Bankers to the Queen, Coutts, have published the results of its first London Prime Property Index revealing that the capital’s luxury properties are selling at 2013 prices, 11% below their peak 2014 values.
Some of the most discounted property in London can be found in Mayfair and St James’s which have experienced a significant cooling off in property prices with a decline of more than 25% since their peak of 2013. Additionally, the findings show that super-prime property is on the market for longer, at 223 days on average, 25% higher than last year’s figure.
Beyond central and west London, performance across the prime north London markets is mixed. Notably, Hampstead and Highgate have not seen the same price fluctuations as King’s Cross & Islington or St John’s Wood, Regent’s Park & Primrose Hill.
Prime properties in the leafy suburbs of Hampstead & Highgate saw a 2.8% increase in price between the third quarter of 2017 and the same quarter last year. While regeneration and redevelopment around King’s Cross has attracted international blue-chip companies such as Google and Louis Vuitton which has helped contribute to a prime property price increase of 28.5% since the start of 2014.
According to James Clarry, the Head of Lending and Capital Management for Coutts, the weakness in sterling and the fall in prices mean that there is still a queue of international and domestic buyers. “We see a lot of reasons to be positive: sales are increasing, with a 21% increase against the same period last year, and we continue to see strong demand from clients in the market.”
Source: Coutts London Prime Property Index: https://www.coutts.com/insight-articles/news/2017/coutts-london-prime-property-index-Q3.html
