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Development Market wakes from two year slumber

Development Market wakes from two year slumber

Fisher German held a very successful collective auction of six development opportunities for eight new dwellings on the 24th March.

Partner and auctioneer Andrew Ranson comments, “This auction was probably the largest sale of development property between London and Birmingham in the last two years. The 100% success rate could mean that the development market is finally waking from its slumber.”

All of the available properties sold with many at levels in excess of the auctioneers’ and the vendors’ expectations, some at figures close to their values at their peak two years ago.

Mr Ranson continues, “The last time six local development sites were offered for sale at the same time was probably Fisher German’s auction in June 2008 when only two of the six sites sold. It was around this time that the development market stopped almost stone dead. Values tumbled and in the worse cases dropped to around 50% from their peak. Since then the number of deals has dropped off dramatically, mainly due to lack of supply at the lower values.

“More recently values have been improving and with it the supply. Vendors of development properties realise that life must go on and in particular, planning consents only last three years and people can no longer rely on the presumption that they can simply renew consent before it expires.”

On the other side Fisher German reports that developer purchasers appear to have better access to funds, perhaps helped by having sold some of their finished properties. Enquiries from self builder purchasers have also been picking up as confidence returns.

Mr Ranson predicts that on the back of the success of the recent auction, Fisher German will see further local development sites come to the market over the summer. Despite the possible slowdown of the market around a general election, he feels the market looks likely to remain strong, due to the lack of promising development sites available.

Some of the highlights of the sale included a development site in Witney for a replacement dwelling in five acres that was guided at £225,000-£250,000 and made £350,000 after very competitive bidding. A single plot in Farthinghoe guided at £175,000-£225,000 made £240,000 and another site for three dwellings in Witney guided at £140,000 – £160,000 made £250,000. Full details of all the results can be seen on Fisher German’s website.

Please call Andrew Ranson on 01295 226288 for information on selling or purchasing development opportunities, alternatively email andrew.ranson@fishergerman.co.uk.

About Fisher German

Fisher German LLP is a firm of multi-disciplined chartered surveyors and rural property consultants, serving clients countrywide.  They provide high quality, personal, but most importantly individual advice, which enables them to deal with each client’s situation according to their particular requirements.

Fisher German LLP prides itself on an innovative approach to its market.  It has a national reputation in many fields, with clients ranging from individuals to multi-national companies.  Core disciplines include: rural estate business, farm consultancy, telecommunications, renewable energy including wind farms, pipeline management, planning and development, property sales and lettings, professional services and building consultancy.  Website is: www.fishergerman.co.uk.

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