The Billion Pound Building Boom

Oxford Street is being transformed into a residential address say Aston Chase who reveal that the famous retail thoroughfare is currently undergoing a £1.06 billion building boom which is delivering 437 new homes and 84,939 sqft of new format retail outlets on or adjacent to Oxford Street.

The new survey by Aston Chase,undertaken in association with Galliard Homes, a leading developer on Oxford Street, highlights that there are now nine new residential or residential-led mixed use developments on or adjacent to Oxford Street which have a Gross Development Value of £1.06 billion and provide a combined total of 437 private sale apartments and penthouses, alongside 84,939 sqft of new retail outlets and over 365,800 sqft of new office premises.

Aston Chase say that apartments for sale along Oxford Street are typically priced from £950,000 up to £4.5 million, with the highest demand being for apartments priced from £2,000 to £2,500 per sqft, although some apartments on the thoroughfare are priced up to £5,000 per sqft.

The nine residential-led projects changing the face of Oxford Street are Centrepoint, providing 82 apartments and 39,000 sqft of retail space; 5-6 Hanway Place providing 18 apartments; Hanway Gardens, providing 18 apartments; TCRW SOHO (Tottenham Court Road West Soho), providing 92 apartments and 9,939 sqft of retail space; 37 Rathbone Place, providing 140 apartments and 242,800 sqft of office space; 5 Berners Street, providing 6 apartments; 103-109 Wardour Street, providing 15 apartments and a health club/gym; Verge Mayfair, providing 12 apartments; and Marble Arch Place, providing 54 apartments, 36,000 sqft of retail space and 123,000 sqft of offices.

Aston Chase say that the majority of this new residential-led development has taken place in the last five years although the first new homes development on Oxford Street during the 21^st century dates back to 2012 when developer Oakmayne Bespoke launched Verge Mayfair, a scheme of 12 apartments fronting onto Oxford Street, priced from £950,000.

Other notable dates are the announcement of the £400 million 17 storey Marble Arch Place project in 2013, the launch of the £350 million 33 storey Centrepoint scheme in 2015 and the unveiling of £140 million TCRW Soho at the end of 2019.

Aston Chase reveal that the large residential developments on Oxford Street, providing over 50 apartments, are being built by large corporate developers or landowners such as Galliard Homes, Almacantar and Great Portland Estates. The smaller projects, providing between 6-18 apartments, are being built by specialist bespoke developers such Oakmayne Bespoke, Frogmore and Princeton Property Partners.

Aston Chase observe that many of the new residential schemes have replaced former commercial uses, 37 Rathbone Place was formerly a Post Office Sorting Complex, Wardour Street was once the Pathe Film HQ whilst Centrepoint and Verge Mayfair were formerly office buildings.

Aston Chase say that over the next 5-10 years Oxford Street will become one of Prime Central London’s most sought-after residential addresses. These new luxury schemes are transforming Oxford Street and its surrounding lanes into a residential destination alongside new retail outlets designed as entertainment venues and brand ambassadors rather than traditional retail sales spaces.

Aston Chase observe that pedestrianisation, Crossrail and Electric vehicles are the three major ‘game changers’ for Oxford Street, making the West End a cleaner, much less congested and quieter place to live.

Oxford Street is 1.2 miles (1.9km) long, running from Tottenham Court Road to Marble Arch via Oxford Circus. Aston Chase say that despite the surge in residential development, and general decline in retail, Oxford Street remains Europe’s busiest shopping street, with 248 shops, 14 of which are vacant, and half a million daily visitors.

Aston Chase highlight that throughout the history of Oxford Street the thoroughfare has alternated between being a commercial and a residential thoroughfare. The street was originally built by the Romans, when it was known as Via Trinobantina, named after the local tribe that previously ruled the London area prior to the Roman invasion.

Via Trinobantina served as an open-air market which offered general goods such as cattle, wine, fish, fabrics and vegetables alongside money trading/lending. Between the 12^th Century and 1729 the thoroughfare was known as the Tyburn Road and became notorious as the route taken by prisoners on their journey from Newgate Prison to the gallows at Tyburn by Marble Arch.

In 1729 the road became known as Oxford Street, named after the local landowner Edward Harley, the 2^nd Earl of Oxford. Between 1739-1793, under the auspices of the Earl of Oxford, the thoroughfare was transformed into a smart residential address. Lined with townhouses, Oxford Street also contained public houses and theatres.

It was from the 1830s onwards, and London’s huge economic growth during Victorian era, that Oxford Street was transformed into a famous retail address. From the 1830s the townhouses were turned into shops and between 1865-1890 Oxford Street underwent a large rebuilding programme with purpose-built shops and large anchor stores built along the street. John Lewis opened on Oxford Street in 1864 and Selfridges opened in 1909. Now Aston Chase observe the property cycle has turned full circle and Oxford Street is become more residential like it was during the 18^th Century.

David Galman, Sales Director at Galliard Homes says: “The new Oxford Street survey shows that there are now as many homes being built along Oxford Street as shops. The location is undergoing significant regeneration and becoming more residential in character. Currently the location is relatively underpriced compared to neighbouring Mayfair and Marylebone and this is good for buyers. An uplift will come in property values as electric cars, Crossrail and pedestrianised areas bring dynamic change to Oxford Street. Over the next five years we see the famous throughfare becoming one of London’s most sought after residential addresses.”

Last year Westminster City Council approved plans to close parts of Oxford Street to cars and buses at peak times and reduce the speed limit. The council has also set aside £150 million to revamp the area and create a new public square.

Mark Pollack, Co-Founding Director at Aston Chase says: “Oxford Street and its surrounding roads and lanes are becoming more residential, with new apartments behind built above boutique shops. During the 18^th Century Oxford Street was a residential address and the return to more housing provision is perhaps not surprising given that Oxford Street fronts onto Mayfair, Marylebone and Fitrovia, all of which are established, highly desirable, residential addresses. Technology and the internet have also changed the face of retailing. Advances in logistics mean that stores no longer require large stockroom areas on their upper floors, so new development can provide retail on the ground and basement levels, with new apartments above.”

Mark Pollack says: “At the Rathbone Place project by Oxford Street Aston Chase sold the 4,000 sqft penthouse off plan for £15.25 million to a Scandinavian buyer. This is one of the biggest residential deals on Oxford Street and demonstrates both how the location has changed, but also underlines the quality of the apartments and penthouses being built around Oxford Street.”

Aston Chase conclude that the residential redevelopment taking place along Oxford Street is beginning to ripple out into surrounding streets. An excellent example of this is the Harcourt House development on nearby Cavendish Square. In what was regarded as a commercial location, former offices at 19 Cavendish Square, adjacent to the John Lewis Department Store, have been transformed to provide 25 new apartments located behind a Grade II listed façade.

TCRW SOHO provides 92 premium apartments with interiors by Argent Design and is set for completion in 2022. Studios start at £990,000; one bedroom apartments at £1.495 million; two bedroom apartments at £1.69 million and three bedroom apartments from £2.35 million. For further sales information contact Aston Chase Tel: +44 (0)20 7724 4724 or visit www.astonchase.com       or Galliard Homes on Tel: +44 (0)20 7620 1500 or visit: www.galliardhomes.com