Wetherell has reviewed their 2013 sales data, utilised their local market intelligence and cross-referenced this with the 12 month Mayfair sales data from Lonres: the result is a detailed insight into the key buyers, product and pricing trends in one of the worlds most expensive and high profile housing markets.

  • Almost £475 million pounds worth of residential houses and apartments have been sold in Mayfair during 2013
  • The best properties will hit £5,000 per sqft during 2014
  • The typical Mayfair house is up to £10 million yet “Mansion House” sales have stalled during Q4 2013 due to lack of stock
  • Sales of flats priced up to £5 million and represent 67% of the flats market
  • End users plus investors are focusing on apartments and new developments
  • Supply of buildings reverting back to Mayfair threatened

Overall, between January and December 2013 a total of £472 million worth of residential properties (124 homes) have been sold in Mayfair at an average sales value of £3.75 million.

Sales volume by turnover is up by nearly 25% on 2012, but still remains just 75% of the sales turnover achieved in 2007 at the height of the last boom.

Despite the high profile nature of the super-prime billionaire’s mansions in Mayfair, the 2013 market has actually been dominated and driven by new and second-hand apartment sales, which comprise 70% (£331 million) of all Mayfair sales. Of all Mayfair apartment sales, 67% are for flats priced below £5 million.

Peter Wetherell, Managing Director of Wetherell said: “Sales turnover has not yet reached its 2007 peak, so the current talk from some industry circles of a “London Property Bubble” is somewhat exaggerated, the market still has room for price and sales growth. There is a sustained global demand for Mayfair and London West End apartments priced between £1 million to £5 million. This is currently the optimum price range for both end user and investor buyers, and it equates to a one or two bedroom apartment that is low maintenance, has lower running costs and provides the flexibility to be used as either a main home, pied-a-terre or rental investment.”

Of the £140.75 million worth of house sales in Mayfair, over a third (37%) were for houses priced below £10 million. House sales were strongest during the first and second quarter of 2013, with a drop in the third quarter and only two sales in the last quarter of 2013.

There has been speculation about the oversupply of new stock coming to the Mayfair market. However the potential 400 units over the next 10 years represent an opportunity for buyers and investors. Supply will be the fuel for the demand which has been suppressed for the last decade (through lack of stock) whilst the rest of Mayfair has excelled in all other sectors of commercial, retail, leisure and culture.

Peter Wetherell comments: “By saber-rattling against the super-rich, the politicians have successfully cooled the top end of the housing market and as a result, demand for properties priced over £6 million has dropped dramatically due to concerns over taxation issues. Also the growing opposition from both Grosvenor and Westminster City Council towards office to residential conversions and basement extensions has really knocked the house market in Mayfair in the last six months of this year due to lack of stock. We have an enormous demand for period buildings currently offices for reversion back to “Mayfair Mansions”. In addition, some of the Gulf Royals have chosen to avoid all the unwanted media publicity they get in London. All these factors have significantly reduced the number of trophy houses the elite have bought this year in Mayfair and the wider West End. Personally I feel we should be encouraging them to come.”

Wetherell highlight that this year the traditional Mayfair overseas purchasers from Russia and Middle Eastern totaled just 20% (down 25%) all buyers whilst still the largest group of overseas buyers in Mayfair are from India comprising 13% of all purchasers (down from 25%). Continental European buyers, comprised 10% of all buyers but the UK is still the largest market with 45% (up 10%).

Peter Wetherell comments: “The Indian, European and Asian buyers are increasingly dominating the Mayfair market and they tend to prefer high quality newly refurbished period flats or lateral and this is helping to drive the market for new multi-unit apartment schemes. It’s a logical next step that an adroit Indian billionaire has just acquired the Canadian High Commission in Grosvenor Square with the aim of turning it into a super-prime apartment scheme.”

Wetherell highlight that the general Mayfair market is currently achieving values of £3,000 per sq.ft. with the best properties achieving the high £4,000 per sq.ft. values. Wetherell forecast that 2014 will see values hitting £5,000 per sq.ft. with the arrival of new ultra-prime residential projects coming on stream in the next few years in Grosvenor Square, Piccadilly, Curzon Street, “Mayfair Village” and “Mayfair Town”.

Peter Wetherell comments: “Grosvenor Square is obviously the address to watch in 2014, it will hit new price levels and the product being created will be of an exceptional quality with a new level of luxury for the central London marketplace.”

WETHERELL NUMBER ONE FOR 2013 (& ’12 & ’11)
Peter Wetherell is also delighted to reveal that Wetherell – as independently monitored by Lonres – is Mayfair’s top estate agent in 2013 for Mayfair sales. This year Wetherell sold 25% of Mayfair sales with the top three estate agents accounting for over 60% of all sales in the Mayfair area for 2013.

Other awards to Wetherell were for The Fastest Deal (£8.3 million flat sold in 7 days) and The Highest Priced Sale (asking £32 million for a Mayfair mansion).

Peter Wetherell comments: This is the third year in a row that Wetherell has been Mayfair’s top estate agent, as judged by volume of sales, so it is great that we can add speed of deals and value of deals to our trophy cabinet. We have had an extremely good 2013 and we are looking forward to 2014 with confidence. We maintain our market dominance by having the largest and most knowledgeable team working in the Mayfair market place. Our award winning team has the back up of some of the finest marketing, public relations and digital outreach that not only puts us No.1 on Google for Mayfair property but No.1 in sales for the area.

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