GUESS THE YEAR?: “Mayfair has lately been receiving a very favourable national press with articles proclaiming that the residential element is again returning to the area.
This is partly due to the recent launches of various new restorations where buildings used for the last 45 years as offices are now returning back to their original residential use.
Wetherell have over the last two years sold over twenty office buildings for the Grosvenor Estate and other head leaseholders and these buildings are now returning back to the market to give Mayfair a selection of available stock so rarely seen.”
I wrote those words in my 1st Wetherell Market Report in July 1993
In 1993 I had also sold in St James’s Square a 1720’s Grade I listed mansion of 77 rooms (used as offices from WW2) and totalling 40,000 square feet. An overseas purchaser was going to restore the mansion back to its original majestic splendour. The asking price was £6.5 million, the buyer decided not to convert, resold and it is now The In & Out Club. A similar house in the Square would now be ten times that amount!
MAYFAIR NEWSLETTER RULES
In the 22 years ago since I set out to write a Mayfair Report once a month – my mission has never changed.
TO INFORM / TO EDUCATE / TO INSPIRE and sometimes if all else failed – just TO AMUSE.
“Simplicity is the ultimate sophistication” said Steve Jobs and possibly Leonardo da Vinci. I have always tried to follow that principle which explains why writing these reports is the hardest task in my monthly calendar.
MAYFAIR’S GOLDEN DEVELOPMENT DECADE
From the 1st September 2015 Westminster City Council will no longer automatically permit planning for the conversion of Mayfair offices to residential use due to concerns over loss of office space.
Mayfair is currently in the midst of its most exciting and changing decade in nearly a century.
Wetherell’s latest development data reveals that there are currently 36 residential schemes (of 5 units plus) currently in the pipeline across Mayfair with 598 new units proposed giving a gain of 586 units for the area.
The largest segment under construction is for 3 bedroom flats however the planning pipeline is stronger for 2 bedroom units. There are 133 units currently under construction with permission for a further 262 plus 8 planning applications in the pipeline for a further 203 units.
Of the 22 schemes granted permission; 8 have been granted so far in 2015 accounting for 104 units – the latest of which is the development diagonally opposite The Ritz in Piccadilly; granted on the 14th September for 52 units plus a 80-120 bed 5* Hotel.
The market differentiator between now and 1993 is that nearly a third of the present schemes are not former houses but old offices being developed with 21 residential units or more.
It is this larger scale of development that has enabled the developers to offer the facilities and “back of house” features now demanded by ever more sophisticated buyers and it also explains why apartments selling “off plan” achieve such a high premium over the usual domestic market.
MAYFAIR SALES MARKET UPDATE
Mayfair residential sales so far over the last 12 months is down 16% in terms of numbers sold but the average price has increased due to some high ticket sales however the average £ per square foot has remained consistent increasing only by 2.5%.on the previous 12 months.
Nearly 50% of sales have been under £2M and just under 25% between £2–5M. with this segment now seasonally entering its busiest quarter of the year. It is interesting to see that with lower volume of transactions over the last 12 months; the top three estate agents command nearly three quarters of the market-share in Mayfair with only two agents commanding 50% of the market between £2-5M.
MAYFAIR LETTING MARKET UPDATE
As we leave our busiest quarter for properties up to £1,000 p.w. the Mayfair market now turns to the £2,000-£3,500 p.w. homes in the run up to Christmas. Average weekly rents over the last 12 months have been just under £750 p.w. for a 1 bedroom, £1,350 p.w. for 2 bedrooms and £2,750 p.w. for 3 bedrooms plus.
MAYFAIR GURU’S STAR PROPERTIES
Last month we highlighted 6 properties, had offers on 5 of them with a third under offer or sold.
All the following featured properties have links at end of this email.
Upper Grosvenor Street – Great apartment in white stucco building with pillars, south facing with 3 windows across plus conservatory and terrace on a long lease. 2,153 sq.ft. @ £6.25M
Grosvenor Square – Lateral apartment with 5 windows overlooking the square gardens, separate staff flat and car parking. 2,311 sq.ft. @ £10M
Davies Street – Back on the market; a contemporary modern apartment with balcony and car parking. 1,384 sq.ft. @ £5.75M
Pall Mall Penthouse – a 6/7th floor south facing park view modern penthouse pad. 1,004 sq.ft. @ £850 p.w.
Upper Grosvenor Street – newly refurbished 3 bedroom apartment, south facing balcony and use of private communal gardens. 1,625 sq.ft. @ £2,250 p.w.
Park Lane – Newly released; an exclusive selection of 5 newly refurbished apartments of 1,250 – 2,000 sq.ft. between £2,250-3,250 p.w.
AND NOW TO AMUSE
1) If you would like to see our historical reports going back 22 years please follow the following link:
2) If you would like to see the Guru Guide to Mayfair then please follow the link:
3) If you are interested in our Wetherell TV Blog then please follow the following link:
WETHERELL – BRINGING RESIDENTIAL LIFE BACK TO LONDON’S NUMBER ONE AREA