New data from Countrywide Group highlights how much volatility there is in the sought-after Prime Central London housing market, simply because of its small area.
The possibility of multi-million pound sales in the region means that the Prime Central London market makes headlines in the industry. However, Countrywide’s report shows that only 5,500 homes were sold in the area last year, including 500 new-builds.
‘By comparison the mid-market across Greater London-priced £500,000 to £1m-had 25,000 sales, including 2,500 new homes, which is 28% of the UK market in both instances,’ noted Johnny Morris, head of residential research at Countrywide.
‘Prime Central London is now increasingly volatile,’ Morris continued. ‘It is vulnerable to currency fluctuations, international political concerns and the risk of over-supply with massive schemes like Nine Elms (ultimately delivering 18,000 homes) and Earls Court (7,583 homes) all on steam.’
Report shows volatility of PCL market
Morris believes that this is the reason that some high-end developers, who had previously centered their activity in some of London’s prime areas, were considering moving elsewhere in the capital.