City centre witnesses sharp decline in resi values
LIVERPOOL’s city centre residential market continued to endure a slump in values during the second quarter of 2011, with year-on-year prices dropping by 5.7%. Prices also dropped by 2.6% on the previous quarter.
Alan Bevan, managing director of Liverpool Residential, said that the market for sales of apartments in the city centre continued to lack direction, with “little anticipation of anything major happening”.
He said that viewing levels and sales had both remained slow, creating a market consisting of “aggressive buyers and reluctant vendors”.
The decline in quarterly values was considerably more marked than both the national and regional averages, which Nationwide put said increased by 0.3% and 0.9% respectively.
However, Bevan cautioned that with such low transaction levels, reading too much into published figures would be difficult.
“On a more positive note, we are seeing buyers attracted to quality product in a good location,” he said.
He mentioned that buyers were now specifying “favoured” locations such as Countryside Properties’ Mann Island scheme on the dockside or Grosvenor’s One Park West scheme on the edge of its Liverpool One development.
“Although neither scheme are selling at stunning sales rates, both are proving popular to genuine buyers who appreciate the quality of the buildings, their good locations and their lifestyle offering surrounded by decent restaurants, bars and shopping.”
Bevan argued that although the sales figures are grim, he believes that the market has now reached its low point.
“Prices have fallen dramatically and slowly but availability of finance is beginning to improve.”
The average price for a one-bed flat has fallen to £93,000 in Liverpool city centre and £108,700 on the Docklands. Larger two-bed, two-bathroom apartments have dropped to £125,800 and £151,000 respectively.
