£2m+ properties in Central London see a resurging increase in demand.
This is very interesting. Why, because we have seen a decrease in sales volumes in this segment of the market for almost two years now. However, in the last months of full sales data from the Land Registry, we can see that sales volumes are up 9% YoY.
What can we learn from this? That's always the question I ask when interesting data comes across my desk, how can I use this to help my clients and my readers?
Let us look to see why this is happening, and the data would suggest that there are two main reasons for this.
Firstly, there has been a significant reduction in available listings; this can increase a sense of urgency in buyers who have been waiting to decide as there was very little sense of urgency in this market segment.
Secondly, prices have been steadily declining in this segment of the market for well over a year now, and many buyers now think that prices are at more realistic and fair market value.
Another interesting point would also be the general prosperity of the higher income brackets who purchase in these price bands. There was data released just today that showed in RBKC (The Royal Borough of Kensington & Chelsea) over 2,000 residents are earning more than £1m a year.
What does this mean for the market?
It highlights the fact that no matter what the general market is doing if buyers find a property that they feel has good relative value, transactions will continue to take place.
As a buyer in this market, I would keenly asses relative value and make informed decisions.
As a seller in this market, I would spend significant time to ensure the pricing of my property is appropriate and reflects fair value.
Message me should you have any questions or comments about the London market.