Despite the appearance of immunity from the falls affecting every other sector of the property market, super-prime houses (above £10 million) are just as vulnerable, according to a study by Knight Frank. Their prices have fallen by 20 per cent since September 2008.
Despite the appearance of immunity from the falls affecting every other sector of the property market, super-prime houses (above £10 million) are just as vulnerable, according to a study by Knight Frank. Their prices have fallen by 20 per cent since September 2008.
Nevertheless, viewings in Mayfair, Knightsbridge and Chelsea were up by 80 per cent year-on-year and buyers from the Middle East increased by 52 per cent and from Europe by 38 per cent, reflecting the weakness of the pound and the continued enticement of prime areas.
Liam Bailey, head of residential research, Knight Frank, commented: ‘In early 2008 it was generally held that London’s unique situation – with very strong demand set against weak supply – would help it escape the worst of the housing market downturn.
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‘Even when it became apparent that this was not the case, and the majority of the market was in sharp decline, the robust health of the super-prime sector led many to assume that the most expensive streets in the world’s most expensive city would remain unscathed by falling prices.
‘As we reached late summer last year, it became apparent that no part of the market was immune. Every area and type of property was hit by price falls and rapidly diminishing sales volumes.’
Bailey said that Knight Frank expected the peak-to-trough fall to be 35 per cent, rather than its previously forecast 30 per cent.
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