(1888PressRelease)
June 25, 2008 - Most of us will have lived through Black Monday, Wall Street crashes and global terrorism and few will have been lucky enough not to have been economically adversely effected by them in someway. In the UK our latest economic challenge has been labelled the "Credit Crunch" which is limiting people’s access to credit and the first signs of a negative effect on the UK housing market are now being seen.
However there are key areas within the UK property market that seem to be immune to any economic wobble. In fact the St Georges Hill property market is not only surviving but is in fact flourishing within the current climate. Evidence would suggest that this beautiful gated estate located in Surrey sits within its own micro market and that the desirability and demand for property is far from diminishing.
There are a few sources which are showing interest and creating demand within St Georges Hill. These include International buyers who demonstrating an increased desire to buy into this piece of England. Tim Garbett of Knight Frank comments that "not only are International buyers as seen in recent years coming from Russia and the Middle East, but they are also now coming from the emerging powers of India & China".
These cash rich international buyers are looking for the grandest properties with all mod cons and this is where the London based city developers come in. With the increased interest in high end expensive properties, these developers deem St Georges Hill as a safe investment. They are buying up substantial existing homes only to knock them down and re-build even greater and bigger luxury homes. Building plots are currently being purchased for in excess of £4,000,000 with the expectation that on completion of build it will lead to a sale price of in excess of £10,000,000.
Max Storey, Director and St Georges Hill property expert at Elite Property Search, states "the demand and competition from high end developers to gain access to plots within the estate is definitely growing. With sellers increasingly realising the value of their land they are informing buying agencies like ourselves before anyone else. This is massively beneficial for our clients as it means that they are the first to hear of the best opportunities".
The precedence being set by the approval of planning for such luxury developments and the substantial gain in value that they achieve is also leading to owner’s developing their own homes. This approach provides the owner with the opportunity to achieve their own personal property specification and dreams as well as gaining a great investment, particularly for those who have owned their homes for more than four years.
In 2004 the average property value per square foot for a St Georges Hill property was £300. Since then prices have risen by 48% and £500 - £600 is currently being commanded. However values are not expected to stop there. Knight Frank forecast that with over thirty new developments priced between £6,000,000 and £20,000,000 coming to the market over the next two years that average square foot prices could rise to £1,000 per square foot.
The increase in demand and prices has been good news for sellers with purchase prices being nearer to asking prices than ever before. In 2004 the average purchase price was 13% below the asking price but last year on average 93% of the asking price was achieved.
As the full effects of the credit crunch unfold, there isn’t much certainty in property prices in 2008. However, there is one thing that is providing consistency and that is that the value of St Georges Hill property is still growing and buyers are not abating.
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