No, this is not an April fools. Over the last twenty years property prices in Cardiff have increased 231%. To put that into numbers, on average, property owners have made £143,622 since 1999, or £7181 per year.

Of course, there has been natural inflation you could take into consideration, and according to the Bank of England just taking inflation into account the average Cardiff property should be worth £105,763, while the average price of property in Cardiff today is actually £205,749. That in itself is still a handsome £100,000 increase.

In the last twenty years property values in Cardiff grew speedily and peaked in April 2008 at £170,003. Then, during the recession prices dropped to their lowest at £150,030 in July 2009. Values increased steadily to £167,290 in March 2014. After this, prices rapidly grew to today’s high of £205,749.

Cardiff property (and indeed Wales) in today’s market is well in excess of the UK norms. Property prices in Cardiff have increased 6% in the last twelve months compared to a UK average of about 2% according to the ONS.

Key property market metrics over the past 12 months for Cardiff and Wales

Over the last 12 months 23% of property sales in Cardiff were flats / apartments achieving an average price of £140,230 while houses achieved an average price of £231,329.

Average property values over the past 12 months Cardiff and Wales

I have many people contacting me asking what is going to happen in the Cardiff property market? Whilst seemingly a simple question, the answer is not.

Cardiff population growth is set to continue with a projected growth of just over 20% between 2015 and 2035 (an additional 72,000 people). However, only 464 new homes built in Cardiff over the 2017/18 period (392 less than its Newport neighbour). Then, include the factor of further investment and infrastructure from the abolishment of bridge tolls and you can see that the demand for housing (buying and rentals) in Cardiff will be strained.

Although many landlords have been stretched recently with different licencing schemes and new tax laws, most have said they will be looking to increase their portfolios. So, with Cardiff growing, rental homes for families and professionals will be much needed. Currently Just under 60% of Cardiff renters are aged between 18-29 and 25% aged between 30-39. The majority of Cardiff rental properties (55%) are flats with an average rent of £682pm. Cardiff houses reach an average rent of £811.

Due to high demand, Cardiff rents increased on average around 3% per annum over the last few years. Semi detached homes have had the highest rental increases due to the lack of new properties and a large increase of families in the rental market.

I always love speaking to people about property so feel free to contact me for any advice. Or follow me on Facebook @cardiffpropertyinfo & Twitter @cardiffpropinfo

Dan Hopkins

Working with property professionals for over 20 years providing advice and services to all property investors.


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