I am often asked “What is going to happen in the Cardiff property market?” or “Where is the best place in Cardiff to invest for my next purchase?”
These can be seemingly simple questions, however the answers are not. To address these questions I think we start by looking at how an area has performed over the last 12 months or more.
Firstly, looking at Cardiff property I can tell you that the average price for a property in Cardiff is now £206,690 – 24% of sales in the past 12 months were flats, achieving an average sales price of £143,321. Houses achieved an average price of £232,366. This is up 6% over the last 12 months.
I can tell you that on average property prices in England & Wales are up just 1.6%. Compare this to the Cardiff growth of 6% and now we have a base line as to how Cardiff property is performing.
Now with this base line in mind, let’s look a bit closer at how different areas of Cardiff are performing well and what areas are not.
Let’s start with an area that performed well last year and I tipped as an area believed to have have further growth.
15% price increase in the last 12 months is a fantastic growth rate, and with Llanishen having an average property price of £209,242 there is still some room for growth here. This area is mainly made up of semi detached family properties (43%) – great for flipping or renting.
Next, let’s look at a couple of areas that have been great for rentals in Cardiff.
Roath & Cathays
Another area performing well with a 13% increase in the past 12 months. These areas are well renowned for having a large rental market which could account for the generous growth. The average price of properties here are £121,591 for flats which make up just 13% of sales and £229,599 for houses. A massive 78.7% of sales in the last 12 months were terraced houses.
Whitchurch has a solid history in Cardiff with good schools and shopping village which generally attracts middle class families to the area. With 17% growth in the last 12 months and 43% in the last 5 years Whitchurch contines to be a sought after area. However, with a high average property value of £308,748 for houses it can put off the typical investor.
Pontcanna, another highly sought after area of Cardiff with close proximity to City Centre and with prestigious streets such as Cathedral Road attracting the more affluent buyer or developer. In the last 12 months Pontcanna has seen a strong 12% growth. However, the 5 year growth statistic is fairly common of an area already hitting its peak. With a huge average house value of £340,729 this puts it out of reach for many buyers. However, Pontcanna has a history of holding a steady value with small bursts of significant growth.
Canton is another recent favourite for property flipping and with a fairly strong rental market due to its location to Cardiff City Centre and local shops. Being more affordable than its neighbour Pontcanna it is generally a safer long term bet with firm steady growth, which this graph below beautifully illustrates.
Grangetown & Riverside
Grangetown and Riverside’s close location to Cardiff City Centre has in the last 5 years made it a sought after area for investments, especially for rentals and serviced accommodation, but also a great area for converting properties into flats. Similar to Canton, this area has a firm steady growth. However, with an average price of just £123,633 for flats and £186,719 for houses, it looks quite attractive.
Thornhill with its primarily 80’s build properties has a -2% drop in growth. However looking at the details for the last 2 years Thornhill has had an unusually large average growth in some months, so this -2% would suggest a natural adjustment to the areas values leveling out.
Llanrumney has historically been primarily local authority or social housing. However, many are now in private hands. So the 2% growth in the last 12 months dosn’t sound too great does it? However, when looking at the recent annual percentage change history for Llanrumney you can see from the graph that there have been some contsistant significant percentage increases. That along with the average price of a house being just £176,730 and £98,209 for flats makes this area more affordable not just to developers but to the general market place. Profit numbers could be less here but margins more.
I haven’t included every area in this Cardiff property review. If you would like to know more about an area or if you are thinking of buying any property and would like some advice or market intelligence then feel free to contact me.