THE FIRST phase of a new build apartment scheme just off Regent Road, Salford, hits the market this week.
The developers have confidence as they know we can sell them but there is still a lack of funding. We can put the sites together and the plans can be exciting but the banks will not lend the money to build
The Delaney Building on Ordsall Lane is being built by the Manchester based Renaker Group and is being sold through Jones Lang LaSalle. The architects are Mark Weintraub Architecture & Design.
This block, the first of three, will have seventy units, a mix of one, two and three beds and, despite the scaffolding, is due to be completed by the autumn.
The timing is crucial to take advantage of the seasonal student influx.
Prices are going out at £134,950 for a 2 bed with 625sq ft up to £154,000 for an 800sq ft 3 bedder.
For comparison, two beds in Quay 5 further down Ordsall Lane are going for about £100,000 and over the road at Radclyffe Park LPC is offering a two bed duplex of 646sq ft at £129,950. Both these come with secure parking.
At Delaney it will cost you another £5,000.
But on the other bank of the river a bigger two bed in St George’s Island (pictured above), with parking, is currently selling at £185,000.
Steve Hogg, regional residential director at JLL said: “There are a lot of investors who are looking again at property and that includes individuals who may have savings in the bank giving them little return.
“Buying off-plan has changed. Previously investors would be happy to put down 10% and wait two years for a scheme to be built.
“Today they want an instant return on their money. This scheme is just a few months off completion and targeted for the late summer rental period where rents can be 20% higher simply because of sheer demand.
“We anticipate these giving a yield of about 7%, based on a rent of £750 for two beds.”
The price will be the same whether you buy one or ten and the best bargaining tool may be around furniture packs and legal fees. In a market where transactions are few they need to keep the bottom line prices firm to keep the valuers are happy.
Although Hogg is generally bullish about the market. Throughout April their office has done a sale a day, both new builds and re-sales, figures they have not seen for many a year.
At Eastbank on Great Ancoats Street Peel built houses continue to find favour with five doctors buying there in the last month.
And investors who bought Lend Lease bargains at Potato Wharf have seen enough uplift in the market to take some profit with three sales in the last month.
It will be interesting to see whether the developer moves to finish off the second block given the demand of the market. No doubt the launch of Cypress Place at Green Quarter will give a clear indication of the appetite for core city centre stock when it is released shortly.
Work is continuing not just on the block itself but on the marketing suite which is being re-fitted to demonstrate the updated specification to prospective purchasers.
In the Northern Quarter expect MUSE to put in planning this summer for a block of high spec apartments to complete the Smithfield project. Again Mark Weintraub Architecture & Design are the architects.
Forget NQ bohemia these will apparently be a luxury spec not seen before in the city.
A planning application is also expected soon from ISIS Regeneration for the rest of its Islington Wharf site, fronting Mill Street.
The push here is for more housing given the demand seen at Eastbank and there may even be a spade in the ground before the end of the year given the current drought of properties.
Steve Hogg said: "Residential sales have been busier than they have been in a long time. Prices are stable and demand is there.
“The developers have confidence as they know we can sell them but there is still a lack of funding. We can put the sites together and the plans can be exciting but the banks will not lend the money to build which is very frustrating and increases pressure on demand and rents.”
If you want to know more about the Delaney scheme click here.
Delaney starts to grow
Enquiry form
To enable us to tailor your individual requirements please supply the information below and we will get back to you as quickly as possible.
