WETHERELL MAYFAIR RESIDENTIAL MARKET REPORT 2009
Luxury goods and the top end of the property market are now feeling the effects of the recession. Mayfair is insulated but not isolated from the effects of wealth depletion.
However new registrations of applicants are up for the new year and those with CASH seem to want to balance their portfolios out of bank deposits and into asset based investments such as property – at the right price!
Predictions for 2009
Looking back at our predictions over the last 2 years they turned from positive to cautious in March 2008 and to dismal by July when we indicated that it was in our opinion the hardest market since 1973 (secondary banking crisis). The rest as they say is history.
Our only prediction for 2009 is that it will be unpredictable!
Current Position entering 2009
The current feeling is that there are a few more people looking again and wanting to make their CASH work for them in property.
Outstanding bids (turned down offers) £100M
Property Instructions for sale £150M
Hot Applicant Funds available to buy £250M
Perceived 40% off last years prices for oil based $ money
Buyers waiting for 2nd Qtr 2009
Rental market good but tenants renegotiating on rents payable
Records for 2008
The record sales mostly happened in the 1st H of 2008
£3000 p.s.f. for £30M house sale / £2000 p.s.f. for unmodernised house sale
£3,000 p.s.f. + for an unmodernised apartment
2008 verses 2007
2008 was a year of two halves: 1st half very active. 2nd half died slowly in Q3 before falling off a cliff in Q4. Market really tough but for December Wetherell had 100% market share in residential sales in Mayfair. That is the good news, we didn’t sell anything in the previous month and the December 100% was just 2 deals! – One at £850K and other at £3.1M.
Number of properties sold down 60%
Aggregate Value of property sold down 45%
Number of agents down 30%
Asking Prices down 15-20%
Drop in Asset Values 10-15%
Market Share of top 3 estate agents increased from 49% to 60%
Wetherell market share up 62% (24% to 39% of total value sold)