X1 Developments Studios, Liverpool

X1 Developments is an investment company based in Liverpool.  From their website, it looks like they have new-builds in cities like Liverpool and Manchester. In an earlier blog post, I talked about why I thought there wasn't much going on in Liverpool.

Here are some screenshots from their website on the X1 the Quarter development.

We are interested today to take a closer look at the X1 The Studios that are being advertised in Singapore. This is Phase 3 of the X1 development, comprising 221 Studio Apartments, estimated completion in Sep 2015. From the advertisement in the Straits Times, prices start from £64,950 for these studio apartments.

Location, Location & Location
Let's take a closer look where this development is located.   First, some pictures of the completed phases. The good news is that the building is up.  See the four pictures below, from Google Street View.

Looking down Sefton Street.

Not very tall, but new building.

Looking at the plot from the junction.

The immediate area seems rather quiet.  It is not that near the City Center as I will show you in the next few screenshots.

1 mile to Liverpool City Central
On foot, the distance is 1 mile.  Not sure if there are buses or public transport, but I think 1 mile is really quite far out.

1.3 Miles to University of Liverpool
Again, rather far from the main University.   This point is very important because Liverpool has a large student population and one good source of tenants, especially for studio apartments, would be students.  It goes without saying that students would much prefer to live close to the University.

Toxteth
What?  Yes, Toxteth.  The X1 development is in the area called Toxteth, south of Liverpool City.  Two of the City's largest parks, Sefton Park and Princes Park, are in this area.   Sefton Park is home to the Sefton Park Palm House.

The not-so-good thing about Toxeth is that crime rates have been high for many years and the place has suffered from urban degeneration.  This is reflected in the property prices, i.e. they are low. Click on this link for an idea - http://www.zoopla.co.uk/for-sale/property/toxteth/

Verdict 
Looking at the prices of the existing stock, it is very clear that the studios being advertised for £64,950 look to be rather expensive.  Readers ought to be aware that this practice of pricing high for overseas investors is not uncommon.

Based on the location alone, I would rule out this development.

I will continue to look at the Liverpool market to learn more about it, so maybe I will re-visit this verdict after I have found out more.

Stay tuned & Happy Investing!