Robust development is creating incredible demand for vacant space. Will the new land rush be a blessing or a burden for property owners in the idyllic haven of Dulwich?
If buyers thought London home prices were rising briskly, they may be even more startled by how much land prices are shooting up. According to Bloomberg News, demand for space from developers in the UK capital pushed up prime central London land prices by 19%; twice as much as house prices during the 12 months to June 2014.
However, demonstrating how the shift in demand as UK house buyers and international property investors seek affordability and enhanced yields; overall home and apartment prices in London experienced the largest gain in 27 years, rising 26% in the 2nd quarter, according to Nationwide Building Society.
Dulwich on the Rise
The English garden that is Dulwich in SE22, was long one of the best kept secrets of savvy real estate investors and sophisticated young home buyers.
However, back in 2011 the media hounds began to catch on to the incredible value, this rural, yet well connected village offered. For now Dulwich still offers a very family friendly environment, Georgian homes and Victorian terraces with gardens, amazing schools, and an eclectic array of independent shops.
According to journalists and London estate agents, East Dulwich (SE22), has officially ‘arrived’.
The big question in how long this unspoiled paradise will stay this way.
Daring London Property Developers
London’s property developers appear to have no intention of slowing down anytime soon. Throughout 2014 they have expanded upwards, outwards and forward in prices. Some may question the sustainability of this aggressive building, but the hard numbers continue to prove them right, and global fundamentals suggest they will continue to be.
With prime central London residential land prices soaring, and more buyer attention eyeing greater and SE London, it is only natural that builders will look further afield for previously undeveloped space to ‘improve’.
This could all make Dulwich, with its wealth of green space, naturally appetizing.
Bracing for Impact
Dulwich Village, West Dulwich and East Dulwich have slightly different communities, but all could be impacted by an incursion from modern developers.
On the positive side, more media attention and investment could elevate the area’s prestige and Dulwich property values. However, it could simultaneously taint some of the best perks the community has offered local residents. Increased pressure on schools, letting prices, and shop keepers could significantly alter the makeup of neighborhoods over time.
For some, together with currently low mortgage rates, and bargains on property elsewhere, this may signal the optimum time for selling Dulwich houses and apartments. Others might choose to move now, and let their Dulwich properties for another year.
The right choice really comes down to the individual, and their personal goals and future plans. What is important is that Dulwich property owners don’t fail to recognize the importance of pending real estate trends like this, and fail to act accordingly.