Is it a good time to buy property in prime central London?

November 13th, 2020 Posted by Investment, Uncategorized 0 thoughts on “Is it a good time to buy property in prime central London?”

“Buy land, they’re not making it anymore” famously said Mark Twain.

And so it is to Prime Central London where over the long-term, property owners have enjoyed consistent annual price growth with limited downside, making the area one of the world’s leading real estate markets for investment.

In its latest property market report, Coutts tells its HNW clients that “Prime Central London looks cheap”.

In South Kensington, prices are now -18.9% below peak levels, while Knightsbridge & Belgravia prices are still -16.0% off the height of the market back in 2014. Prices in Fulham & Earl’s Court have fallen hardest however, down -19.2% compared to peak levels.

Mayfair & St James has been more resilient, with prices a mere -3.8% off the height of the market. Coutts does however warn that “it should be remembered that the data set is small in this area and quarterly figures can be erratic.”

Many PCL enclaves have been hit hard by the lack of international buyers, thwarted by Covid-combatting travel restrictions. The three areas that had the largest annual fall in transaction volumes in Q3 were Pimlico, Westminster & Victoria (-64.5%), Mayfair & St James (-46.7%) and Knightsbridge & Belgravia (-33.3%).

That’s helped PCL buyers’ negotiating positions: Average discounts in Marylebone, Fitzrovia & Soho in the last quester, for example, were -12.0% off the asking price – compared to -8.1% across prime London.

Alan Waxman of Landmass London, agrees that now is the time to buy for several reasons:

  • Due to travel restrictions, there are fewer international buyers
  • For foreigners, the pound looks cheap
  • We still have some months further of instability due to Covid & Brexit
  • London is still seen as the international city of the world
  • The market always goes quiet before and after Christmas
  • Now we have a vaccine coming through, this window of opportunity won’t last long

We agree with Alan when he says “if you are looking to buy, it’s always better when there are fewer buyers out there.”

There’s a famous adage in property that “You make your money when you buy, rather than when you sell.”

How to buy well in London: https://ambtpropertypartners.com/wp-content/uploads/2020/03/Property-Sourcing-ambT-x-Landmass.pdf

Contact michael@fiduciapartners.com to discuss your requirements.

Together with our sister company ambT Property Partners and our partnership with Landmass, we have the skills and know how to support you.

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