Kensington & Chelsea Property Market Report Q3 2017

Welcome to our quarterly Kensington & Chelsea property market report for Q3 2017. This report covers the Notting Hill, Kensington, North Kensington, Queens Park and Kensal Rise areas of London (W2, W8, W10, W11, NW6 and NW10).

 

Overview

A combination of motivated sellers, lower prices and a devalued pound has encouraged more buyers into purchasing in prime central London this year, albeit largely in the sub £3m market. These buyers have been responding to a change in available properties which has increased by more than 10% on this time last year.

Although the market has reassuring signs of life things are moving slowly; buyers are cautious and on the lookout for ‘fair value’. This fact is borne out by the length of time properties are taking to sell with nearly 40% of property on the market for over six months.

We are in a buyers’ market so it’s crucial for sellers to be realistic with their price expectations otherwise buyers simply won’t engage.

Headline figures compared to Q3 2016

  • + 0.7% annual change in achieved price.
  • + 5.9% annual change in transactions.
  • £1,277 average achieved £ per square foot.
  • 5% average discount on initial asking price.
  • 7% annual change in the number of available properties.

Key statistics in Kensington, Chelsea and Surrounding Areas

  • Average flat prices are now 21.9% higher than they were five years ago.
  • Buyers are paying £222 more per square foot than in 2012.
  • 4% of properties have been sold within three months compared with 20.0% for the whole of central London.
  • Properties sold in the last three months achieved an average price of £1,320,760 for flats and £3,387,289 for houses.

Current availability in Kensington, Chelsea and Surrounding Areas

  • 65% of properties have been on the market for over three months.
  • 39% of properties currently available have been on the market for more than six months.
  • 5% of properties on the market have been reduced in price.
  • 7% annual change in the number of available properties.
  • 3% of properties on the market are priced at £2 million or higher.

Expert view

The local property market is still coming to terms with the recent raft of tax changes and the ongoing uncertainty of Brexit. In light of this change of rhythm, sellers, on the most part, have tempered their expectations. There remains a steady flow of international investment buyers, in particular from Asia, buoyed on by the weak pound, which is helping to counterbalance any downward pressure.

The decision for purchasers is whether to buy now, and take advantage of lower prices, or wait and see how the current economic and political situation will further impact the market. We don’t expect any meaningful movement in prices over the next 12 months so our advice is clear; if you can sell, or buy, on terms that suit you, then proceed with measured optimism.

If you’re thinking of buying or selling property in Notting Hill, Kensington, North Kensington and the surrounding areas ensure you get expert advice. Contact our Sales Directors today to book your free consultation.

 

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