London’s super-prime property market has had its strongest start to the year ever, with the sweet spot for homes transacted sitting between US$6.3 million (£5 million) and US$12.6 million (£10 million). According to Savills, there were 128 second-hand and new home sales at over US$6.3 million (£5 million) in the first quarter of 2022, 25 per cent and 24 per cent higher than in the first quarter 2021 and first quarter 2020 respectively. This was the strongest quarter recorded by Savills since it began taking a detailed log in 2006. Sales valued between US$6.3 million (£5 million) and US$12.6 million (£10 million) dominated the quarter, with more than US$750 million (£600 million) spent on properties in this range – 34 per cent up on first quarter 2021, and 23 per cent higher than first quarter 2020. On an individual basis, however, the average spend was down. The overall average value of transactions in first quarter 2022 was US$11.2 million (£8.9 million), 18 per cent lower than the US$13.6 million (£10.8 million) recorded in the same period in 2021. Frances Clacy, research analyst at Savills, says this reflects lower levels of activity at the US$12.6 million-plus (£10 million-plus) end of the market. Who’s the richest in Will Smith’s family? Net worths, ranked “Last year we saw London’s super-prime residential market record its strongest year since 2013 and the activity seen so far this year is evidence that appetite remains strong,” she said. “Significant sales volume between US$6.3 million (£5 million) and US$12.6 million (£10 million) signals that domestic buyers are continuing to dominate the market. However, this has been bolstered by a slight uptick in international buyers returning to the market at the start of the year.” Two in every five second-hand sales took place in established prime areas such as Kensington, St Johns Wood, Belgravia and Chelsea. Jonathan Hewlett, Savills head of London residential, says prime buyers who headed for the country during the pandemic are now returning to the city. “Old, established postcodes are now reasserting themselves, which is a trend we expect to strengthen throughout the year,” he said. Prices also ticked up in the quarter, gaining 1.1 per cent, leaving them 2.8 per cent higher than a year ago. The richest Bling Empire season 2 cast members, net worths ranked While prices remain good value historically, Clacy says both flats and houses in prime central London have now recovered from pandemic falls “and the market looks ripe for further growth in the remaining months of the year”. Marcus Dixon, director of UK Residential Research at JLL, also expects that the resurgence of the city will see prime central London become one of the best performing markets this year and beyond. JLL is forecasting price growth of 7.5 per cent in 2022 and a further 22.7 per cent between 2022 and 2026. The current exchange rate makes now an optimal time to purchase a London home in another currency, Dixon added. “At points where sterling exchange rates are weaker, buying power in non-sterling currencies increases, creating a window of opportunity,” he said. Dixon explained how this would play out for Hong Kong and Chinese buyers. “At the peak of the market in Q3 2014, a US$1.26 million (£1 million) property in prime central London would have cost a Hong Kong buyer US$1.6 million (HK$12.59 million), or a mainland Chinese buyer US$1.49 million (9.95 million yuan),” he said. Last year we saw London’s super-prime residential market record its strongest year since 2013 Frances Clacy, research analyst at Savills “Applying changes in the JLL Prime Central London Index suggests this property, in sterling, would cost US$1.17 million (£930,000) in Q1 2022, seven per cent less now than the 2014 peak. But for those buying in Hong Kong dollars, a weaker sterling combined with price falls means the same property would cost about US$12.1 million (HK$9.59 million) today, a saving of 24 per cent. Chinese buyers would now be spending about US$1.16 million (7.75 million yuan), a saving of 22 per cent.” Overseas buyers are recognising an opportunity and seeing value in central London homes, he said. “Pre-pandemic, following the UK general election in late 2019, we saw demand for homes increase significantly and prices start to rise. The pandemic and the resulting restrictions meant the recovery in the market was effectively paused in March 2020, but now activity is returning, and prices and transactions are rising again.” 8 celebrity couples who split up after more than 20 years together Simon Barry, head of new developments at Harrods Estates, reports an increase in activity from overseas following the ending of pandemic restrictions. “The big change for us is in the seriousness of buyers,” he said. “We’ve had a flurry of offers on properties which have attracted little or no interest since the pandemic began. Judging by the number of overseas buyers we have registered in the US$6.3 million (£5 million) to US$12.6 million (£10 million) price range, versus available properties, we can predict we’re not far away from the tipping point where prices will move when the very limited stock of properties available starts to go under offer.” James Dean, sales manager of Marsh & Parsons in Holland Park, has seen this on his patch, too, with 30 per cent fewer properties on the market year-on-year against a 30 per cent increase in buyer registrations. “In the first quarter of this year we have agreed on a number of freehold houses in quick succession, one of which had been on the market for a significant amount of time in 2021 and was snapped up in the new year,” he said. James Cutting, sales manager of Marsh & Parsons in South Kensington and Chelsea, says “the whole market, from small studios to houses” is rebounding strongly. “A clear sign that confidence is back is the sale of a house on Walton Street, Chelsea, within two weeks of listing for US$126,000 (£100,000) above the asking price, after going to sealed bids with four separate buyers,” he said. Inside Mark Zuckerberg’s billionaire lifestyle – beyond his US$400 T-shirts Giles Barrett, head of sales at Domus Nova, a west London estate agency, agrees. “Last year was a record year and we didn’t think we would be able to sustain the pace, but much to our surprise, sales are up by 50 per cent in terms of transactions agreed in Q1 2022, compared to Q1 last year,” he said. “Stock levels remain low, buyer appetite remains very high. We are valuing for a rising market and our quality of stock has never been better.” Buying guide What you can buy from US$1.74 million (£1.38 million): The starting price for new homes at 101 on Cleveland, Fitzrovia W1, a prime central London address. All of the completed one-, two- and three-bedroom homes have private outdoor space, with amenities including 24-hour concierge, private dining room, residents’ bar and lounge, screening room, gym, sauna and steam room. Prices go up to £5.69 million. What you can buy for US$15 million (£11.95 million): A four-bedroom mews house in a quiet yet central Mayfair location. Meticulously renovated, the Adams Row home has an abundance of entertaining and living space, a master bedroom with terrace, and three further bedrooms with en suites. The lower ground floor contains a cinema room, gym and steam room as well as a private garage with car lift. Want more stories like this? Follow STYLE on Facebook , Instagram , YouTube and Twitter .