Property market report: Wales
Wales has not escaped the downturn: prices have fallen only
slightly less than the average, down 6per cent since October
compared with 10 per cent in the rest of the UK. The headlines for
Wales hide the fact that South Wales has been far harder hit, with
prices down between 10per cent and 12per cent in locations such as
Merthyr Tydfil and Swansea, whereas prices in the north have risen
marginally year on year: they are up 2per cent each in Denbighshire
and Wrexham.
Liam Bailey, head of research, Knight Frank
The market has become quieter, with fewer new buyers. Any sellers
with questionable motives have decided not to come in; many have
battened down the hatches for the next 18 months. Good-quality
property, well-priced, is still selling but buyers are being more
considered and have become very perceptive, putting in offers if a
property has been on the market for some time. But the second-homes
market is still buoyant, whether it is in the Brecon Beacons,
Carmarthenshire or Pembrokeshire.
If your property is on the coast or has a sea view, it is selling,
but if it is inland, or if it needs work done, prices have dropped by 10
per cent. There had been talk that owners of second homes would sell up
but we have not found that. In fact we had a two-bedroom property in Cwm
Pennant that has just gone under offer that we could have sold six times
over, such was the demand.
Liz Brown, Carter Jonas, Bangor
Sales are now being agreed at 5 to 10 per cent below asking prices,
but the size of the discount depends on the sellers' circumstances.
There is more activity below £250,000, but the upper end of the market,
from £500,000 to £1million, is very slow because people in that price
range are waiting to see what will happen. At every price level, and in
every location, properties need to have an edge - we are not seeing any
hot spots that are immune, because the issue at present is mortgage
finance.
Tony Filice, Kelvin Francis, Cardiff
The slowdown did not really bite until spring and I would say that
prices are 10 or 12 per cent lower now. Sales have been extremely quiet:
there have been sales but only because some people have adjusted more
quickly and learnt to play the market. Investors are looking for people
who want to offload at very keen prices - estate agents must try to
guess what investors will pay, because that is who is buying. In the
past fortnight or three weeks there has been an increase in inquiries
and offers - people are testing the market. The lettings market has been
very, very strong, and has kept a number of estate agents alive. It was
also been been a lifesaver for owners in Cardiff Bay and similar areas,
which have been a nightmare to sell. Some of the prices have dropped 40
per cent, or even more at auction - one flat, which sold last year for
£260,000, recently went for £125,500. It will be six to eight months
before the market bottoms out, then there will be a plateau and it will
take another five years before prices recover.
Michael Jones, Michael Jones&Co, Cardiff
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