The Prime Central London residential market, among the world’s top real estate investment hubs, has responded quickly to the certainty of a majority government, as December recorded the highest monthly total number of £5 million-plus sales for five years.
According to real estate adviser Savills, there were 109 sales worth £5 million or more in the final three months of 2019, more than doubling the number seen in the third quarter of the year, across the market as a whole.
“In December alone, traditionally a seasonally quiet month, there were a total of 54 sales, the highest figure since the peak of 2014, bringing the 2019 total to 310,” Savills said in its latest report.
In terms of value, homes (priced £5 million and more) worth £1.3 billion or more were sold in the closing three months of 2019. This is 133 per cent higher than the £557 million recorded in the third quarter of 2019, and up 11.3 per cent on the final quarter of 2018. These statistics indicate that December 2019 was a busy month for the Prime Central London market.
Investors are showing faith in the Prime Central London market, as it is gradually recovering. Savills noted that Brexit-related uncertainty is expected to cap growth across Prime Central London at an average of 3 per cent in 2020, with five-year growth totalling 20.5 per cent.
Prime central London – where values are down by around a fifth since the 2014 peak – has been looking good value for some time. This renewed confidence has unlocked transactions and appears to be carrying over into 2020.