Luxury home sales in London had a banner first half of 2021, according to a report Thursday from Savills.
There were 237 deals for residences priced at £5 million (US$6.87 million) or more in the first six months, a 59% spike compared to the same time in 2020, the data showed. The U.K. was in Covid-19-induced lockdown for a good part of that time, but the number of transactions this year was also up 61% compared to the first half of 2019.
In addition, the total value of luxury sales was £2.28 billion over the last six months, 41% higher than the first half of 2020 and a 43% surge compared to the same time in 2019, the report said.
“The absence of overseas buyers has held back the recovery of parts of the prime London market, most notably the highest value central postcodes, where prices remain around 20% below peak,” Frances Clacy, Savills residential research analyst, said in the report. “London-based buyers clearly called the bottom of the market late last year and have been able to enjoy transacting with relatively low levels of competition.”
Many London residents looked to trade up over the last year, as stay-at-home orders prompted them to buy bigger houses with more outdoor space.
Underscoring that trend, prices for large, “country house-style living in London” has pushed prices up 9% year over year, while prices for homes with six or more bedrooms across west and southwest London were up 8.2%, according to the report.
“Houses have remained the top performers as buyers look to upsize, but the flat market continues to lag behind because of international travel restrictions,” Ms. Clacy said. “However, pent-up demand from those who have been unable to travel suggests that there is likely to be a rebalancing in demand once international buyers are able to visit the capital again.”
Properties in central London accounted for 89% of deals over £5 million, the data showed. The neighborhoods of Chelsea and Kensington fared the best, with 14% and 13% of sales, respectively. The city’s outer suburbs, such as Putney and Wimbledon, have also shown strong performance in the luxury sector, accounting for 11% of prime transactions.
Article Source: Mansion Global