There were early signs of recovery in the market for London’s most expensive addresses in the final quarter of 2019, according to real estate services provider Savills.
Despite 83% of Savills London agents reporting that the general election had impacted the market, prices of prime property in the capital showed growth in the final three months of 2019, the first quarterly growth in four years.
Savills said a marginal increase in prices of 0.1%, meant that annual price falls which stood at -3.2% at the end of 2018 had reduced to just -0.5%.
Lucian Cook, head of residential research at Savills, said: “This is a stronger year end for prime London than we had been anticipating given the levels of political and economic uncertainty, and reflects a narrowing of buyer and seller expectations.”
Savills added that in prime central London, a “bottoming out” of prices has coincided with an increase in the volume of sales over £5m that were already 33% up on December 2018.
However, the strongest performing markets have been those of prime South West London, where prices have risen by 1.9% over the course of the year.
This has been driven by the markets of Wandsworth, Fulham and Clapham, in particular. In each case, annual price growth has exceeded 5%, as needs-based buyers have returned to the market, at a time when the amount of available stock has been low.
In prime central London the best performing market has been that of Notting Hill where values ended the year up 1.4%.
Cook added: “In central London the highly discretionary super prime market has historically been the first to fall and the first to rise again.
“Prime central London prices have looked good value both in a historical and global context for some time, particularly for dollar buyers, but the recent experience at the top end of the market suggests that we are now at a turning point.”
Savills forecasts that prime central London values will rise by 3% in 2020 and a total of 20.5% over the next five years.