With all the hype about London’s newest tube stations opening at Battersea Power Station and Nine Elms, we thought it would be prudent to do our first edition of ZOOM IN on a riverside development that benefits from these long awaited additions to the capitals travel network, so often under-served south of the river.
Will the new tube stations have an effect on prices in the area and which parts of the area will benefit the most?
In our opinion, the biggest benefit will be to the properties furthest from Vauxhall tube stations, such as the star of our first ZOOM IN, St James’ Riverlight Quay, obviously Battersea Power Station itself, and the properties around Battersea Park, certainly on the south eastern side and in the Diamond Conservation area.
We have watched this rise out of the ground over the last decade along with the transformation of the area, which is now unrecognisable. For Smith & Ericsson, this is one of the more attractive developments on the river. As fans of Richard Rogers, and this is designed by Rogers Stirk Harbour and partners, it makes a striking impact on the river, but unlike some other of the buildings and developments, its series of buildings, each with a signature colour underlying the steel work, feels balanced and pleasing to the eye.
The landscaped gardens are described as “a riverbed with pebble-like forms and a plethora of water features, while the private courtyards are calm spaces with heavy tree planting and water gardens.”
They certainly soften the heavy traffic on Nine Elms and create a semi green space between the road and the river and we can report that sinking a few pints at the Nine Elms Tavern in the sun, next to the river, is a time well spent. I always feel sorry for delivery people, as it can be confusing getting the right entrance to the right building. There are 5 glass and steel pavilions set in the aforementioned landscaped gardens, and each has several entrances. Look for confused Deliveroo drivers and lost estate agents! Glass lifts make a fun ride to and from your property and the views, even from the lifts, can be staggering. The common parts are moodily lit and feel a bit like a hotel. They are well kept and each pavilion has a lobby with seating areas.
Like most new developments in London, it has excellent on site amenities. An attractive pool, a spa and a gym are located in the eastern most pavilion, which we believe also has the best views, especially the north east facing flats. The concierge, which is 24 hours, is located at the north west corner at the entrance to the car park. There is the Nine Elms Tavern, Chokhi Dhani for Indian Street food and cocktails, the Black Cab coffee shop complete with faux black cab outside, and a Sainsbury local. Off site, but very close by, is a huge Waitrose which is essential for any gentrified areas to hold its head up high.
Like in all buildings or developments, some flats are better than others. In fact in Riverlight Quay, some are much better than others. Let us make it absolutely clear, we like this development, and any flat is worth buying here, as long as it is at the right price and for the right reasons. The best flats, in our opinion, are the north facing flats that sit directly on the river. In Pavilion One, the flats that face east in this position have sensational views. Probably some of the best in the area.
The kitchens are all open plan in Riverlight Quay, love it or hate it. Second and third bedrooms could do with more storage generally, but then this is a common theme among new builds. Some owners have built in additional wardrobes or shelves, which is an easy remedy. Depending on where you are located you can feel over looked by other flats, but that is what living in large developments is all about. It is not a place to be a hermit.
The south facing flats, which obviously benefit from the best sun exposure, are probably due for a reassessment, as the development and green linear space of Nine Elms Park takes shape on the other side of Nine Elms Lane. It will certainly be more attractive to look at than the large pile of rubble that has been on the site for last few years. River views always conduct a premium, but we’re betting on an uplift in interest (and prices) of the south facing flats, once the development opposite has completed.
How have prices faired in Riverlight Quay?
Like so many modern developments in Nine Elms, it really does depend in which phase the original purchase took place. Generally as a rule with buying off plan, if you get in at the beginning, chances are you will see a reasonable profit when you come to sell in the short to medium term. Obviously there are many factors that may affect the reliability of this, but its your most common denominator.
Riverlight sold really well off plan, especially in the first phase. Quite a lot of investors bought and flipped the contracts. Latterly, the joys of Brexit, changes in SDLT and non-dom status tax legislation, as well as the heavy supply of apartments in the area, heavily affected Nine Elms. Some buyers in the latter phases failed to complete. However, it is a testament to the development’s success, that St James easily resold these apartments and while latter phase buyers may have to wait longer to sell at large profits, they do own property in an area that is now really starting to take shape as a destination, rather than a peripheral location, with heavy construction and not much else. Prices must inevitably rise, especially with the tube extension to the northern line.
Prices at £800/sq.ft - £1,750/sq.ft is quite a spread. The reality is that for the very best apartments and the penthouses, the higher end of the scale is possible if not common.
For most of the more normal apartments, an average is closer to £1,000/sq.ft. These have dropped from the peak by some 20-30% depending on the type of flat, which has meant that rental supply has been strong, as most investors won’t sell until they can realise at least a 15% return of net profit. This is by no means a Riverlight Quay issue, but one that is common across much of the areas new build apartments. The old adage about comparing an off plan purchase to buying a brand new car is often used. However it’s not quite as simple. If you buy the right apartment off plan at the right time, it won’t lose value when you “drive it out of the dealership”.
So is it a good place to buy to live in and to invest in 2021?
Let’s start with a place to live. Yes it certainly is. It has so much going for it. The design in modernist classic. It’s unlikely to date badly. Its complete, established and the gardens look beautiful. Prices have settled and values are clear.
There is excellent transport, nearby green space, plentiful amenities and an eclectic and exciting mix of residents. It is well run, the common parts are always pristine and as we have already discussed, an imminent uplift in values likely because of the arrival of the tube and the eventual completion of surrounding sites to the south.
Investment for quick capital growth is less easy to recommend, however it does depend on your requirements. If you want to sink some capital into reliable rental income with a 3% yield and have fairly long term views on capital growth, it’s definitely an option. You don’t need to feel too guilty, as there are 118 affordable flats on site.
There are certainly better places to invest for quick capital growth, but for landlords who want turn key, these apartments do come pretty trouble free and rent very quickly. Plus as we have already covered, there is a likely uplift from the areas eventual completion and the new tube stations.
Recommendations:
A great place to have a pier de terre, a sound long term investment, a fun and exciting place to live.
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