Knightsbridge is no longer London’s top address and is being beaten in the property pricing stakes by rival Mayfair, due to lack of new homes provision, outdated stock and constrained supply. These are the findings of a new review of London’s ultra prime market by Wetherell.
Wetherell commissioned Dataloft, the market intelligence group, to analyse luxury apartment sales prices and lettings values in London’s Prime Postcodes over the last 17 years between 2000 to 2017, using Lonres data and Wetherell local market intelligence.
For the first time in 10 years, since One Hyde Park was launched in 2007, Mayfair apartment prices have opened up a wide value margin above those of Knightsbridge. For 2017, Mayfair apartment prices averaged £2,378 per sqft, 6per cent above Knightsbridge, which averaged £2,242 per sqft. Almost 75per cent of Mayfair sales in 2017 achieved £2,000 per sqft or higher, with the underperformers explained very short leases.
In 2016, Mayfair apartments averaged £2,314 per sqft, just 1per cent above Knightsbridge, which averaged £2,299 per sqft – allowing for a margin of area, the 2016 data was not significant. Before 2016, Knightsbridge led strongly on values. In 2015 Knightsbridge was £2,436 per sqft, compared to £2,398 per sqft for Mayfair, a lag of -2per cent. In 2014, Mayfair values were -6per cent below Knightsbridge, in 2013 -5per cent, 2012 -11per cent and 2011 -7per cent.
Only in 2007, for a brief period before One Hyde Park sales and marketing went into full swing, were Mayfair prices just 1per cent above those of Knightsbridge. Between 2000 and 2007 sometimes Mayfair led, other times Knightsbridge – but One Hyde Park helped give Knightsbridge 10 years of recent market dominance. Now this is changing.
The new research also shows Mayfair starting to overtake Knightsbridge on price indicators for both district’s most expensive stock.
Peter Wetherell, Chief Executive of Wetherell says: “Mayfair was historically London’s richest address. After 1945 many Mayfair homes were turned into offices, and planning priority was given to commercial premises. This, combined with the development of One Hyde Park and other luxury Knightsbridge apartments led to the last decade of Knightsbridge being the capital’s top address.”
Peter Wetherell continues: “Five years ago we could see planning permissions and office-to-resi conversions halting the decline in Mayfair, and back in January 2014 we took the then bold step of forecast that Mayfair would eventually overtake Knightsbridge to become London’s most desirable address.”
Peter Wetherell explains: “Back in 2014 we calculated that on a range of real estate indicies, Mayfair would overtake its rival. At the time agents and developers criticised our forecast and indeed one Knightsbridge developer said in 2014 that Mayfair prices would slow and fall over the coming years. Im pleased that our Wetherell forecast have been proven with the test of time to be accurate.”