Once upon a time, securing a million-pound property in the luxurious market of Mayfair may well have been a reality – but according to one local expert, the fairy-tale could soon be coming to an end.
Wetherell is a longstanding estate agent serving Mayfair, and first began gathering about residential sales in 1985. Thirty years later in their latest findings, it is revealed that less than 5 per cent of the homes sold in Mayfair have price tags of less than seven figures, and there are now no homes at all for less than £750,000. In fact, 49 percent of the homes sold in the area last year went for a figure between £2 million and £10 million. Add to that the fact that 11 percent of homes went for a sale price above the £10 million mark, and it can be seen that perpetually popular Mayfair is attracting some of the world’s wealthiest property buyers.
Mayfair – London’s trendiest luxury residential market?
Of all the homes sold locally last year, 41 per cent were priced below £2 million, but 95 per cent of these prices fell between the £1 million and £2 million mark.
Of the select few that were priced below £1 million, 60 per cent were priced over £950,000 with just a couple of exceptions making the £750,000 and £950,000 mark. According to Peter Wetherell, CEO of Wetherell, the drop in prices in this bracket signals the extinction of £1 million pound properties in Mayfair. He predicts that the next 12-24 months will see apartments priced below £1 million and houses below £2 million disappear from the market completely, reflecting the continuing upward surge in resi-values in Mayfair. A reflection of both global demand and short supply, and also the large increase in super-luxury apartment schemes being built and sold in Mayfair over the last few years. It is appropriate to believe that Mayfair is the new Knightsbridge, the fashionable place for luxury property.
With nothing below £1 million expected in as little as two years, wealthy buyers would be quick to act now to secure the few properties that remain in the region of this price tag.
Mayfair’s property market holds steady
Mayfair has plenty to attract high net-worth buyers – five star restaurants, shopping, exclusive member’s only clubs and stunning surroundings in the way of Hyde Park. And although “Brexit” fears may have slowed transactions as of late, ultra high net worth buyers are still expressing an interest in this pricey and sought-after market.
There are excellent opportunities for buyers and sellers alike when it comes to well-constructed, historic homes in one of London’s most affluent and desirable neighbourhoods. When comparing transactional data from 2015 and the year prior, it can be seen that the volume of annual sales rose by 8.2 per cent, which is impressive given that the threat of a Labour-imposed Mansion Tax loomed throughout much of this period. Prices also rose by almost 7 per cent, demonstrating that Mayfair’s property market is nothing if not resilient. Looking to the years ahead, Peter Wetherell expects this steadiness to remain: “We may see a slight uplift, but it’s effectively “more of the same”. Supply and sales volumes are less than in past years, but values are stable and rising gradually. Mayfair is like a strong ocean liner sailing in a protected fjord, out in the wider (global) oceans things might be turbulent and stormy, but protected within our anchorage the Mayfair market is reassuringly calm and stable. As our 30-year data index shows this stable long-term rise makes for an outstanding return on investment. Back in 1985 virtually no homes were valued at over £1 million, thirty years later and virtually no homes are valued below £1 million – it’s a clear indication of the outstanding value that Mayfair property offers investors.”
from Finance Girl http://www.financegirl.co.uk/how-much-can-you-get-for-1-million-in-mayfair/
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