New research shows that the location of the highest price luxury properties in London is changing. In a move away from the traditional areas, there have been more luxury property sales in Hampstead and St John’s Wood than in Westminster and Chelsea.
It seems location of the property is no longer the number one reason for overseas investors. Buyers are instead looking for the largest spaces, extremely modern interiors and new builds rather than existing homes. The latter must be refurbished to extremely high standards in order to sell.
There were 50 property sales worth more than £10 million across the prime London market between January and October this year. The combined value comes in at £727 million according to research by LonRes and Aston Chase.
Belgravia and Knightsbridge come out on top with 15 sales of £265 million collectively in the first ten months of 2017. However, homes in North London are rising up the ranks regarding the most expensive areas of the city.
St John’s Wood is now third place, with a total of six sales totalling £88 million. Next up is Mayfair with five sales collectively worth £74 million, then Kensington at six sales worth £73 million, Hampstead with four sales worth £54 million and Primrose Hill/Regent’s Park at four sales worth £47 million altogether.
Below the top of the chart, comes Marylebone with four sales at a combined total of £37.5 million, next is Chelsea with two for £26.5 million and then Westminster, also with two sales that together made £20.2 million.
The top address in terms of expense is Hamilton Terrace. Next is Chesham Place, then Carlyle Square, Eaton Square, Grosvenor Square, Lancaster Gate, Charles Street, Victoria Road, Wilton Crescent, and finally Redington Road.
Over the last 18 months the supply of super prime properties in North London hotspots has risen sharply. The inner London market for luxury property is very much product led now, rather than by location.
North West London addresses give super prime investors and buyers much more value and space in comparison to the West End. For example, in St John’s Wood, a super prime property will go for between £2,250 and £3,250 per square foot, which is half the cost of a property in Mayfair or Belgravia.
In fact, St John’s Wood is now so popular it’s out performing traditionally strong areas such as Kensington, Mayfair and Chelsea for property sales deals over £10 million.
Since the general election earlier in 2017, sales in inner London have been controlled by overseas buyers. The evidence shows that they’re turning more to brand new homes.
They’re into lifestyle amenities, high specifications and stylish interiors, rather than the exact road the property is based on. Even when it comes to second hand home sales, buyers are expecting full refurbishment until they are modified to provide a modern standard.
Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing
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