Prime London Market Accounts For 12% Of London Property Sales So Far In 2021

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Prime London Market Accounts For 12% Of London Property Sales So Far In 2021
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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%
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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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