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Prime property sales fall in London for third consecutive quarter

09/11/2018 News Team

Prime property sales in London in Q3 2018 are 5.5 percent lower than in the second quarter and 15.8 percent lower than Q3 in 2017, according to the latest Coutts London Prime Property Index (CLPPI).

Not only is this a significant decrease in the past 12 months, but sales volumes have actually fallen by a third since 2013.

Discount rates remain high but have fallen for the third consecutive quarter, which suggest that “the tide might be turning”. Whilst geopolitical uncertainty is believed to be contributing to the negative trends, Coutts believes that better times are coming.

Mohammad Syed, head of asset management at Coutts, commented: “The end of Brexit uncertainty – when it arrives – is likely to release some pent-up demand and see a rise in market activity and prices. But we believe that it will be some time before transaction volumes return to the levels seen in 2013.” 

However, there is a risk of down-valuation. In a market where house prices are falling, it is common for property valuations to come in lower-than-expected. For those with a long-term view, high discounts and low competition among buyers could make it a positive time to buy prime property in the capital.

The most successful areas in London were Kensington, Notting Hill and Holland Park, which secured the most super prime sales in Q3 and a 0.4 percent rise compared with last year. At the same time King’s Cross and Islington produced the highest yields compared with other prime markets covered in the index, increasing from 4.5 percent to 4.7 percent from the last quarter.

At the other end of the scale, Bayswater and Maida Vale placed bottom for speed of sales, with an average of over six months.

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