Property hunters returned in large numbers to the prime central London market in June, but their presence didn’t result in any price growth, according to a report Tuesday from Knight Frank.
The number of new prospective buyers in the city was 31% higher last month than at the same time last year, the London-based brokerage and property consultants said.
“Despite a period of political uncertainty, the upwards trend highlights the strength of underlying demand as asking prices rebase,” Tom Bill, Knight Frank’s head of London residential research, wrote in the report.
Although the number of potential purchasers increased, average prices for homes in prime central London declined 1.9% in the year to June. The fall marks the 36th straight month of the residential real estate downturn impacting the city, which has been struck by a trio of tax bumps on high-priced properties, penalties for second-home buyers and Brexit-related uncertainty.
However, for the very top end of the market, June was a little more successful.
The total value of properties sold for more than £10 million (US$13.1 million) reached £407 million (US$534.1 million), the highest monthly total for that price bracket since December 2014, the report said.
And though all price bands of properties in central London’s poshest neighborhoods witnessed falls in prices last month, it was those ultra big-ticket homes that logged the smallest price drops.
Prices for homes over £10 million fell 1% in the year to June.
Prices of properties between £5 million (US$6.56 million) and £10 million, fell 1.2%. Meanwhile, properties priced between £1 million and £2 million (US$1.3 million and US$2.6 million) and £2 million to £5 million dropped 1.9% and 1.6% respectively in the same time frame.
On the other hand, rents in the capital are experiencing the opposite of the sale market. Annual rental values grew 1.1% in June, marking the second month of growth following a 28-month run of declines, strengthened as supply has declined, the report said.