Potato Wharf, Castlefield
Total Page:16
File Type:pdf, Size:1020Kb
Research Report Jones Lang LaSalle Incorporated Manchester Residential Market August 2017 Manchester Potato Wharf, Castlefield Supporting Copy Contents Why Manchester? ............................................................................................................................................................. 3 Why Castlefield? ............................................................................................................................................................... 5 Urbanisation & Growth ...................................................................................................................................................... 7 Employment ...................................................................................................................................................................... 9 Demographic Overview ................................................................................................................................................... 11 Universities ...................................................................................................................................................................... 12 Transport Connectivity .................................................................................................................................................... 13 Retail Provision ............................................................................................................................................................... 14 Population Growth & Housing Shortfall ........................................................................................................................... 15 House Price Performance ............................................................................................................................................... 16 Sales Transaction Volumes ............................................................................................................................................ 19 Rents ............................................................................................................................................................................... 20 Conclusion....................................................................................................................................................................... 22 COPYRIGHT © JONES LANG LASALLE IP, INC. 2017. All Rights Reserved 2 Manchester Residential Market The epicentre of the industrial revolution is enjoying a residential revolution. The UK’s second city is the northern focal point of the increasing trend towards urbanisation, with a rapidly rising population drawn in by attractive house prices and a rich cultural and sporting history. Why Manchester? Manchester has grown from a small town to the UK’s undisputed second city. This growth was initially spurred by the industrial revolution, which saw Victorian-era Britain at the forefront of global manufacturing and innovation, with cities leading the way. Manchester has been dubbed ‘the world’s first industrial city’, and at the centre of this was Castlefield, now an Urban Heritage Park. Manchester has remained a focal point of business and industry, and has also become a hub of cultural and sporting excellence. The city has long had a strong connection with music, with The Smiths and Joy Division among the country’s preeminent artists during the 1970’s. This boomed during the 1990’s with the ‘Madchester’ movement, led by bands such as Oasis, The Stone Roses and The Happy Mondays, receiving global recognition. Manchester remains at the forefront of the global music scene, with a number of major venues including the Manchester Arena and the O2 Apollo, as well as the large sports stadiums, regularly hosting international artists. There are also many theatres and museums, showcasing the city’s rich cultural offering. Manchester is home to a number of professional football clubs, including two of the world’s biggest in Manchester City and Manchester United – who were listed by Forbes as the most valuable football club in the world in 2017. Manchester hosted the 2002 Commonwealth Games, with the velodrome continuing as home to the National Cycling Centre and Team GB’s record-setting track cycling team. Old Trafford cricket ground, home of Lancashire CCC, regularly stages international matches, and there are a number of professional rugby clubs located in the area. Modern industry thrives in Manchester too. MediaCity UK has become the country’s centre of broadcast media, and it is the UK’s largest financial and professional services centre outside London. Bank of New York Mellon has set up one of three global hubs in Manchester, while all of the ‘Big 4’ professional services firms (PwC, Deloitte, EY, and KPMG) have a strong presence. The Co-operative Group is headquartered in Manchester and is anchoring the city’s largest development scheme, NOMA, with the company’s new headquarters One Angel Square as its centrepiece. Clusters have developed around these major occupiers, further strengthening the local economy. Manchester is the lynchpin of the UK Government’s proposed ‘Northern Powerhouse’ project, which aims to stimulate further commercial growth with a number of key infrastructure and development projects, including HS2. COPYRIGHT © JONES LANG LASALLE IP, INC. 2017. All Rights Reserved 3 Figure 1: Key events in Manchester’s recent history 1985 •Start of the modern Manchester music movement, dubbed ‘Madchester’ 1986 •Sir Alex Ferguson appointed Manchester United manager 1992 •First phase of metrolink operational, linking Bury and Altrincham to city centre and Piccadily station 1995 •Oasis release globally acclaimed second album, (What’s the Story) Morning Glory? 1998 •Sir Howard Bernstein appointed Cheif Executive of Manchester City Council 2002 •Manchester hosts the Commonwealth Games, with world-class facilities built 2004 •University of Manchester formed by historic merger, creating largest campus university in the UK 2011 •BBC moves a significant part of its operations to MediaCity UK in Salford 2014 •Chancellor George Osborne announces “the need for a Northern Powerhouse” 2015 •Chinese President Xi Jinping visits Manchester and announces direct flights to Beijing 2016 •Jose Mourinho and Pep Guardiola start as managers of Manchester United and Manchester City, respectively 2016 •Northern Powerhouse strategy announced in Autumn statement, including major infrastructure investment 2017 •Andy Burnham elected first new mayor as part of the regional devolution agenda In addition to Manchester’s industrial and cultural heritage, the city benefits from excellent transport links and retail provision. There are also four universities with a high student population and international appeal. As a result, Manchester has performed very strongly in economic and demographic terms in recent years, with significant increases in population, employment and output. Housing market outperformance has followed, with sales prices and rental values rising markedly. JLL forecast this trend to continue, with average house prices expected to increase by 28.2% in 2017-21, the highest forecast for any city in the UK. Rental values are forecast to rise 20.5% in the same period. COPYRIGHT © JONES LANG LASALLE IP, INC. 2017. All Rights Reserved 4 Why Castlefield? Manchester was a hotbed of heavy manufacturing in the 1800s, with a number of mills and factories supported by the city’s extensive canal network, the hub of which was Castlefield. Many of the historic buildings remain, as do the waterways, and Castlefield continues to be a thriving quarter of the modern city centre, with a rapidly developing residential market built around relaxed waterside living. Figure 2: Manchester City Centre – residential submarkets Castlefield is adjacent to St. John’s / Deansgate, which is considered to be Manchester’s prime residential market due to its proximity to the CBD. Castlefield is located conveniently for many of Manchester’s cultural, sporting and commercial hotspots, with the nearby Museum of Science and Industry in particular celebrating the area’s industrial heritage. Castlefield is well served by Deansgate station, with 2 trains per hour to Manchester Oxford Road (2 minute duration) and 3 trains per hour to Manchester Piccadilly (6 minute duration), with fast onward connections to the rest of the country. The Deansgate / Castlefield metrolink stop sees a frequent service, linking the area to the wider Manchester network. COPYRIGHT © JONES LANG LASALLE IP, INC. 2017. All Rights Reserved 5 Figure 3: Potato Wharf development with key local hotspots The proposed Highline development in Castlefield will see a New York-style raised park, as well as a number of independent shops, hotels, workspaces and television studios. The 1830’s warehouse at the Museum of Science and Industry will be transformed into a major exhibition space, with the elevated walkway created around it. There will also be cultural and performance space. COPYRIGHT © JONES LANG LASALLE IP, INC. 2017. All Rights Reserved 6 Urbanisation & Growth In addition to Manchester’s cultural appeal, there are significant demographic trends, which will continue to support sustained growth. Across the UK there is an ongoing pattern of urbanisation, as an increasing proportion of the population move to urban areas, with major cities growing at a fast pace. Manchester is the dominant urban area in the north of England,