An increase in realistic pricing in prime central London is leading to an uptick in sales and demand, according to a report Tuesday from Cluttons. There was a 30% increase in new buyer inquiries in the capital during the second quarter of the year compared to the first quarter, the London-based chartered surveyors and property consultants said.
Sales volume reflected the increase in demand, as transactions across prime Central London increased 6.6% in the first half of the year, compared to the same time last year. Across the city, it was homes priced between £1 million (US$1.23 million) and £3 million that performed best, logging an 18% increase in sales during the first half of 2019 compared to a year ago, according to the report.
At the other end of the market, super-prime properties got a boost, too, with twice as many deals on homes priced at £10 million and more transacting in the second quarter compared to the same time last year. High-end sales are being driven by overseas purchasers who are getting extra discounts due to the weak value of the pound.
“We are experiencing close to ‘normal’ market conditions when marketing a property priced in line with where the true value sits,” James Hyman, head of residential at Cluttons, said in the report. “A property marketed at 20% off the highs of early 2015 will see immediate viewings, several offers and sell within a sensible time frame.”
Prices in prime central London fell 7.6% in the second quarter compared to last year. Across the capital, the average price of a property is now back to a level last seen at the start of 2016, the report said.