Research by leading London estate agent, Benham and Reeves, has revealed that London’s super-prime property market saw transactions hit a pandemic high in the first quarter of 2021, although the market is yet to return to the levels seen before Covid struck.
Benham and Reeves analysed transactions and sold price data across the London market for all residential properties selling for £10m or more.
The figures show that during the first quarter of this year, 23 transactions completed across London’s super-prime market. This was a 44% increase both on the previous quarter and the first quarter of 2020.
It was also the highest quarterly number of super-prime transactions of any quarter since the start of the pandemic (Q1 2020) and well above the quarterly average of 17 transactions per quarter seen over the duration of 2020.
However, while there are signs of a super-prime property market revival, the research by Benham and Reeves also found that there is some way to go to achieve a full return to pre-pandemic health.
In 2019, an average of 29 super-prime properties sold per quarter, with 117 transactions completing throughout the year. Total transactions fell to just 68 in 2020 and with just 23 so far in 2021, it looks as though market activity could remain below the level seen in 2019.
Covid uncertainty has also played a part where sold prices are concerned. Again, there are signs of returning market health, with an average sold price of £13.4m in Q1 of 2021 bringing a 9% lift quarter to quarter.
However, this remains -18% off the pace when compared to Q1 of 2020 and far lower than the market high of £17.9m seen in the second quarter of 2019.
Director of Benham and Reeves, Marc von Grundherr, commented: “The outlook for the super-prime London market remains fairly positive at present although demand continues to be dampened by travel restrictions preventing many super-wealthy foreign buyers from making the move.
However, During the first quarter of this year, there was a considerable improvement in the level of market activity, both when compared to the previous quarter and on an annual basis.
In fact, Q1 saw the largest number of super-prime London property sales of any quarter since the start of the pandemic with sold prices also up when compared to the final quarter of 2020.
However, an air of pandemic uncertainty remains and while the market is showing signs of recovery, sold prices and sales volumes are yet to return to the pre-pandemic levels seen in 2019.
So while the very top end currently presents relatively good value for those looking to invest, super prime home sellers won’t achieve the price they might expect when looking to sell in current market conditions.”