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Found: flats where prices are actually on the rise
Jonathan Prynn, Consumer Affairs Editor23 Dec 2008
A new apartment block in south-east London is the last place in London where prices are still rising, it was claimed today.
The Maple Quays development in Rotherhithe appears to have bucked the property market downturn, despite being across the river from the crisis-hit banking district of Canary Wharf.
Developer Barratt Homes says demand for the one- and two-bedroom apartments has been so strong they have been able to raise asking prices.
It means Rotherhithe, a once depressed post-industrial neighbourhood, is now out-performing more traditional property hot spots such as Chelsea and Notting Hill, where prices have been in freefall. Local agents say the flats have been snapped up because of the location opposite Canada Water Underground station.
One-bedroom apartments in the first phase were launched in October at £249,995 but are now being sold for two per cent more at £254,995. Two-bedroom flats cost from £319,500. All apartments are being sold off-plan.
Adam Lawrence, Barratt's regional managing director for London and the Thames Gateway, said: "In normal times if you launch a site like this you see what initial interest there is and as confidence in the development starts building, prices start to go up.
"We launched this site in mid-October and that is exactly what has happened. Weekly sales rates have been double other London sites. As we have released more one-bedroom flats we have been able to push the price up, albeit marginally. But that is in total contrast to what is happening elsewhere.
"No matter how bad the market is there are always going to be exceptions."
He said most of the interest had come from locals who had been in rented accommodation but wanted to buy. So far 21 flats have been sold at a rate of one or two a week.
Michael Bailey, a sales negotiator at local estate agency Alex Neil, said: "It's an excellent location, right opposite the Tube station. Apart from that it is just a normal Barratt development but location is key.
"Rotherhithe is not immune from the trend but there is certainly going to be growth again because it is so close to the City, but much cheaper than an area like Canary Wharf. It's a very pleasant area, there is lots of water and it attracts young professionals. The other point about this area is that it has not shot up as quickly as some other places so maybe it has less to fall."
He said 60 per cent of buyers wanted to be close to a Tube station, compared with only 40 per cent who wanted to be by the water. "People just want to roll off the train at the end of the day."
He said prices in Rotherhithe were down by 10 to 12 per cent compared with a London average of 20 per cent.
A spokeswoman for property information firm Hometrack said it was probably the only development in London where prices have gone up since the start of the financial crisis. She said: "We don't know of any others."
Reader views (8)
oh dear,,its London.
- Geoffk, chester, 28/07/2009 22:51
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The people buying these flats are not daft - the Canada Water area has to be one of the best-kept secrets in London, and is propserty prices are going to go from strength to strength after the opening of the new London Overground line in 2010.
- Gary Williams, London, 12/01/2009 17:33
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At this point in the cycle, these people must be pretty clueless about finance to be buying property. Read your Docklands history from the early 90's. Wait until the developers go bust then queue up and buy at massive discounts. Was it 40-50% discounts at Burrells Wharf ?
I just hope they're not working for my bank.
- Doug Watt, london, 23/12/2008 19:20
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What a load of balderdash !! So people are happy to pay £5k over the stamp duty threshold so they can pay an extra £5k in tax too. It's Christmas, not April 1st boys.
- Doug Watt, london, 23/12/2008 18:57
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Great set of flats these, walk past them every day to work. Look forward to seeing the overgrown areas built up and regenerated to being more useful to the public and improve the perception of East London, which is a great place to live.
- Chris Savage, London, 23/12/2008 16:45
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Lb London - I live in Rotherhithe, but I couldn't tell you if my neighbours are yuppies or middle class - very few of them speak English. Gone are the days when the old docklands areas were working class or middle class English
- Sparrow, London, UK, 23/12/2008 16:22
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It means Rotherhithe, a once depressed post-industrial neighbourhood
Let me re-phrase......
It means Rotherhithe, a once proud working class area with a tight community which has been desroyed by yuppies and other middle classes who have changed the area beyond recognition...
- Lb, London, 23/12/2008 12:40
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East London is a simply ghastly place and I couldn't understand why anyone would want to buy there let alone live in this ugly development. It looks like a council slum but I guess this fits in with the locale. My Westminster four floor townhouse with split level mezzanine kitchen and top quality furnishings is what people should want to live in, why would anyone buy to be forced to live in a tower block with no outdoor parking for the chauffeur is beyond me.
- Heather Belvedere-Twainson-Smith, Westminster, London, 23/12/2008 12:26
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