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 That last figure is down from over £350m in October 2012 – there have been at least 24 such properties withdrawn from marketing (for various reasons) and a further 20+ sold subject to contract since then, so the (apparent) over-supply picture is improving.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