Growth continues in the super-prime market

London’s super-prime residential market has recorded more sales in the first nine months of 2021 than in any full year since 2015, despite a slight seasonal slowdown over the summer months.

For the first three quarters of 2021, there were 352 transactions in London for £5 million-plus properties, compared to 348 in the whole of 2020 and just 310 in 2019. That puts the year to date figure at 43% above the equivalent period in 2020 (246 sales) and 75% above the 2019 figure (201 sales) in volume terms.

Collectively, these transactions came to £3.49 billion – 39% higher than across the first nine months of 2020 and 62% higher than 2019, the latter when more normal market conditions prevailed. 

Sales in the £5-10 million range dominated the market, though there have been 94 sales for properties worth over £10 million. This is the highest figure since 2015.

Market data: Jan-sept 2021

In the absence of international travel, the market has been predominately driven by demand from buyers already resident in the capital. 

Central London continues to dominate, with half of sales in five locations known for their substantial housing stock and private gardens – Chelsea, Kensington, Belgravia, Notting Hill and St Johns Wood. 

Now that social distancing measures have eased, prices in prime central London have increased by 1.4% on an annual basis, having grown by 0.7% in Q3, and are now rising at their strongest pace since September 2014. 

As international travel continues to rise, we expect to see more pronounced price growth in this market and for the long-awaited recovery to take hold.

Market data: 2012-2021

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