Are you looking to buy or sell a prime property in Hampstead this year? With the market stabilising, both sides of the transaction can find value. Whereas demand for prime properties slowed in Q4 2022, there are indications that the super-prime market has picked up in Q1 and will continue to do so throughout the year. For those buying, the current slowdown (average price reductions of -9.5% on asking price in Hampstead), combined with Hampstead value growth of almost 8% over the last three years, means that now is a good time to negotiate on your dream knowing that history has shown the asset will retain its long-term value. A recent buyer and seller survey revealed that many people are looking for immaculate or easily-refurbishable homes – and these properties continue to perform strongly.
Here’s what you need to know about the prime London market in 2023:
• Whereas the outlook for the prime London markets in 2023 may look relatively weak when compared to the post-pandemic boom of 2021 and 22, the first quarter data suggests performance slightly ahead of pre-pandemic (2017 to 2019) trends. For example, Hampstead (KIRE's core Residential London Sales and Search market), achieved just under 8% growth in average price per sqft Q1 2023 vs, Q1 2020.
• New instructions are rising, particularly in higher-value markets, which, if buyer demand holds up, could be an indicator of a pickup in sales activity later in the year.
• The number of £5m+ properties going under offer increased by 20% in the first quarter, so sales at the top end of the market are set to increase again in Q2.
Data Source: LonRes
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Looking to buy or sell in our core area of Hampstead NW3? Click here to see our Quarterly NW3 Market Reports.