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autumn/winter 2010 Riverside market INSIGHT Knight Frank Matthew Smith Head of Knight Frank Riverside +44 (0)20 7590 2450 [email protected] Matthew Smith, head of Knight Frank Riverside sales, answers our questions on the current Riverside market, why now could be the perfect time to sell and his favourite Riverside property. Property prices have levelled off in prime central London over the past few months; do you think this trend will continue into the Autumn and Winter? It is very likely that buyers will be extra cautious about over paying. The press can easily spook the market and that may affect pricing, but good property is always desirable. Interestingly, sellers may decide not to sell if the market appears shaky, which decreases stock levels, and can send prices higher. In the end, a small blip seems a non issue if you are getting the property you want. Is property still being sold on the River? There are still a lot of overpriced properties clogging up the market. It is essential that sellers are realistic. Certain developments have been victims of over ambitious pricing by inexperienced agents that has resulted in a lack of sales. When correctly priced property comes to the market it is snapped up. What types of buyers are you seeing in the market at the moment? We have seen a year of foreign buyers from all over the world buoying up the market, but recently our buyers tend to be from the UK, Asia or Russia. We have seen strong performance from English buyers, living in the Home Counties who want a London base for theatre, shopping trips and for holiday use. What tips would you give to prospective vendors? Listen to our advice when it comes to pricing. We know what we are talking about and we are honest to a fault. Don’t be tempted by agents who promise you the world and then don’t deliver. We will get you the best possible price for your asset and we will never under sell or give you unsubstantiated advice. Why should people consider buying/selling now? For buyers, stamp duty land tax goes up next year to 5% for properties over £1m, so I can’t think why anyone would delay a purchase. There are also some very attractive mortgage products available for trackers and fixed terms. For sellers, the increase in capital gains tax has been relatively small and the autumn market is one of the busiest of the year. We don’t know what the coalition government will announce in the next report, but it is unlikely it will be a reduction in capital gains - better the devil you know! Do you have any really interesting properties for sale at the moment? One of my favourite apartments is a Richard Meier design in Albion Riverside: a spectacular 6,240 sq ft penthouse with views of the river and Chelsea and a 1,000 sq ft wrap around terrace. It’s a trophy penthouse in a very desirable riverside location. Total property for sale Table 1 Market activity Key market metrics Viewings, 2010 vs 2009 Sales, 2010 vs 2009 63% 28% 59% Riverside at a glance Page 1 of 2 "When correctly priced property comes to the market it is snapped up" 8% 4% 5% 36% 30% 16% < £750k £750k to £1.5m £1.5m to £2.5m £2.5m to £3.5m £3.5m to £5m £5m + Figure 1 What do our buyers want to spend? New applicants, last 12 months Figure 2 But what is coming to the market? New instructions, last 12 months Change in prices, last 3 months 2.1% 19% 11% 4% 30% 35% < £750k £750k to £1.5m £1.5m to £2.5m £2.5m to £3.5m £3.5m to £5m £5m +
