autumn/winter 2010 Riverside market INSIGHT · Penthouse on Southbank Guide price: £3,650,000...
Transcript of autumn/winter 2010 Riverside market INSIGHT · Penthouse on Southbank Guide price: £3,650,000...
autumn/winter 2010
Riverside market INSIGHTKnight Frank
Matthew SmithHead of Knight Frank Riverside+44 (0)20 7590 2450
Matthew Smith, head of Knight Frank Riverside sales, answers our
questions on the current Riverside market, why now could be the
perfect time to sell and his favourite Riverside property.
Property prices have levelled off in prime central London over the past few months; do you
think this trend will continue into the Autumn and Winter?
It is very likely that buyers will be extra cautious about over paying. The press can easily spook the market
and that may affect pricing, but good property is always desirable. Interestingly, sellers may decide not to
sell if the market appears shaky, which decreases stock levels, and can send prices higher. In the end, a
small blip seems a non issue if you are getting the property you want.
Is property still being sold on the River?
There are still a lot of overpriced properties clogging up the market. It is essential that sellers are realistic.
Certain developments have been victims of over ambitious pricing by inexperienced agents that has
resulted in a lack of sales. When correctly priced property comes to the market it is snapped up.
What types of buyers are you seeing in the market at the moment?
We have seen a year of foreign buyers from all over the world buoying up the market, but recently our
buyers tend to be from the UK, Asia or Russia. We have seen strong performance from English buyers,
living in the Home Counties who want a London base for theatre, shopping trips and for holiday use.
What tips would you give to prospective vendors?
Listen to our advice when it comes to pricing. We know what we are talking about and we are honest to a
fault. Don’t be tempted by agents who promise you the world and then don’t deliver. We will get you the
best possible price for your asset and we will never under sell or give you unsubstantiated advice.
Why should people consider buying/selling now?
For buyers, stamp duty land tax goes up next year to 5% for properties over £1m, so I can’t think why
anyone would delay a purchase. There are also some very attractive mortgage products available for
trackers and fixed terms.
For sellers, the increase in capital gains tax has been relatively small and the autumn market is one of the
busiest of the year. We don’t know what the coalition government will announce in the next report, but it
is unlikely it will be a reduction in capital gains - better the devil you know!
Do you have any really interesting properties for sale at the moment?
One of my favourite apartments is a Richard Meier design in Albion Riverside: a spectacular 6,240 sq ft
penthouse with views of the river and Chelsea and a 1,000 sq ft wrap around terrace. It’s a trophy
penthouse in a very desirable riverside location.
Total property for sale
Table 1
Market activityKey market metrics
Viewings, 2010 vs 2009
Sales,2010 vs 2009
63%
28%
59%
Riverside at a glance
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"When correctly
priced property
comes to the market
it is snapped up"
8%4%5%
36%
30%16%
< £750k £750k to £1.5m
£1.5m to £2.5m £2.5m to £3.5m
£3.5m to £5m £5m +
Figure 1
What do our buyers want to spend? New applicants, last 12 months
Figure 2
But what is coming to the market?New instructions, last 12 months
Change in prices, last 3 months
2.1%
19%11%4%
30%35%
< £750k £750k to £1.5m
£1.5m to £2.5m £2.5m to £3.5m
£3.5m to £5m £5m +
autumn/winter 2010
Riverside market INSIGHTKnight Frank
Charting the marketFigure 3
Days on the market until sale agreedPrime London, last 12 months
Knight Frank Riverside properties
Table 2
Nationality of Knight Frank buyersPrime London, last 12 months
0
10
20
30
40
50
60
70
80
90
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Figure 4
Average % of guide price achievedPrime London, last 12 months (%)
50
60
70
80
90
100
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
World region
Africa
Asia
Australasia
Europe
India
Middle East
North America
Russia & CIS
South America
UK
Buyers
1.5%
4.3%
0.8%
13.3%
2.1%
4.6%
3.6%
5.7%
0.5%
62.9%
Unrivalled space
Guide price: £12,500,000
Albion Riverside
For Sale4 bedrooms
Penthouse on Southbank
Guide price: £3,650,000
Clink Wharf
For Sale3 bedrooms
Panoramic views
Guide price: £3,500,000
The Belvedere
For Sale3 bedrooms
Stunning apartment
Guide price: £1,500,000
The Panoramic
Under Offer2 bedrooms
Magnificent apartment
Guide price: £2,450,000
Montevetro
Sold2 bedrooms
View of London's iconic sites
Guide price: £3,250,000
Peninsula Heights
Sold3 bedrooms
Matthew
SmithOffice Head
Rachel
Stanford-TuckAssociate
Robert FrenchSenior Negotiator
Lucie HirstOffice Manager
Knight Frank Riverside+44 (0)20 7590 2450
60 Sloane Avenue,
London SW3 3DD
KnightFrank.co.uk
If you have any queries or would like to obtain additional information on the UK or international housing markets please contact: Liam Bailey, Head of Residential Research, +44 (0)20 7861 5133, [email protected]
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