Super-Prime Property Market View 2016 – Part Two

By Oliver Burns

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February 2, 2016|Super Prime Property

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  • n part two of this series of blogs on the Super-Prime Property Market, I look at how emerging super-prime areas are fast becoming hot alternatives to the traditional golden postcodes of London. The Changing Map of Super-Prime The golden postcodes of London have been a magnet for the world’s super rich for several decades. However, whilst location is still extremely important, buyers are increasingly interested in the right product and are prepared to look outside the golden postcodes to get what they want. As a result, new areas will continue to emerge outside the traditional super-prime locations of Mayfair, Kensington and Chelsea. Places like Hampstead, St John’s Wood, Regent’s Park and Marylebone are all becoming popular super-prime alternatives. They will most likely perform better than areas such as Westminster, Battersea and Southbank which have also seen the arrival of £10m+ homes.
Image via The Chilterns

Marylebone and Regent’s Park will be the areas to watch in 2016. Marylebone has already outperformed Mayfair and Knightsbridge in price growth in the last 2 years. For this area, there is a premium pipeline coming through, and this together with the arrival of Crossrail at Bond Street station and Paddington will further boost demand. There are also plans for future development south of the park in Regent’s Park, which will increase the super-prime stock in this particular area.
For investors and buyers, purchasing property in a golden postcode is a safe place to put their money and there are still a number of individuals who will only buy in these areas. Several of our private investors prefer to stay within these locations because they are established super-prime postcodes with all the luxury amenities buyers look for.

Image via City AM

For investors buying property to live in, they only consider moving a further out if the product is particularly stunning or they are buying it for their children. In this instance, areas like Soho, Fitzrovia and Covent Garden have great attraction. We have designed apartments in some of these areas for the children of UHNWIs who are studying in the capital. Whilst these locations are gathering pace and advancing quickly, it will take some time before they are competing on an even par with the most exclusive postcodes in London. As a result, I think the traditional super-prime areas will always command a premium above the rest, because for the world’s super wealthy, nothing beats the cachet of living in one of London’s most famous addresses. When this is coupled with the best in design and development, it’s a dynamic combination that’s hard to beat.

As the super-prime map continues to evolve, so too do the buyers. In part three of this series, I explore the changing demographics of the super-prime buyer that will define the future of the top end of the property market.

Written by JB

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