Westfield Shopping Centre: A boost for the Bush?

The eagerly anticipated Westfield shopping centre is due to open at the end of this month, Carl Burgess, Manager of Winkworth Shepherds Bush, believes this development will insulate property prices in the area, and, when the market turns, Shepherds Bush will fare better than surrounding areas.

Huge regeneration projects such as this historically cause two price rises: one at the announcement of the project by developers and the second after the development has opened.

Carl Burgess says: “I have already seen a difference in our office, a rentals property that had been on our books for three weeks was recently let after two applicants showed interest in it and had to bid against each other, (both were employees of the new shopping centre).”

The massive influx of visitors, not to mention the amount of money spent on local infrastructure projects can only have a positive effect on house prices in this area.

Burgess continues: ”In a positive market, I would have expected to see a 10 percent jump in surrounding house prices, however, in a negative market it will help prices to hold. Therefore, in the current market conditions, I believe the shopping centre will insulate the Shepherds Bush area from further price falls. Looking forward, I predict that the new shopping centre will encourage property prices to rise when the market turns.”

Projects such as these, that make a difference to people's lifestyles, tend to bolster the housing market. The centre will create 7,000 jobs, which means that over the next year it is anticipated that more and more employees will start to rent and buy in Shepherds Bush. Another factor that will add value to Shepherds Bush is the huge investment in transport links as a result of the shopping centre.

The 15/20% drop in property prices has given buyers in the area more choice and enough time to find exactly what they want. This is helping to diversify the market in Shepherds Bush, encouraging an influx of young professionals who are taking advantage of downturn to get themselves a good deal.

Ben Hunt, Manager of Winkworth Hammersmith adds: “The opening of the shopping centre has coincided with the downturn in the property market and, although price increases are obviously out of the question in the current financial climate, we are finding that buyers are identifying the areas close to the development as a good investment, subsequently increasing demand. The shopping centre is also impacting on the rental market with a number of senior staff renting in the area whilst they train new managers and set up their new stores.”

Naturally, under current market conditions, buyers are very price conscious but they are still buying - the new Westfield development could make the difference and help buck the current trend.