Prime central London properties are still falling in price, by 1.8% in September, says the latest report from Knight Frank. There have now been five consecutive months of falling prices, with annual growth now at -4.5% overall, and prime outer London seeing even steeper falls in price of -4.6% over the past three months alone.
Super prime London (over £10m), is not immune to price falls either, Knight Frank reports, as after a period of notable resilience, prices finally dropped 1.7% in September although volumes of sales are still strong and prices remain significantly higher than they were a year ago.
There is, however, good news for owners of London property under £1m, where falls seem like they are beginning to slow, with the sector seeing the smallest drop since March of just 0.9%.
Liam Bailey, head of residential research at Knight Frank said: ‘Houses are only worth 1.1% less than a year ago, compared to 6.7% for flats, reflecting the scarcity of family-sized accommodation in central London. Mayfair, Marylebone and St John’s Wood, where larger homes are concentrated, are seeing lower price falls than other areas.’
The super prime sector seems far from at risk, Mr Bailey continued: ‘After a very strong run the super-prime sector (£10m+) has peaked in pricing terms, and unsurprisingly September saw prices fall by 1.7%. Nevertheless, prices in this sector are still 11.7% higher than a year ago, and transaction levels remain very high and there is still competitive bidding for the most prestigious properties.
‘High commodities and oil prices indicate that the incomes of this elite group will continue to grow. The stock of super-prime property in London is limited, and represents a tangible long-term investment to those who may have lost faith in more abstract opportunities. As a result, we believe that transactions will remain steady, and we do not expect a significant price fall in this sector.’