Dubai: In utmost stress situations, the luxury end of a city’s property market is more strong – correct? That’s the conventional wisdom…..but London has just gone and countered it.
The uber-premium addresses in London noted value loss of about 10 percent and much more over the last 12 months, as per the consultancy Astons.
For the fact, the W1J postcode in Myfair and St. James’s has been the “ worst-hit” with the total prices declining by 40 percent as an outcome of the pandemic. In the terms of value, a sold home would have provided its value decline from 4.9 million pounds to 2.9 million pounds.
Shock and awe
Kensington’s w8 postcode saw the second-largest fall of about 18 percent, and the SW1X(by 17 percent), W1S (15 percent) and SW1W (11 per cent) postcodes also seeing rapid fall.
“This decline has been due to a number of factors – while nice, the stamp duty holiday saving hasn’t boosted buyer demand amongst high-end homebuyers to the same extent as it has in the regular market,” said Arthur Sarkisian, Managing Director of Astons. “Restrictions on travel have also prevented foreign investment to a certain extent, while those looking to buy for themselves have continued to opt for more peripheral locations such as Hampstead.”
And despite all this the overall property market in London in reality gained 3 percent in value during the pandemic months, as the buyers sought to utilise the multiple government schemes that the government provided for them.
Hence, you can mark the SW1Y postcode averaging a sold price rise of about 54 percent in the situation of pandemic, with Chelea’s SW3 and SW10 postcodes also getting a rise of 23 percent and 12 percent respectively.