It's Time To Double Down on Prime Central London Property

Dear Readers,

I know what you’re thinking—'Things don’t look rosy for the UK right now.' But let me stop you there: Prime Central London operates in a league of its own. Despite the rush to finalize deals ahead of the budget, the market here continues to show resilience, with a steady flow of notable transactions post-election/budget (See below.)

Latest Prime Central London Transactions (since election/budget)

Property	Sold	Price	£/sq.ft
25 Pembridge Square, Notting Hill	12/07/24	£29,950,000	£3,067
Apt 2, 77 South Audley Street, Mayfair	29/07/24	£16,000,00	£3,715
5 Lygon Place, Belgravia	20/09/24	£21,500,00	£2,832
113 Eaton Square, Belgravia	30/10/24	£33,000,000	£3,256
43 South Street, Mayfair	01/11/24	£12,500,000	£1,930

Sales activity at the top end of the market has moderated in 2024 compared to the unprecedented highs of prior years. However, October saw a notable resurgence, with transactions in the £5m+ segment rising 34.5% year-on-year and exceeding the 2017–2019 October average by 62.5%. This surge reflects renewed momentum in a market segment often resilient to broader economic fluctuations.

Supply indicators also point to a growing market: new instructions for £5m+ properties increased by 31.2% year-on-year, while total available stock expanded by 21.7% over the past 12 months, suggesting a simultaneous uplift in seller confidence.

Average achieved values across prime London recorded a 0.9% annual decline in October, marking the strongest performance since August 2023. This stabilization coupled with increasing transaction volumes indicates the potential for an imminent return to price growth.

Average Latest Prime Central London Transactions (since election/budget).

*SOURCE - LONRES

Discounting trends offer further insights into supply-demand dynamics. For properties sold in 2024 across prime London:

• 60% achieved less than 95% of their initial asking price.

• 24% sold below the asking price but within a 5% margin.

• 15% transacted at or above the asking price.

  
  

This distribution reflects ongoing price sensitivity despite an uptick in demand, as evidenced by the latest LonRes Prime London Sales Index, where annual price changes in Prime Central London improved from -5.9% last quarter to -1.6% this quarter.

While modest, the high-end market’s recovery underscores its unique resilience amidst broader market pressures. Rising stock levels and demand alignment suggest a more balanced market environment compared to recent years. However, continued scrutiny of government policies and global economic conditions will remain critical to sustaining this trajectory.

If you are seeking to capitalize on best-in-class opportunities and gain a deeper understanding of the market insights (Belgravia, Knightsbridge, Marylebone, and Mayfair) or for those interested in buying or selling, please reach out by scanning the QR code below to message me directly.