London’s super-prime residential market has recorded its strongest year since 2013, according to high end agency Savills.
In total, there were 522 super prime sales in 2021 - however, in Q4 alone there were 163 transactions, which is 37 per cent higher than the previous three months.
As a result, the last three months of the year saw the highest quarterly spend for any quarter since Savills’ records began in 2006 with almost £2 billion spent on properties agreed for £5m or more.
The agency says this can largely be attributed to the number of £20m-plus sales of both new build and second hand property. There was also a significant uptick in the number of £10m-plus transactions in Q4 - the strongest quarter ever with 62 sales.
Additionally, the new build market also ramped up at the end of the year.
There were 30 new build sales topping £5m in Q4 2021, with a total value of £558m.
“London’s super-prime markets stellar end to the year is evidence of the influence that the pandemic-fuelled desire for more space has on residential markets. While we can expect to see demand from domestic buyers looking to upsize into a larger family home soften in the new year, a lack of suitable stock on the market will continue to support prices, while the supply-demand imbalance remains” says Frances Clacy, Savills research analyst.
“It’s also clear that domestic and UK-domiciled international buyers are taking advantage of the opportunity to buy in a market that still represents relative value and before a more sustained return of overseas demand. Recovery in prime central London values is certainly underway, but revived Covid-19 restrictions are likely to push the forecasted eight per cent bounce back in values further into 2022.
“But it’s not all about houses. We are also starting to see recovery in demand for London’s super-prime flats, with demand focused on the limited supply of very high quality stock.”
Jonathan Hewlett, Savills’ head of London residential, adds: “Although London’s domestic market largely underpinned super-prime activity last year, we saw a bounce back in international buyer numbers towards the year end. Daily flights to the UK more than doubled in the final quarter, on a year on year basis, and more than half our central London agents reported seeing an increase in international demand during this time.
“However, with the reintroduction of some travel restrictions largely putting the international market on pause for the last couple of weeks of the year, we are already seeing signs that pent up demand will carry through into the first couple of months of 2022 leading to a strong start to the year for this market.”