The three months to February 2018 saw lots of new schemes being proposed and starting construction, but not quite as many as in previous quarters, as UrbInfo's latest Manchester Development Update finds.
There are now 14,907 apartments under construction across the study area, which includes central Manchester, central Salford, Salford Quays, Hulme and parts of Trafford. This number has increased by 1,985 homes under construction since the last update in November 2017. This is despite 329 apartments completing over the same period. There are a further 19,820 apartments in planning but not under construction. This includes schemes with planning approval and those which are awaiting determination.
Meanwhile, there is currently over 1.4 million sqft of commercial space under construction across Manchester, with 1.3 million sqft of this under construction in Manchester city centre. Despite the completion of 300,000sqft of office space at Number 1 Spinningfields this quarter, this figure has been further bolstered by construction starting at Circle Square blocks 2, 3 and 4 which will provide 390,000sqft of office space in total.
Finally, there are 1,325 hotel beds now under construction across the city, with 799 having being delivered in the past 3 months. There are also a further 3,254 hotel beds in the planning system, a number which has increased by 792 since November 2017. The vast majority of hotel schemes are located in Manchester city centre, which contains 4,510 hotel beds out of a total pipeline of 5,825 hotel beds across the city centre, Salford Quays, Central Salford, Hulme and Trafford.
Several high-profile residential schemes have started on site in Central Salford since November, meaning the number of homes under construction here has shot up to 5,359. The latter phases of Dandara's gigantic Chapel Wharf scheme have started on site, as has Fred Done's 405-apartment scheme at The Crescent; and Elliott Group's 34-storey The Residence project, which will deliver 310 apartments.
Meanwhile, the number of apartments under construction in the City Zone (Manchester's city centre) have also reached new heights, soaring to 5,986. With schemes such as Capital+Centric's conversion of Crusader Mill in Piccadilly to 201 apartments starting on site soon, alongside Eider House (127 apartments), the number of apartments under construction in the City Zone could well hit 6,000 in 2018. Back in Central Salford, Embankment West (356 apartments), Middlewood Locks phase 2 (546 apartments), and Gore Street (364 apartments) are all due to start on site in 2018, which means Central Salford and Manchester city centre could compete over number of homes under construction in 2018.
Other areas of Manchester remain quite subdued for now, with Salford Quays flatlining. X1 Developments have now completed construction on the first phase of their MediaCity scheme, delivering 275 apartments over a 26-storey tower. The second phase of this huge project, delivering over 1,000 apartments in four 26-storey towers, is already rising. Meanwhile, Peel Holdings have also started construction round the corner on the second phase of their Lightbox scheme, which consists of two 20-storey towers delivering 477 apartments in total.
The number of apartments in the planning system (but not under construction) has decreased significantly in Central Salford as the number of projects moving to construction has not been replenished with new units entering the planning system. This figure has been in decline since August 2017 in Central Salford, with a limited number of new residential projects announced in this area. After two quarters of decline, the number of apartments planned for the City Zone is finally on the increase again. This follows several major new planning applications since November, including the redevelopment of the Great Northern Warehouse which will provide 142 apartments; three new towers at Echo St in Piccadilly delivering 403 co-living apartments; and Beech Holdings' new 15-storey venture at Thompson St in New Cross (155 apartments).
Salford Quays' pipeline is also struggling and is now at just 1,610 units in total. However, there are several large-scale schemes preparing to submit a planning application for the Salford Quays area which could come forward in 2018. There are over 2,400 units in the pre-planning stage in and around Salford Quays, including MediaCityUK Phase 2. SimpsonHaugh architects and developers Forshaw last week revealed their plans for a 34-storey residential tower at Clipper's Quay (near Exchange Quay Metrolink), which will contain 216 apartments in total.
Hulme, to the south of Manchester city centre, is now beginning to accelerate with several high-profile residential schemes launched and starting construction here in 2017. A planning application was submitted last month for 280 apartments at Peel Holdings and Glenbrook's Cornbrook Hub scheme, while across the road from here DeTrafford secured planning permission at the end of 2017 for 419 apartments at DeTrafford's No1 Castlefield scheme. DeTrafford have also submitted a planning application for 79 apartments nearby at St George's Gardens.
The strongest house price growth was witnessed in North Trafford, where prices rose by £15,317 (+7.18%) in just 12 months according to the latest data by Zoopla. Prices here have now overtaken that of the City Zone, where the average price paid is just over £213,000 - up 4.34%. Growth is also accelerating in Hulme, where prices have risen £10,000 in the past 12 months.
Weaker growth has been witnessed in Salford Quays and Central Salford, which rose between 2-3% in 2018. It's worth noting that prices in these two areas have actually decreased since the last update in November 2017.