Latest London Property News: June 2024
|
|
| The May prime London sales market was characterised by growing supply and increasing numbers of price reductions, with demand staying steady. The overriding sentiment of the most recent Lonres report suggests indicators are showing a relatively healthy market – under offers are also rising and fall-throughs are down. New sales instructions were 12.1% higher in May than a year ago – every month this year has been above the 2023 equivalent. And this is 10.8% above the 2017-2019 May average. The number of properties withdrawn from the market increased in both April and May, but for the whole year to date is just below last year. The number of properties going under offer in May was 4.3% higher than a year ago. This builds on strong growth in April and suggests the pipeline of deals is healthy. Furthermore, actual average prices have now risen slightly for three consecutive months, adding to the evidence that prices have bottomed out. Overall, we have more new instructions, fewer sales and slightly fewer withdrawals, so stock on the market is growing. At the end of May there were 12.2% more properties for sale across all of prime London than a year earlier, and this is 26.1% higher than at the end of May 2019 (five years earlier). As well as new instructions to choose from, price reductions mean that buyers are also likely to see existing homes for sale drop into their budgets. Across prime London, 47% of properties that sold between 2017 and 2019 had their asking price reduced before sale. This dropped to 40% in 2022 but in 2024 so far has increased again to 48%. Most local areas have followed a similar pattern, with their lowest rates of reductions in the stronger market of 2022. But Mayfair & St. James’s has bucked this trend, with 2024’s 37% lower than both 2022 and the 2017-2019 (pre-pandemic) figures. The latest data also shows significant variation between areas in terms of current levels of price reductions, with more than 60% of sold properties in South Kensington being reduced prior to a deal being agreed, compared to 37% in Mayfair & St. James’s We have reported before that the £5m+ market has been the strongest sector since the second half of 2021 in terms of activity. While this remains the case, transaction levels have fallen back from the high point reached in 2022. Rising new instructions have resulted in available stock for sale growing, particularly over the past 12 to 15 months. Transactions of £5m+ properties in May were down 20.5% on the same month a year earlier, although this is still 19.2% above the 2017-2019 May average. The year-to-date figures – a less volatile metric – show sales more in line with the equivalent period last year, a change of -4.1%. The longer term comparison of the year so far with the average of the same months from 2017 to 2019 shows 2024 33.1% ahead. |
|
Contact UsIf you are considering selling your property or any residential property sales advice, please contact Nicholas Jaffray by telephoning: +44 20 3091 9311 or via email at: [email protected] or visiting at: 42 Upper Berkeley Street, London, W1H 5QL. |