The latest market analysis by Unlatch, the new homes sales progression and aftercare platform for developers and housebuilders, reveals where Birmingham’s new-build premium hotspots are and where, therefore, housebuilders stand to make the most profitable investments.
In the UK, the average new-build house sells for a price of £261 per square foot. This is 11% higher than the average price for an existing home which is £236 per square foot.
In Birmingham, however, there are opportunities for new-build developers to get an even bigger bang for their buck, not least because of the vastly higher average asking price for homes.
In Birmingham’s B18 postcode area – including the much-loved Jewellery Quarter – the average existing home costs £191 per sq ft. The average new-build, however, costs £386; a premium of 102.1%.
In the B32 postcode area – South West of the city centre – existing homes cost an average of £197 per sq ft while new-builds are 71.6% more expensive at £338.
In B11 – covering Tyseley – the average existing home costs £157 compared to an average new-build price of £267 creating a new-build premium of 70.1%.
Significant new-build premiums are also available in B16 (61.6%), B12 (52.3%), B66 (49.7%), B20 (46.5%), B26 (45.7%), B71 (44.9%), and B31 (39.7%).
All in all, there are 48 Birmingham postcode areas where developers can achieve new-build premiums above the UK average of 11%.
Lee Martin, Head of UK for Unlatch said, “Birmingham is currently benefiting from major regeneration – inspired in no small part by the recent Commonwealth Games – with exciting projects found all over the city.
This means that there is a healthy level of new-build stock and plenty of eager buyers looking to snap it up, with these new homes commanding a healthy premium for housebuilders focussing their efforts in the right areas.”