Docklands’ Property Market
Enigma: Cracking
the Code of Docklands’ £828/sq. ft Puzzle for First-Time Buyers.
“Dear Estate Agent
My fiancé and I have been actively searching for our
first home in Docklands for the past month. Being first-time buyers, we are new
to this process but have genuinely enjoyed attending viewings. Although we
haven't come across our dream Docklands home yet, we are staying practical and
have identified three potential properties on which we are considering making
an offer. While two of these properties require some attention, we believe they
have great potential; we have also seen a brand-new home in Docklands.
Interestingly, we have also noticed that some Docklands
properties we are looking at tend to linger on Rightmove and Zoopla for a
significant period. We are unsure if this is a common occurrence or if there
are specific reasons behind it (like they are too much money).
Given what the newspapers say about the current slower
pace of the property market, we are wary of paying more than necessary.
However, we are eager to purchase sooner rather than later, as we have grown
tired of renting in Docklands.
A friend of mine, who happens to be a chartered surveyor
in Marylebone, suggested a straightforward method for valuing residential
properties. He explained that it involves calculating the area's average cost
per square foot and comparing it to the property.
Surprisingly, all three Docklands properties on our shortlist
have similar values, and the largest one offers the best price per square foot but
is not in the most popular area. The new build property is a little smaller.
Is this a good approach to determining which property
provides the best value for our money?
Thank you in advance for your assistance.”
My reply…
“Dear Docklands First-time Buyer
Valuing a Docklands Property by Square Footage: A
Comprehensive Perspective.
In your search for the perfect Docklands home, you say
you have come across three Docklands properties that have caught your
attention. While you have yet to find the one that makes your heart skip a
beat, it's important to remember that finding the perfect Docklands home is
quite rare.
Compromises are often necessary, but you can still find a
property you'll fall in love with. It's worth noting that considering the price
per square foot is typically a strategy employed by Docklands investors,
whether they are looking for buy-to-let opportunities or properties to develop
and sell on.
While the square footage can be a helpful metric in
helping you decide among the Docklands properties on your shortlist, it's
crucial not to let it overshadow your personal preference and attachment to a particular
home.
I would advise that instead of waiting for your Docklands
dream home—a home that might never come on the market, you should focus on Docklands
properties that appeal to your practical and emotional needs.
For first-time buyers, the convenience and low
maintenance offered by new builds can be enticing, yet on the other hand,
buying a brand-new home comes at a premium (just like buying a car).
However, if you are willing to put in some effort, a
property with potential might be an excellent choice for you. I suggest
creating a shortlist of essential factors for your next home, such as which
areas of Docklands you do (and don’t) want to live in, property age, number of
bedrooms, local amenities and desirable features like a southerly-facing patio
and garden.
This list can help you determine the most practical
option among the Docklands properties you're considering. Once established, you
can decide guided by your emotions and rational thinking. Striking a balance
between the emotional and practical aspects is vital in making the right
choice.
Also, consider the duration of your stay in your first Docklands
home. Most first-time buyers tend to move again within five to six years, so
you must consider its future marketability.
Similarly, consider the quality of local primary schools
if you plan to start a family, as this will have a massive effect on your
child's education and the number of buyers you will attract when you sell.
Now, let's address whether valuing a property based on
the price per square foot is reliable.
Determining a Docklands property's value solely on a
price-per-square-foot basis is overly simplistic. That technique probably works
in Marylebone, where space is at a premium, yet this is Docklands where the
properties are a lot more diverse. Residential property cannot be commoditised
in such a manner, as it involves a combination of science and art. If it were
that straightforward, there would be an app on your phone that could instantly
provide accurate property valuations and professionals like surveyors and
property valuers would become obsolete.
A home's value encompasses intangible factors such as the
feeling you get when you enter, the view from the kitchen window, and even the
proximity to your in-laws. These unique qualities make a home more desirable
and, therefore, more valuable.
Let me give some examples of £/sq. ft. in the Docklands
property market.
The average Docklands home is worth £828/sq. ft.
Yet that is all it is, an average. As Tim O’Reilly, the
man who coined the phrase ‘open source’ and ‘Web 2.0’, said, “Statistics are
like bikinis. What they reveal is suggestive, but what they conceal is vital.”
You see, 8 in 10 properties
currently for sale in Docklands have a £/sq. ft of between £581/sq. ft to £1,275/sq.
ft; that is a wide range.
