A new study on the property market in London has found that although the market is slow, and prices have further to fall, some properties will still sell.
Cluttons has found that although prices in the capital have fallen by varying amounts (from central London’s figure of -8.4% in Q4 to central south’s figure of -7.2%), and have not yet hit the bottom, there is still interest in the market from individuals and funds/institutions with strong equity positions who see the current market as a buying opportunity.
However, transactions are expected to continue slowly as vendors and buyers fail to agree on pricing and this state is prevalent in Prime areas of the capital, says the report, where owners are refusing offers and taking their properties off the market rather than selling at a lower price which is causing some stagnation and questions as to pricing. However, in the South West, the City and Docklands areas more need to sell and this is helping the market to establish the correct pricing levels.
Some properties, however, are still selling – ‘If a property is of good quality and benefits from unique characteristics relative to the rest of its local market there is still the willingness and an ability to purchase,’ says the report. ‘Consequently properties with these characteristics are seeing a smaller pricing correction relative to the rest of the market.’
It also adds that those properties without unique selling points are experiencing sharper pricing corrections than those which stand out from the crowd.