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London super-prime property sales increased despite pandemic Covid-19

LONDON (Oct 19): The Covid-19 has not impacted the London’s super-prime property market as more money has been spent on million-dollar local properties in the first eight months of the year than last year, according to Knight Frank Super-Prime Market Insight – Autumn 2020 report.

In the media statement issued by Knight Frank, there were 56 super-prime transactions worth of £1.13 billion (RM6.06 billion) recorded in the first eight months of this year compared to 57 transactions worth of £977.5 million the same period last year.  

There is also a higher proportion of super-prime exchanges that will involve British buyers in 2020, given the restrictions on travel. In the first eight months of the year, the proportion was 40%, which is the highest such figure over the last decade.

“The 16% year-on-year (January – August) increase in London’s super-prime residential market, also corresponds with the higher levels of enquiries seen from our Malaysia-based clients. Despite all the concerns of COVID-19 in global markets, London remains the top overseas property investment destination for Malaysia given its broad-based economy, transparent legal system, culture & heritage and world-class education facilities.

“I have seen Malaysia-based clients become even more focused on their future London property requirements with lockdown perhaps allowing time to re-evaluate and fine-tune their exact criteria,” Knight Frank Malaysia International Residential Project Marketing associate director Dominic Heaton-Watson (pictured) noted.   

He adds that Kensington accounted for 14.3% of all super-prime deals during the period, the highest proportion of any London area. In the same period in 2019, the highest was Mayfair, which accounted for 24.6%.

Meanwhile, the demand for outdoor space has also seen increased activity in the family house markets, especially in areas like Notting Hill, St Johns Wood, Hampstead and Belgravia. Houses accounted for 66% of sales over £10 million between January and August 2020.

However, with the recent spike in COVID-19 cases in the UK, Tom Bill, Head of UK Residential Research at Knight Frank commented that the final quarter of the year will be marked by uncertainty as the UK government seeks to contain the pandemic.

“Brexit and the US elections will have an impact on currency movements but the relaxation of travel restrictions will be the key factor affecting transaction volumes”, Tom Bill concluded.

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