London’s £5m-plus market picked up in Q4 2024 after a slower first nine months of the year, according to whole market analysis from Savills.
In total, 128 sales (new build and second-hand) took place above the £5 million-plus threshold in the last three months of 2024, marking a 25% increase on the previous quarter, and an 8% jump on the year.
Overall, 442 £5m-plus sales took place in 2024, which is -16% down on the year, says Savills.
In value terms, £1.59bn worth of sales transacted over the last three months of the year. This is 50% more than Q3 2024 (£1.06bn) and 26% more than the same period in 2023 (£1.26bn).
In fact, the average price paid above this price point hit £11.04m in Q4, according to Savills. This is the highest average value recorded since before the pandemic (2019).
“The cautious mentality that we observed ahead of this summer’s general election and the Autumn Budget began to unwind during the final couple of months of 2024,” comments Nick Maud, director of research at Savills.
“A combination of political uncertainty and the additional stamp duty surcharge for second homes and changes in non-doms taxation announced in the Budget has meant that it has not been plain sailing for prime London buyers and sellers this year. But the bounce in activity towards the end of the year is a testament to the resilience of this market, and the strength of appetite from domestic buyers.
“The uptick in sales in the last three months was led by one-off big-ticket sales selling for above the £10 million mark, indicating that the desire for trophy assets in one of London’s golden postcodes will maintain.”
Prices in Prime Central London remain -20% below their peak, presenting good value for buyers. Savills prime central London house forecast expected values to grow by +9.6% over the next five years.
Belgravia saw the highest proportion of £5m-plus sales overall in 2024 (13%), overtaking Chelsea which had reigned as the top overall postcode for sales above that benchmark since 2020. Traditional prime postcodes continued to be most popular with super-prime buyers, with Kensington coming in second place, followed by Mayfair.
Houses (versus flats), typically favoured by domestic buyers, made up the highest proportion of sales above £5m-plus since 2021 (63%) when the market still felt the impact of Covid-19 restrictions enforced on overseas visitors.
The last three months of the year also saw the highest number of £5m-plus new build sales in over a year. In Q4 there were 24 new build sales in the Capital, up from 35 in Q3 2024. Nevertheless, new builds in the full year to 2024 fell to their lowest proportion of total sales since 2011.
Alex Christian, co-head of Savills Private Offices, commented: “Our prime agency and development teams had one the strongest ends to a year in recent times, exchanging on the sale of five deals totalling over £120m during the final ten days of December. The buyers were acting with renewed confidence, having accessed how the changes in the Budget would affect them and wanting to take advantage of an increased appetite by pragmatic vendors to finalise deals before the year-end. This is a testament to the enduring appeal of London, but also the lack of quality housing stock available across prime postcodes.
“Traditional prime London neighbourhoods continue to be most sought after by high-end buyers. Belgravia, in particular, has benefited from a surge of demand from a younger demographic thanks to significant investment into the area and an evolved retail and restaurant offering.”
Ed Lewis, Savills head of super prime residential development, added: “However, planning restrictions mean there will be fewer larger lateral apartments coming through the pipeline so there is a shrinking opportunity to secure this kind of home.
“The demand for turn-key, high spec properties continues and buyers are urged to act quickly in 2025, particularly while London prices offer value for buyers in historical terms.”
Read the orginal article: https://propertyindustryeye.com/londons-5m-plus-property-market-saw-a-bounce-in-activity-at-the-end-of-2024/
