The summer Market Intelligence from Crayson tracks property values and trends, and gives in-depth, incisive facts and figures on the property market in the Notting Hill, Holland Park and Kensington areas.
Demand remains strong:
- Despite mixed messages on the health of the housing market, demand for property in our area remains strong. Over the last three months the number of properties sold in our area increased by 17% over the same period a year ago.
- The amount spent on property in prime central London has risen significantly this year. Buyers have spent an average of £157.5 million per month in our area, 27% higher than at the same point a year ago.
Apartments outperform houses:
- Sales of apartments have dominated the market so far this year, with the number sold rising 32% compared with the figure at this point a year ago. The opposite is true for houses, with sales so far this year down 21%.
- Flats have also outperformed houses in terms of price growth. Flats sold in our area over the last three months achieved prices per square foot that were 13.6% higher than the same period in 2013. Houses saw average prices increase at a still respectable 10.6%.
- Prices per square foot for homes selling in excess of £5 million have plateaued this year. However, they are still achieving values which are 28% higher than they were three years ago.
- The strongest growth in values continues to be for homes at the lower end of the market (under £1 million) and those priced between £2 million and £5 million, with average values within these price bands having risen by 12.7% and 12.9% respectively.
- Within the Royal Borough, 24% of properties currently on the market have been reduced in price since they were first marketed.
- The highest proportion of price reductions is seen in the price bracket over £10 million (31% now reduced); this compares with just 21% of properties priced at £2 – 5 million.
- Twenty-five per cent of the most prolific agents within our area (with more than five properties listed for sale) have reduced the prices of more than a third of their available stock.
Nick Crayson says, “Put simply, vendors who achieve the best price for their property do so by bringing their home to market at the right price, creating early interest amongst buyers. Properties that are launched at an unrealistically high price are missing out on crucial selling opportunities in the early stages of marketing. The average amount of time before a property is first reduced is currently 70 days.”
Chart: Percentage of properties being marketed at reduced prices
The full report can be seen on the Crayson website here Hard copies are available on request 020 7221 1117