Leading property consultancy Tyburn is currently discretely marketing c.£70 million of exclusive high-end properties across Prime Central London and are predicting that this approach is set to become ever more prevalent across the market.
Current predictions are that in the current market conditions around 25% of London properties valued above £1 million are sold off-market, whilst that figure doubles to 50% for homes valued over £5m and up to 80% in the £10 million plus bracket.
The practice of selling a home off-market isn’t a new one, however, it is a strategy currently being driven by a marked slowdown in the market, which has seen house prices across the UK fall at their fastest annual rate in 14 years. Despite sales of luxury homes in London recording their highest levels since 2006 last year, with 605 properties sold for £5 million or more, the beginning of 2023 has seen sales fall by 29% compared to the same period in 2022.
Moreas Madani, Founder of Tyburn, said, “2022 was a strong period for the property market in Prime Central London and across the UK, following some tough years triggered by Brexit and the COVID-19 pandemic, however, rising inflation and interest rates across the globe has piled more pressure on and had a negative impact on values across the board. This has led to a significant slowdown in the market, which is influencing the behaviour of some sellers who want to protect the value of their assets.
“The homes we are currently instructed to promote discretely are all of exceptional quality and have excellent value growth potential. It is prudent of the sellers to utilise our extensive knowledge of the market and contact base to identify any suitable buyers that are willing to pay a sensible price over listing the home publicly with a traditional estate agent and risk stagnation on the open market or not achieving the price they know they can with patience and the correct approach.”
Totalling £67 million Tyburn is currently silently marketing a number of high-end properties across Prime Central London, including a set of magnificent four-bedroom apartments on Grosvenor Square and Park Crescent, as well as a sizeable unit within the contemporary The Chilterns development in Marylebone. Other standout instructions include an impressive home at Holland Park Villas and a well-located property in the heart of Mayfair.
Moreas added: “The property market is cyclical and whilst we are currently experiencing a downturn once the social and economic factors causing the main issues are resolved we will see another uptick and our clients are very aware of that. They have in their possession fantastic assets that will hold their value and they don’t want to take the risk in the open market when they can operate off-market with the expectation of waiting for the right buyer at the right time.”
Experts maintain that super prime properties are still attracting good levels of interest from buyers and holding their values due to their rarity and quality, however, analysis by Coutts Bank reveals that 35% of open market listings in Prime Central London have undergone a price cut, with Lonres recording that the average discount in prime London is currently 8% lower than its initial asking price.
However, the market is expected to ride the storm with five-year forecasts still predicting a 10% increase in Prime Central London property values, which is further driving sellers off-market to strengthen their position.
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