King Sturge & Co is calling for an economic regeneration policy for south Wales which will remain coherent and cohesive in the face of the political changes of the next few years.
The firm’s second annual report on the south Wales market warns that local government reorganisation last year and the impending General Election could shift the emphasis of the political economy in the region.
It adds that the second Severn Crossing will have a positive impact on property prices, but questions the extent of that impact. King Sturge predicts that the most immediate gains will be in south east Wales, particularly, between Chepstow and Cardiff.
Spin-off investment is likely to follow LG’s decision to go to Newport but the report says if there is high growth, land supply will be tight by 2002. Currently, there is some 146ha (360 acres) of additional employment land within 30 minutes drive-time of the LG site.
South Wales’ profile in the investment market has risen and the report notes that an increase in demand from property companies and institutions looks likely to continue.
It predicts that in Cardiff and Swansea Zone A rents could exceed £1,725 per sq m (£160 per sq ft) and £1,130 per sq m (£104 per sq ft) , respectively, if large units above 200 sq m (2,100 sq ft) become available.
Robert Croydon, partner in charge at the firm’s Cardiff office, also stresses the need for further infrastructure improvements. “Continual investment is essential to complete vital networks and consolidate those significant gains achieved in the M4 corridor and facilitate further development in the Northern valley areas.”
Although the Second Severn Crossing which opened last year has had a beneficial impact on the market it has been dwarfed by the Lucky Goldstar’s move – Europe’s largest inward investment – to a site near Newport.
Croydon also commented that Cardiff, in particular, has been boosted by a series of events, including confirmation that Cardiff would host the 1998 summit conference of European Ministers. As site of the Rugby World final in 1999, the city will also benefit from increased investment in tourist facillities, he added.
The rise of leisure and tourism’s importance to the region over the past ten years, Croydon added, means this sector now has a direct relationship with the property market.
EGi News 28/02/97
