The lure of life in the city

Jun 20 2006

By Marsya Lennox, Property Correspondent

Demand from "voracious" investors is driving up sales figures and proving fresh confidence in Birmingham's city living marketplace. And they are spending their money in the city because young professionals want to live here. In the first quarter of 2006, Knight Frank has sold 268 new homes, a significant increase on figures for the same period in 2005. The buoyant local mood would seem to contrast starkly with the wider reports of a lacklustre market. And taking centre stage in Birmingham have recently been Mass-house and The Cube with a steady sales rate of one-a-week at the landmark Eastside scheme, its first phase now more than 80 per cent sold. And The Cube, the dramatic final phase of The Mailbox, has seen more than 100 apartments reserved in the few weeks since its initial launch, being sold on a "first come, first served" basis with a long list of applicants on a waiting list. The strong start to the year is seen as the herald of continuing success for 2006. David Fenton, head of residential development for Knight Frank's central region said: "It is no secret that the residential market stabilised over 2005 and a knock-on effect was felt regionally, but the Birmingham market still performed incredibly well. "Yet this year, we have undoubtedly turned a corner. On the buy to let front particularly, the demand from investors has been voracious." A total of 75 per cent of the investor apartments at The Cube were snapped up in one go by the Claremont Group. And nearly all the 137 off plan sales at Masshouse have so far been to investors. In the Jewellery Quarter, 17 apartments were sold this year at Charles church's Quartz scheme, leaving just 15 left for later buyers. "The demand from young professionals looking to live in the heart of the city continues unabated, and as long as people are looking to rent units in the city, investors will continue to buy them. "Many developers are releasing properties off plan earlier than ever before. Last year Rotunda sold out before the developer had even fully started on site. "Likewise, The Cube has sold almost half of its apartments and demand for the remaining units is vastly outstripping the supply." Despite a general slow down last year, there is no sign that the developers are leaving town. They too seem keen to capitalise on the confidence. George Wimpey City is to launch its first scheme in Birmingham, Latitude on Bromsgrove Street, designed by the well known local architect, Glenn Howells. The Orion Building is embarking on its fourth phase with more "designer" apartments with input from international name John Rocha. Also on the drawing board is the redevelopment of the Science Museum on Newhall Street, being launched as Newhall Square in the autumn. And where the city core welcomed the pioneer developers 11 years ago, the fringes are now feeling the outward momentum as new areas of Birmingham are opening up as places to work - and live. Masshouse is seen as driving the eastward expansion including City Park Gate and Digbeth. Mark Evans, partner at Knight Frank said: "Masshouse is opening up an entirely new quarter of the city centre for residential use." Between the Bullring and Millennium Point with Colmore Row a short walk, the scheme was far from isolated. "It is in an area that has still got some way to go in its long-term-multi-faceted regeneration programme, such as the completion of Eastside's planned City Park. "Yet more and more schemes are coming forward in the pipeline and these should ensure that the east has its own residential quarter to rival that of Brindleyplace." Details on current schemes are available from the Birmingham office of Knight Frank, telephone 0121 200 2220.