Jones Lang LaSalle has been appointed as international sales agent on Battersea Power Station – which is unquestionably a great gig to get.
Just one small problem: 600 of the 800 homes have already been sold in a four-day sales frenzy described by the London Evening Standard as a ‘stampede’ at the fastest-selling property development on record.
It could leave Jones Lang LaSalle may well not have quite as many properties to sell as they thought.
When Circus West, as the first phase of the Battersea Power Station development is called, launched to the public last Thursday, it opened to queues which had been forming since 6.30am. By the time this first sales phase closed on Saturday afternoon, 600 buyers had handed over cheques.
It is not as though the one-, two- and three-bedroom apartments, townhouses and penthouses are cheap, with prices starting at £338,000 for a one-bedder, £613,000 for two beds and from £894,000 for three beds.
Penthouses will be at least £6m.
The properties also require a £2,500 reservation fee plus the remainder of the 10% deposit within 21 days.
This is despite the fact that building work does not even start until the end of this summer, and none of the homes will be ready for three years.
Much of the pre-registered interest prior to last week’s public launch was from overseas, and the development is now to be marketed in roadshows overseas – with Jones Lang LaSalle due to launch Circus West in Singapore and Hong Kong imminently. The entire development is expected to have sold out by the end of this month.
Peter Murray – residential and development director at Jones Lang LaSalle, said: “We are thrilled to be associated with such a high-profile and exciting iconic development, and anticipate the development to be received with enormous success.”
Rob Tincknell, chief executive officer of Battersea Power Station Development Company, said: “We are going to the best people for the best markets and are confident that Jones Lang LaSalle will do a tremendous job for us.”
The development, which will also include offices, shops and leisure facilities, is the first phase of seven. By 2024 there will be more than 3,400 homes.
Property commentator Henry Pryor told the Evening Standard that he had always expected the developers of Battersea Power Station – famously featured on a Pink Floyd record – to target “cash-rich overseas buyers caught up in the London property hype”.
He said: “It’s difficult to see where domestic buyers are going to come from who can afford the prices that are being quoted.
“We all remember the Pink Floyd album cover – and if they get them away at these prices, pigs might fly.”
However, Pryor was speaking before London’s record-breaking off-plan sale, so pigs might well have flown. As the London Evening Standard has reported, the 600 buyers, not batting an eyelid at the prices, have so far included London bankers as well as a former worker at the power station.
Stephen Miles-Brown of Knight Frank – which is forecasting 140% property price growth by 2016 – said the rate of sales was unprecedented.
Meanwhile, at neighbouring development Embassy Gardens, 90% of the properties so far released have also been sold – 60% to UK buyers. Prices at Embassy Gardens look almost cheap by comparison, starting at £485,000 for a one-bedder, £699,000 for two bedrooms and ‘price on application’ for anything larger.
Comments
Hi Jonnie,
Here's a snapshot of data from Nationwide's Q4 2012 release. These are annual figures.
City of Manchester -9%
City of Belfast -8%
Plymouth -7%
Cumbria -7%
Gloucestershire -5%
Wiltshire -5%
Cardiff -4%
Poole -4%
Birmingham -4%
Southampton -3%
Bournemouth -2%
East Sussex -2%
West Berkshire +2%
East Surrey +3%
Bromley +3%
Tower Hamlets +3%
Ealing +5%
Camden +6%
Wandsworth +8%
And from the last Land Registry YoY
Islington +10%
Camden +10%
Kensington & Chelsea +12%
Overall, the number of negative numbers are by far in the majority. The total of negatives below five far exceeds the number of positive above five. Very little outside of London is up by more than 5%, if at all.
Taking the London effect out, which is flattering the national picture, would give us a non-London UK figure currently pushing minus five per cent I reckon. That's more correction speed than a full on crash. If it carries on for a couple more years, compounding at this pace, then it will make a big improvement in affordability though, for sure. Percentage falls on the way down are also greater nominal amounts than on the way up (£100k +20% = £120k. £120k -20% doesn't bring back the £100k, but £96k).
Just for you, as well, a 5% fall across non-London UK would be an 8% fall in real terms, not that this helps FTBs when wages are flat. It does mean that those who bought into property for a future investment (and a lot have) are currently losing about 8% per year if they are holding property outside of the capital - making a mockery of the claim that 'you can't go wrong with bricks and mortar'.
@rantnrave
Good to see you again! You’ve been a bit quiet recently.
Im not assuming much really, and I do agree with you a bit its just the HPC that so many predicted is moving along with all the enthusiasm and vigor of continental drift, im sure you and I have spoken here about the way people (including you) have changed the way you calculate a drop in prices and you now factor inflation in.
The point is good old school house price drops where a place sells for say £300k and a year later the identical one next door goes for £210k haven’t happened have they?
While I can talk to you all day about the postcode areas I cover Ive never taken the time to work national % drops so can you tell me what the drop in values is on say the HBOS index with London taken out compared to having it in – YOY Jan to
Jonnie
Fair points Jonnie, but seems you are assuming the priced out generation can afford to buy now if they wanted to? The majority of those younger folk who aren't buying now would like to if they could get a deposit together. Those that are in a position to buy and watching the market for better value really are the minority.
Prices have also budged on this island - down in most of the regions and seriously up in London. It's only the average from that which is static.
Now we all know this London type of thing is not the national norm but hearing our old mate BRIT123 on here in January 2013 does make me realise that another year has passed and prices on this island of ours haven’t really budged much, another year for some of putting all sorts of things on hold like having a family, going on holiday, changing job and so on still waiting for a House Price Crash
Being an HPCer is a pastime that requires a hell of a lot of patience, be interesting to see what BRIT and Co are saying in January 2014, at this rate it looks likely to be the same thing and no doubt Mrs BRIT will still be on the Jack & Jill and still wouldn’t have seen a foreign beach.
Jonnie
Exactly 95% of these properties were purchased by foreign millionaires. Foreign money is pushing prices hiher in London. This is the only thing keeping the average house prices stable. Good for the lucky London EA's, but this does nothing for the wider economy.
Brit1234, don't be bitter, you are not in the same league as these type of buyers.
These buyers may well be overpaying in a crazy London market, but they are, because they can afford to.
If one of these buyers sold in 10 years and lost £50,000 they probably wouldn't care as they probably have millions or billions in the bank.
RE "Shock horror, the idiots that have missed the boat"
Yeap I choose not to board the titanic. ;)
£338,000 for a studio, who thinks that is good value for money? lol
3 years till they are built what could possibly go wrong buying off plan. :)
Shock horror, the idiots that have missed the boat and still rent do not like this sort of story. Love it xxx lol
RE "Stephen Miles-Brown of Knight Frank – which is forecasting 140% property price growth by 2016 – said the rate of sales was unprecedented."
lol it's all going to end in tears.
Remember sustainable property prices go up with inflation if properly maintained. To go up more than that you need to add value. Anything above this is unsustainable and the realm of speculators and bubbles.
Keep pumping air in, nothing can go wrong honest. ;)