Essay
Essay 3 Development Funding and Finance (APRO708)
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- University Of Westminster (UOW)
Essay 3 Development Funding and Finance (APRO708)
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Olajide AladeDFF2 cwk
Table 1:
Market comparable - Residential
Address Bedroo Siz Sale price Price Months Estimat /sqft
m e per ago ed value = Price
(s sqft for Psf for
q Lyons Lyons
ft) Triangle Triangle
1 bed flat
508 Platinum 1 34 £240,000 £697 8 £264,000 /530 =
House 4 (+10%) £498 per
sqft
Flat 410, 1 53 £233,000 £433 12
Platinum House 8
2 bed flat
68 Trident Point 2 67 £410,000 £604 5 £428,371 /725 =
8 (+ £590 per
£18,371) sqft
Flat 46 Gayton 2 75 £348,000 £462 4
Court 3
213 Platinum 2 58 £335,000 £576 4
house 1
3 bed
Flat 5 Bluepoint 3 90 £425,000 £470 12
Court, 203 4
Station road
12 Windsor 3 10 £475,000 £454 22 £570,000 /950 =
House, Pynnacles 44 (+20%) £600 per
sqft
Close
The market comparable were pulled from a mixture of mixture of land registry, estates gazette and
the sold property database on Rightmove within a 4-mile radius of the site, all in the same borough.
The 1 bed apartment
1 bed
Platinum house was chosen to populate the comparable table because of its distance to the
development, it is situated on Lyon road and provides us the best indication of the price of the
potential scheme. Flat 508 was chosen instead of flat 410 because it has a higher value and is the
most recent transaction in Platinum house. +10% was added to signify an estimated 10% increase in
values in the area since the transaction 8 months ago, it is a generous increase but this incorporates
1
, Olajide Alade
DFF2 cwk
2 bed
For the 2 bed, Trident point was selected due to the size of the apartment which are very like the
proposed development the distance from the site lends more credibility to it as a comparable
because it’s a mere 10 mins away from the site. Gayton court was also selected because it is located
on the A409 behind St Johns road making it an ideal comparable. The size makes it also an ideal
comparable to the proposed 2 bed flats in Lyon triangle. 68 Trident street’s sale price was chosen
because its size is most like the proposed 2 bed flats in the scheme and £18,375 was added due to
the 10% increase in price suggested by RightMove. The yearly increase was worked out as 44,100,
which works out to 3670 monthly so this was multiplied by 5 months to achieve a reasonable
number the values would have increased by.
3 bed
The 3-bed apartment comparable was harder to come by which meant moving up the road to a
location on the A409 where the nearest 3 bedroom flat was sold. Other property deals have been
rejected due majority being houses instead of flats and there was a distinct lack of very recent or
relevant deals. The size of Bluepoint 3 bed flats and the location of the building makes it an easy
comparable to the scheme but Windsor house is a newer development but the downsides of the
Windsor house is the distance. It is located 4 miles away from the site but this is in the neighbouring
town of Stanmore which shares a similar borough as the site and similar transport links and history.
Windsor house was chosen due to the modernity of the apartments and the size compared to
Bluepoint which makes it more comparable regardless of the location. A +20% increase was added to
factor in the 10% yearly increase in house prices to accommodate the fact that the transaction
happened 2 years (22months ago).
The final figures were arrived at by taking the most relevant deal and an adjustment was carried out
for the fact that the development is a new build and to factor in the natural capital value increase in
the area which Rightmove reports as 9% annually which we will round to 10% for ease of use and to
accommodate for the fact that it is a new build property.
Within a year, I add +10% and from 1 year and above I add +20% to compound the effect of the
growth.
2
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