THE NOTTING HILL PROPERTY MARKET – Spring ‘13
The Magnolias and the sun are both out, so it must be time for the spring Market Intelligence from Crayson – in-depth incisive information on what is going on in our delightful part of London (W14, W11, W10, W8 and W2)
Some of the highlights are reproduced here; the full report is attached.
The general picture is pretty bright. Sales, prices and new instructions have all increased; and in contrast to the slow start in 2012, sales activity in prime postcodes has been brisk, with 36% more properties sold than at this point a year ago.
Nick Crayson says, “We have seen an increase in new instructions so far this year, with significant pent up demand meaning our outlook for 2013 remains very positive indeed.
Market activity
“At the end of the first quarter of 2013, values, transaction numbers and new stock levels have all improved.
“So far this year buyers in Notting Hill, Holland Park and Kensington have spent an average of £126 million per month, 17% more than at this point in 2012.
“Whilst a proportion of this increased spend can be attributed to price rises (having increased by 9.1% over the past 12 months), the latest figures do show transaction levels also rising.
In the last three months total sales have risen by 22% compared with the same period a year ago. The number of apartments sold increased by 25%.
Demand for houses over £2 million has been particularly noticeable this year and transactions have increased by 24% in the last three months.
New instructions
In recent years a lack of stock has been a key theme in the prime London market, with interested buyers far outweighing sellers. So far this year, new stock levels have improved dramatically.
“ In the first quarter of 2013 the number of new property instructions in our area were 65% higher than 2012 averages.
“ The most significant increases in new stock being listed have been within W11 (Notting Hill) and the Kensington & Chelsea postcodes of W14, where properties listed for sale rose by 101% and 86% respectively.
Further clarity on the implications of the new annual charge and changes to offshore ownership over £2 million, outlined in December’s Draft Finance Bill and the March budget, have resulted in increased sales activity over the £2 million threshold as well as an increase in new instructions.
The number of properties released onto the market at between £2 million and £5 million has increased by 84%.
International buyers
“A considerable amount of wealth from around the world has been invested in London real estate in recent years and this trend looks set to remain. The recent events in Cyprus again raise the question over where to securely invest ones money. Whilst it still may be too early to call, we expect prime London residential property will benefit as investors continue to choose it as their preferred asset class.
“It is a common misconception that overseas buyers are purchasing in London remotely, using overseas offshoots of UK property companies to source and buy properties. Whilst this may be the case with new schemes launched overseas, in our experience the vast majority of prospective buyers are coming to us directly, either in person or through a representative, often a London based buying agent.
“As well as those looking for an investment outside their home country, many are choosing London as a place to relocate to. The number of residents in Kensington & Chelsea increased by only 0.5% in the past decade; however an increasing number of residents were born outside the UK and now choose to call our area home. UK born residents in Kensington & Chelsea have dropped by 13% over the last decade, but the number of residents born elsewhere in Europe rose by almost 30%, with a 15% rise in those born outside Europe.
“As part of our strategy to ensure that our properties reach a truly International audience, all our properties will, from May, appear on over 30 major property portals worldwide, including the USA, Russia, China & Hong Kong, Indonesia, India, the Middle East, Australasia, Brasil & Mexico as well as France, Greece, Italy & Spain.”
Full report attached as a pdf, or available as a hard copy from:
Crayson, 020 7221 1117. [email protected]
