“Coronavirus Stuns the Market!” LIVERPOOL RESIDENTIAL UPDATE
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“Coronavirus stuns the market!” LIVERPOOL RESIDENTIAL UPDATE QUARTER 1 2020 Twitter.com/cityresidential Facebook.com/cityresidential @cityresidential.co.uk City Residential City Residential is Liverpool’s award winning, premier residential agent specialising in city living in Liverpool and across the Northwest. In addition to having one of the largest residential teams in Liverpool we are also recognised as one of the leading northwest residential specialists with our consultancy services respected throughout the industry. Operating from Liverpool’s most prominent and modern showroom we offer a full range of residential services across the Merseyside and Greater Manchester regions: • Sales • New Build Sales/advice/consultancy • Lettings/Management • BTR (Build to Rent) advice/consultancy and management • Bulk Deals & Investment Properties • Land/Development sales and acquisitions For further information contact Alan Bevan on 0151 231 6100 or 07970 498187 [email protected] www.cityresidential.co.uk RESIDENTIAL SALES The effect the coronavirus Covid 19 has had/will have on the market Market Activity The activity in sales market in the city was always going to slow down dramatically when on 23 rd March Boris Johnson ordered all non-essential shops/business (including estate/letting agents) to close down as part of his overall UK lockdown. Despite this announcement there was a hope/belief that the market could continue to operate remotely which is something we have logically decided to do. The government’s announcement/further guidance a couple of days later effectively “slammed the brakes” on all market activity. They made it very clear that people should delay any moves until the lockdown/crisis is over and that any new sales/viewing activity should stop. Although the government appeared slightly more relaxed over empty properties it became obvious very quickly that even deals where there we no chain/unoccupied properties that getting the transaction completed would prove extremely difficult. In the four weeks since the lockdown we have seen activity levels drop off substantially as you would expect. Although we have the ability to offer virtual/video viewings it is very difficult for potential viewers to fully appreciate a property’s pros/cons without an actual physical viewing. On a positive note we are still getting a steady flow of interest from potential buyers and are agreeing sales. The existing sale pipeline has actually held together better than we would have hoped and whilst some solicitors/conveyancers are happy to progress the legals some are not. Logically nobody is exchanging contracts on sales until they have further clarity on when they will be able to complete and move in. Supply/demand Although we will discuss the challenges of the rental sector later in the report there is no doubt that the challenges faced will encourage many landlords to sell up at some point over the coming months/years. This will logically have an effect on increasing the supply of “investment” style property. We don’t believe that there will be a substantial increase in owner occupiers selling unless their own potential financial situation has deteriorated due the crisis. The one positive note on supply is that the crisis will probably reduce the amount of stock that will get delivered through new developments in the city over the coming months/years as these schemes become non-viable. There will be an impact on demand from the crisis, not just in the short term. It is likely that some investors/owner occupier’s personal financial situations may well be hit which is likely to inhibit their willingness/ability to buy property. The availability of finance (discussed later) particularly at higher LTV rates has already been hit and may never get back to the level seen recently, even with rock bottom base rates. Saying that there are still some very good deals in the market as long as the buyer has a substantial deposit. As highlighted, we are likely to see cash rich buyers enter the market looking for any bargains from distressed sellers. Overall though we expect the demand for city centre property to be driven by how the city will look once the crisis is well and truly over. Should the city recover strongly (bars, restaurants, theatres survive and prosper) then there will still be a good demand to live here. Prices It is obviously too early into this crisis to predict what will happen to prices in the city centre. There is no doubt there will be sellers that are keen/more desperate to sell who will accept offers beneath what their property is genuinely worth. There will of course be some buyers who look to take advantage of the challenges to try