The prime central London residential property market is showing signs of renewed activity for investment, concentrated at the upper end of the price scale.
New research from property buying agency Black Brick reported an upturn in competitive bidding in the upper end of the prime central London market, which has previously been subdued following changes in stamp duty. However, the first quarter of 2017 saw a surge in demand as the decline in sterling value led to a levelling of asking prices leading to growth in sales.
The firm offered the example of a flat in Queen’s Park, which came on the market for £750,000. Similar flats in the area failed to attract attention with after their asking prices were overestimated. The fact that the flat was a realistic price led to its sale within just four days, fought out between four competitive bidders.
Exceeding usual levels of competition, the firm has also seen the trend of gazumping beginning to return. Black Brick secured a flat in Canary Wharf for a client at £1.48 million, following an initial offer of £1.44 million which was then gazumped by another buyer who offered £1.5 million. The firm re-agreed the sale at the original asking price due to the fact that the client was a cash buyer.
Managing partner of Black Brick, Camilla Dell, commented: ‘It can be very difficult for buyers to know where the value lies especially in new developments were there can be a wide range of asking prices. To understand the market, a buyer needs to do their research. Understanding where and how much property has sold for can help but with new builds, prices do not get entered onto the Land Registry database until the project is complete. Therefore, buyers need to be very cautious, or take advice about where such properties should be priced.’