Research by Morgans shows that Leeds city centre’s apartment values have recovered to the pre-crisis peak they hit in 2008. However, the gap between prices in core areas, compared to those in fringe schemes, is now wider than ever.
Values per square foot can now differ by as much as 50 per cent when comparing apartments in premium developments in very central locations with properties located less than a mile away on the outskirts of the city centre.
Buyers will pay a significant premium for a high quality, well-designed apartment in a very central location and this applies to both new-build and resale properties. Values of these types of apartments have generally held up much better than lower quality apartments following the downturn.
We are selling high quality properties, in core locations, for the same prices that we achieved at the peak of the market in 2008, with interest coming from both investors and owner-occupiers.
There is also a lot of potential for further price growth because Leeds is still behind the likes of Harrogate and York in terms of residential values, which is distorted when you consider and compare the economic profiles of the three.
A major lack of development in recent years has resulted in a shortage of supply, but there is now a raft of new developments on the horizon, which is also welcome news. Forward thinking developers recognise the importance of quality so there’s some real thought going into the latest generation of schemes which is good for both the market and Leeds as a whole.