New Build Flat prices- are they having a laugh?

[alicat_26 10]

Ive just seen listings for the new flats down near the wicker/castlemarket area at blonk street) the big tower that looks like it's being built from shiny blue lego bricks!

 

Price of a 1 bed flat = £140K

Price of a 2 bed flat = £220K

 

WTF!! You can get a 3 bed house in pricey suburbs of Sheffield for £220K.

 

Who is going to pay that?! And for WHAT? For a lovely view of the Ford dealership perhaps - the dirty river, or maybe a more lively aspect of the fried chicken shops on the Wicker?

 

I really do feel that all these new 'luxury city living' (UGH! ) flats are going to be the slums of tomorrow.

[muddycoffee 10]

That's nothing. There are far more expensive flats in town which have all been sold.

 

Don't get me wrong I much prefer living in the suburb of woodseats in a house, but when I was a student it would have been much better to live in the centre close to all the racket and near enough to walk to lectures every day.

[Alastair 12]

I can't see these places selling now.

 

Have any Sheffield developments been can canceled yet? Most of these new flat developments depend on buy to let landlords and that market is dead.

[alicat_26 10]

Muddy Coffee

 

You're right about students - I once lived at the Victoria halls flats near devonshire green - it was great to be right next to town and within walking distance of uni. However, if people are going to buy these new developments for buy-to-let to students, who can afford to rent them out? They'll probably be asking at least £550 per month! As you say the buy-to -let market has totally gone down the pan - unless they can get any buyers from out of the area? Although still doubtful given the current housing market.

[sham71 10]

they won't lower the asking prices, but they will offer paid deposits, stamp duty, cashback etc.

 

so the price IS lower, but the figures that go to the land registry are maintained.

 

its all a bit of a con really

[Alastair 12]

That's the first thing that the developers will do to sell, but in the end the actual price will drop. If this continues so that the developers are going to lose money then they will cancel the development.

 

It's already happened in Leeds-

 

Wimpey cancel Leeds City Centre Development

 

£100m development of apartments, retail, restaurants and office space cancelled.

 

Developers pull out of proposed £100m development of Leeds city centre apartments.

George Wimpey City (GWC)decision to cancel the proposed Green Bank development situated on Globe Road adjacent to the river Aire has led to fears the housing market is in for a rough ride as a lack of confidence hit high-rise/apartments market.

 

800 apartments were planned as part of a schemme to develop a £1bn Leeds West End.

 

 

http://www.businessesforsaleonline.com/product.php?cat_id=17&sub_id=102&pro_id=133

[Phylis 10]

There are very few developments which have been cancelled. The majority have been by small developers feeling the pinch. Most medium/big scale developers are still building and have developments in the pipe line. Trust me, my desk is overflowing with residential developments at the design stage.

[Korl101 10]

Alastair, I have to take you up on one point, the buy to let market is not dead. As someone who is in the BTL market and knows others, if you have the right property and target the right people your business will do quite well, even though there is a cool down in the market place, most BTL's are doing it for the long term and not to try and see quick profit. The housing market is cyclic and we will see both good and bad times over the next 10-20-30 years.

 

If house prices see a downturn, I will be looking to pick up the right property, this may even mean buying some of the flats you mention. Oh and one other thing, most of the new developments do not rely on the BTL market, they rely on selling the property no matter whether it's a BTL or private owner (talk to a few developers).

 

One final point, more accomodation in Sheffield Centre and around the edges is specifically for the student market, so there should over time be a drift away from the likes of Walkley and Crookes etc.

[lobster 54]

the next problem is that some major lenders will now not consider lending at all on new build flats or have very strict criteria . i know of a new build sold £170, mortgage lenders val £134

[jl-heating 10]

a lot of the major building companies are selling off there land reserves and laying staff off even as we speak... one major company laid 70 off last month .. hence the rise in trades logging on the forum .. (just my opinion)

 

we are in for a long slog i am afraid. i would say to anyone save and not spend at the min. see in 6 months how the market is....

 

i would also agree the BTL will still boom as more people are failing getting a mortgage and are being pushed into lets short term.

[TeaFan 10]

The people who have invested in these flats have come in at the end of the city centre apartment bubble and will get royally shafted. City apartment prices in Manchester have fallen by around 30% in little over a year.

 

800 apartments to come at Park Hill - I'll put a spare £50 aside for a couple

[The otter 10]

And when you consider all the internal walls are plasterboard and the pipe work mainly plastic and prone to leaking its even more obsurd.

 

Give me a solid built house any day