Press Release: Record January for the Prime London Property Market
Fri 07 Feb 2014
- Almost half (48%) of Prime London property sold for, or in excess of, the asking price
- Over a third (34%) of property in January sold within two weeks of being put on the market
- Ratio of supply and demand rose to a four-year high with 23 registered buyers for each available property
- Strong demand is pushing prices higher, with the average price of two-bedroom properties in Outer Prime London increasing by 17% in 2013, an increase of almost 100,000
The Prime London market experienced a bumper January in 2014, with properties selling in record time and for closer to the asking price than ever before, according to new data from estate agent Marsh & Parsons.
Over a third (34%) of property in January was sold within two weeks of being put on the market twice as many properties in this timeframe compared to January 2013.
In addition, almost half (48%) of all property in January sold for, or in excess of, the asking price. This meant that, on average across all property sold, 99% of the asking price is currently being achieved an increase from 98% during the past two years.
Peter Rollings, CEO at Marsh & Parsons, commented: "Now is the time to get a jackpot price on property thanks to a surge of potential buyers entering the market in the New Year. These extraordinary conditions have created a strong sellers market and one of the best opportunities to sell property in recent years.
"But conditions like this wont last. Many people believe that the best time to market property is during the busier months of the spring. But these sellers could be missing a trick the increasing levels of property supply at that time of year will dissipate current levels of demand, and bring about a return to more normal market conditions in the spring."
Supply and Demand
In January, there were 23 registered buyers competing for each available property on Marsh & Parsons books. This was the highest level since 2010, and represents a dramatic increase from the ratio of 14 registered buyers per property in January 2013. Compared to the same point last year, 19% more buyers entered the market in competition for 28% fewer properties making this a strong sellers market.
But for the last four years, an average of 10% more property has become available between the months of January and April. This percentage jumped considerably between 2012 and 2013 as the property market recovered, and if this trend continues, 18% more property could hit the market by spring 2014.
Peter Rollings continued: "Londons rising population, together with a perfect combination of low interest rates and competitive mortgage finance has created a surge of potential buyers. But the supply of housing stock has remained more subdued. Our more astute sellers are putting their properties on the market now because they know that the imbalance of supply and demand will help them to get a great price.
"In a sellers market, property regularly goes for over the asking price, so buyers need to be realistic when viewing property and placing bids. When they find their chosen property, they must not delay. Being decisive is key to successful negotiations."
Impact on Prices
The average value of two-bedroom properties in Outer Prime London increased by nearly 100,000 during 2013 following a 17% annual growth, according to Marsh & Parsons latest London Property Monitor.
The average price of a two-bedroom property in Outer Prime London comprising non-central areas such as Brook Green, Fulham and Barnes now stands at 673,812. This is an increase of 98,214 since Q4 2012, when the average price of a two-bed in these areas was 575,597.
|All Prime London||Prime Central London||Outer Prime London|
Looking at average values across all property types, growth in Outer Prime London outpaced Prime Central London by 50% during 2013, with annual growth of 15%, compared to annual growth of 10% in the Prime Central areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico.
The top five Outer Prime 'hotspots', where the highest levels of growth were recorded during 2013 were: Barnes (average annual price growth of 19%), Balham, Clapham, Fulham (all 18% annual growth), and Battersea (15% annual growth).
Peter Rollings continued: "Last year the biggest price increases were to be found in the Outer Prime London 'villages'. These areas are all popular with UK buyers and are favoured for their community feel and local atmospheres. Slightly lower property prices in these areas also attract those who may have been priced out of more central areas.
"But early indications in January point to a turnaround. While parts of Outer Prime London sped ahead in 2013, our data suggests that Prime Central areas are due for a growth spurt in 2014. This was beginning to happen in the third quarter of last year and looks set to surge forward later this year."
|Average Value||Quarterly Change||Annual Change|
|Outer Prime London||1,083,313||4.0%||15.1%|
For further detailed analysis of Londons prime market, please see Marsh & Parsons' accompanying London Property Monitor.
The Prime Market Monitor uses a repeat valuation methodology that tracks values in a robust and representative mix-adjusted basket of properties across Prime London in the main areas in which Marsh & Parsons operates. Prime Central London comprises representative baskets of properties covering Chelsea, Kensington, Notting Hill, Holland Park and Pimlico. Outer Prime London comprises areas such as Clapham, Balham, Battersea, Barnes, Little Venice, Fulham and Brook Green. Prime London describes all these areas combined including Prime Central London and Outer Prime London.
Supply and demand statistics are based on an audit of Marsh & Parsons registrations and instructions during the quarter. Buyer profile information taken from Marsh & Parsons quarterly MI data.
For further information please contact:
The Wriglesworth Consultancy,Julia Langsman / Neil Mackwood,0207 427 1441 / 0207 427 1400
Marsh & Parsons, a multi-award winning estate agent, has been part of the London property scene since 1856. With 19 offices situated in prime positions across central, west and south west London, they have an intimate and extensive knowledge of the area. Marsh & Parsons services include residential sales and lettings, property management, new homes, developments & investments, professional surveying and corporate & relocation services.
Marsh & Parsons was acquired by LSL Property Services plc in November 2011, but continues to operate as a separate business, retaining its current management team.
A business that is built on energy, agility, professionalism and knowledge, Marsh & Parsons business aim is to be the agent who not only understands the local area around their offices better than any other agent, but is also at the heart of the community. They believe that Local know-how will achieve better results and make the difference for their clients.