Just before the Christmas break one of my landlords popped into my office with his eleven year old son who asked “How much would it cost to buy all the houses in Colchester?” Over the holidays the question stuck with me and I set myself the challenge to come up with an answer for the total value of Colchester properties and how much they’d increased in value since his son was born in 2005. Here’s the answer:
The total value of Colchester properties is £12.83 billion
Over the eleven years since the autumn of 2005, the total value of Colchester property has increased by 47% or £4.1 billion. Over the same period the FTSE100 index has risen by 30.78% and inflation (i.e. the UK Retail Price Index) rose by 37%.
Delving into the numbers the average price currently being paid by Colchester households is £253,466. As usual I couldn’t resist taking the figures a stage further and split the property market down into individual property types in Colchester. The average price of Colchester properties works out as follows:
|Colchester Property Market Average Values Q4 2016|
|Average Value of a Detached Property||Average Value of a Semi-Detached Property||Average Value of a Terraced/Town House Property||Average Value of an Apartment|
I then multiplied the total number of houses for each property type by the average value (£253,466) to find the total value for each property type. Even though detached houses are more expensive, compared to semi-detached houses, you can quite clearly see detached properties don’t fare much better in terms of total pound note value of the semi-detached houses.
|Total Value of all the Colchester Detached Properties||Total Value of all the Colchester Semi-Detached Properties||Total Value of all the Colchester Terraced/Town House Properties||Total Value of all the Colchester Apartments|
So, what does this all mean for Colchester? As we enter the uncharted waters of 2017 and beyond, even though property values are already declining in parts of the previously overcooked Central London property market, the outlook for Colchester remains relatively good. Partly because the local property market didn’t overheat but also because the underlying factors remain the same:
- Demand for rental property remains strong with continued immigration and population growth.
- 0.25 per cent interest rates. Borrowing has never been so cheap.
- New house building in Colchester still even keeping up current demand, let alone making up for years of under investment
Although we may be in for a bumpy ride over the next 12 to 24 months, in the medium term, property ownership and property investment in Colchester has always, and will always, ride out the storm.
If you would like an informal chat about the value of Colchester properties or any aspect of the Colchester property market give me a ring on 01206 862288 or email firstname.lastname@example.org. I’m also available to offer a free opinion on Colchester properties for sale. Send me the Rightmove or Zoopla links you’re interested in and I’ll get back to you, often within 24 hours.