23/11/2020
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.”
Property market has been hit hard by the lack of international buyers, 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%).
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.
No is the time to buy for several reasons:
- Due to travel restrictions, there are fewer international buyers
- For foreigners, the pound looks cheap
- UK still has 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 UK has a vaccine coming through, this window of opportunity won’t last long