and buy at discounted prices particularly from landlords who have been harder hit by the crisis than maybe owner occupiers. Our overall feeling at present is that we are likely to see a softening in prices from those buyers who wish/need to sell especially if they are looking to complete a purchase by the end of 2020. Logically with restrictions in marketing/viewing etc there are going to be less potential buyers until the crisis is formally over. RESIDENTIAL SCHEMES for SALE 0151 231 6100 ----------------------------------------------------------------------------------------------------------------- PARK CENTRAL – LIVERPOOL WATERS No of Apartments/houses: 129 Apartments Type: 1 and 2 bed apartments Address: Central Dock, Liverpool Waters, Liverpool Prices From/To: From SOLD OUT Showhome/apartment: To be announced shortly ------------------------------------------------------------------------------------------------------------------- PERCY PLACE No of Apartments/houses: 6 houses Type: 4 bed houses Address: Percy Street, Canning, Liverpool, L8 7SE House Prices From : £464,950 Showhome/apartment: Via Appointment ------------------------------------------------------------------------------------------------------------------- ALEXANDRA DRIVE No of Apartments/houses: 14 apartments Type: 1 and 2 bed apartments – conversion Address: 28 Alexandra Drive. Liverpool, L17 8YE Prices From: £124,950 Showhome/apartment: Via Appointment ------------------------------------------------------------------------------------------------------------------- WIRRAL WATERS No of Apartments/houses: 347 homes Type: 2 and 3 bed townhouses Address: Dock Road, Birkenheard/Wallasey, CH41 1DP Prices From: TBC/register now Showhome/sales office: Autumn 2020 ADVERTISEMENT Completions City Centre Prices and Completions from ZOOPLA Current average value £150,781 L1 Sales Price Paid Change 3 months 3 £107,766 £960 0.64% 6 months 38 £119,758 £2,215 1.49% 12 months 78 £122,898 £2,985 1.97% Current average value £165,178 L2 Sales Price Paid Change 3 months 3 £137,000 £1,490 0.91% 6 months 11 £126,995 £3,779 2.34% 12 months 32 £161,370 £4,123 2.78% Current average value £178,527 L3 Sales Price Paid Change 3 months 30 £148,498 £1,245 0.70% 6 months 80 £160,334 £2,736 1.56% 12 months 151 £159,960 £4,356 2.44% Current average value £168,598 CITY CENTRE Sales Price Paid Change 3 months 36 £144,146 £1,232 0.75% 6 months 129 £145,539 £2,910 1.80% 12 months 261 £149,057 £3,821 2.40% The information above is taken from Zoopla sold house prices and whilst is accurately recorded may not actually represent all of the properties that have been registered during the quarter. The actual figure may be higher/lower than that shown as some sales are not always shown on Land Registry. The average pricing achieved may also be affected by low transaction levels This report is read by up to 10,000 people every quarter Distributed to: Investors, landlords, tenants, buyers, sellers, estate agents, letting agents, planners, landowners, developers, commercial agents, facility managers, surveyors, architects, bankers, quantity surveyors, project managers, retailers, serviced apartment operators, financial advisors, wealth managers, finance companies, solicitors, accountants, developers, housebuilders, housing associations, private equity, fund managers, investment houses, insurers, politicians, councilors, managing directors, chief executives, advertising companies, PR companies, journalists, media companies, web designers and many more For more information on advertising or sponsorship Contact Alan Bevan [email protected] 0151 231 6100 RESIDENTIAL DEVELOPMENTS FOR SALE/UNDER CONSTRUCTION Kings Dock Mill Phase 2, Hurst Street, Baltic, L1 8DN Developer YPG Number of Apartments 204 Apartment Types 1,2 & 3 bed and townhouses Type of Sale Investor New Build/Conversion New Build Build Complete 2020 Comments/Updates Second phase of Kings Dock Mill scheme adjoining The Hilton in Baltic ART Apartments, Tabley St, Baltic L1 2HB Developer Baltic Cool/LAGP Number of Apartments 55 Apartment Types 1 and 2 bed Type of Sale TBC New Build/Conversion New Build Build Complete 2020 Comments/Updates 11 Storey scheme on vacant land adjoining Kings Dock Mill phase 2. 60 Old Hall Street, Liverpool, L3 9PP Developer Signature Living Number of Apartments 115 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion Conversion Build Complete Part complete/2020 Comments/Updates Refurbishment of the “ugly duckling” into residential scheme One Baltic Square , Grafton St, L1 0BS Developer YPG No of Apartments 301 Apartment Types Studios, 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build Build Complete 2021 Comments/Updates Large 6/9 storey scheme close to Cain’s Brewery Village/Baltic Market FOR SALE/UNDER CONSTRUCTION Silkhouse