Further signs that prime property market in London is slowing
There are further signs that the central London prime property market is slowing with the latest report from agents showing viewings and registrations falling.
Sandfords called the top of the London market several weeks ago as signs of a slowdown in buyer activity appeared, and now they report further evidence, declaring that viewing levels and applicant registrations have descended.
‘Following a sustained period of rapid growth, signs of a slowdown in the prime central London market are becoming progressively evident and price levels have topped for the time being,’ said director Andrew Ellinas.
‘In May, the average number of viewings declined, demonstrating an ease in demand levels and, although prices have not yet fallen, they have stalled,’ he added.
A yearly picture shows that things have, in actual fact, changed quite considerably with a 45% decline in viewing figures. Applicant registrations have also fallen and, compared to this time last year, a 40% decrease has been reported by Sandfords.
Ellinas believes that the cause responsible for the slowdown is simple; buyers are refusing to pay the current asking prices for properties in central London, after they rocketed out of control.
‘Prices surged to unbelievable levels and it is only now that buyers are putting a stop to such premiums. We estimate that 45% of the properties we are instructed to sell are now over priced by 10% and an additional 25% of properties by as much as 20%,’ he pointed out.
‘A small percentage of our current stock has recently been reduced in price as some vendors recognise this recent change in the market, but all vendors need to be willing to follow suit if they want to sell their property in what has become an uncertain market,’ he explained.
‘When the market presents its challenges, as it is doing now, my advice for vendors is to instruct the local specialist who can make things happen when they are more difficult. Not all agents can perform when things get tough,’ he concluded.