Winkworth Market Report Spring 2011

ale Agreed

20 0

Count Market Analysis Spring 2011 on

weeks) in June 2010. However, flat levels of demand from buyers over the second half of 2010 had an effect on the time taken to sell properties with the average time rising to nine weeks in October. The New Year surge in demand has caused the average time to sell to fall again. Some branches are reporting that quality properties are being snapped up in a matter of days, however, the overall average is now (February) seven and a half weeks – a week and a half less than October’s peak. (Figure 14)

reed 0

Low demand for ‘Secondary’ stock affects overall prices

praisals & New Instructions 009 = 10

praisals & New Instructions 2009 = 100

sals ls

New Instructions to Sell New Instructions to Sell

spective new Buyers 009 = 100

ospective new Buyers 2009 = 100

As discussed in the last Winkworth monthly report average prices in central London fell over the second half of 2010 from their peak of £971k in July to £868k in December. This was, to some extent, due to a mix effect of the Winkworth stock rather than like-for-like declines but the fall can also be attributed to asking price adjustments of properties that fall below the ‘ultra prime’ bracket and therefore are in less demand. However, the New Year surge in demand is resulting in offers in excess of asking prices in many cases so it will be interesting to see how this affects overall prices in central London over the coming months. (Figure 15)

Demand gives sales a boost

While the number of sales agreed over the three months to February is down by over a third (36%) compared to the same period last year, the market at the end of 2009 and beginning

10 Market Analysis Spring 2011 200

of 2010 was particularly exaggerated due to the volume of activity from buyers taking advantage of excellent investment opportunities. Early signs are good for sales over the first half of 2011. Numbers have already increased by a quarter (24%) between December and February and many offices expect this trend to continue,

INDIA CHINA

particularly given the increasing levels of demand in the market. The only thing standing in the way is a lack of stock, but with Winkworth franchisees in central London reporting offers well above asking prices for some properties, potential vendors may be encouraged to take the plunge and put their properties on the market. (Figure 16)

SAUDI UAE

RUSSIA ITALY

GERMANY SPAIN

AUS FRANCE

Figure 14 Central London - times to sell (weeks)

10.0 15.0

5.0 Central London -Time to Sell (WEEKS)

100 150 200

50

Figure 15 Central London - average monthly sales price

£800k £820k £840k £860k £880k £900k £920k £940k £960k £980k

£800k £820k £840k £860k £880k £900k £920k £940k £960k £980k

Central London Average Monthly Sale Price

Central London Average Month y Sale Price

£200k £250k £300k £350k £400k £450k

£200k £250k £300k £350k £400k £450k

Monthly averMon

Figure 16 Central London - sales agreed Jan 2009 = 100

100 120 140

8

140 120 100 60 40 20

Central London - Sales Agreed Jan2009 = 100

Central London - Sales Agreed Jan2009 = 100

20 40 60 80

100 150 200 250 300 350

50 0

100 150 200 250 300 350

50 0

Country - Prospective New Buyers Jan2009 = 100

Country - Jan

Co

Country - Prospective New Buyers Jan2009 = 100

Tenant Jan

180 T

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