Higher-value properties continue to perform (comparatively) more strongly than lower value properties across Prime Central London, one of the top real estate hubs of the world, according to latest statistics.
Average prices for homes valued at £10 million or more recorded a 0.2 per cent rise in the year to January, the first increase recorded in this price bracket for almost two years. Meanwhile, average prices between £5 million and £10 million rose on an annual basis for the third consecutive month, revealed Prime Central London Sales Index for January 2018 from Knight Frank.
Underlining the relatively stronger performance of higher value properties, the largest rise in sales volumes by price band was 14.3 per cent for properties valued between £5 million and £10 million.
While the underlying trend is a stabilising market, there is little sense of uniformity across different price bands and geographies. Higher rates of stamp duty had an earlier and more pronounced impact on the upper end of the market, which led to a quicker response in terms of asking price adjustments.
In addition, positive annual growth has returned to markets where demand has been supported by factors that include the presence of premium new-build developments.
Overall, transaction levels are showing signs of stabilisation. The number of transactions rose 5 per cent in Prime Central London in the last six months of 2017 compared to the same period in 2016, according to LonRes data, Knight Frank noted.
A growing number of new prospective buyers relative to the number of new properties placed on the market typically denotes the potential for upwards pressure on pricing.