London’s prime property sector records a 6.3% increase in demand from buyers
Knight Frank’s latest property report records a rise of 6.3% of prospective buyers keen to buy property in prime central London (PCL). The increase in activity spans the last 12 months up until the end of February 2019.
Tom Bill, head of London residential research at Knight Frank said: “Although activity levels have fallen due to political uncertainty, underlying demand has strengthened as potential buyers respond to price adjustments.”
The report by Knight Frank also reveals that the number of offers was up by 7.5% in the year to February 2019, although the volume of property exchanges in PCL was down by 14% in the same period according to LonRes data.
Knight Frank’s Mr Bill explained: “The number of new properties listed for sale has declined in recent months as a result of Brexit related political uncertainty. The imbalance between the current strength of demand versus supply indicates the potential for upwards pressure on prices and activity once political uncertainty recedes.”
In prime central London, ‘super prime’ properties priced at the £10 million plus mark had only dropped by 0.1% and 0.2% between £2 million and £5 million homes. Properties priced between £1 million and £2 million fell by just 0.3%. The largest decrease affected the sub £1 million market with a year on year fall of 6.5%.
The latest data, indicates that despite prices being down by 5.1% up between February 2018 and the end of February 2019 and down 1.3% for Q1 of this year, the demand from buyers is now increasing across the prime property market in central London.
Knight Frank’s report states that month on month the drop was fractional at 0.4% and in outer London it was only 0.2% with this sector seeing a quarterly fall of 1% and annual fall of 4.6%.
Tom Bill, head of London residential research at Knight Frank said: “Though there are fewer properties on the market, the number of offers being submitted is increasing as pent-up demand builds. Despite stronger underlying demand, weaker overall economic sentiment means some buyers and sellers remain hesitant.”
