Analysis by main London property agent, Benham and Reeves, has revealed that London’s super-prime property market noticed transactions hit a pandemic excessive within the first quarter of 2021, though the market is but to return to the degrees seen earlier than Covid struck.
Benham and Reeves analysed transactions and bought worth knowledge throughout the London marketplace for all residential properties promoting for £10m or extra.
The figures present that in the course of the first quarter of this yr, 23 transactions accomplished throughout London’s super-prime market. This was a 44% enhance each on the earlier quarter and the primary quarter of 2020.
It was additionally the very best quarterly variety of super-prime transactions of any quarter because the begin of the pandemic (Q1 2020) and properly above the quarterly common of 17 transactions per quarter seen over the period of 2020.
Nevertheless, whereas there are indicators of a super-prime property market revival, the analysis by Benham and Reeves additionally discovered that there’s some option to go to realize a full return to pre-pandemic well being.
In 2019, a mean of 29 super-prime properties bought per quarter, with 117 transactions finishing all year long. Whole transactions fell to simply 68 in 2020 and with simply 23 to date in 2021, it seems to be as if market exercise might stay under the extent seen in 2019.
Covid uncertainty has additionally performed an element the place bought costs are involved. Once more, there are indicators of returning market well being, with a mean bought worth of £13.4m in Q1 of 2021 bringing a 9% carry quarter to quarter.
Nevertheless, this stays -18% off the tempo when in comparison with Q1 of 2020 and much decrease than the market excessive of £17.9m seen within the second quarter of 2019.
Director of Benham and Reeves, Marc von Grundherr, commented: “The outlook for the super-prime London market stays pretty constructive at current though demand continues to be dampened by journey restrictions stopping many super-wealthy international patrons from making the transfer.
Nevertheless, Throughout the first quarter of this yr, there was a substantial enchancment within the degree of market exercise, each when in comparison with the earlier quarter and on an annual foundation.
In truth, Q1 noticed the most important variety of super-prime London property gross sales of any quarter because the begin of the pandemic with bought costs additionally up when in comparison with the ultimate quarter of 2020.
Nevertheless, an air of pandemic uncertainty stays and whereas the market is exhibiting indicators of restoration, bought costs and gross sales volumes are but to return to the pre-pandemic ranges seen in 2019.
So whereas the very high finish presently presents comparatively good worth for these seeking to make investments, tremendous prime dwelling sellers gained’t obtain the worth they could anticipate when seeking to promote in present market circumstances.”