UK property bounces back – new launches

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The Jewellery Quarter in Birmingham saw the largest property price increase in the city in 2019. 

One Touch Property is pleased to present a sustainable property development in the B1 post code of Birmingham comprising 226 luxury apartments is now available for purchase.

The topic on everyone’s mind is the impact of coronavirus on the UK property market. Obviously fewer transactions were taking place due to the logistical nightmare of viewing properties, and because most estate agents had shut their offices. Those that did urgently need to sell, may have done so at a below market rate.

28 May 2020 – Rightmove, UK’s largest online property portal reported – a record breaking 6 million visits to their website. This indicates pent up demand, and a sustained interest in UK property market that is being released now lockdown measures have relaxed. It appears those who had to urgently sell during lockdown offered discounts to entice the smaller pool of buyers who were still motivated, but as lockdown eases and the demand surges, prices will begin to rise. This is because property prices hinge mainly on demand, which appears to be strengthening again.

JQ Rise will be made up of one, two, and three-bedroom apartments, each designed with open plan living spaces with oversize windows to let in maximum light. The apartments will be furnished with the developer’s signature style, combining modern, stylish fixtures with comfort to ensure a luxurious feel. Hardwood veneer flooring, stainless steel sockets and integral appliances will be featured throughout.

Aside from the apartments themselves, the location is also extremely desirable. The Jewellery Quarter in Birmingham is steeped in history and produces 40% of all jewellery made in the UK. Jewellery manufacturing peaked in 1920s but was heavily impacted by the Great Depression and never fully recovered afterwards. Consequently, the Jewellery Quarter has undergone some regeneration in recent years and is now home to many of Birmingham’s creative businesses. The area lends itself naturally to the creative industry as jewellery making is a craft and co-working spaces are readily available. The industry is set to expand and earlier this year a planning application was submitted to transform the Key Hill area into creative studios.

As well as the growing business sector in the Quarter, it also has a vibrant cultural scene. It is home to plenty of galleries and The Blue Orange Theatre, along with independent cafes, restaurants, and bars. The location is convenient too for those wishing to explore further afield, it is along the outskirts of the city centre and has the added convenience of being well-connected having its own railway station and tram stop.

It is no surprise that people are attracted to living in such a vibrant area of the city, especially when it has undergone a period of redevelopment. Compared to the UK average, house prices remain affordable, although they are increasing at a significant rate due to the emerging new business scene and its convenient location. The average house price in the Jewellery Quarter stands at R4.8m, a 9% increase since 2019 (according to Rightmove). Some of the fundamentals that drive rising house prices include lack of supply, regeneration, improving transport links and a movement of businesses to the area. These will still be relevant during the Coronavirus pandemic and even beyond, as people still need places to live and may migrate to key cities outside of London where property is cheaper if they can work flexibly.

JQ Rise overlooks the Jewellery Quarter and has the potential to, but has not yet hit, the ceiling in terms of property prices. With apartments starting from R4.3m, they are priced below average properties found in the Jewellery Quarter, and there is more scope for investors to achieve capital uplift. Due to complete in Q2 2022, investors have time to raise capital and there are payment plans available. Investors can reserve an apartment with a 5% initial payment, and the deposit is divided over the build term months. Once completed, we expect the investor to have achieved some level of capital growth on their apartment already.

Investors interested in capitalising on the property price increase experienced in Birmingham and specifically the Jewellery Quarter, should speak to a member of the One Touch Property team who will be able to provide more detail on the JQ Rise buy to let in Birmingham development. Investors can also find out more information on the regeneration Birmingham has experienced over the years and how that has impacted house prices.

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