Why are Bournemouth Town Centre Property prices down 3% on last year

News at Homes & Steeple | 14/03/2024

The town centre of Bournemouth has long been a popular destination for residents and visitors alike, with its mix of shops, restaurants, and entertainment venues. However, recent data from Rightmove suggests that property prices in the area have seen a decline over the last year. The overall average price of properties in BH2 was £236,315, which is 3% down on the previous year and 5% down on the peak of £250,012 in 2021.

The presence of closed shops, visible homelessness, and beggars in Bournemouth town centre has undoubtedly detracted from its appeal as a vibrant and welcoming destination. The sight of boarded-up shopfronts and individuals in need can create a sense of unease and discomfort for visitors and residents alike. This impacts the overall aesthetic of the town centre.

One possible explanation for this decline in property prices could be the changing dynamics of the town centre itself. As more and more people turn to online shopping and remote working, the footfall in town centres across the country has been decreasing. This has had a knock-on effect on businesses in these areas, with many struggling to survive in the face of competition from online retailers and out-of-town shopping centres.

With fewer people visiting the town centre, the demand for properties in the area may also be decreasing. This could be driving down prices as sellers struggle to find buyers willing to pay the asking price. Most sales in BH2 over the last year were flats, selling for an average price of £230,457. Detached properties sold for an average of £538,000, with terraced properties fetching £317,500. These prices are all lower than the peak of £250,012 in 2021, indicating a downward trend in the market.

Another factor that could be contributing to the decline in property prices in BH2 is the lack of investment in the area. With businesses struggling and footfall decreasing, there may be less incentive for developers to invest in new projects or refurbish existing properties. This lack of investment could be driving down prices as potential buyers are put off by the prospect of living in a town centre that is in decline.

In conclusion, while the decline of the town centre may be a contributing factor to the fall in property prices in BH2, it is likely that there are multiple factors at play. It will be important for local authorities, businesses, and residents to work together to revitalise the town centre and attract investment to reverse this trend.