STRONGEST YEAR FOR LONDON'S SUPER-PRIME MARKET SINCE 2013

London’s super-prime residential market has recorded its strongest year since 2013, supported by sustained domestic demand, returning overseas buyers and a recharged new build market.

In total, there were 522 transactions in London for £5 million-plus properties, compared to 348 in 2020 and 310 in 2019. In Q4 alone there were 163 transactions, which is 37% higher than the previous quarter.

Consequently, the last three months of the year saw the highest quarterly spend since Savills records began in 2006, with almost £2 billion spent on £5 million-plus properties.  This can largely be attributed to the number of £20 million-plus sales of both new build and second hand property (51 vs 32 in 2020). 

There was also a significant uptick in the number of £10 million-plus transactions. As a result, Q4 2021 was the strongest quarter on record for properties of this value, with  62 sales compared to a previous high of 50 in Q4 2014, when many rushed to buy before new higher stamp duty tax bands were introduced.

Market data: Jan-dec 2021

The new build market also ramped up at the end of the year. There were 30 new build sales topping £5 million in Q4 2021, with a total value of £558 million. This is both the highest number and highest total value of £5 million-plus units sold ever recorded in a single quarter.

With international travel rules easing in the second half of 2021, there was also an uptick in the number of international buyers. As such, central hotspots continued to dominate and more than half of all £5 million-plus sales took place in Kensington, Chelsea, Belgravia, Notting Hill and Knightsbridge.

However, the £5 million-plus price tag continues to extend its reach. As buyers look to reap the benefits of 'country' style homes without leaving the capital, locations such as Wimbledon, Battersea, East Sheen and Wandsworth have been put firmly on the super-prime map.

Looking forward, recovery in prime central London values is certainly underway, but revived Covid-19 uncertainty seems likely to push the forecasted +8% bounce-back in values further into 2022.

Market data: 2012-2021

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