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- £2.25bn – The total value of all Erdington Property Market
£2.25bn – The total value of all Erdington Property Market
January 25, 2017
“How much would it cost to buy all the properties in Erdington?”
In the last 14 years, since the autumn of 2002, the total value of Erdington property has increased by 57% or £817.9 million to a total of £2.25 billion. Interesting, when you consider the FTSE100 has risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.
When I delved deeper into the numbers, the average price currently being paid by Erdington households stands at £122,544.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Erdington; the average numbers come out like this ..
|Erdington Property Market
|Average Value of a Detached Property
||Average Value of a Semi-Detached Property
||Average Value of a Terraced/Town House Property
||Average Value of an Apartment
… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are so expensive, when you compare them with the much cheaper terraced/town houses and semi-detached houses, you can quite clearly see detached properties are no match in terms of total pound note value of the terraced/town houses and semi-detached houses.
|Total Value of all the Erdington Detached Properties
||Total Value of all the Erdington Semi-Detached Properties
||Total Value of all the Erdington Terraced/Town House Properties
||Total Value of all the Erdington Apartments
So, what does this all mean for Erdington? Well as we enter the uncharted waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Erdington remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Erdington house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Erdington not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Erdington has always, and will always, ride out the storm.
In the coming weeks, I will look in greater detail at my thoughts for the 2017 Erdington Property Market.