How did London’s super-prime property market get its strongest start to the year yet in 2022? After Covid-19, Kensington, St Johns Wood, Belgravia and Chelsea are booming

May 31 , 2022

The exterior of 20 Adams Row, a classic four-bedroom, mews-style residence in Mayfair, an example of the sort of prime Central London property that has seen strong demand so far this year. Photo: Harrods Estates

The first quarter of 2022 has taken off to a strong start for the London property market, particularly for homes priced from US$6.3 million to US$12.6 million

Property agent Savills notes that domestic buyers dominate over international – but with the current low GBP exchange rates, now is a good time to invest

London’s super-prime property market has had its strongest start to the year ever, with the sweet spot for homes transacted sitting between US$6.3 million (£5 million) and US$12.6 million (£10 million).

According to Savills, there were 128 second-hand and new home sales at over US$6.3 million (£5 million) in the first quarter of 2022, 25 per cent and 24 per cent higher than in the first quarter 2021 and first quarter 2020 respectively. This was the strongest quarter recorded by Savills since it began taking a detailed log in 2006.

Sales valued between US$6.3 million (£5 million) and US$12.6 million (£10 million) dominated the quarter, with more than US$750 million (£600 million) spent on properties in this range – 34 per cent up on first quarter 2021, and 23 per cent higher than first quarter 2020.

On an individual basis, however, the average spend was down. The overall average value of transactions in first quarter 2022 was US$11.2 million (£8.9 million), 18 per cent lower than the US$13.6 million (£10.8 million) recorded in the same period in 2021. Frances Clacy, research analyst at Savills, says this reflects lower levels of activity at the US$12.6 million-plus (£10 million-plus) end of the market.

Property mogul Nick Candy’s flagship penthouse in London’s prestigious One Hyde Park, US$220 million (£175 million). Photo: Knight Frank and Savills

“Last year we saw London’s super-prime residential market record its strongest year since 2013 and the activity seen so far this year is evidence that appetite remains strong,” she said.

“Significant sales volume between US$6.3 million (£5 million) and US$12.6 million (£10 million) signals that domestic buyers are continuing to dominate the market. However, this has been bolstered by a slight uptick in international buyers returning to the market at the start of the year.”

Two in every five second-hand sales took place in established prime areas such as Kensington, St Johns Wood, Belgravia and Chelsea.

Jonathan Hewlett, Savills head of London residential, says prime buyers who headed for the country during the pandemic are now returning to the city. “Old, established postcodes are now reasserting themselves, which is a trend we expect to strengthen throughout the year,” he said.

Prices also ticked up in the quarter, gaining 1.1 per cent, leaving them 2.8 per cent higher than a year ago.