London’s super-prime market continues to experience its strongest year ever recorded
London’s super-prime residential market remains remarkably strong, having recorded the highest number of transactions for the first nine months of a year since records began in 2006.
Between Q1–Q3 2022, there were 461 transactions for £5 million-plus properties – higher than the total number of sales seen in any full year between 2015 and 2020. In Q3 alone there were 160 super-prime transactions, a 33% increase on the same period last year.
The total value of £5 million-plus transactions equates to more than £4.8 billion of sales, which is 31% higher than the same period in 2021. This growth has partly been driven by transactions between £15 million and £20 million as there has been an 84% increase in spend at this price point.
Chelsea, Kensington and Knightsbridge are leading the way on the number of £5 million-plus sales, making up a third (33.6%) of super-prime activity in the second-hand market. In some cases, this seems to be a reversal of the pandemic trend which saw buyers favour London’s prime suburbs as they sought detached houses and plenty of private green space.
Economic uncertainty has done little to dampen demand for super-prime property in London, yet that’s not to say it is immune to these headwinds
Frances McDonald, Associate Director, Residential Research
While we’ve seen the greatest demand in London’s traditional prime postcodes, turnkey properties with best-in-class amenities continue to perform across the capital, especially as buyers recognise the investment potential on offer as rents continue to rise.
Recent volatility in the financial markets means that international buyers looking to spend £5 million or more should be able to secure significantly more square footage for their budget. As a result, we are seeing increased interest from buyers based in North America, the Middle East and Central Asia.
So far, economic uncertainty has done little to dampen demand for super-prime property in London, yet that’s not to say it is immune to these headwinds.
Whilst unique quality homes in the capital remain a sought-after commodity to both domestic and overseas buyers, we have started to see some heat come out of the domestic buyer market in recent weeks which may impact sales volumes and values in the final few months of this year.
What’s next for luxury residential property in the capital?
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