But when we go to the extremes, the gap becomes a chasm. The
most expensive property in Docklands by square footage is a brand new 3-bed apartment
in Canary Wharf at £1,834/sq. ft, whilst the cheapest property in Docklands by
square footage is a 2-bed maisonette on Ullin Street at £354/sq. ft.
Of course, price per square foot can indicate the value
and prevent you from overpaying; it shouldn't be the sole determinant. Prices
vary significantly on the same street due to location, layout, condition, site
orientation, plot aspect, and garden size and local amenities. Therefore, it
should be used as a guide rather than a definitive measure of value.
It's important to remember that owning a property twice
the size of your neighbours doesn't automatically mean it's worth double the
amount (as seen from the statistics above). There tends to be an upper limit
for any property in a particular area, regardless of size.
In conclusion, valuing a Docklands property based solely
on the price per square foot can be misleading and fail to capture your next
home's unique qualities and emotional attachment.
By taking a balanced approach, considering both practical
aspects and personal connection, you'll be better equipped to make an informed
decision that aligns with your needs and aspirations as a first-time buyer.
Kind regards
Your Docklands Estate Agent
P.S. If you want to pick my brains on any aspect of the Docklands
property market, don't hesitate to get in touch with me. I would be more than
happy to help you.”
“Dear Estate Agent
My fiancé and I have been actively searching for our
first home in Docklands for the past month. Being first-time buyers, we are new
to this process but have genuinely enjoyed attending viewings. Although we
haven't come across our dream Docklands home yet, we are staying practical and
have identified three potential properties on which we are considering making
an offer. While two of these properties require some attention, we believe they
have great potential; we have also seen a brand-new home in Docklands.
Interestingly, we have also noticed that some Docklands
properties we are looking at tend to linger on Rightmove and Zoopla for a
significant period. We are unsure if this is a common occurrence or if there
are specific reasons behind it (like they are too much money).
Given what the newspapers say about the current slower
pace of the property market, we are wary of paying more than necessary.
However, we are eager to purchase sooner rather than later, as we have grown
tired of renting in Docklands.
A friend of mine, who happens to be a chartered surveyor
in Marylebone, suggested a straightforward method for valuing residential
properties. He explained that it involves calculating the area's average cost
per square foot and comparing it to the property.
Surprisingly, all three Docklands properties on our shortlist
have similar values, and the largest one offers the best price per square foot but
is not in the most popular area. The new build property is a little smaller.
Is this a good approach to determining which property
provides the best value for our money?
Thank you in advance for your assistance.”
My reply…
“Dear Docklands First-time Buyer
Valuing a Docklands Property by Square Footage: A
Comprehensive Perspective.
In your search for the perfect Docklands home, you say
you have come across three Docklands properties that have caught your
attention. While you have yet to find the one that makes your heart skip a
beat, it's important to remember that finding the perfect Docklands home is
quite rare.
Compromises are often necessary, but you can still find a
property you'll fall in love with. It's worth noting that considering the price
per square foot is typically a strategy employed by Docklands investors,
whether they are looking for buy-to-let opportunities or properties to develop
and sell on.
While the square footage can be a helpful metric in
helping you decide among the Docklands properties on your shortlist, it's
crucial not to let it overshadow your personal preference and attachment to a particular
home.
I would advise that instead of waiting for your Docklands
dream home—a home that might never come on the market, you should focus on Docklands
properties that appeal to your practical and emotional needs.
For first-time buyers, the convenience and low
maintenance offered by new builds can be enticing, yet on the other hand,
buying a brand-new home comes at a premium (just like buying a car).
However, if you are willing to put in some effort, a
property with potential might be an excellent choice for you. I suggest
creating a shortlist of essential factors for your next home, such as which
areas of Docklands you do (and don’t) want to live in, property age, number of
bedrooms, local amenities and desirable features like a southerly-facing patio
and garden.
This list can help you determine the most practical
option among the Docklands properties you're considering. Once established, you
can decide guided by your emotions and rational thinking. Striking a balance
between the emotional and practical aspects is vital in making the right
choice.
Also, consider the duration of your stay in your first Docklands
home. Most first-time buyers tend to move again within five to six years, so
you must consider its future marketability.
Similarly, consider the quality of local primary schools
if you plan to start a family, as this will have a massive effect on your
child's education and the number of buyers you will attract when you sell.
