Sales and pricing Inner and outer London sales
In last year’s report we wrote this regarding sales: Both inner and outer London boroughs witnessed an increase in sales during 2011. The inner boroughs saw a modest 20% increase in the number of sales but in the outer boroughs sales shot up by 76%. The increase in sales mirrors the increase in construction starts we discussed in the Planning and Construction chapter, with the highest percentage increase by far in the outer boroughs.
Compare the above with the following description of sales in 2012:
Table 6: Inner London sales 2010-2012 Developments of 10 units or more
Year 2010 2011 2012
% change from 2011
Sold 4,447 3,908 5,971 53%
Unsold Sold in Year 6,792 7,592 8,955 18%
2,134 2,571 4,402 71%
Both inner and outer London boroughs witnessed an increase in sales during 2012. The outer boroughs saw a modest 19% increase in the number of sales but in the inner boroughs sales shot up by 71% (Tables 6 and 7). The increase in sales mirrors the increase in construction starts we discussed in the Planning and Construction chapter, with the highest percentage increase by far in the inner boroughs.
So if there was a 71% increase in sales in the inner boroughs in 2012, the logical question would be: who was doing the buying?
Table 7: Outer London sales 2010-2012 Developments of 10 units or more
Year 2010 2011 2012
% change from 2011
Sold 3,033 4,673 6,437 38%
Unsold Sold in Year 8,723
11,026 10,313 -6%
2,125 3,744 4,472 19%
Table 8 gives us an insight into what’s going on. In the outer boroughs there has been little change in the buyer profile, a slight drop of 4% in investor activity coupled with a corresponding increase in
Table 8: Individual investor sales Developments of 10 units or more
Investor Inner completion total
Inner under construction total Inner total 2012 Inner total 2011
Owner-occupier
Units sold % Units sold % 651 33% 1,099 44% 1,750 39% 600 28%
1,350 67% Outer completion total
1,409 56% Outer under construction total 2,759 61% 1,560 72%
Outer total 2012 Outer total 2011
NB: The figures above were obtained from 8,935 units (72%) of the total number of units (12,408) sold at year end Investor Owner-occupier
Units sold % Units sold % 691 21% 307 26% 998 23% 749 27%
2,541 79% 887 74% 3,428 77% 2,010 73%
owner-occupier activity. The real change has been in the inner boroughs, with an 11% increase in investor activity coupled with a corresponding drop in owner- occupier activity.
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