The £10m+ market in London may have seen prices fall by just over 15% since the heady days of 2014, but deals are still being done – and big ones too.
Savills counted around 120 such sales in London last year, but while numbers were down on an annual basis, the volume spent was actually up. A whopping £2.5 billion of property worth £10m or more changed hands during the 12-month period, with the £20m+ range – where the price per square foot averages £3,600 – accounting for £1.5 billion of that.
A total of £14 billion has been dropped in London’s £10m+ market over the last five years, says the firm, with an amazing £1.5 billion going on just five super-prime addresses.
Belgravia’s Eaton Square leads the pack, with £500m in £10m+ sales since 2011, followed by Avenue Road, Chester Square, Belgrave Square and Tregunter Road, which have each racked up over £200m in eight-figure transactions during the same timeframe.
Buyers spent a further £650m on super-prime stock in Cadogan Square, Chesham Place, Lowndes Square, Ilchester Place and Princes Gate, while the most popular new developments for £10m+ buyers have proven to be One Hyde Park, Holland Green and Cornwall Terrace.
The team has also delved into the super-prime markets outside the capital, flagging up that the private estates of the Home Counties have been even more exposed than PCL in recent years.
Prices are down by a full 20% since the stamp duty bombshell of December 2014, putting them just 3.8% above 2007 levels. The amount of property transacted fell from £160m in both 2012 and 2013 to £71m in 2014 and £67m in 2015, before rising to £110m in 2016.
Savills counted four sales of more than £10m in St Georges Hill last year, one of which was a record-breaker, although sales prices were 14% below their guide on average. Interestingly, 45 of the 116 sales over the past five years were sold as development plots.
Meanwhile, values in the UK’s private country estates market have risen by 34% in the last decade, driven in the main by land prices rocketing by 150% (compared to the residential component’s paltry 7%). Savills says there were 29 £5m-plus estate sales in 2016 where the land area was at least 200 acres, adding up to an aggregate value of £331,585,000.