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​Property Report January 1999

January 1999

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1998 Mayfair Review

Upper Brook Street


Upper Brook Street,
Mayfair W.1



The most expensive house to be
sold in 1998 included a 33′
swimming pool, a drawing room in
excess of 50′ and an adjoining
mews house with parking for four cars.






Asking price £10,500,000




Decreased Turnover, Increased Values


In January 1998, Wetherell said the exceptional growth in capital values and turnover during 1997 was unlikely to continue through 1998 and their prediction of decreased volume with sustainable increases in property prices appears to have been the case.





This year, the volume of sales in Mayfair is on a par with 1996 levels, whilst values have increased in line with other prime areas of central London; however, we believe there is still room for growth in Mayfair when other prime areas of central London may be faltering.

Supply and Demand

Even with the price rises of the last 24 months, purchaser’s still feel they are getting good value for money in Mayfair, particularly when compared to other areas. With an increasing supply of residential property, demand is increasing as purchasers now perceive Mayfair as a place to live, not just work.

The market being supply led, not demand led, can be illustrated by the increase in the number of substantial houses and





mansions being sold. In the past, large houses coming to the market were scarce, as there were few of them in Mayfair. Now that many period buildings, having lost their consent for office use, have been reinstated to their original use as private houses, there is a far greater choice for purchasers and sales have subsequently increased.


The Year Ahead


Even if the over-view for prime areas of central London is one that the market will be flat next year, the above highlights some of the reasons why Wetherell believe the Mayfair residential property market still has room for growth.

Wetherell will have £40 million worth of new residential property for sale in the Spring market of 1999.




Mount Street



Mount Street,
Mayfair W.1


Wetherell dealt with two flats in this traditional building in Mayfair’s High Street; the rental of the first floor and sale of the fourth floor at quoted figures of £700 per week and £275,000 respectively.





Green Street



Green Street,
Mayfair W.1


One of the former buildings Wetherell have sold on behalf of The Grosvenor Estate for reinstatement as a Mayfair townhouse.


Asking price
£1,500,000






Park Lane, Mayfair W.1    


In one of the few remaining period residential buildings on Park Lane, a first and second floor apartment with three reception rooms totalling 72′ in length.



Asking price £1,500,000




Park Lane

Hill Street



Hill Street,
Mayfair, W.1


Equivalent to living in a house
but with the convenience of
a flat, this apartment occupying
the top half of this period
building totalled 2,354
square feet.





Asking price £895,000





Mount Street



Mount Street,
Mayfair, W.1


Period apartments in this block overlooking The Mount Street Gardens are so sought after that within two or three days of being available they have been snapped up at rents of between £850 per week to £1,800 per week.





Hill Street, Mayfair, W.1
    

Rentals ranging from £1,200 per week to £2,000 per week have been achieved for two bedroom apartments within this period building where tenants have access to secluded private gardens.


Hill Street

January Update


1998 in Review


Wetherell’s research reveals that last year 98 properties were sold, with an aggregate asking price of £114m. This compares with 153 properties sold in 1997 and 96 properties in 1996 with respective values of £152m and £74m. – the conclusion is that 1998 was a good year but 1997 was an exceptional year.

The diversity of the Mayfair market is highlighted by the cheapest one bedroom flat sold last year having an asking price of £120,000 (albeit with a 19 year lease) and at the top end of the market two £10m houses were sold. During 1998, Wetherell maintained their position as Mayfair’s leading agent, selling 50% of the houses sold last year.

The average asking price for two bedroom flats was £432,000 and £649,000 for three bedroom flats. Large apartments were scarce, although Wetherell sold an unmodernised four bedroom duplex on Park Lane (asking price £1,500,000), the most expensive flat sold in Mayfair last year.

The Year Ahead

Wetherell still feel that the residential market in Mayfair is supply led and not dictated by demand. Recent sales have shown a pent up demand for quality properties being offered for sale on new long leases and in immaculate condition, which have achieved record prices.

The recent successive reductions in base rates will stimulate interest at the lower end of the market (one and two bedroom flats) resulting in a ‘domino’ effect on the rest of the market. We feel that the market will be buoyant for the first six months of this year with buyers returning to the area seeking value for money and a sound investment.

House Buying Process

The recent government research into the house buying process advocates that vendors should have a ‘sales pack’ prepared for purchasers, to speed up the buying process. Whilst it is debatable whether or not purchasers (or their lenders) would accept a survey prepared by the vendor, the notion of having ready copies of title documents / lease with details of service charges, a draft contract with answers to preliminary enquiries, local search etc. is eminently sensible.

A good agent should, at least, obtain a copy lease and service charge accounts (something Wetherell endeavour to do) to answer purchasers’ questions before solicitors become embroiled, saving unnecessary time and expense.

Invariably, the likelihood of a sale not proceeding increases with the time taken to exchange contracts and anything to reduce this happening must be good for all parties concerned.

 






NAEA

Wetherell


Mayfair’s Leading Estate Agent


Tel: 0171-493 6935     Fax: 0171-629 9303

We sell well

Ombudsman Scheme

No.31 102, Mount Street, Mayfair, London W1Y 5HF JANUARY 1999



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