While residential property on the river Thames in west London has multiplied
exponentially, Albion Riverside continues to offer some of the best views and
waterfront real estate in the capital.
Will the newer developments that are now completing on either side of the river have an impact for Albion Riverside in 2022?
In our opinion, most of the impact on Albion Riverside has probably already been taken into account by the market. There is certainly a lot of choice for buyers and renters on the river. New developments now have much more luxurious amenities and dare we call them, gimmicks, to attract interest. One very important reason that Albion Riverside remains so desirable is its location. Currently the area east of Battersea Park is still transforming and is much busier, nosier and messier than the almost perfect stretch between Albert and Battersea bridges.
It doesn’t matter how many resident games rooms, bowling alleys or cocktail bars competitors have on site, its still inferior, in our opinion, when compared to pretty Parkgate Road, magnificent Battersea Park and the atmospheric Kings Road and all its
cosmopolitan shoppers and night time revelers.
The distinct design of the building is noticeably Lord Norman Foster’s, with its undulating riverside facade, that allows its apartments to face different directions, affording a choice of bridge views and sun exposure.
We have been major fans of this building since it was first marketed off plan, as rather basic, very minimalist, new riverside flats. It was actually quite ground breaking at the time, as the area was much less developed than it is now and it had an edgy, urban feel. The design of the building was met with mixed reviews and initial sales struggled, but soon gained momentum. This was something that had not really been offered before. Such a very modern design and so clinical by comparison to typical London flats in Battersea. We loved it right away.
Not only was it a spaceship on the Thames, but it had a swimming pool. Very common these days, but not at all then. It also offered, as it does today, 24 hour concierge, gym, underground parking and a river facing resident’s garden. This was to become a building that brought Chelsea residents south of the river and really was fundamental in changing attitudes to the local area and lateral living in modern flats, as opposed to mansion blocks, more typical of the Battersea Park area.
The flats were designed with distinctive, white kitchens and large marble clad kitchen islands (in the larger units). The bathrooms were fitted with signature Foster bath tubs and basins. The building is divided into 4 cores to allow as many flats to have river views as possible and for two lifts to serve each core. The A core on the west side of the building has some of the largest lateral flats, as quite a few of the original buyers bought multiple units and joined them together. This core also has some of the best views of Albert Bridge. The D core on the eastern end of the building has become known for its four bedrooms flats, only available in D core and also for its sun exposure, as most of the flats here face west and get bathed in afternoon sunshine. In fact, we have come to understand that each core has its individual benefits and suits different residents.
The building has many different layouts ranging from approximately 500sq.ft to 8,500sq.ft. The penthouses range from 3,000sq.ft, to the largest penthouse in A core at a whopping 8,500sq.ft. The penthouses are duplex’s and most offer at least a section of double height ceilings creating phenomenal living space and a true penthouse feel. The flats all originally came with at least one parking space and there are also coveted storage units for the fortunate few who managed to secure one at the time of original purchase.
The buildings has an active resident’s association and is currently managed by Rendell and Rittner. The concierge service is excellent and the building is constantly being cleaned, and is always meticulously kept. Guest parking can be arranged for contractors and short term visits and taxis can stop outside the main entrance lobby.
How have prices faired in Albion Riverside?
Many modern ‘new build’ developments lose value unless the market is booming and take years to recover the value. It’s the curse of the new build. Not so for Albion Riverside, which has never lost much real term value.
Its not been complete plain sailing. There was a period in the depths of the credit crunch, where a few residents sold quickly and by today’s market very cheaply, but mostly its a building where owners will only sell if its worth selling, especailly the river facing units. This means that as a building, it holds its value. It completed at a time when property prices were rising fast and frankly, the world was unrecognizable to today. There was massive foreign investment, low taxes, reasonable mortgage rates, favourable non-dom status and very few modern flats with river views in a desirable location, such as walking distance to Chelsea.
Prices have consistently risen and while they slowed during Brexit and the pandemic, they have never fallen in real terms. When prices may have dipped slightly, sellers held firm and either didn’t sell or instead rented their flats to high caliber tenants. There was a period in 2014 where prices arguably peaked and were over inflated and some flats may sell now for slightly less than they did then, but renovating a flat to 2022 specification
will negate that loss easily.
There is a vast range of prices. The overall size vs the £/sq.ft is attractive when compared to some of the newer developments and therefore while new developments had no choice but to take sometimes hefty discounts, Albion Riverside has consistently traded at or very close to asking prices. Lettings prices post pandemic have soared.
Average £/sq.ft in the last 24 months:
River facing units: 6 sales - £1,571/sq.ft *includes penthouses / 7 lettings - £43/sq.ft
Non-River facing units: 5 sales - £866/sq.ft / 6 lettings - £28/sq.ft
Source: Lonres and own data. sold and let prices not asking prices.
So is it a good place to buy to live in and to invest in 2022?
Let’s start with a place to live. Yes it certainly is. It has so much to offer from generous proportions, outstanding design, attractive surroundings and excellent security.
There is a community within the building, and it feels friendly and safe. The indoor swimming pool is often visited by residents in their bathrobes. There is plan to upgrade the pool to non-chlorinated which we think is great idea. The views are simply first class. Some of the best the river has to offer. Parkgate Road now offers a Bayley & Sage along with The Prince Albert pub and obviously is a gateway to one of London’s finest parks.
Regarding investment for quick capital growth, like all modern buildings, it is less easy to recommend, unless there is the possibility to buy an original specification and upgrade it internally. Where one cannot add square footage, it is hard to add significant value. For rental investment purposes, the service charges can really hinder a decent return, but they do rent very well and often without any void periods. As rents have improved considerably in recent months, there will be no doubt of a successful rental. But buying in the building in 2022 for the purpose of a great rental return, is not likely to satisfy a buyer looking for yields. However, long term holding, while renting out, is certainly worthwhile, as the area continues to become more and more attractive, as the less desirable businesses and local sites, dissolve into new modern buildings and future residential properties.
Recommendations:
A great place to live, an excellent long term investment and an exciting location, with room for capital growth and further gentrification.
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