So far, 2022 has been a great year for the prime and super-prime property markets in London. In fact, it has been a record-breaking first quarter with figures showing significant spikes that could make this one of the best years yet. Both domestic and international buyers have been fuelling the sales in high-end property and buyers collectively spent more than £600 million on homes in top price brackets in Q1 this year.
A record-breaking first quarter
Performance has been positive overall for the prime and super-prime property markets in London so far this year – but especially so for homes that are priced at £5 million or more. More of these properties sold in Q1 2022 than in any other year on record – that’s according to figures that go back as far as 2006. Sales of super-prime properties experienced a 25% increase in the first part of this year with 128 transactions being processed. The figures are not only historically record-breaking but also show a healthy increase on the numbers for the years previously too. 2022’s sales for the first quarter are 24% higher than those that were achieved during the first quarter of 2020.
A stronger year than 2021?
Last year saw the super-prime property market in London experience its best year since 2013. And all the signs from 2022 so far are that this could be an equally positive 12 months for this high-end market in London. Appetite is currently strongest for homes in the £5 million to £10 million price bracket with £600 million collectively spent on these properties so far this year. That’s a significant increase on the figures for previous years – 34% more than the same time last year and 23% more than the first quarter of 2020.
Target areas for big buyers
It’s perhaps no surprise that areas such as Kensington and Chelsea are more targeted than others when it comes to prime and super-prime properties. The largest share of the big ticket deals this year have taken place in Kensington and St John’s Wood with Belgravia and Chelsea not far behind. However, it’s not all blue skies for these property markets, as transaction values still have yet to recover to their highest levels. Average transaction values fell 18% in the first quarter of this year compared to last year, mainly because there were fewer £10 million property sales.
A return to the city
When the pandemic really began to bite many of the wealthiest in London left the city for the fresh air of the country, which left activity in the prime and super-prime markets sluggish. However, now all the signs indicate that these buyers are returning to the traditional prime hotspots in the capital and looking to buy up the best housing stock.
Performance of prime and super-prime property markets has been stellar so far in 2022 with many more properties sold and buyers returning in droves to the traditionally desirable areas of the city. Carpe Diem London is a trusted advisor within the UK property market, matching investors with great investment opportunities. Find out more about how Carpe Diem London’s real estate services can help you.