Thursday 6 August 2015

Chichester property is flipping great!

With Chichester’s property prices up 14.3% in the past five years, most property sales are now going through for more than the previous owner paid.

In some cases, properties are now being sold for far more than they were just a few years ago, tempting some investors into ‘flipping’ property bought since the ‘credit crunch’.

It is also allowing ‘accidental landlords’, who decided to rent out their previous homes rather than sell at a price they didn’t deem acceptable, to now offload these properties whilst prices remain high.

The greatest annualised increase from an individual property in Chichester so far in 2015 is a two bedroom house on Orchard Street. It was sold for £280,000 in April; some 40% more than when it was previously sold just two years ago!

Chichester's city walls from Orchard Street
Orchard Street is quite close to Chichester's City Walls!

This particular property has been sold several times in the past decade, which provides a good insight into property prices in Chichester over this time.

In July 2001 it sold for £100,000. The sudden boom in house prices meant that just two years later it sold for £159,000; that’s 59% more! It then increased further, selling for £200,000 in December 2009, before prices fell and it was sold for £187,500 in October 2012. A year later (August 2013) it had recovered to its previous high of £200,000, which has now been superseded by the recent sale at £280,000.

Another notable example this year is a four bedroom semi in Graydon Avenue. Near perfect timing meant it was bought at the recent market low in March 2009 for £230,000, just as interest rates were being dropped to their lowest level on record. It’s evident how this has fuelled the property market as it was recently sold in April for £485,000 (an increase of 111%).

Graydon Avenue, Chichester
Look how much bigger it is than its neighbour now!

Extension at Graydon Avenue, Chichester
Beautifully extended to the rear

You must, however, be careful at this point as that ‘increase’ doesn’t tell the whole story; the property had been extensively refurbished at (presumably) a significant expense to achieve its new record sale price.

Recent sales data also demonstrates how long-term investment in property can reap big rewards. A two bedroom flat in Summersdale Court on The Drive sold in May for £260,000. This is 271% higher than when it was bought for £70,000 in 1998; an annualised increase of 8.1%.

This property also highlights an important fact: you make your money when you buy, not when you sell.

At £260,000, it was bought for £40,000 more than a near-identical flat in the same block that sold in April. It is also £15,000 more than the previous highest sale price in the block, which was a three bedroom flat 18 months ago! On this basis, I don’t expect to see it on the ‘greatest property flips’ list anytime soon.

If you’re looking at buying a property in Chichester and would like a free background check on its previous sale prices, please get in touch.

chichester observer headline

(This article was featured in the Chichester Observer's property section on 6th August 2015)

Clive Janes, CRJ Lettings.


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