_Tower Bridge sales activity rises as area transforms and prices adjust

The number of sales in the Tower Bridge area has risen as buyers sense good value in a fast-transforming area, as Daniel Woods tells Tom Bill.

Tom Bill April 03, 2019

A combination of redevelopment activity and lower prices has boosted the sales market in the Tower Bridge area over the last year.

In similar fashion to other prime London markets, tax changes and political uncertainty have reversed price growth in Tower Bridge in recent years. The average exchange price for a second-hand property declined 3% year-on-year to £676,245 in 2018. The fall compared to 2016 was 8.2%.

However, an uptick in residential-led redevelopment has elevated the cultural and culinary credentials of areas such as Bermondsey. The regeneration of the wider area will be further augmented by a trio of major regeneration schemes, both current and future, at Elephant & Castle, Canada Water and the Old Kent Road.

“When you put all of this together you have a scenario where buyers now perceive really good value,” said Daniel Woods, head of Knight Frank’s Tower Bridge office. “Bermondsey has become one of the coolest addresses in London and that has acted as a catalyst for demand across the area. Buyers also like being close to the river as well as London Bridge and Waterloo stations.”

Dan Woods, Tower Bridge office head, Knight Frank

As a result, the number of second-hand and new-build deals in the area rose by 28% in the year to January. This compared to an equivalent decline of 9.5% across prime central London. Furthermore, viewings increased by 41% in the year to February 2019 at Knight Frank’s Tower Bridge office, the highest such increase across its London offices.

“There have been a couple of recent exchanges at around £800 per square foot in Shad Thames,” said Daniel. “That compares to typical values of around £1,000, which shows some buyers are currently getting very good value.”

The wider regeneration of south-east London, an area that has traditionally been a more affordable part of the capital, will help underpin future demand, said Daniel. “In the longer-term, you have the Bakerloo line extension coming, as well as major plans slightly further afield in the Old Kent Road Opportunity Area.”

Read more from Knight Frank Research: Focus on Bermondsey

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