In the previous post we looked into why short-letting in Greenwich could be attractive for homeowners.
In this post we would like to do a market analysis of the SE10 area (Greenwich). We will continue to analyse other areas of Greenwich and Bexley boroughs in the future posts. We hope you’ll enjoy this post.
This analysis is based on c. 280 listings in the SE10 area, which includes entire homes and private room listings.
Types of properties in SE10 outcode area
In SE10, the majority of the listings on Airbnb were for entire homes (65%), while rooms in shared homes made up 35% of the total listings (PriceLabs data).
The proportion of listed rooms in SE10 is somewhat lower than what it is for the whole Royal Borough of Greenwich, where the share of rooms made up 43% of the total listings (AirDNA data).
The above comparison of the SE10 postcode and the whole of Greenwich Borough is perhaps not very surprising, given the types and sizes of properties in SE10 compared with the rest of the Greenwich borough. Other parts of the borough are typically more suburban in nature with larger homes. In contrast, quite a big proportion of properties in SE10 are smaller and are typically 1 or 2 bed flats.
This is reflected in the breakdown by room size of entire properties listed in the SE10 area below:
It is quite interesting that 72% of the listings are for homes with 2 bedrooms or less, while only 28% of the properties have 3 bedrooms or more.
Occupancy and prices
We then wanted to see whether smaller properties are busier, i.e. have higher occupancy ratios and what the average prices are.
It was somewhat surprising to find that larger properties have a higher occupancy rate. This could potentially be explained by the fact that there are fewer of these larger properties, so there is less supply. On the other hand as we’ve seen from the previous chart, there are significantly more studios and 1 / 2 bedroom properties in the market. Hence there is a higher level of supply for smaller properties, meaning increased competition for occupancy.
When we looked at the detail of the properties with higher occupancy, it was evident that when the listing is of high quality and is managed well, it tends to do well. Therefore, despite the average occupancy rates being lower for 1 or 2 bed properties, it all comes down to how well it is managed. This is where a high-quality service, provided by us at Pass The Keys is so important.
What is the implied gross income by each property type?
Based on the average occupancy levels and nightly prices, we have then estimated how much gross revenue each type of property is likely to achieve.
Of course, the figures will differ depending on the quality of the property, quality of the listing, sub-location, price management and other factors.
Quality of the listings by property type
Speaking of quality of the property and the listing, one metric to measure it would be the guest ratings. So, what are the average ratings for different types of properties?
Apart from studio properties, all other types of properties have relatively high ratings in general. The ratings are higher the larger the property. This could be driven by the fact that there are fewer larger properties, they are given a greater attention by the hosts and are managed better, leading to stronger reviews by guests.
Conclusion
This is the kind of analysis, albeit on a more granular level we do for each of our clients’ properties prior to onboarding, to accurately estimate the earnings potential of the property.
If you’re interested in seeing if short-letting your property in Greenwich & Bexley boroughs is for you, please visit our calculator here. You can also get in touch with us by calling us on +44 20 3962 0944 or +44 20 8050 2818.
Data sources: PriceLabs, AirDNA - Data as of December 2022 for the last 365 days
Assumptions and notes: