King Sturge addresses ‘Women in Property’, Cardiff
26 April 2008
At a recent event held in Tiger Tiger
Chris Sutton, Joint Managing Partner in the Cardiff office of King Sturge spoke to ‘Women in Property’ at a recent event held in Tiger Tiger.
Women in Property is a national networking organisation operating throughout the UK for professionals in the property and construction industry, with the Cardiff Satellite branch forming part of the larger South West branch. South Wales currently has around 50 members and holds monthly events which are a mixture of networking, site visits and industry focused presentations.
“Given the current property climate we thought that Chris’ presentation was a good opportunity to learn more about the property market in Wales. The event was a great success, Chris’s presentation was excellent and very relevant which was evidenced by the questions and discussion it sparked” said Yun Yun Herbert, of Y2 architecture and Chair of Women in Property in Cardiff.
Chris spoke on the contents of the King Sturge South Wales Property Report which was published in March during a period of significant change in both the economy and property market.
Chris focused upon the Investment, Occupational and Residential markets, preceded by an overview of the global economy. Cardiff continues to be the guiding force for new property investment into South Wales. The city’s £700 million St Davids 2 shopping development, due to open in 2009, will reinforce the capital’s dominance in attracting investment projects of the highest order.
Not withstanding the dominance of Cardiff, both Swansea and Newport have enjoyed an up-turn in activity and, in particular, experienced renewed optimism in the retail sector.
In the residential sector, land acquisitions by housebuilders have stalled in recent months however historically high land values continue, particularly on the fringe of the region in Monmouthshire to the east and Swansea and Carmarthenshire in the west. The strength in land values reflects the slow pipeline of sites reaching the market due to planning and environmental constraints.
Office occupation remains relatively healthy, with Cardiff city centre achieving a prime rent of £20 ft². With speculative Grade A office development nearing completion at Callaghan Square in central Cardiff, the future looks promising within this important sub-sector of the market.
The major 800,000 ft² investment by Amazon in Swansea has boosted the industrial and distribution market, while well-located second hand industrial schemes such as Imperial Park, Newport, have attracted blue chip occupiers. The future looks less rosy for secondary buildings in poor locations, particularly bearing in mind the imminent implementation of vacant rates legislation.
Chris singles out the Welsh Assembly Government as “seemingly intent on layering yet more legislation upon the property industry”. The new vacant rates liability, arguably, could not have come at a worst time.
