Affordable new build - not selling?

[Deleted User]

tbo127 said:

[Deleted User] said:

People don't want micro flats that are barely fit for human habitation to start with. As soon as they start a family they will need to move.

Prices are falling fast too, and mortgage rates are going up quickly.

Well it’s the prices falling part that worries me about this development now. The prices havent changed since they were first marketed 6 months ago. 

Anyone who bought at the top of the market is screwed, but the developer doesn't want them to know that for certain by discounting to a realistic price.

tbo127

[Deleted User] said:

tbo127 said:

[Deleted User] said:

People don't want micro flats that are barely fit for human habitation to start with. As soon as they start a family they will need to move.

Prices are falling fast too, and mortgage rates are going up quickly.

Well it’s the prices falling part that worries me about this development now. The prices havent changed since they were first marketed 6 months ago. 

Anyone who bought at the top of the market is screwed, but the developer doesn't want them to know that for certain by discounting to a realistic price.

But then the other question is should you wait to buy for an indefinite period? It’s not like anyone is getting any younger and market rent is only going up. 

tbo127

Also, prices in this area are very high if you look on rightmove. 1 beds (of any size) generally are £350k or more with a few exceptions (those few normally have a short lease, in the town centre are, above commercial premises or in need of modernisation). 

Maka344

This is happening a lot, take this development of 18 houses in Tenterden, a stunning village on the outskirts of Ashford. It has been available for a year now and they have 50% remaining, they've even gone out to the local estate agents to help sell them:

https://www.croudacehomes.co.uk/new-homes/kent/the-havens

tbo127

Maka344 said:

This is happening a lot, take this development of 18 houses in Tenterden, a stunning village on the outskirts of Ashford. It has been available for a year now and they have 50% remaining, they've even gone out to the local estate agents to help sell them:

https://www.croudacehomes.co.uk/new-homes/kent/the-havens

So do the large developers plan to sit on unsold developments until the market improves?  None of them seem willing to drop prices.  

tbo127

So I’ve been told by pocket that the flats are independently valued prior to launch and approved by the local authority and hence they are fixed prices.  They have prices for block an and block b although block b isn’t launched yet. The question then is is there a possibility that they could re-value block b if market conditions improve so that they can sell at a higher price? 

RelievedSheff

tbo127 said:

Maka344 said:

This is happening a lot, take this development of 18 houses in Tenterden, a stunning village on the outskirts of Ashford. It has been available for a year now and they have 50% remaining, they've even gone out to the local estate agents to help sell them:

https://www.croudacehomes.co.uk/new-homes/kent/the-havens

So do the large developers plan to sit on unsold developments until the market improves?  None of them seem willing to drop prices.  

The developers here are not discounting prices but they are offering more incentives such as cashback on completion, mortgage payment contributions etc. 

They want the sold prices on the land registry to remain high.

GDB2222

RelievedSheff said:

tbo127 said:

Maka344 said:

This is happening a lot, take this development of 18 houses in Tenterden, a stunning village on the outskirts of Ashford. It has been available for a year now and they have 50% remaining, they've even gone out to the local estate agents to help sell them:

https://www.croudacehomes.co.uk/new-homes/kent/the-havens

So do the large developers plan to sit on unsold developments until the market improves?  None of them seem willing to drop prices.  

The developers here are not discounting prices but they are offering more incentives such as cashback on completion, mortgage payment contributions etc. 

They want the sold prices on the land registry to remain high.

A friend was able to negotiate a large extension on his new build, as an incentive.  It just depends how far list prices get out of line with market values.

Murphybear

There has been negative publicity about these flats, or, if you prefer, “shoeboxes”

tbo127

Maka344 said:

This is happening a lot, take this development of 18 houses in Tenterden, a stunning village on the outskirts of Ashford. It has been available for a year now and they have 50% remaining, they've even gone out to the local estate agents to help sell them:

https://www.croudacehomes.co.uk/new-homes/kent/the-havens

It’s now 100% reserved. That didn’t take long.