West End residential sales jump despite stamp duty fears, says CBRE

 
Kasmira Jefford
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Visitors Enjoy The Shops And Street Acts In Covent Garden
Flats in London's West End, which includes Covent Garden, have seen strong demand (Source: Getty)

CBRE said it has seen no let-up in demand for homes in London’s West End despite concerns over stamp duty reforms and that overseas demand may be slowing.

A third of homes (33 per cent) sold by CBRE in the fourth quarter reached prices of more than £2,250 per square feet, which was 23 per cent ahead of the same quarter last year and the highest average value since 2012.

Overall, it agreed on a total of £59.4m sales in the West End in the fourth quarter, up 15 per cent on the fourth quarter of 2014, taking the total value of sales for 2015 to £248.6m, the property services giant said in a report due to be released tomorrow.

Transaction numbers also increased by 29 per cent over the same time last year, with new build properties accounting for 67 per cent of deals.

International buyers remained the strongest players in the market, accounting for 70 per cent of sales – a third of which were Chinese buyers. This compares with 13 per cent in the third quarter.

Jamie Gunning, Senior Director, CBRE Residential, West End said: “Demand has remained strong throughout 2015 and this is anticipated to continue into 2016. We have a number of high quality developments completing in third quarter of 2016 and expect these to be well received by the market, positively affecting sales rates.

“With the opening of Tottenham Court Road Station due at the end of 2016, activity within the West End is expected to soar as buyers seek properties in close proximity to this key transport hub.”

CBRE said the lettings market also performed well, with agreed tenancies rising by 32 per cent to 86 in the fourth quarter of last year. Average rental values rose by 22 per cent to £667 per week.

The company said the number of lettings slowed slightly compared with the third quarter when students rushed to the market ahead of the new academic year however the volume of homes let to professionals increased.

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