Property Marketing Insight – Sandbanks & Canford Cliffs, Poole, Dorset

Property in Sandbanks, Canford Cliffs and Branksome Park, Poole, Dorset – there is, we suspect, we would all agree, an intrinsic “je ne sais quoi” about why people buy property here – reasons could include a hefty sprinkling of lifestyle, climate, accessibility, seaside, sailing, golf, kindred spirits – but, at the end of the day, it all boils down to “It’s a great place to be.”

Banks Road 4 beach04

However, the brickbats are being thrown by HMRC and – increasingly – in a very targeted fashion. Stamp Duty increases over the last couple of years (>£1m @ 5%; >£2m @7%, 15% if corporate). More in prospect? Mansion Tax – if brought in by a Labour government, in our view it will have a material, negative, impact. Bad news. Outside London, this would be one of the few UK locations to feel the effect.

And then, there’s the economy ……… the banks are still hoarding cash as they re-capitalise their balance sheets; mortgages are far from plentiful and there simply aren’t so many people looking. More specifically, there are 130+ properties at prices in excess of £1.5m currently on the market for sale in BH13 and BH14, of which some 70+ are either plots where construction has not yet been started, plus those under construction or which are new (less than 12 months following completion), in all amounting to nearly £260m of property for sale (NB at asking prices > £1.5m ONLY).

However, it’s not all bad news for owners. That last figure is down from over £350m in October 2012 – there have been at least 24 such properties withdrawn from marketing (for various reasons) and a further 20+ sold subject to contract since then, so the (apparent) over-supply picture is improving. More than that, of those houses and apartments which have sold, the average discount to original asking price has dropped from c. 35+% to c. 25% in the same period. So, for those who do wish to sell, there is a market. But beware the flattery. There are too many property specialists out there telling you what you want to hear and, in the long run, they’re not doing you any service.

Overall, sales in the area are holding up: £55m worth last year (2012), in line with the 5 year average, even if 35% down on the peak property performance year 2007 at £85m. Not bad in a recession. But ….. a word of advice. Pricing realism is the key to achieving a sale.

Market snapshot – Properties within BH13, BH14, BH15 sold at prices > £1.5m

(NB: 2012 figures have been annualised from November 2012, the date of the latest
available Land Registry returns at the survey date)

Year

Branksome Park

Canford Cliffs

Sandbanks

Units

Sales

Units

Sales

Units

Sales

 

2012

4.8

£8,640,000

9.6

£23,984,400

3.6

£11,160,000

2011

7

£17,675,000

9

£20,625,000

3

£12,950,000

2010

4

£9,000,000

3

£5,300,000

1

£2,500,000

Berkeleys Property Marketing Insight Report – Canford Cliffs & Sandbanks

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Current Market Conditions – Autumn 2012
What should you expect from the Canford Cliffs and Sandbanks property market this autumn? Berkeleys is performing extremely well bucking the local trend, with completion numbers up versus 2011. A real achievement. Rightmove® has recorded that actual sale completions nationally are just half of what they were five years ago.

Market Sentiment
Nationally, the economic outlook is still difficult, stock levels having risen for the last five consecutive months, as new sellers outnumber properties sold or withdrawn from the market, so increasing competition. None of us is immune to market sentiment nor to negative headlines. Purchasers remain highly price-conscious, indeed apprehensive. However, the market should gain momentum this autumn, traditionally an active period.

Achieving a positive sale outcome
Pricing competitively to attract new buyers remains key. Purchasers are reluctant to commit unless they feel that a property on the market is fairly priced. It is essential to be realistic and to examine comparative prices of property which has actually sold.

The short-term outlook
Eurozone issues may have receded but the problems are not over. This and the continuing drought in mortgage availability, together with weakening consumer sentiment, has forced buyers to be even more cautious. At Berkeleys we aim to hold their hand, to guide them whilst at the same protecting the interests of our client, the seller.  Against a backdrop of a market treading water nationwide,  we confidently expect the local area to continue to deliver .

Again on a positive note, continued growth in London has made prime regional property, especially in this area, look increasingly good value for money. We receive constant enquires from the capital, from local, national and international buyers, wanting to move to the area or to buy their holiday dream home.

Local Market Snapshots:
Canford Cliffs
“The local market has been active and fairly constant in 2012.”  
Properties Sold in 2011: 87
Value of properties sold in 2011: £58m
Value of properties sold in 2012*: £25.6m
2012 peak*:  Shore Road, £2.75m (by Berkeleys)

Sandbanks
“Interest in the area remains high, as always, fuelled by regular national media attention, but the number of sales agreed is low.”
Properties Sold in 2011: 23
Value of properties sold in 2011: £22m
Value of properties sold in 2012*: £9m
2012 peak*: Old Coastguards Road, £3.5m

To read the full version of this report, contact Berkeleys. e: info(at)berkeleys(dot)com

All Data Sources: Land registry®, YOUq®, www.youeye.co.uk
Berkeleys data, during timeframes indicated. * = to June 2012. Published:  September 2012.

Berkeleys London Luxury Property Show

Berkeleys Estate Agents will be hosting a Luxury Property Show in London this Autumn. Berkeleys will be showcasing Sandbanks, Canford Cliffs and Branksome Park, Dorset prime property at their associate office on Park Lane reaching London, national and international property buyers.

John Jennings of Berkeleys explains: “One of the many benefits of being a part of the Guild of Professional Estate Agents is that we have access to one of London’s most prestigious office locations within the Guild partner network. The Park Lane office allows us to utilise a flagship showroom to showcase prime residential homes to London based buyers, home search agents and investors.

The continued growth in the London property market has made prime regional property in this Dorset area look increasingly good value for money. As well as presenting an attractive investment to second home owners, many London families choose Dorset to relocate to for the excellent secondary schools, access to a coastal lifestyle and sailing, yet offering close proximity to the countryside too.   

Canford Cliffs

Alongside presenting prime property details, the Berkeleys team will be highlighting the many benefits of living on the beautiful South Coast. Approx. 90 minutes commute from London by train, or a two hour drive, the Canford Cliffs and Sandbanks region of Dorset is conveniently located and thus holds a well-established link with the capital. The Sandbanks Peninsular attracts ongoing national media attention as its’ many super-homes present the ultimate luxury lifestyle to holiday home buyers.

Visitors to the London show will also be able to enjoy Berkeleys recently published coffee table photography book revealing a glimpse into the history and heritage of Canford Cliffs and Sandbanks, Dorset. Pictures from their heritage exhibition will also be displayed. It is the enjoyment of these heritage assets like the chines, the pines, the coastline and the local 1930s modernist architecture that has drawn property buyers to the area for many decades and no doubt will continue to do so in the future.