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What price for the Olympic village...

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How much will the government get back from the £1b being spent building the 2800-unit Olympic Village? Well, about £750m according to David Salvi of Clerkenwell-based residential agents, Hurford Salvi Carr, who kindly calculated the numbers for today's Evening Standard column.

This isn't as bad as it sounds. For that £1b includes at least £200m of costs not normally associated with building new homes. First, the finance costs of spending £600 million building the units before getting a penny back: second retro-fitting 2800 kitchens and building a school; third rental guarantees to the housing association taking the risk of letting and part-selling 1000 of the units.

And the price of the open plan flats in 2012? That's in the Standard story. But there was no space to include the technical detail. At today's price Salvi reckons the 1-bed and two bed flats should fetch £365 sq ft. Add a 10% uplift to take you to 2012 - and then add a further 5% premium for Olympic Park status to take the prices to £420 sq ft.

There was also no space to put in the sizes. But bearing in mind that Boris Johnson has just issued guidance on minimum space standards its worth adding that the one-bed flats will average 51m2; the 2-beds, 70m2.  This is pretty much the same size as the 1000 "social units" - and compliant with Boris's kick-ass view in another story in the Standard column that the human backside is the arbiter of minimum space standards.

OlympicVillage.JPGA look round the Olympic Village yesterday brings some news for residential agents prepared to be patient.

Olympic Delivery Authority chief executive David Higgins said he thought that the government will begin to market the 1,800 private flats just before the Olympics start in July 2012.

For those who wish to start thinking about making a pitch, here, revealed for the first time, are the detailed particulars:

The flats are in eight storey blocks, most with double aspect vision, many with balconies. There is underground parking.

The average size of the 109 four-bed flats is 119 sq m. The 543 three-bed flats average 90 sq m. The 959 two-bed flats are 70 sq m and the 203 one-bed flats are a generous 51 sq m.

One interesting innovation is that sprinkler systems are being installed. That will negate the need for lobbies and fire doors to every room and so give more living space.

Don't get over-excited. Four-hundred of the private flats are being sold though a housing association.

Many of the others will be in blocks currently being tendered for by the likes of Barratt and Taylor Wimpey. And those that buy will have to wait at least a year while the units are made habitable again after the athletes have gone.

About the Author

Peter Bill

Peter Bill edited Estates Gazette between 1998 and early 2009. He writes a column for the Evening Standard each Friday and is working on a book about the commercial property market.

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