Prime London Market Accounts For 12% Of London Property Sales So Far In 2021
Research by central London estate agency, Bective, has revealed areas of the prime London market that have been most active in 2021 based on both price threshold and location.
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Bective’s analysis of Land Registry sold price records dissects the market based on the number of transactions seen at £1m-£3m, £3m-£5m and £5m across each borough.
The research shows that across all segments of the prime market, 3,381 transactions have taken place during the first half of this year, accounting for 12% of all London property sales.
The Core Market - £1M-£3M
The core prime market has been the most active during the first six months of the year, accounting for 10.8% of the 28,210 homes sold across London so far this year.
With an average sold price of just over £1.3m, properties at this tier of the market are selling for 153% more than the London average.
Kensington and Chelsea has seen 197 transactions complete at this rung of the market, accounting for 39% of the 508 homes sold in the borough in 2021.
Hammersmith and Fulham (34%), Westminster (33%) and Camden (30%) have also seen 30% or more of homes sold in their respective boroughs do so for between £1m and £3m, while in Richmond and Islington a quarter of transactions sit within this price range.
The Mid-Market - £3M To £5M
Across the mid-prime market, 214 transactions have completed so far this year equating to just 0.8% of all London transactions. With an average sold price of £3.65m, this segment of the market comes in some 609% more expensive than the London average.
While Kensington sits top with 11% of all homes sold at this price threshold again, Westminster ranks second with 8% of all transactions completed in the borough between £3m to £5m.
With just 4% of the overall transactions taking place at this level of the prime market, Camden also places above Hammersmith and Fulham (2%).
The Prime Market - £M
There have been just 117 homes sold over the £5m threshold so far in London this year, amounting to 0.4% of total transactions across the capital.
With an average sold price of £7.1m, the cost of purchasing within the prime market comes in at 1,279% higher than the average London home.
Only 12 out of the 32 boroughs have seen transactions at this price point this year, with just five boroughs seeing more than a handful of sales.
In Kensington and Chelsea, 54 homes have sold for more than £5m in 2021, accounting for 11% of all homes sold in this borough.
Westminster (6%) and Camden (2%) again rank high, along with Merton (0.4%) and Richmond (0.3%).
London Property Market Should See A Strong Finish To The Year
Bective Revenues Director, Craig Tonkin, commented:
“Unlike much of the UK, London’s top tier property market hasn’t been hit by the same level of homebuyer hysteria as a result of the stamp duty holiday. However, that’s not to say it hasn’t played a part and market activity in the first half of this year has certainly benefited.
However, looking forward we expect the return of international interest to play a far more pivotal role over the remainder of the year.
We’ve already seen buyer registrations from all corners increase by 81% in the last month alone which is an extremely positive indicator.
Property values across the likes of Kensington and Chelsea and Westminster are also some twenty to twenty-five per cent off previous market peaks so there is still a strong level of growth potential.
When coupled with the fact that interest rates remain at an all-time low, we should see a strong finish to the year across much of the London market.”
General Prime Market - £1M To £3M
Location All Transactions Transctions between £1m & £3m £1m to £3m as % of all Average sold price - All Average sold price - £1m to £3m Price difference (%) Kensington and Chelsea 508 197 39% £1,200,000 £1,550,000 29% Hammersmith and Fulham 612 209 34% £757,500 £1,435,000 89% City of Westminster 561 184 33% £930,000 £1,366,250 47% Camden 591 180 30% £762,000 £1,513,500 99% Richmond upon Thames 1,035 267 26% £692,500 £1,350,000 95% Islington 542 136 25% £650,000 £1,348,500 107% Wandsworth 1,511 341 23% £662,500 £1,290,000 95% Barnet 1,174 201 17% £610,000 £1,275,000 109% City of London 37 6 16% £712,000 £1,121,300 57% Hackney 683 108 16% £582,000 £1,237,500 113% Haringey 700 103 15% £559,500 £1,350,000 141% Brent 580 74 13% £563,125 £1,387,500 146% Southwark 868 109 13% £567,500 £1,300,000 129% Lambeth 1,107 139 13% £560,000 £1,295,000 131% Ealing 812 101 12% £530,000 £1,375,000 159% Merton 779 93 12% £548,000 £1,250,000 128% Hounslow 635 60 9% £480,000 £1,348,750 181% Kingston upon Thames 788 69 9% £546,000 £1,200,000 120% Tower Hamlets 702 59 8% £510,000 £1,177,400 131% Harrow 673 50 7% £550,000 £1,215,125 121% Bromley 1,768 98 6% £500,000 £1,215,000 143% Enfield 931 47 5% £473,000 £1,150,000 143%Source valuewalk