Muswell Hillbilly Posted April 13, 2005 Share Posted April 13, 2005 Like many bears on this forum, I often despair of the apparent slowness and inconsistency of the current price falls and begin to doubt whether a full-scale crash will really take place. Having just picked up the Evening Standard property paper, that somebody had left on the Tube, my faith is restored somewhat. The number of obscenely overpriced new-build flats coming on to the market, in ever grimmer locations, is quite astonishing. £177K (already reduced from £183K) gets you a one-bedroom flat in a tower block in -- wait for it -- Deptford! For £187K you can pick up a one-bedder in vibrant, er, Hither Green! A mere £195K gets you a one-bedroom flat in the very height of metropolitan sophistication that is Woolwich! Just who is going to buy these flats? And how many more similar new-build developments are going to come 'on stream' during the coming months? What's that about 'supply and demand'? By the way, here are some links: Deptford Hither Green Woolwich Quote Link to comment Share on other sites More sharing options...
mercsl Posted April 13, 2005 Share Posted April 13, 2005 (edited) I was on my way to B&Q the other day and accidently found myself at the Woolwich site so decided to take a sticky beak. New flats were standard sad shoe box about 250K for 500 sq foot. The Grand store was a conversion of a listed building, very loft apartment and well designed but at 300K for about 800 sq foot (+12K for parking) I could get something equivalent in Bermondsey,SE1 for that money and have some culture. They did not seem keen to offer me any incentives (not that I was intrested) saying they were selling fairly well. Outside the complex seemed like Mad Max territory so no wonder it would have its own shops and cinema. Oh the service charge was typically £1800 a year! Some while ago I visited Se8 in Deptford....pure horror with buildings named 'Manhattan' and painted bright colors which will look fab once the weather has its way with it. The swimming pool for the complex was about 1 metre wide and 15 metres long..more a trough than a pool. Also lots of the flats had a nice view of Docklands light rail from their window. Problem with new builds is you never know for a while what the true market price is of the flats or what that estimated service charge ends up being... Edited April 13, 2005 by mercsl Quote Link to comment Share on other sites More sharing options...
Grime- skint wouldbe ftb Posted April 13, 2005 Share Posted April 13, 2005 Silly. They may be nice flats inside, and are in proximity to the city, but whatever you do Deptford will always be Deptford! Unless you drive in and out in an armoured car you are going to have a pretty low life expectancy. I had friends once in a nice conversion looking onto the Thames but to reach it you had to pass through the Pepys Estate. Not something I'd recommend on foot. https://www1.indymedia.org.uk/en/2005/04/308358.html nice! Quote Link to comment Share on other sites More sharing options...
vicster Posted April 14, 2005 Share Posted April 14, 2005 The flats in Deptford (Manhattan - rofl!) are apparently "ideal for business, rest or play" which is a bonus I suppose, coz most flats are only useful for paragliding or taxidermy. Perhaps they mean the area rather than the flats themselves? They're also "only a short walk from...Greenwich and Blackheath". Question is - would you dare? Quote Link to comment Share on other sites More sharing options...
88Crash Posted April 14, 2005 Share Posted April 14, 2005 Just who is going to buy these flats? And how many more similar new-build developments are going to come 'on stream' during the coming months? What's that about 'supply and demand'?By the way, here are some links: Deptford Hither Green Woolwich <{POST_SNAPBACK}> Yes there are lots of similar new builds coming on stream at a town near you The big volume builders sell approx 5,000-15,000 homes per annum and they are not going to stop in 2005 (or 2006 for that matter) At some point in the near future 2 things will happen 1. Prices/salesand HPI cotinue and they sell them at todays prices 2. Prices drop further and they will sell them at lower prices There are NO OTHER OPTIONS They cannot sit around in denial like private sellers Persimmon,Wimpey,Barratt etc,can't suddenlysay "The markets gone a bit quiet,lets hang on to thisbillion pounds worth of houses for the next year and hope the market improves" I think many bulls underestimate the effect of these builders and their sales volumes This wasn't part of the equation in the last crash,so its an unknown quantity Quote Link to comment Share on other sites More sharing options...
