into account (ie once you've done the foundations, each extra floor and flat is just a few steel beams, a concrete floor, some stud walls and a cheap kitchen and bathroom suite). Quote Link to comment Share on other sites More sharing options...
neilrich Posted September 6, 2006 Author Share Posted September 6, 2006 I don't suppose you or anyone else know which flat number this was? I don't but I guess we shall find out when the information is produced by the land registry. Have you noticed that the ground floor commercial space under "the Bar" or is it "St Jame's Gate" has still to be developed. This means anyone moving in today probably has at least a year of construction work to endure once this is sold. Also the entire adjacent office block appears to be still unlet. The same can be said for other developments such as City Quadrant and St Ann's Quay. Bricks and labour costs have not gone up 300% since 2001. I heard recently that in Cities such as Southampton wage rates for skilled construction workers have fallen by 50% due to the influx of skilled migrants from Eastern Europe. Quote Link to comment Share on other sites More sharing options...
Smarter than the average bear Posted September 6, 2006 Share Posted September 6, 2006 Have you noticed that the ground floor commercial space under "the Bar" or is it "St Jame's Gate" has still to be developed. This means anyone moving in today probably has at least a year of construction work to endure once this is sold. Also the entire adjacent office block appears to be still unlet. Last time I was at Jury's it appeared that most of the office accomodation at The Bar/St James Gate had been taken (by a legal firm, and the NHS). The same can be said for other developments such as City Quadrant... Actually, no. While the street-level retail and lesiure units are unoccupied, no one living at City Quadrant has any further "construction work to endure". In fact, the whole Waterloo Square development (City Quadrant, Central Lofts, Holiday Inn, Dance City, Grainger Town car park) has been complete for months. Quote Link to comment Share on other sites More sharing options...
undersupply Posted September 6, 2006 Share Posted September 6, 2006 (edited) Last time I was at Jury's it appeared that most of the office accomodation at The Bar/St James Gate had been taken (by a legal firm, and the NHS). Actually, no. While the street-level retail and lesiure units are unoccupied, no one living at City Quadrant has any further "construction work to endure". In fact, the whole Waterloo Square development (City Quadrant, Central Lofts, Holiday Inn, Dance City, Grainger Town car park) has been complete for months. Seamaster, r u smarter than the average bear? Edited September 6, 2006 by undersupply Quote Link to comment Share on other sites More sharing options...
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