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Wetherell Mayfair Residential Market Update end of year report - 2015

Introduction


The Wetherell Market Update details the Mayfair residential property market (defined as W1J, K & S). To put Mayfair in the context of the wider prime central London market we have compared the Mayfair catchment with the rest of PCL (to include SW1A, SW10, SW3 & SW7)

Achieved Prices

Achieved prices per square foot for flats sold in Mayfair have risen significantly since the start of 2007. Values achieved per square foot are now 139% higher than in Q1 2007. The rest of prime central London increased by 87% over the same period.

Prices per square foot and Mayfair premium

Average prices achieved per square foot across Mayfair this year were, on average, 35% higher than the average for properties sold in the rest of prime central London. The premium per square foot for Mayfair properties has increased, up from 25% three years ago and 8% a decade ago.

Premium per square foot for Mayfair compared with other prime central London postcodes 

Mayfair is rapidly regaining its crown as the most prestigious London neighbourhood. The conversion of Mayfair mansions back to their intended use as homes for the wealthy, alongside significant, (in Mayfair terms) levels of new development activity have meant prices have risen significantly in recent years.

Mayfair commands higher average values per square foot than all other prime London areas, with the exception of Knightsbridge (SW1X). Average prices per square foot for homes sold in Mayfair in 2015 were just 1% lower than in SW1X, compared with a
discount of 10% three years ago.

Transactions

The impact of increased taxation and regulation on the upper end of the prime central London property market has impacted upon transactional activity in Mayfair and its neighbouring districts.

All areas of prime central London saw the number of homes sold above £2 million fall compared with the same period a year earlier. In Mayfair there were 23% fewer homes sold in the year to September 2015 compared with the previous year and 32% fewer than in the year to September 2013.

Sales by price band - achieved price

26% of properties sold in Mayfair so far this year achieved £5 million or more compared with 13% across the rest of prime central London.

Sales by price band - achieved price per square foot

So far this year (as at 23rd November) 34% of properties sold in Mayfair achieved £2,500 per square foot or more, with 71% achieving £2,000 per square foot or higher. This compares with 10% of sales over £2,500 per square foot and 29% over £2,000 per square foot in the rest of PCL.

The proportion of Mayfair sales achieving £2,000 per square foot or more has increased from 35% three years ago to 71% this year.

Price Reductions

The proportion of properties which had their asking prices reduced before sale increased this year, emphasising the importance of realistic pricing from the outset.

Of those properties sold in Mayfair so far this year, 39% had reduced their asking prices since they were first marketed. This compares with 20% in 2014 and 25% three years ago. Other areas of prime London have experienced a similar increase in price reductions, with 38% of properties across the rest of prime central London reduced in price before a sale was agreed.

On The Market

The number of properties reaching the market in Mayfair so far this year (1st January – 23rd November) has fallen compared with the same period last year, with stock listed for sale down by 6%. Across the rest of prime central London volumes fell more significantly over the same period, with 20% fewer properties listed. (This data includes all properties listed for sale which may have subsequently been sold or withdrawn). Taking a snapshot of availability as at 23rd November shows the number of properties on the market in Mayfair has increased by 17% compared with the same date a year earlier and by 16% compared with the same date three years ago. Whereas overall volumes of stock on the market across the rest of prime central London have remained at the same level as they were a year ago, both Chelsea and South Kensington have seen volumes fall, while Knightsbridge and Belgravia experienced an increase of 23%.

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