NEW HOMES UPDATE
Nick Vaughan, director in Savills Residential Development Sales, sees the market in the south west going from strength to strength
The south west London new homes market continues to go from strength-to-strength with a number of new developments due to complete over the coming months and years.
What is most interesting about the market here is that it remains resilient even within tricky conditions elsewhere. This is due to the number of well-established residential areas here such as Clapham, Battersea, Putney and Wandsworth. These areas are consistently popular with domestic buyers, leaving them less exposed to wider market conditions, such as tax implications for investors and international buyer sentiment.
This creates a great deal of stability which in turn means that buyers are more aware of the value of properties in the area and any fluctuations in value that they may have faced. This is compared to areas undergoing residential transformations where pricing tends to be more varied as there isn’t a huge amount of existing property to judge against.
With this in mind, buyers in the south west are looking for good quality properties at a fair market price. This has meant that over the last few years we have seen increasing numbers of people looking to areas like Wandsworth, Balham and Tooting, which offer relatively better value than their neighbouring residential hubs and where developers are bringing high quality homes to the market. The Ram Brewery development in Wandsworth, for example, is nearing completion and will breathe new life into the area, providing an exceptional residential and social hub, proving the final piece of the puzzle for that area.
Another example is Bedford House in Balham. It has a high quality finish and design that you would expect to see in a central London development, which appeals to the discerning buyers here, who will include young professionals, owner-occupiers and investors alike. It is located on Balham High Road, equidistant between two tube stations and within a stone’s throw of the numerous shops, restaurants, cafées and bars, so it really ticks all the boxes.
This desire for high quality property has meant that we have also seen an increase in the number of buyers seeking completed or nearly completed developments. Having a show home available, even if the rest of the homes aren’t ready, gives buyers something tangible to look at and picture themselves in. My advice to developers, therefore, is to try and be the best house on the best street and don’t cut corners. When developments have an exceptional finish, the buyers are there.