Prime central London has seen a steady recovery in transaction volumes in 2017 as asking price reductions stimulates demand.

According to the Knight Frank report, buyer sensitivity to property prices remains high, while some figures highlight the nature of demand in Belgravia.

For example, there has been a 19% increase in the maximum price per square foot in Belgravia over the last two years, while the average sale price in the first nine months of 2017 was 8% higher than the bull market conditions of 2014.

“Belgravia is underpinned by its quality of housing stock which continues to drive demand,” Stuart Bailey, head of Knight Frank’s Belgravia office, said. “Whilst all markets remain price sensitive, the increase in maximum pricing denotes the relative immunity for the very best quality.”

Bailey stated that price-sensitive buyers are ‘heavily scrutinising’ the characteristics of Belgravia’s housing market to ensure they are not overpaying. “Accordingly, pragmatic sellers are reflecting on their asking prices and are setting levels which reflect the true value as opposed to historic hope,” he said.

“While this is a relatively binary test, it has never been more relevant. At the right price there is a trading market.”