The prime property market in London has become increasingly fragmented, with significant differences in selling times and price reductions across postcodes, according to new findings from Investec Bank.
The latest analysis highlights that while some £1m+ homes are selling within three months, others remain on the market for more than six. Alongside these disparities, prime properties in Greater London have seen average price reductions of over £200,000, with some areas experiencing declines of more than £300,000.
VARIATIONS IN SELLING TIMES ACROSS LONDON
The time taken to sell a £1m+ home varies significantly depending on location. In Bayswater (W2), properties take an average of 191 days to sell, while in Hampstead (NW3), sales complete in just 79 days.
South West London offers the most choice for buyers, with the highest number of £1m+ homes on the market. However, the length of time properties remain unsold varies widely:
AVERAGE TIME ON MARKET FOR £1M+ HOMES
Postcode | Average Days to Sell |
---|---|
W2 (Bayswater) | 191 |
NW8 (St John’s Wood) | 149 |
SW3 (Chelsea) | 130 |
W8 (Kensington) | 128 |
W11 (Notting Hill) | 114 |
SW11 (Battersea) | 97 |
SW6 (Fulham) | 87 |
NW3 (Hampstead) | 79 |
While the average price reduction for £1m+ homes in Greater London was £200,100, some areas saw far greater discounts. Hampstead (NW3) recorded the largest percentage drop of 11.3%, equating to a reduction of £305,220, while Chelsea (SW3) and Kensington (W8) both saw price cuts of over £300,000.
AVERAGE PRICE REDUCTION FOR £1M+ HOMES (BY % DISCOUNT)
Postcode | Reduction (£) | Reduction (%) |
---|---|---|
NW3 (Hampstead) | £305,220 | -11.30% |
W2 (Bayswater) | £261,081 | -10.50% |
SW3 (Chelsea) | £311,266 | -9.70% |
W8 (Kensington) | £313,245 | -9.20% |
NW8 (St John’s Wood) | £325,219 | -8.40% |
SW11 (Battersea) | £153,723 | -8.20% |
W11 (Notting Hill) | £228,417 | -7.70% |
SW6 (Fulham) | £150,709 | -7.35% |
PRICE DISPARITIES ON A PER SQUARE FOOT BASIS
London’s prime market also exhibits sharp differences in pricing per square foot, with some buyers able to make substantial savings by adjusting their search to neighbouring postcodes. Fulham (SW6) was found to be £779 per square foot cheaper than Chelsea (SW3), despite being just a short distance away.
AVERAGE PRICE PER SQUARE FOOT OF £1M+ HOMES
Postcode | Price per Sq Ft (£) |
---|---|
SW3 (Chelsea) | £1,934 |
W8 (Kensington) | £1,863 |
W2 (Bayswater) | £1,745 |
W11 (Notting Hill) | £1,692 |
NW8 (St John’s Wood) | £1,516 |
NW3 (Hampstead) | £1,349 |
SW11 (Battersea) | £1,255 |
SW6 (Fulham) | £1,155 |
OPPORTUNITIES FOR BUYERS AND SELLERS
Carlos Mendes, private banker at Investec, said: “London offers exceptional value for money for those willing to look just a few roads away from their target postcodes, with prime property often hundreds of pounds cheaper per square foot.
“Now is the time for buyers to take advantage of some significant price reductions and secure a prime property in some of London’s most desirable areas, with reductions of over £300,000 seen in certain postcodes. However, for sellers, it’s essential to recognise that not all areas move at the same pace, and pricing strategies need to be flexible to secure a sale.”
A MARKET IN FLUX
London’s prime property market remains a patchwork of micro-markets, each moving at its own pace. For buyers, opportunities exist to secure significant savings by expanding their search beyond their preferred postcodes. For sellers, navigating the evolving landscape requires a strategic approach to pricing, ensuring properties remain competitive in a challenging market.