A friend of mine who’s an investor put forth quite a direct question to me; he asked whether he should invest in East Dulwich or Camberwell when it comes to property, with capital growth in mind. The average property value in East Dulwich is £650,000 while in Camberwell it’s £479,000. The average asking rent in East Dulwich is £1,607 pcm whereas Camberwell has an average rent of £1547 pcm over the last 12 months. This gives East Dulwich a yield of 3% whereas Camberwell has a yield of 3.9%. To understand this better I researched the capital growth in both areas and I found that property values have shot up by 43% in East Dulwich in the past 5 years whereas in Camberwell they’ve increased by 41% in the same period.
This difference may not seem much, however, the reality is that the higher initial values in the East Dulwich property market has meant it has returned £280k over the past 5 years compared with £194k in Camberwell, a difference of £86k Although it’s clear that yields in Camberwell are comparably higher to East Dulwich, East Dulwich has the upper hand when it comes to capital growth, something that’s very relevant to investors.
Taking this into account the story for both areas now looks much more balanced out. If you’d like to keep up with the East Dulwich property news why not subscribe to the blog at the top of the page.