Cluttons Residential Market Outlook, September 2019
Price corrections leading to an increase in buyer enquiries
- Across the capital, the average price of a property is back to a level last seen at the start of 2016. In prime Central areas, prices per square foot are now comparable with five years ago
- Quarterly price falls now less than 0.5% in 10 Core London markets, with prices static or increasing across six. A year ago, price falls exceeded 2% in 11 Core London areas
- £1 million to £3 million market across prime central London performing well, with an 18% increase in sales during the first half of 2019 compared to a year ago
- Buyer enquiries are on the up, with high levels of interest, but still a way to go to reach normal market levels
- Super-Prime boost - twice as many super-prime (+£10m) deals have complete in the Q2 2019 compared to a year previously across prime Central London, as buyer discounts for overseas purchasers have been pushed to record highs
- Demand for rental properties remains strong across the capital. A supply-demand imbalance is fostering the return to rental price growth in many markets, with prime lets at record levels
- Rental price values across the capital are up by 0.9% per annum compared to a 0.2% fall at the same point a year ago.
James Hyman, head of residential agency at Cluttons comments:
“Whilst Brexit is the main predator in the super prime market, for the sub-£1.5million market affordability assumes that role. Every location has a price point, and areas where the market has readjusted to such levels are bucking the London trend.”
“We are experiencing close to ‘normal’ market conditions when to be marketing a property priced in line with where the true value sits. A property marketed at 20% off the highs of early 2015 will see immediate viewings, several offers and sell within a sensible time frame.”
Below are two examples of well-priced properties that Cluttons have recently brought to market. James comments: “It is important to note these are not fire-sale prices but true market value from realistic sellers who want to sell their properties in a realistic time frame.”
2-bedroom, river fronted apartment on the market for £1.15m (would have been £1.45m in 2015).
2-bedroom apartment with water views on the market for £895,000 (would have been £1.5m in 2015)