How much land values ​​have risen in Dorset, according to Savills

COMPETITION for land for development in urban areas of Dorset and Hampshire has seen values ​​soar over the past year.

Big house builders are the most competitive buyers with extra cash to spend, search by real estate Business Savills found.

It found that in Dorset and Hampshire the value of urban land rose 2.2% in the first three months of this year and 7.3% the year before.

Nationally, values ​​rose 1.3% in the quarter and 7.2% annually.

Greenfield land rose 1% in the first quarter and 8% annually, less than national figures of 1.4% quarterly and 9.3% annually.

Colin Wilkins, Director and Head of South Coast Development Team at Savills, said: “Demand for land across Hampshire and Dorset remains exceptionally strong with competition for sites from a wide range of properties. actors.

“There is limited acceptance of deferred payments on many transactions we are involved in as parties seek to become more competitive through payment terms in addition to tightening margins.”

Savills said the combination of strong demand and limited supply has kept values ​​high as potential buyers are ready to compete for land in their development pipelines.

Although construction cost inflation is putting downward pressure on values, its impact has been offset by rising house prices and the imbalance of supply and demand.

Large homebuilders had buying power while small and medium-sized players were more constrained by cost inflation, Savills said.

Strong demand was also intensified by competition from alternative uses, which Savills said was a new dynamic in the residential land market.

Mr Wilkins said: “Demand from industrial and logistics developers is competing in more areas across the country, putting even more pressure on the limited supply of residential land.

“High prices are paid for industrial land for sites well connected to the main road network accesses and motorway interchanges.

“Although the current land market remains dynamic, the capacity for future growth is limited. Over the next five years, we anticipate a slowdown in the growth of property values ​​in the region.

“Our research shows that the value of greenfield land is expected to increase by just 4.4% over the next five years, after increasing nearly 10% in the last year alone.”

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