THE RISE OF LONDON'S PRIME AND SUPER STOCK

with Frances Mcdonald, Savills Research Analyst

Column

The borough of Ealing, which had its place on the map firmly established thanks to the arrival of the Elizabeth Line last year, saw a sizeable uptick in the sale of £1 million homes on the year in 2022 (+58%), while leafier areas such as Richmond saw an increase of 39%. Islington, a popular area for young creatives, has also seen an increase of 38% in homes sales at £1 million and above.

Warwick

Kensington, W14 8PP

Sales of £5 million-plus homes reaches record high

2022 also marked a record year for London’s £5 million-plus property market. Over the 12-month period there were more than 600 £5 million-plus second hand and new build sales recorded –the highest figure since our records began in 2006.

Over the course of 2022, the total value of £5 million-plus transactions hit £6.57 billion. This is +13% higher than in 2021, which was the previous record year for total spend.

The increase in the volume of sales was driven primarily by activity in the £10-20 million super prime market, which all but doubled (+99%) year on year, and is up by +32% on 2021.

Location wise, 61% of second hand sales took place in traditional prime central London hotspots, led by Chelsea (12.6%), Kensington (10.3%) and Knightsbridge (9.0%). However, the £5 million-plus price tag is being achieved more frequently in the leafier, outer prime parts of the capital – particularly in areas like Clapham, Battersea and Putney – where there is a stronger demand for larger family homes with outside space.

Regeneration and redevelopment, along with the opening of new tube and Crossrail stations has seen areas like Bayswater see more sales of homes at this level. In total, more than 50 London neighbourhoods saw activity in the £5 million-plus market in 2022, with this likely to expand further in 2023.

These higher values have largely been driven by best in class properties and new homes with standout amenities, that are widely sought after by both domestic and overseas buyers. Despite signs of the market easing slightly towards the back end of last year, likely to be caused by a degree of economic uncertainty, the outlook for London’s property market over the next five years looks more robust, with price growth of +13.5% in prime central London.