LDG January Diary - New Year Market

Sales

The New Year seems to have started where 2013 left off with an abundance of serious purchasers and very few properties for sale.

This is exemplified by a flat we were offering in Brownlow Mews Bloomsbury. We had 25 viewing over the course of 4 for days, culminating in 7 parties going to informal bids.  The combination of purchasers ranged from investors and private buyers looking for a pied a Terre. The ultimate buyer was a property fund and what was intriguing was the young end users decided not participate in the bidding.

General comment in current New Year market:

• Continued high level demand for one and two bedrooms flats in particular.
• Still a low residential number of properties for sale.
• Informal tenders continue.
• Buyers taking a long term view on their purchases.
• The appeal Fitzrovia, Covent Garden, Bloomsbury and Soho is as strong as ever.
• Purchasers are prepared to be more flexible on locations as described above. 

  Lettings

  Seasonally the letting market in January and February is a little pedestrian and this seems to be the case in the first three weeks of the New Year so far. We anticipate towards the middle of next month an increase of enquiries in particular from the student market.

  There are a healthy number of flats for long term rent available  and it is therefore imperative landlords present the flats to the highest standard in order to compete with stock on the West End market from Fitzrovia to Bloomsbury and Marylebone to Mayfair. It is currently noticeable that the £1000 per week level is seeing the lowest demand. 

  General comment in current New Year market:

  • We are finding January still slow and yet to indicate any lively activity.
  • Flat instructions are increasing with a predominance of 1/2 bedroom conversions.
  • Single/professionals are the most common enquiring tenants at the moment.
  • We expect the student activity to increase in months to come. From our activity over the year we have remarkably achieved within 98% of the asking price of our successful transactions.

  Commercial

  General comment in current New Year market:

  The commercial market in central London has not abated in January and we are experiencing a consistently high level of activity which seems to be focused heavily in the creative and technology sector in particular.

  The greater proportion of enquiries is for medium sized office accommodation and it is remarkable that in the New Year there is so much commercial activity. This emphasises and reinforces the economic growth that we are seeing at the moment.

  We have had enormous interest in a Freehold mixed retail/residential property on Dean Street in the heart of Soho opposite the Groucho Club at £4.5m and we are optimistic this will be sold in the immediate future.

  The encouraging volume  of clients needing a variety of space whether it be offices, showrooms and investments ensure that providing properties are sensibly marketed transactions are being concluded within a particularly short period of time from being placed on the market.

  We are watching the next few months with great interest pending the current dialogue over interest rates and the pending election.

Tags: