|Party Over for Chiswick Property?|
Little evidence of "bankers' bonuses" effect in latest numbers
The latest official figures from the Land Registry are suggesting that Chiswick property prices have started to fall.
After reaching record levels in the previous quarter the average price of a home in W4 fell to £615,752 in the three months to the end of 2010. This is down by 8.0% on the previous quarter but still 10.1% up on the same period last year.
"We are a little surprised at these statistics however prices typically dip at the end of a year as sellers become keener to deal and not wait until the market activity increases the following year. Already in 2011 we have seen good activity in the £750,000 plus price range with good quality property achieving top prices" reports Andrew Nunn of Andrew Nunn & Associates.
A flood of buying due to high bonuses from the City has failed to materialise and, in fact, the weakest sector of the market relatively was the top end with far fewer larger homes selling compared to previous periods. On the other hand flats, which had lagged the price increases in the area, saw an increase in price and sales during the period.
"There remains a lack of good quality housing coming to the market and regarding city bonus '(they are definitely out there), but in the current economic climate they are discreet and carefully invested. Only prime property attracts this type of buyer," continued Mr Nunn. "We have seen the number of "off market" sales increase in 2011 - which suits discreet sellers and buyers alike. Chiswick remains competitively priced relative to say Fulham and Brook Green and therefore we envisage a strong but steady 2011" .
Edward D'Arc's Derek Fletcher said: "We have certainly seen no let up in demand at the higher end of the market, despite some evidence of buyer confidence beginning to wane under the constant barrage of negative comment on the economy. At the lower end demand is weaker, particularly the 'income sensitive' first time buyer market, due primarily to the Banks liquidity 'squeeze' and tighter lending criteria, combined with fears over unemployment. Yet with interest rates remaining at an historic all time low, affecting savers in particular, we have seen signs of a gradual return to the market of rental investment buyers in search of more competitive yields on their cash deposits."
"Welcome to the rollercoaster of house prices in Chiswick," says OliverFinn's Christian Harper. "That's the best thing about working in an area that is so closely linked with the public's perception of the general condition of GB.Plc. The press were on the attack in the last quarter which is certainly a factor to consider whilst analysing the latest figures however we must not forget that Q4 is always the weakest quarter so we shouldn’t worry too much. I personally heard 'We will hold off until Spring 2012' a number of times. With the mortgage market being fairly tight and general doom and gloom I believe that the public simply chose to delay any sales or purchases which would account for the fall of volume in the same period last year."
He continued: "Newly instructed property is selling well and at good prices which is certainly encouraging. Even though it is too early to be quoted, I feel that results of 2011 Q1 will put W4 well and truly back in the black for both pricing and volumes."
London as a whole remains by far and away the strongest area in the country in price terms with home values rising by 6.2% in December compared to the same month in 2009. The average London property now costs £342,325. For England and Wales as a whole property prices rose by 1.5% with many areas of the north seeing falling values over the year. The average home price in the U.K. is now £163,814.
W4 Property Prices - October - December 2010
Roughly speaking the post code sector areas are as follows:
1 - Bedford Park and the north side of the High Road
2 - The south side of the eastern end of the High Rd down to the river at Corney Reach
3 - The Grove Park area and over to Strand on the Green
4 - The west of Chiswick between the A4 and Chiswick High Rd - (a high concentration of flats)
5 - The north west of Chiswick - Acton Green mainly
February 10, 2011