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EDITORIAL - BISHOPS STORTFORD CITIZEN
Report by John A. Gearing FRICS Property investors are facing difficult decisions as we move into the second half of 2003. With interest rates at an all time low and the easy availability of cash from the financial institutions, property investors are slightly nervous, but faced with little alternative with funds unable to achieve sensible growth in other areas. With continued speculation about the growth of pension policies and endowment-linked mortgages which are not expected to realise their full potential, the major growth sector in the market is still perceived to be freehold property. Alarm bells continue to ring that the residential market is over-heated but the demand for freehold commercial property, particularly in the South East continues with good enquiries for prime pitch investment properties from both home and overseas and for owner-occupation where self administered pension plans prove worthwhile for appropriate owner-occupiers. Despite the retail sector not doing as well as it had hoped in the first 6 months of the year, retail property continues to find a good demand for tenants and hence a good demand from property investors. Other sectors are slowing down, particularly the office market and industrial properties, although good, modern properties at reasonable rentals continue to be in demand. The strength of the market would appear to be small, comfortable lots of around 5,000 square feet for offices, 2,500 square feet for light industrial and retail units of between 500-1,000 square feet. With little alternative for cash rich investors, it would appear that the commercial property market will continue to show strong interest from wise investors where the keyword is security and a regular flow of income rather than massive capital growth. The M11 corridor is a focus of attention for freehold investors, with
Stansted Airport and future expansion being the main draw. The A120 currently
having a new dual-carriageway by-pass to the East Coast ports of Harwich
and Felixstowe will extend the demand east and towns such as Braintree
and Colchester are poised to capitalise on this growth sector. There are
no proposals to currently extend the duelling of the A120 west into Hertfordshire
and unless the politicians grasp this economic advantage, towns such as
Bishops Stortford and East Herts generally may well lose out. |
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