London led the way in super-prime residential property sales in 2020, witnessing the sale of 201 super-luxury homes – more than any other city in the world.
A report by estate agency group Knight Frank shows that, despite the pandemic, transactions in London rose by 3%, with domestic buyers accounting for a third of all activity – up from 12% in 2019.
Speaking to The Guardian, Liam Bailey, global head of research at Knight Frank said:
“London’s super-prime residential market shrugged off Brexit and even looked through the pandemic – confirming the UK capital as the world’s leading wealth destination. After five years of price falls, the capital is set for a reset and the latest numbers from Knight Frank’s super-prime data confirm that London is on top of the world.”
Although transactions in Hong Kong and New York fell by 27% and 48% respectively, Knight Frank’s research identified that, overall, global sales of super-prime homes – properties over $10m – fell by just 1% in 2020.
And analysis of more recent data indicates that, in London, the trend is set to continue. Paddy Dring, global head of prime sales at Knight Frank, predicts that London is “poised for a strong year” and that the second half of the year will be even stronger than the first.
It is the quest for more space that is driving demand, with the percentage of super-prime sales that were houses at its highest level for five years. Almost three-quarters of transactions recorded in Knight Frank’s Spring/Summer 2021 Super-Prime Insight report were houses compared to a split that was closer to 50/50 between apartments and houses in 2017, and Kensington, Knightsbridge, Mayfair and Notting Hill the top four areas.
The number of new prospective super-prime buyers was 150% higher in May 2021 than it was in January 2020. However, over the same period, the number of new property listings in the price bracket fell by 25%, contributing to a shortage of stock – and reports that demand is currently so strong in Notting Hill in particular that some houses are achieving over £4,000 per square foot.
“The super-prime market has performed well in exceptional circumstances over the last 12 months,” said Rory Penn, Knight Frank’s Head of Private Office, “which highlights the resilience of London’s super-prime property market. I expect overseas demand to spring back quite quickly once travel restrictions are relaxed.”
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