schadenfreude Posted April 14, 2005 Share Posted April 14, 2005 New builds will serve to amplify any swing in the market. Reason: The length of the planning to build cycle puts the start date for most new builds coming onto the market back in 2003 when the news was universally bullish and there seemed (only seemed) to be a shortage of properties for the burgeoning BTL brigade. Developers responded by bringing on stream myriads of new build projects. This is typical in any cyclical market (semi-conductors, commodities, refining, etc) and as there is no central plan to match supply and demand an overshoot is almost inevitable. The net result today is a wave of capacity coming to completion just as the market moves from stall to decline- hastening the crash. Quote Link to comment Share on other sites More sharing options...
Dicky Posted April 14, 2005 Share Posted April 14, 2005 Like many bears on this forum, I often despair of the apparent slowness and inconsistency of the current price falls and begin to doubt whether a full-scale crash will really take place.Having just picked up the Evening Standard property paper, that somebody had left on the Tube, my faith is restored somewhat. The number of obscenely overpriced new-build flats coming on to the market, in ever grimmer locations, is quite astonishing. £177K (already reduced from £183K) gets you a one-bedroom flat in a tower block in -- wait for it -- Deptford! For £187K you can pick up a one-bedder in vibrant, er, Hither Green! A mere £195K gets you a one-bedroom flat in the very height of metropolitan sophistication that is Woolwich! Just who is going to buy these flats? And how many more similar new-build developments are going to come 'on stream' during the coming months? What's that about 'supply and demand'? By the way, here are some links: Deptford Hither Green Woolwich <{POST_SNAPBACK}> Had a friend who lived in Deptford, he lived above a shop and paid £200 pcm for 3 sharing, the place is the pits, whilst helping him trying to start his car a local youth rode past on his bike and offered to burn it for £50 if he wanted to claim on the insurnace. £177K for a 4 bed detached in Deptford would be taking the p1$$. Quote Link to comment Share on other sites More sharing options...
Culpability Brown Posted April 14, 2005 Share Posted April 14, 2005 (edited) A slow-to-start crash does not mean no crashJust be patient. The market is way overvalued, and incomes are not rising. Reality is setlling in. These important downturns take time, from historic peaks <{POST_SNAPBACK}> Spot on DrB. Pressure is growing and we are at the top of the rollercoaster now. It's that bit where time stands still and you hold your breath frightened yet excited. Wait for it. Wooooooooooooohhhhhhhhhhhhhhhhhhhhhh! Edited April 14, 2005 by Culpability Brown Quote Link to comment Share on other sites More sharing options...
dogbox Posted April 14, 2005 Share Posted April 14, 2005 Silly. They may be nice flats inside, and are in proximity to the city, but whatever you do Deptford will always be Deptford! Unless you drive in and out in an armoured car you are going to have a pretty low life expectancy. I had friends once in a nice conversion looking onto the Thames but to reach it you had to pass through the Pepys Estate. Not something I'd recommend on foot.https://www1.indymedia.org.uk/en/2005/04/308358.html Its all too easy to dismiss potentially up 'n' comming areas. I recall bearish types dismissing parts of Islington that went on to experience terrific price growth. Im sure we all have such memories. Luck favours the brave - couldnt resist that cliche guys. Quote Link to comment Share on other sites More sharing options...
gilf Posted April 14, 2005 Share Posted April 14, 2005 Its all too easy to dismiss potentially up 'n' comming areas.I recall bearish types dismissing parts of Islington that went on to experience terrific price growth. Im sure we all have such memories. Luck favours the brave - couldnt resist that cliche guys. <{POST_SNAPBACK}> It's a dump mate, plain and simple. You can talk about Islington all you like. It's basically the spread of nicer areas in to not so nice ones. It was inevitable that due to the cost of property in London the spread would head into the south east area. Personally I have been happy with people thinking south east london is a dump because the better parts (and there are a fair few) have been kept at a lower price because of it. Quote Link to comment Share on other sites More sharing options...
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