Some agents have recently suggested that the prime central London market is sluggish in the extreme - but now one agency claims there are 30 potential buyers for every property for sale at £2m and above in one part of the capital.
Patterson Bowe claims that since the election there has been a 30-buyers-to-one-property ratio for every £2m-plus home in the borough of Kensington and Chelsea.
Consequently, vendors at the top end of the market have recently managed to command above local average asking prices for their properties which are currently valued at more than £2,000 per square foot in the most prime locations.
This is in sharp contrast to the market climate prior to the Election where properties at £2m and above were not going under offer for several weeks and consequently not always achieving their true market value, claims the agency.
However, there is still a problem for his stellar-priced market - stamp duty.
Patterson Bowe managing director Stuart Patterson says sellers’ fears about the stamp duty they will have to pay on their next purchase has discouraged them bringing homes to the market.
“The recent hike in Stamp Duty is taking time to be absorbed into the market. It remains a significant factor both to a purchaser and conversely to vendors considering moving or trading up” he says.
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It's an interesting situation in that the level of SDLT at the top end of the market takes away much of the investment potential of these properties, at least it creates a massive bid offer spread that would for example prohibit a quick redec and turnaround profit. What this means is that buyers will have to actually want/desire the properties a lot more in order to be willing to pay the price. The other inhibitor to the market at the highest level will also be from movers, the prospect of 'moving across town' will be out of the cost question for many even if they have the money, we will see how things develop
"30-buyers-to-one-property ratio for every £2m-plus home in the borough of Kensington and Chelsea."
Madness! Where are these people getting their money from? Actually, I don't think I want to know.
Oh no, those poor owners of £2m-plus properties having to pay a little bit more stamp duty. My heart bleeds for them, it really does.
Seriously, has the world gone mad? How can there be 30 people battling it out for these types of properties? I'm sure Mr Johnson will be happy, his plan to turn London into a larger version of Monaco or Liechtenstein is well in motion.
@Jon, do you have any idea how much high-end buyers pay into the Treasury? They are taxed at every possible opportunity, yet bleeding-heart liberals like you are still not happy. Whether you like it or not, we need the prime Central London market, we need the investment, otherwise we'd be looking a lot worse off in the economic stakes.
re Jon Tarrey - dont worry - Borris and the Bullingdons and their international cohorts will be very bored and lonely when they realise not only have they eradicated all the real culture but also that they don't actually like each other!
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