Realistic pricing is key in the prime Central London property market, particularly in the family house sales market according to W A Ellis.
International interest in London continues in spite of rising stamp duty costs as the capital remains a safe place to invest. The Lettings market remains active due to shortage of family houses and increasing demand.
Richard Barber, partner in residential sales at W.A.Ellis, comments: “Realistic pricing has been remarkably important this month, particularly within the family house market. We have just launched an excellent family house in Moore Street, and have already received a number of strong bids. We believe that this is not only due to its location, but also its sensible pricing at £2,165 per square foot (excluding development potential), which has encouraged good ‘footfall’ and will no doubt enable our client to achieve a record price. “Our Development and Investment department have recently launched two developments in Picton Place W1 and Jermyn Street SW1. Picton Place comprises 11 new apartments in view of Selfridges on the border of Mayfair and Marylebone, and the one, two and three bedroom portered apartments form part of Great Portland Estates’ mixed use development with office and retail at 95 Wigmore Street. The sales market is clearly active, as we have already received reservations on five of the eleven units, with prices ranging from £700,000 to £3,250,000. The interest from domestic and international buyers has been exceptionally strong. Most of the interest has been generated since the launch of the show apartments, underlining the maxim that ‘presentation is key’, which we believe forms a very significant part of the sales process. “International interest in the London property market continues in spite of the criticism of sharply rising stamp duty. It’s worth noting that London remains considerably less expensive than many other world cities even when stamp duty and transaction costs (solicitors’ and surveyors’ fees) are taken into account. For example, a £2,000,000 flat will cost £100,000 in stamp duty, and the related costs will be between £6,000 and £7,000. By contrast in Melbourne, the associated costs of a similar purchase would be £117,000, and in Singapore and Hong Kong costs rise to over £300,000. Of course, stamp duty is charged at 7% on properties worth in excess of £2,000,000 and charged again if one invests within a corporate entity, yet for majority of overseas purchasers, London remains a sound financial investment.” Lucy Morton, senior partner and head of lettings at Prime Central London estate agency, W.A.Ellis, comments: “The lettings market has been particularly buoyant in May, with competitive bidding on the best presented properties. The top end of the market remains particularly active due to the shortage of family houses and the ever increasing demand as families seek to get settled before the summer holidays and new school academic year. “Earlier this month, we launched our first ever country house let, Hoe Farmhouse on the Hascombe Estate in Surrey. A hugely impressive 16th Century farmhouse which is surrounded by its own private grounds, the property was formerly occupied by Sir Winston Churchill in 1915 where he reputedly took up his love of painting. Available to let for £10,500, we don’t anticipate this house sitting on the market for long and expect considerable interest. While we do not intend to open a country house lettings department, we are being approached by more and more landlords outside of prime central London who recognise our experience in the prime lettings market. The continued growth in the number of high net individuals around the world has substantially increased demand for super prime properties, particularly in (and surrounding areas of) London.”
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