Property transactions in prime Central London fall 13% y-o-y in June

In prime Central London, the number of property transactions fell 13.1% y-o-y in June this year, with just 63 sales recorded per week during the month, according to a report by London Central Portfolio (LCP), which specialises in prime Central London properties. The total number of property transactions to June this year is 3,244, the report adds.

However, on a quarterly basis, 2Q2019 saw a 23% increase in the number of transactions for prime Central London.

Meanwhile, average property prices for June stood at £1.88 million ($3.12 million), a fall of 2.2% m-o-m. On a quarterly basis, average prices for this market segment rose 2.7% q-o-q in 2Q2019.

“With property listings thin on the ground, there is more competition for good quality stock. Nevertheless, exceptional value can still be found in the current market, especially for dollar denominated investors,” says Naomi Heaton, CEO of LCP.

Average prices of newly built properties in prime Central London were £3.42 million in June, representing an increase of 33.9% y-o-y and a 54.5% premium over existing building stock. While still very strong, the premium has fallen from 70% six months ago. “This is due to a number of high value new build sales being completed with no equivalent transactions currently coming through,” she adds.

In Greater London, average property prices in June stood at £624,241. This is a rise of 1.7% m-o-m, marking the strongest monthly performance for this segment so far this year. “Whilst there are signs of an improving market, London property faces further headwinds. The new Tory leadership and a ‘do or die’ stance on exiting the EU by October 31 may bring further uncertainty to our political climate,” says Heaton.

It is still too early to tell what impact this will have on the property market, but it “may dampen the rally we are beginning to see”, she says.