The last quarter of 2007 has seen a slowing down in the market however I attach our latest residential sales update for the residential property in Mayfair which indicates that it is still an active market with demand outstripping supply with some sold prices showing a doubling of value in the last 12 months!

It looks like the volume of transactions will be down for this year and this is in line with market commentators who are predicting a further fall in volume for the year ahead.

There has been no impact felt from the current events in the financial markets however it is apparent from our internal database tracking systems that the registration numbers of new buyers is diminishing and that the response from traditional marketing through magazine and newspaper advertising or from the web is drastically down.

The lack of new entrants to the sale market is counter balanced by the large number of buyers still looking for the right property, but they are becoming more selective and less willing to enter into competitive bidding.

If I use the analogy of a successful restaurant then I am still cooking for a full house and still running a waiting list however that list is not as long as it used to be!

The super prime market of £5M+ is the strongest followed by the entry level into the Mayfair market between £500,000 - £2M. The mid range market has seen the weakest performance due to the substantial increases over the year and the lack of available stock.

Mayfair is still incredible value when compared to Belgravia, buy now before it catches up!

Peter Wetherell

• 71 properties fully for sale - £244M
• £450,000 buys a small one bed flat in secondary location
• £17,500,000 buys an unmodernised Grade I listed house with planning to create a 16,000 sq ft home
• Only 2 properties for sale where price is under £1,000 / sq ft
• Over 20% of market now commands £2,000/sq ft +
• 188 properties sold so far this year in Mayfair & St James’s – approx £519M
• Wetherell sold so far this year in Mayfair & St James’s - £134M

Immaculate flat overlooking highly sought over Mount Street Gardens
September 2006 - £675,000
September 2007 - £1.25m
EFFECTIVE DOUBLING OF PRICE IN 12 MONTHS

First floor Mayfair Village Flat
July 2006 – valued at £520,000
November 2007 – sold £1.1m
EFFECTIVE DOUBLING OF PRICE IN 16 MONTHS

Low built double fronted family house
July 2007 – valued at £5m
September 2007 – sold at £6.85m
EFFECTIVE 33% IN 3 MONTHS

Well turned out 2 bed flat in small Edwardian block
April 2002 – sold at £600,000 (24year lease)
July 2007 – sold at £1.3m (19 year lease)
EFFECTIVE DOUBLING OF PRICE against lease diminished by 20%

Mayfair Mansion with adjoining Mews
Jan 2006 – valued at £10M
September 2007 – sold at £18.6M (£2,000 p.s.f.)
86% INCREASE OVER 21MONTHS

Wetherell View on market

• Buyers still prepared to ‘pay the price’, especially for Prime Property
• No impact felt from recent events in financial markets
• Impending lower interest rates will be beneficial
• Impending changes to CGT will be beneficial
• Supply of Mayfair property always restricted
• Demand for Mayfair property always constant
• Still a strong residential market and catching up with Belgravia!