The number of prime London transactions dipped by 7% in the first half of 2019 when compared to the same period last year as market uncertainty continues, according to Benham and Reeves.
Using data from the Land Registry, the agency looked at properties priced over £2 million in high-end buyers’ most sought-after postcodes, based on the number of homes sold and what they’re selling for.
The average sold price being secured by high-end sellers in H1 2019 sits at £3.9 million, a 16% drop year-on-year.
The W1J postcode in Mayfair has seen the highest sold prices so far this year, with properties selling for an average of £11.5 million.
Nearby W1K is also amongst the highest with an average sold price of £8.7 million, while W9, covering parts of Maida Vale, comes in third at £5.9 million.
W1K has also seen the largest increase in sold prices year-on-year, up 84%.
The W8 postcode – covering much of Kensington – is seeing the highest demand from buyers so far this year. The area has recorded a total of 77 transactions in the first six months of 2019 with an average sold price of £4.9 million.
SW3 in Chelsea is the next hottest spot for prime London homebuyers with a total of 64 transactions in the first half of 2019, followed by W11 in Kensington (56), NW3 in Hampstead (56) and W2 in Bayswater (48).
While transaction levels are low compared to this time last year, the estate agent found pockets that have seen a notable uplift. N5 in Highbury, for example, has witnessed transactions increase by 200% year-on-year.
Nearby N7 in Islington and W15 covering parts of Mayfair have experienced transactions increase by 100%, while SW19 and N2 have seen the next largest increases at 89% and 78% respectively.
Marc von Grundherr, director of Benham and Reeves, comments: “The prime market has always been about quality over quantity and at the very highest rungs we may only be seeing a few transactions every six months, but these levels are building on this time last year.”
He says the current climate represents a great opportunity for foreign investors and, while many domestic buyers are ‘sitting on their hands’, we’re seeing a consistent interest from investors across Asia and beyond.
“This speaks volumes about the current confidence of investing in the capital despite our own current political turmoil and bodes very well for life after Brexit,” Grundherr concludes.