Midlands residential land values see 30% hike – CBRE
THE price of prime residential development land in the Midlands has risen by up to 30% in the last year, according to property consultancy CBRE.
Adrian Willet, a senior director in CBRE’s national land and development team, said price rises across the region are typically around the 20% mark, but the top addresses, including Solihull, Hagley, Sutton Coldfield, Warwick and Leamington Spa are now fetching a premium significantly above the mid-market addresses.
Gross land values for serviced residential development land is now in excess of £1.5m per acre across the best postcodes of the West Midlands, Warwickshire and Worcestershire.
Demand for land has increased as housebuilders seek to deliver more product on the back of the improving economy. And buyers are seeking bigger sites to give them a three-year supply pipeline.
Willet said: “Big is best is now the mantra for site acquisitions, with housebuilders looking to deliver around 75 units a year from a single land holding over three years.
“Competition for these sites is intense, and the best sites are typically attracting demand from eight to ten of the region’s volume housebuilders.
“Overall land buying targets for the volume housebuilders have increased from 450 plots per annum in 2009/10 – with a hefty bias towards social housing – to 700 to 800 plots for the biggest operators, with 75-80 per cent earmarked for open market sales.”
According to CBRE’s latest Regional Residential Viewpoint, the increased number of acquisitions is being driven by the improving economy and easing lending conditions.
