Resi prices in Belgravia have declined to the point that they are prompting a pick-up in sales volumes, according to Knight Frank.
Quoting LonRes data (which excludes new-build properties), the firm flags up that the average price per square foot in the area was £2,110 in the year to September 2017, compared to £2,310 in the previous year.
Meanwhile, there was a like-for-like rise in transactions to 88 from 82 between the two periods, figures that were both down from 126 recorded in the year to September 2015.
“My sense is that we are near the bottom of the curve in Belgravia,” says Knight Frank’s Stuart Bailey, whose office has a dominant 36% market share in the area. “The inflection point comes when enough buyers perceive value. It has taken two years to get here, but some properties in Belgravia are now blatantly good value.”
SDLT remains one of the key factors affecting market performance, according to the agency’s Head of Resi Research, Tom Bill: “In similar fashion to other prime central London markets, sales volumes and price growth in Belgravia have slowed in recent years due to a series of tax changes, including higher rates of stamp duty.
“While the wider market is moving towards recovery mode, it is not happening in a uniform manner. The result is a stratified market where performance is linked to price bracket, geography, level of specification and amenity and the extent to which stamp duty rises have been assimilated.
‘Town houses are the best value that I can remember’
Bailey, who’s worked in the Belgravia market for 15 years, adds:“Town houses are the best value that I can remember. When they are below £2,000 per square you know Belgravia is looking good value but some unmodernised freehold properties are now available for less than £1,800.”
Stuart Bailey is head of Knight Frank’s Belgravia office
Eaton Row particulars here
Read more insight from the Knight Frank team here