Why it's a Great Time To Buy Central London Property NOW!!

Prime London's sales market is characterized by growing supply and increasing price reductions, with demand staying steady. Transaction levels remain lower than last year but other indicators suggest a relatively healthy market.

The number of properties under offer is rising and fall-throughs are down. Average values based on achieved £ per sq ft figures, fell by 2.8% in May (year-to-date), leaving prices approximately in line (+0.7%) with pre-pandemic levels. Actual average prices have now risen slightly for three consecutive months, providing evidence that prices have bottomed out. Over the longer term, values are 3.2% below 10 years ago.

Transactions in May fell by 14.8% against the same month last year and were 5.8% below the 2017-2019 (pre-pandemic average) May average. The number of properties under offer in May was 4.3% higher than a year ago. This builds on strong growth in April and suggests the pipeline of deals is healthy. While the demand side of the equation looks relatively consistent, more is happening with supply.

New sales instructions were 12.1% higher in May than a year ago – every month this year has been above the 2023 equivalent and 10.8% above the 2017-2019 May average. The number of properties withdrawn from the market increased in both April and May, but fractionally lower year to date.

Prime Central London £5Million+ Market

The £5m+ market has been the strongest sector since the second half of 2021 in terms of activity. While this remains the case, transaction levels have fallen back from the high point reached in 2022. Transactions of £5m+ properties in May were down 20.5% on the same month a year earlier, although this is still 19.2% above the pre-pandemic May average. The year-to-date figures (a less volatile metric) show sales more in line with the equivalent period last year, a change of -4.1%. The longer-term comparison of the year so far with the average of the same months from 2017 to 2019 shows 2024, is 33.1% ahead.

Other metrics follow a similar trend, but like the wider market, the figures for new instructions and price reductions stand out. New £5m+ sales instructions in May alone were 51.8% higher than last year, almost double the pre-pandemic (2017-2019) May average with year-to-date figures showing significant increases. However, while the market on account is larger April and May have seen new highs for the number of price reductions with properties being negotiated to lower transaction price levels.

With sales slowing and new instructions increasing, stock on the market is growing. At the end of May, there were 27.0% more £5m+ properties for sale across prime London than a year earlier, 55.8% higher than at the end of May 2019.

References; Lonres

If you are seeking to capitalize on best-in-class opportunities and gain deeper insights into market developments (Belgravia, Knightsbridge, Marylebone, and Mayfair) or for those interested in buying or selling, please reach out to me at AmitP@NestSeekers.com.