A high profile and widely-respected estate agent is predicting a huge demographic change to one of the country’s wealthiest enclaves – Mayfair.
Peter Wetherell, whose agency Wetherell entered into a partnership with London chain Dexters at the end of last year, says Mayfair is about to see its largest demographic and property change of profile for 100 years.
For example, Wetherell says the area’s attraction to Middle Eastern buyers – especially interested in new-builds – is now changing as more buyers come from mainland China and Hong Kong.
In addition, Mayfair is appealing to a younger demographic, with international buyers often being Millennials or even younger. “For example a one bedroom apartment at Clarges Mayfair [was] … let last year for £30,000 per month to a young Millennial with the deal agreed in less than 24 hours” says a statement from the agency.
He says by just next year almost 50 per cent of all residents in Mayfair will be 21 to 44 and by 2030 almost one third of all residents will be Digital Natives – that is, those born since 1995.
On more everyday matters such as the state of the market now, Wetherell says the Boris Bounce has been seen even in the rarified atmosphere of Mayfair.
Following three years of political uncertainty, the average pound per square foot values for second-hand stock are now at levels comparable to the end of 2013.
Some 51 per cent of sales last year exceeded £2,000 per sq. ft. compared to 18 per cent reaching that price threshold across the rest of Prime Central London.
Wetherell predicts that sales volumes of second-hand properties could increase by up to 50% over the coming year, prompted by limited stock and pent-up demand.
Currently, up to 75 per cent of the second hand market in Mayfair is priced up to £5m with a fifth of sales last year registered above £5m.
Wetherell says that in the last decade new landmark developments offering luxury apartments and state-of-the-art residents’ amenities have achieved between £5,000 and £7,000 per square foot.
“Additionally, these new modern developments can sell at values over double that of average Mayfair prices, leading to a comparative value uplift for properties in close proximity to the new developments. Demand for these homes is set to rise as new planning policies will restrict future developments, creating a very exclusive buying opportunity” says the agency.
“Mayfair residents are increasingly younger and seeking a high-performance lifestyle, with leading developers and global brands reacting to this to further enhance Mayfair’s amenities and lifestyle offerings. Whether you are looking to buy or rent, it is clear that people want to live in Mayfair and its appeal will continue to grow this exciting decade.”
Homes selling in this short period typically get 99.4 per cent of their asking price.
Those that sell after one month achieve an a average of 98 per cent of their asking price while those which take two months to find a buyer drop to an a average 91 per cent.
Then after 12 weeks on the market a typical sale price slips to 90 per cent.
The analysis has been undertaken by the HomeOwners Alliance, using data from over 6,500 estate agent branches across Britain.
The HOA says that based on the average property price across the UK of £235,000, a 14-day sale will mean the vendor would be only £1,400 below their asking price.
However, the amount by which they fall short of their asking price increases over time and the alliance says after one month the price drop is more than £5,000 and then over £20,000 after two months on the market.
“Draw up a short list based on their track record, not their sales pitch. If you’re selling a home which has been languishing on the market speak to your agent and review the asking price. You may also want to switch estate agent to one that has a better success rate in your local market.”