Now, let's address whether valuing a property based on
the price per square foot is reliable.
Determining a Docklands property's value solely on a
price-per-square-foot basis is overly simplistic. That technique probably works
in Marylebone, where space is at a premium, yet this is Docklands where the
properties are a lot more diverse. Residential property cannot be commoditised
in such a manner, as it involves a combination of science and art. If it were
that straightforward, there would be an app on your phone that could instantly
provide accurate property valuations and professionals like surveyors and
property valuers would become obsolete.
A home's value encompasses intangible factors such as the
feeling you get when you enter, the view from the kitchen window, and even the
proximity to your in-laws. These unique qualities make a home more desirable
and, therefore, more valuable.
Let me give some examples of £/sq. ft. in the Docklands
property market.
The average Docklands home is worth £828/sq. ft.
Yet that is all it is, an average. As Tim O’Reilly, the
man who coined the phrase ‘open source’ and ‘Web 2.0’, said, “Statistics are
like bikinis. What they reveal is suggestive, but what they conceal is vital.”
You see, 8 in 10 properties
currently for sale in Docklands have a £/sq. ft of between £581/sq. ft to £1,275/sq.
ft; that is a wide range.
But when we go to the extremes, the gap becomes a chasm. The
most expensive property in Docklands by square footage is a brand new 3-bed apartment
in Canary Wharf at £1,834/sq. ft, whilst the cheapest property in Docklands by
square footage is a 2-bed maisonette on Ullin Street at £354/sq. ft.
Of course, price per square foot can indicate the value
and prevent you from overpaying; it shouldn't be the sole determinant. Prices
vary significantly on the same street due to location, layout, condition, site
orientation, plot aspect, and garden size and local amenities. Therefore, it
should be used as a guide rather than a definitive measure of value.
It's important to remember that owning a property twice
the size of your neighbours doesn't automatically mean it's worth double the
amount (as seen from the statistics above). There tends to be an upper limit
for any property in a particular area, regardless of size.
In conclusion, valuing a Docklands property based solely
on the price per square foot can be misleading and fail to capture your next
home's unique qualities and emotional attachment.
By taking a balanced approach, considering both practical
aspects and personal connection, you'll be better equipped to make an informed
decision that aligns with your needs and aspirations as a first-time buyer.
Kind regards
Your Docklands Estate Agent
P.S. If you want to pick my brains on any aspect of the Docklands
property market, don't hesitate to get in touch with me. I would be more than
happy to help you.”
Docklands’ Property Market Enigma: Cracking the Code of Docklands’ £828/sq. ft Puzzle for First-Time Buyers.
“Dear Estate Agent
My fiancé and I have been actively searching for our
first home in Docklands for the past month. Being first-time buyers, we are new
to this process but have genuinely enjoyed attending viewings. Although we
haven't come across our dream Docklands home yet, we are staying practical and
have identified three potential properties on which we are considering making
an offer. While two of these properties require some attention, we believe they
have great potential; we have also seen a brand-new home in Docklands.
Interestingly, we have also noticed that some Docklands
properties we are looking at tend to linger on Rightmove and Zoopla for a
significant period. We are unsure if this is a common occurrence or if there
are specific reasons behind it (like they are too much money).
Given what the newspapers say about the current slower
pace of the property market, we are wary of paying more than necessary.
However, we are eager to purchase sooner rather than later, as we have grown
tired of renting in Docklands.
A friend of mine, who happens to be a chartered surveyor
in Marylebone, suggested a straightforward method for valuing residential
properties. He explained that it involves calculating the area's average cost
per square foot and comparing it to the property.
Surprisingly, all three Docklands properties on our shortlist
have similar values, and the largest one offers the best price per square foot but
is not in the most popular area. The new build property is a little smaller.
Is this a good approach to determining which property
provides the best value for our money?
Thank you in advance for your assistance.”
My reply…
“Dear Docklands First-time Buyer
Valuing a Docklands Property by Square Footage: A
Comprehensive Perspective.
In your search for the perfect Docklands home, you say
you have come across three Docklands properties that have caught your
attention. While you have yet to find the one that makes your heart skip a
beat, it's important to remember that finding the perfect Docklands home is
quite rare.
Compromises are often necessary, but you can still find a
property you'll fall in love with. It's worth noting that considering the price
per square foot is typically a strategy employed by Docklands investors,
whether they are looking for buy-to-let opportunities or properties to develop
and sell on.
While the square footage can be a helpful metric in
helping you decide among the Docklands properties on your shortlist, it's
crucial not to let it overshadow your personal preference and attachment to a particular
home.
I would advise that instead of waiting for your Docklands
dream home—a home that might never come on the market, you should focus on Docklands
properties that appeal to your practical and emotional needs.
For first-time buyers, the convenience and low
maintenance offered by new builds can be enticing, yet on the other hand,
buying a brand-new home comes at a premium (just like buying a car).
However, if you are willing to put in some effort, a
property with potential might be an excellent choice for you. I suggest
creating a shortlist of essential factors for your next home, such as which
areas of Docklands you do (and don’t) want to live in, property age, number of
bedrooms, local amenities and desirable features like a southerly-facing patio
and garden.
This list can help you determine the most practical
option among the Docklands properties you're considering. Once established, you
can decide guided by your emotions and rational thinking. Striking a balance
between the emotional and practical aspects is vital in making the right
choice.
Also, consider the duration of your stay in your first Docklands
home. Most first-time buyers tend to move again within five to six years, so
you must consider its future marketability.
Similarly, consider the quality of local primary schools
if you plan to start a family, as this will have a massive effect on your
child's education and the number of buyers you will attract when you sell.
Now, let's address whether valuing a property based on
the price per square foot is reliable.
Determining a Docklands property's value solely on a
price-per-square-foot basis is overly simplistic. That technique probably works
in Marylebone, where space is at a premium, yet this is Docklands where the
properties are a lot more diverse. Residential property cannot be commoditised
in such a manner, as it involves a combination of science and art. If it were
that straightforward, there would be an app on your phone that could instantly
provide accurate property valuations and professionals like surveyors and
property valuers would become obsolete.
A home's value encompasses intangible factors such as the
feeling you get when you enter, the view from the kitchen window, and even the
proximity to your in-laws. These unique qualities make a home more desirable
and, therefore, more valuable.
Let me give some examples of £/sq. ft. in the Docklands
property market.
The average Docklands home is worth £828/sq. ft.
Yet that is all it is, an average. As Tim O’Reilly, the
man who coined the phrase ‘open source’ and ‘Web 2.0’, said, “Statistics are
like bikinis. What they reveal is suggestive, but what they conceal is vital.”
You see, 8 in 10 properties
currently for sale in Docklands have a £/sq. ft of between £581/sq. ft to £1,275/sq.
ft; that is a wide range.
But when we go to the extremes, the gap becomes a chasm. The
most expensive property in Docklands by square footage is a brand new 3-bed apartment
in Canary Wharf at £1,834/sq. ft, whilst the cheapest property in Docklands by
square footage is a 2-bed maisonette on Ullin Street at £354/sq. ft.
Of course, price per square foot can indicate the value
and prevent you from overpaying; it shouldn't be the sole determinant. Prices
vary significantly on the same street due to location, layout, condition, site
orientation, plot aspect, and garden size and local amenities. Therefore, it
should be used as a guide rather than a definitive measure of value.
It's important to remember that owning a property twice
the size of your neighbours doesn't automatically mean it's worth double the
amount (as seen from the statistics above). There tends to be an upper limit
for any property in a particular area, regardless of size.
In conclusion, valuing a Docklands property based solely
on the price per square foot can be misleading and fail to capture your next
home's unique qualities and emotional attachment.
By taking a balanced approach, considering both practical
aspects and personal connection, you'll be better equipped to make an informed
decision that aligns with your needs and aspirations as a first-time buyer.
Kind regards
Your Docklands Estate Agent
One place for more information is my Docklands Property Market blog. If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Docklands property market together with regular postings on what I consider the best buy to let deals in the Docklands area, then it is well worth reading. You can also email me at spencer@lmlondon.com
P.S. If you want to pick my brains on any aspect of the Docklands
property market, don't hesitate to get in touch with me. I would be more than
happy to help you.”
(And if you are reading this on social media, our blog or
via email, that offer goes for you as well - we are here to help you).
(And if you are reading this on social media, our blog or
via email, that offer goes for you as well - we are here to help you).
(And if you are reading this on social media, our blog or
via email, that offer goes for you as well - we are here to help you).
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