Trend Spotter

Summer market intelligence

Well, we thought about calling it something else, ‘third quarter report’, or ‘monsoon property report’, but in the end went for optimism and a traditional label. We remain positive that hope will, eventually, triumph over experience!

Prices rise…..

Despite the lack of sun, London’s housing market continues to be bright when compared with the wider UK market. UK house prices fell by 1% over the last twelve months, but prices in Kensington & Chelsea rose by 11.6%. Prices within the Notting Hill and Holland Park market continue to increase. Average £ per square foot values achieved so far this year have grown by 4.9% for flats and 6.5% for houses when compared with 2011.

Here at Crayson, properties we’ve sold so far this year have continued to set new records. In May we sold a house on Horbury Crescent, W11 for £1,555 per square foot, the highest ever achieved on the street. This month we have agreed the sale of a modern townhouse on Woodsford Square, W14. The £1,202 per square foot achieved set a new price benchmark for the square for one of the single houses.

But transactions fall….

Numbers of sales though are down on last year – as are those in central London generally. The market over £2 million in Notting Hill and Holland Park has been more resilient, with sales per month only 16% down on 2011 compared with a 24% fall for properties under £2 million.

Despite lower transaction levels, we are more than a little bit proud that our market share has been steadily increasing. This year, we’ve been responsible for 36% of sales between £3m and £6m in W11 and the Notting Hill part of W2 – more than any other agent.

Correct pricing the key to a successful sale

With agents vying for new instructions, overpricing remains commonplace amongst some agents working within our market. Across Notting Hill and Holland Park, 39% of flats and 34% of houses currently being marketed have been reduced in price since they were first launched onto the market.

We continue to maintain that that realistic pricing is vital from the outset, rather than unrealistic appraisals followed by price reductions. Our results speak volumes – we have only had to reduce the price of one property so far this year, with all selling at or in excess of our asking price.

You can see our full report online here. But if you’d like a hard copy, please feel free to give us a call (020 7221 1117) or drop us a line (nick@crayson.com). Or even better, come into the office to pick one up – we’d love to see you.

Nick Crayson