We have put this series of posts together on London’s 32 boroughs to give you a picture of what is happening in the new build market and where the opportunities will be in 2023. This article focuses on Ealing.
Information and timing are critical to generating wealth when it comes to investing in new build property. Most investors simply don’t have access to enough information to make an informed investment decision buying off plan. High quality information is reserved for big investors who get all the best deals.
2023 The year of the investor
Many are pessimistic about the short-term prospects for the London property market. We think it provides one of the best buying opportunities for buy to let investors in several years.
Good property investors make investments in times of uncertainty, the key to making a good decision is having access to all the information.
Ealing – New housing analysis
Ealing is a popular commuter suburb in London’s western suburbs. Ealing has increased in popularity significantly over recent years due to the construction of a new Crossrail station. Ealing has average 676 sales p.a. in the new build market. However, sales have been circa. 1,000 p.a. (or greater) in 2018, 2019, 2020 and 2021. Sales rates have slowed significantly in 2022, with just 458 so far up to Q3.
Construction volumes have increased significantly since 2015. Between 2009 and 2015 the average number of properties under construction was 573 p.a., since 2015 it has increased to 2,393 p.a.
New planning applications over the same period have been the same have been on average 1,864 p.a. But have increased significantly in the past 5 years.
Ealing – Properties due to complete but unsold
The number of completed and unsold property in Ealing has steadily increased over the past 5 years. As at Q3, 2022 there were 234 complete but unsold properties in Ealing.
In addition, to the completed and unsold properties there are 14 schemes due to complete in 2023 with 470 properties which are currently unsold.
Of the 14 schemes, one is on hold, one has been converted to affordable housing and two are build to rent. Of the remaining ten developments four are yet to launch.
The estimated average asking price for those schemes with remaining property is £797 per ft².
Opportunities for investors in Ealing
Ealing has a considerable about of property due to complete next year and not currently sold as well as a large amount of property due to complete. It is clear than many developers in Ealing will be under pressure next year and will likely need to discount to sell existing stock.
Ealing is certainly a market to watch for investors.
Risks for investors in Ealing
There are certainly risks for investors looking to buy in Ealing, the major ones are likely to be the following:
- Pricing – there is a significant opportunity for price appreciation in Ealing in 2023. So, investors need to push hard for a deal, there is a real chance they will overpay.
- Rents – there may well be pressure on rents as new supply comes online
Ealing is a market that investors should certainly watch over the coming year.
If you want to find out more about which developments are likely to come to market next year in Ealing email us at [email protected]. You may also find our detailed report on the London Borough of Ealing useful, containing demographic and economic information to help inform your investment decisions.
Are you thinking about buying an investment property?
We built Du Val Global, real estate investment software designed to help investors make better investment decisions when they buy property. Our platform provides investors with the real estate investment tools to help with critical decision-making, including
Research – access to powerful property analysis provides real-time market research, allowing
landlords to have a complete picture of tenant economics, prevailing
rents, and capital values
Financial Analysis – a property investment tool that investors can use to create financial models to determine net return after tax and return on investment. Investors can understand specific tax implications. Our property comparison tool allows investors to compare investments on an after-tax basis to determine the best investment for them. Investors can even compare properties in different countries
Du Val Dynamic Pricing™ – Du Val Global offers a range of properties for sale from leading developers in Australia, New Zealand, and the United Kingdom via its proprietary Du Val Dynamic Pricing™ algorithm. This sophisticated pricing model levels the playing field for small investors through aggregation, providing discounts of between 7.5% and 15% from retail prices, which, until now, have only been available to large institutional investors.
Portfolio Management – a property portfolio planning tool investors can use to monitor and track the performance of their investments.
Interested in giving our platform a go? Start your free trial today at Du Val Global.
