City Residential: The cranes are back

Alan Bevan's latest quarterly summary of the apartment market in Liverpool city centre shows a 10% increase in city centre prices compared to last year.

The City Residential update highlighted the 2000 units granted planning permission in the student accommodation sector in the last quarter, alongside a huge increase in interest in the private rented sector and office-to-residential conversions.

Average apartment prices in the city centre have increased by 10% in the last year to £145,000, and in the docklands by 5% to £167,000. To rent in the city centre, expect to pay around £770 each month.

Q3 highlights

Sales

• Prices up 1.07% on quarter and 7.71% on year.
• Slight slowdown during summer but market still very strong
• Massive number of schemes planned for Baltic Triangle
• Huge interest in office to residential conversions

Lettings

• Prices up 1.23% on quarter and 2.41% on year.
• City again runs out of stock as student tenants return
• Rental prices increasing at around 5% year caused by lack on new supply
• PRS gathering momentum with first schemes on site and interest building

Sales and Completions Analysis

• Best quarter for some time with large increase over Q1
• Expected to increase dramatically over the next 12 months

Bevan said: "We concluded our last report in July by highlighting that "It won't be long before we start counting the cranes once again…" which has prompted us to get out and start counting! With a total of 14 cranes now visible above the famous city skyline it's safe to say that the city is now beginning to witness the level of development that has been so sorely missed for the last 6-7 years. Whilst it may be some time before we hit the peak of 42 in 2006-2007 there is no doubt 'crane counting' will be the most visible sign of development activity in the city."

• Alan Bevan is managing director of City Residential
• To see the full report click here