Following an intense period of activity from mid-2021, the first quarter of this year marked a slowdown for London’s £5 million-plus residential market. Yet Q2 shows the market is back in business, with the number of transactions in the three months to the end of June 2023 increasing by 22% compared to the first quarter of 2023.

A total of 240 properties worth more than £5 million changed hands in the first half of the year. While this marks a fall of 21% compared to first half year sales in 2022, it’s on par with the same period in 2021 and 45% above the H1 average of 166 for the three years pre-pandemic (2017–2019).

At the more rarefied £10 million-plus end of the market, there have been 65 sales year to date. This is marginally higher than in 2021 (63) and 17% above the 2017–2019 H1 average but again, it is below the same period in 2022 when 91 transacted.

What are the trends?

There has been a shift in the mix of properties selling; apartments continue to account for a growing share of sales as pandemic memories fade, accounting for 44% of £5 million-plus transactions across London year to date, up from 40% last year and just 28% in 2021.

This reflects the completion of several world-class new build schemes and buyers focused on turnkey properties, but it also marks a clear shift away from a time when larger homes with private outdoor space topped every buyer’s wish list.

Best-in-class properties in London’s long-established prime locations continue to lead the market, with Chelsea, Kensington and Belgravia accounting for a third of all £5 million-plus sales so far this year. Yet new build schemes such as The Whiteley and Park Modern in Bayswater are undoubtedly redrawing the prime map of London.

What’s next for luxury residential property in the capital?

Visit Savills View for our latest analysis, insights and predictions.