Despite a slow start to the year, momentum within London’s £5 million-plus residential market ramped up in the third quarter of 2023, with a total of 145 property sales (new build and second hand), up from 137 in Q2, and 108 in Q1 2023.

In total, 390 properties worth more than £5 million have so far changed hands in 2023. While this is lower than the 459 sales during the comparable period of 2022 – a record year – it’s still 7% above Q1-Q3 2021, and well above (+67%) the pre-pandemic Q1-Q3 average of 233 for 2017-19.

Sales within the rarefied £10 million-plus market have also picked up considerably in this period. Year to date, 120 properties worth more than £10 million have exchanged. Again, this is lower than the 143 in Q1-Q3 2022, but 24% higher than Q1-Q3 2021 and 59% higher than the Q1-Q3 average for 2017-19.

What are the trends behind this data?

Sales have been driven by demand for world-class apartments in prime London postcodes, as a number of exclusive developments have launched over the last quarter. This is reflective of a wider trend in the market, where we’ve seen a slight shift away from larger houses with outside space, which topped buyers’ wish lists during the pandemic, and turnkey apartments become more popular again.

Year to date, apartments have made up the highest percentage of £5 million-plus sales since Savills records began in 2012, at 45%. This has increased from 40% last year, and 28% in 2021. Traditional prime postcodes Chelsea (13%), Kensington (11%) and Belgravia (10%) saw the highest total number of £5 million-plus sales take place in Q3.

Despite London’s resilience, price sensitivity is likely to continue into 2024 as global unrest continues to cause financial uncertainty and the UK faces a general election. We continue to expect prime central London to outperform most other UK residential markets however, not least because of its standing in an international context and that global wealth generation is expected to continue growing.

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

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