0

New property market analysis has revealed that the prime London property market has rebounded in Q2, with homebuyer demand climbing on both a quarterly and annual basis.

The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2-£10 million and £10 million and above based on the ratio of properties listed online that have already sold subject to contract or gone under offer.

E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.

LIS Show – MPU

Prime Market – £2m-£10m

Across the core prime market, buyer demand has not only climbed by +1% in the second quarter of this year, reversing the decline seen in Q1, but it’s also up +1% on an annual basis.

Chiswick (51%), Barnes (51%) and Wandsworth (48%) are home to the current highest demand for prime properties.

Barnes (+7%), Highgate (+7%), Wandsworth (+6%), Wimbledon (+6%) and Maida Vale (+6%) have seen the largest quarter uplift in demand.

On an annual basis, Canary Wharf (+14%), Battersea (+10%) and Victoria (+8%) have enjoyed the biggest turnaround in buyer demand.

Super Prime Market – £10m+

While buyer demand across the very top end of the London market remains -1% down on an annual basis, there has been a notable +4% increase between the first and second quarters of this year.

Fitzrovia, Hampstead Garden Suburb and Wimbledon rank as the current hottest spots of the super prime market, with 25% of all homes listed at £10m or above already under offer or sold subject to contract.

While Fitzrovia and Hampstead Garden Suburb have also seen some of the largest quarterly growth, it’s Belgravia that has enjoyed the best Q2 performance, with buyer demand climbing by a huge 34% since the start of the year.

Director of Benham and Reeves, Marc von Grundherr, commented:

“It’s been a fairly slow start to the year for the prime London market and there’s no doubt the uncertainty caused as a result of the Ukraine conflict has added to the post-Christmas lethargy that traditionally dampens buyer appetites during the first quarter of the year.

But since then we’ve seen a real mark of intent from high-end buyers, with demand for prime homes starting to climb, particularly across the super prime market.

While the more peripheral areas that gained pandemic popularity are still in high-demand, we’ve also seen a strong uplift in appetite for prime homes in Canary Wharf and Victoria, which is extremely promising where the overall health of the city is concerned.

In addition to these more professionally focused hubs performing well, demand is also returning to the traditional prime heartlands of Belgravia and Fitzrovia and this is a sure sign that we’re in for a strong year ahead.”

Table shows demand for properties in each area at the £2m and above and the quarterly and annual change
Area Prime category Q2 2022 Q Change Annual change
Barnes Prime SW London 51% 7% 5%
Highgate Prime NW London 43% 7% 4%
Wandsworth Prime SW London 48% 6% -3%
Wimbledon Prime SW London 44% 6% -6%
Maida Vale Prime C London 20% 6% 6%
Fulham Prime SW London 30% 4% 3%
Hampstead Garden Suburb Prime NW London 15% 4% -4%
Chiswick Prime SW London 51% 3% 6%
Canary Wharf Prime E London 20% 3% 14%
Victoria Prime C London 22% 3% 8%
Regents Park Prime C London 12% 3% 4%
Kensington Prime C London 18% 3% 2%
Islington Prime N London 42% 2% 4%
Chelsea Prime C London 17% 1% 1%
Putney Prime SW London 36% 1% -7%
Belgravia Prime C London 20% 1% 6%
St John’s Wood Prime C London 11% 1% -2%
Marylebone Prime C London 7% 0% 3%
Mayfair Prime C London 8% 0% 0%
Pimlico Prime C London 13% 0% 0%
Notting Hill Prime C London 20% -1% -10%
Holland Park Prime C London 23% -1% -2%
Knightsbridge Prime C London 12% -2% 0%
Fitzrovia Prime C London 6% -2% 1%
Richmond Prime SW London 38% -5% -3%
Wapping Prime E London 13% -7% -3%
Battersea Prime SW London 23% -7% 10%
Clapham Prime SW London 44% -25% 3%
Overall average 25% 1% 1%
Table shows demand for properties in each area at the £10m and above and the quarterly and annual change
Area Prime category Q2 2022 Q Change Annual change
Belgravia Prime C London 12% 34% 2%
Fitzrovia Prime C London 25% 25% 25%
Hampstead Garden Suburb Prime NW London 25% 17% 1%
Highgate Prime NW London 17% 17% 17%
Marylebone Prime C London 9% 9% 7%
Victoria Prime C London 11% 5% 1%
Mayfair Prime C London 3% 3% 3%
Knightsbridge Prime C London 10% 2% 4%
Kensington Prime C London 5% 1% -5%
Wimbledon Prime SW London 25% 0% 25%
Maida Vale Prime C London 0% 0% 0%
Pimlico Prime C London 0% 0% 0%
Battersea Prime SW London 0% 0% 0%
Regents Park Prime C London 0% 0% -8%
Chelsea Prime C London 9% 0% 1%
St John?s Wood Prime C London 0% -4% -7%
Holland Park Prime C London 0% -6% -21%
Notting Hill Prime C London 0% -20% -9%
Overall average 7% 4% -1%

Data sourced from the major property portals during Q2, 2022, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed. (Rightmove, Zoopla, PrimeLocation, Boomin)

SUBSCRIBE
Subscribe to our weekly newsletter
Stay informed with our leading property sector news, delivered free to your inbox. 
Subscribe
Your information will be used to subscribe you to our newsletter and send you relevant email communications. View our Privacy Policy
Property Notify
Property Notify is a leading property sector publisher reporting on breaking news and political changes affecting the UK property industry, in addition to finance, tax and investment coverage we provide a hub to explore, contribute, invest in and celebrate the property industry. - Read more.

    Burst of Enthusiasm for Global Equities as G7 Pledges Are Made

    Previous article

    Government’s Building Safety Reforms Come Into Force

    Next article

    You may also like

    Comments

    Leave a reply

    Your email address will not be published. Required fields are marked *

    More in News