Demand has meant that in the Capital property has been seen as a sellers’ market in the past few years, but this appears to be changing for properties priced at £2 million and above.
With significantly more stock in London’s high end market it is becoming much more of a buyers’ market.
City Quays has seen that there are currently 1,968 properties on the market priced at £2 million and above in the Capital, while throughout the whole of last year 1,657 properties in this price bracket sold and just four years ago that figure was significantly less at 1,096. Meaning there are way more properties than buyers making the buyers able to be more picky and get better deals.
Starting to make more of a buyers’ market for the first time in a long time, especially in the premium high-end of the market at £10 million plus. It is becoming usual for there to be a large variety to choose from in this very top end price bracket which shows that it is slowing down and buyers have more of a selection and consequently more bargaining power.
Also as ever the political climate can have a great effect on the state of the market and with the current political situation in Ukraine, if there is then sanctions against Russia meaning that certain Russians might be exiled from the UK, this could generate even more supply on the super prime end.
Many top-level developers are now struggling to find buyers for their trophy mansions, and have to become more realistic with their asking prices. Peter To thinks we could see significant price drops at the super prime end of the market. We have seen the one house in Mayfair has already had a very sharp decrease in value from £120 million down to £95 million.
The advice being given to buyers looking for properties above £10 million is to take their time and take advantage of the current market situation. Buyers can get great deals when there is an air of nervousness in the market and right now there is. At times like these agents can push hard to negotiate the best deals for their clients.
Again politics has its part to play and the looming general election is a concern for both buyers and sellers, the significant rises in London property prices are also causing some buyers across all price ranges to hesitate and question whether it is the right time to purchase.
In City Quays experience it is impossible to perfectly time the market. Clients who decided to wait inevitably ended up regretting it. It depends on the clients reasons for buying and to what advice we offer them.
For those looking to buy a home, it’s much more about finding the right property for them, which will take time, than it is about getting the best bargain and price, because even if the market does drop 5% or more in the next year, in the context of the entire time they will probably own the property, short terms fluctuations usually have minimal impact at the end of a 10 year hold period or more.
On the other hand for those looking to invest, it makes sense to only buy if the right deal can be found and this can be in any market, rising or falling. If you get the right combination of a good property that can be bought at prices that make sense, then it is worth going for. Buying an investment property in London shouldn’t be short-term. Clients need to have a realistic view of how long they will need to hold onto to the property before selling it and making a significant return.