Property trends: ‘the best sells, the rest sticks’
Wednesday, June 11, 2008
Owners of poorly maintained homes or those in scruffy neighbourhoods must slash their prices by as much a fifth if they want to find a buyer. But, despite the downturn, grander properties in most upscale locations are still selling for more their original asking price, according to research from Savills conducted for The Times.
The only exception to this ‘the best sells, the rest sticks’ trend, is those properties between £1 million to £2 million in London’s smartest postcodes, favoured by City executives.
Job losses in the Square Mile and Canary Wharf mean that any owner who needs to move quickly must accept a price at least 6 per cent lower than at the height of the boom in 2007.
Simon Edwards of Savills, Hampstead said: “A year ago you could put a house on the market for £1 million and sell it for £1.05 million. Now it would probably make £950,000. That £100,000 difference effectively means a 10 per fall in prices.”
‘Blighted’ homes, those that are unmodernised, or in lower grade locations in all parts of England are changing hands at prices 6 per cent to 20 per cent lower than a year ago.
This would suggest that the market has fallen more sharply than the major property prices indices indicate. Halifax figures out yesterday reported a 3.8 per cent since May 2007.
However, some sectors are relatively immune, with what Savills terms ‘best in class’ homes in all price brackets still buoyant. If you want to dispose of a £2 million-plus property in the Midlands or the North, you should find a ready buyer and expect to pocket more cash than a year ago.
Original article here.
The only exception to this ‘the best sells, the rest sticks’ trend, is those properties between £1 million to £2 million in London’s smartest postcodes, favoured by City executives.
Job losses in the Square Mile and Canary Wharf mean that any owner who needs to move quickly must accept a price at least 6 per cent lower than at the height of the boom in 2007.
Simon Edwards of Savills, Hampstead said: “A year ago you could put a house on the market for £1 million and sell it for £1.05 million. Now it would probably make £950,000. That £100,000 difference effectively means a 10 per fall in prices.”
‘Blighted’ homes, those that are unmodernised, or in lower grade locations in all parts of England are changing hands at prices 6 per cent to 20 per cent lower than a year ago.
This would suggest that the market has fallen more sharply than the major property prices indices indicate. Halifax figures out yesterday reported a 3.8 per cent since May 2007.
However, some sectors are relatively immune, with what Savills terms ‘best in class’ homes in all price brackets still buoyant. If you want to dispose of a £2 million-plus property in the Midlands or the North, you should find a ready buyer and expect to pocket more cash than a year ago.
Original article here.
Labels: House market, House prices survey, property prices, Savills
