The latest property market analysis by London lettings and estate agent, Benham and Reeves, has revealed that the prime London property market has rebounded in Q2, with homebuyer demand climbing on both a quarterly and annual basis.
The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2-£10 million and £10 million and above based on the ratio of properties listed online that have already sold subject to contract or gone under offer. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.
Prime Market – £2m-£10m
Across the core prime market, buyer demand has not only climbed by +1% in the second quarter of this year, reversing the decline seen in Q1, but it’s also up +1% on an annual basis.
Chiswick (51%), Barnes (51%) and Wandsworth (48%) are home to the current highest demand for prime properties.
Barnes (+7%), Highgate (+7%), Wandsworth (+6%), Wimbledon (+6%) and Maida Vale (+6%) have seen the largest quarter uplift in demand.
On an annual basis, Canary Wharf (+14%), Battersea (+10%) and Victoria (+8%) have enjoyed the biggest turnaround in buyer demand.
Super Prime Market – £10m+
While buyer demand across the very top end of the London market remains -1% down on an annual basis, there has been a notable +4% increase between the first and second quarters of this year.
Fitzrovia, Hampstead Garden Suburb and Wimbledon rank as the current hottest spots of the super prime market, with 25% of all homes listed at £10m or above already under offer or sold subject to contract.
While Fitzrovia and Hampstead Garden Suburb have also seen some of the largest quarterly growth, it’s Belgravia that has enjoyed the best Q2 performance, with buyer demand climbing by a huge 34% since the start of the year.
Director of Benham and Reeves, Marc von Grundherr, commented:
“It’s been a fairly slow start to the year for the prime London market and there’s no doubt the uncertainty caused as a result of the Ukraine conflict has added to the post-Christmas lethargy that traditionally dampens buyer appetites during the first quarter of the year.
But since then we’ve seen a real mark of intent from high-end buyers, with demand for prime homes starting to climb, particularly across the super prime market.
While the more peripheral areas that gained pandemic popularity are still in high-demand, we’ve also seen a strong uplift in appetite for prime homes in Canary Wharf and Victoria, which is extremely promising where the overall health of the city is concerned.
In addition to these more professionally focused hubs performing well, demand is also returning to the traditional prime heartlands of Belgravia and Fitzrovia and this is a sure sign that we’re in for a strong year ahead.”
Table shows demand for properties in each area at the £2m and above and the quarterly and annual change
Area
Prime category
Q2 2022
Q Change
Annual change
Barnes
Prime SW London
51%
7%
5%
Highgate
Prime NW London
43%
7%
4%
Wandsworth
Prime SW London
48%
6%
-3%
Wimbledon
Prime SW London
44%
6%
-6%
Maida Vale
Prime C London
20%
6%
6%
Fulham
Prime SW London
30%
4%
3%
Hampstead Garden Suburb
Prime NW London
15%
4%
-4%
Chiswick
Prime SW London
51%
3%
6%
Canary Wharf
Prime E London
20%
3%
14%
Victoria
Prime C London
22%
3%
8%
Regents Park
Prime C London
12%
3%
4%
Kensington
Prime C London
18%
3%
2%
Islington
Prime N London
42%
2%
4%
Chelsea
Prime C London
17%
1%
1%
Putney
Prime SW London
36%
1%
-7%
Belgravia
Prime C London
20%
1%
6%
St John’s Wood
Prime C London
11%
1%
-2%
Marylebone
Prime C London
7%
0%
3%
Mayfair
Prime C London
8%
0%
0%
Pimlico
Prime C London
13%
0%
0%
Notting Hill
Prime C London
20%
-1%
-10%
Holland Park
Prime C London
23%
-1%
-2%
Knightsbridge
Prime C London
12%
-2%
0%
Fitzrovia
Prime C London
6%
-2%
1%
Richmond
Prime SW London
38%
-5%
-3%
Wapping
Prime E London
13%
-7%
-3%
Battersea
Prime SW London
23%
-7%
10%
Clapham
Prime SW London
44%
-25%
3%
Overall average
25%
1%
1%
Table shows demand for properties in each area at the £10m and above and the quarterly and annual change
Area
Prime category
Q2 2022
Q Change
Annual change
Belgravia
Prime C London
12%
34%
2%
Fitzrovia
Prime C London
25%
25%
25%
Hampstead Garden Suburb
Prime NW London
25%
17%
1%
Highgate
Prime NW London
17%
17%
17%
Marylebone
Prime C London
9%
9%
7%
Victoria
Prime C London
11%
5%
1%
Mayfair
Prime C London
3%
3%
3%
Knightsbridge
Prime C London
10%
2%
4%
Kensington
Prime C London
5%
1%
-5%
Wimbledon
Prime SW London
25%
0%
25%
Maida Vale
Prime C London
0%
0%
0%
Pimlico
Prime C London
0%
0%
0%
Battersea
Prime SW London
0%
0%
0%
Regents Park
Prime C London
0%
0%
-8%
Chelsea
Prime C London
9%
0%
1%
St John’s Wood
Prime C London
0%
-4%
-7%
Holland Park
Prime C London
0%
-6%
-21%
Notting Hill
Prime C London
0%
-20%
-9%
Overall average
7%
4%
-1%
Data sourced from the major property portals during Q2, 2022, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed. (Rightmove, Zoopla, PrimeLocation, Boomin)
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About the Author
Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 19 prominently located branches and 11 international offices.