Cardiffs First One Million Pound Home Sale As Prices Hold Firm
Traditional family homes are holding their value, reports email4property.co.uk, the country’s largest network of online estate agents, with the news that Cardiff recorded its first £1million property sale in 2007.
At the start of an intense period of regeneration in the early 2000s, boosted by the city’s entry into the 2008 European City of Culture, the average price of a home in Cardiff leapt, increasing by over 86% in four years. Growth has since remained positive although it has slowed over the last two years, rising by 4% in both 2006 and 2007.
Family houses continue to perform well in Cardiff and 2007 brought the sale of the city’s first £1million home – a detached property in the Penylan suburb of the city.
However terraced homes lead the pack in Cardiff, with prices up 7.4% in 2007 and by a total of 129% since 2000. Sales of these homes have remained buoyed by a steady supply and competitive pricing. They have sustained popularity with buyers in Cardiff, accounting for between 40-50% of all property sales each year since the turn of the century.
A downturn in the price of apartments in 2007 warns of an oversupply issue, currently being seen in many cities throughout the UK. It represents a complete turnaround from early in the decade when the price of apartments outstripped that of terraced homes for several years consecutively.
David Bexon, Managing Director of email4property, comments:
“The property market in Cardiff remains robust with the average price of a home rising by well over 100% (115.4%) since the year 2000, and continuing to rise steadily, albeit without some of the gusto seen earlier in the decade."
“Demand for terrace homes in Cardiff is considerable, as prices remain affordable for first time buyers, and attractive to buy-to-let investors looking to take advantage of the thriving student community."
“As with many traditional industrial towns, regeneration has resulted in a number of high-spec apartment schemes cropping up across the city - designed to target the growing number of young professionals being drawn into the area. These schemes are currently taking a bit of a knock in the current climate, where oversupply has cooled the market for investors."
“First time buyers could be the ones to benefit from this, with developers offering lower prices and good incentives, but they shouldn’t expect instant appreciation as the market will only recover slowly.”
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