{"id":10514,"date":"2023-06-30T09:15:21","date_gmt":"2023-06-30T09:15:21","guid":{"rendered":"https:\/\/www.black-brick.com\/?post_type=market-update&#038;p=10514"},"modified":"2023-06-30T21:10:52","modified_gmt":"2023-06-30T21:10:52","slug":"july-2023","status":"publish","type":"market-update","link":"https:\/\/www.black-brick.com\/insights\/market-update\/july-2023\/","title":{"rendered":"July 2023"},"content":{"rendered":"<h1><a id=\"one\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10521 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-1-WEB-NEW.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-1-WEB-NEW.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-1-WEB-NEW-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-1-WEB-NEW-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-1-WEB-NEW-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h1>\n<h1><\/h1>\n<h1>Could London\u2019s property market serve up an ace this summer?<\/h1>\n<p>In a couple of days the world\u2019s greatest tennis players will converge on south west London for Wimbledon fortnight.<\/p>\n<p>With classic sporting events to enjoy, summer holidays to plan for, and exam results on the horizon, there are many reasons why the property market tends to cool down in high summer.<\/p>\n<p>But motivated buyers who need a new home in time for the new school year, want to steal a march on the autumn season, or are keen to enjoy the best the capital has to offer with a pied a terre in the perfect location, shouldn\u2019t waste the opportunity the next month or so offers.<\/p>\n<p>Less competition is great news for buyers and vendors are starting to come around to the idea that prices have softened since the great pandemic buying spree.<\/p>\n<p>\u201cThe next six to 12 months could be a good buying window, especially for cash buyers,\u201d said Camilla Dell, managing partner at Black Brick. \u201cWe recently came across an apartment in a prime South Kensington address that was on the market at \u00a35.25m. We were then made aware the sellers would look at offers as low as \u00a34m because interest rate rises have left them overstretched.<\/p>\n<p>\u201cThis won\u2019t be the case across all of Prime Central London, of course, but I do think we will start to see these kinds of opportunities open up.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"two\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10523 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-2-WEB-1.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-2-WEB-1.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-2-WEB-1-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-2-WEB-1-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-2-WEB-1-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>Paved with Gold<\/h1>\n<p>So far this year Mayfair has emerged as London\u2019s hottest property ticket.<\/p>\n<p>Analysis of sale prices by central London postcode by estate agent Benham &amp; Reeves found that W1K is leading the pack, with an average price of \u00a38m. A few streets away Belgravia\u2019s SW1X takes second place, with an average sale price of a comparatively modest \u00a32.45m.<\/p>\n<p>\u201cAlthough, geographically, they are close, they are very, very different locations in terms of what they offer and the buyer profile they appeal to,\u201d said Dell.<\/p>\n<p>Mayfair has enjoyed a real rejuvenation over the last decade. This once slightly dreary hinterland of Oxford Street has been transformed into an exciting, vibrant destination, full of designer shops, great restaurants, and some of London\u2019s most exclusive private members clubs.<\/p>\n<p>Its transport links have been enhanced by the Elizabeth Line, it is home to many of London\u2019s most successful hedge funds, and it looks prettier too.<\/p>\n<p>\u201cThe Grosvenor Estate has spent lots of money beautifying Mount Street and the other main streets, and you have got some of the most sought after super prime new build developments in London, like 1, Grosvenor Square and 20, Grosvenor Square, 60 Curzon, and the upcoming 1 Mayfair,\u201d said Dell.<\/p>\n<p>The presence of these behemoth developments partly explains Mayfair\u2019s higher average prices; Belgravia\u2019s stock of apartments is more geared towards period flats, the best of which are often on garden squares. It is also, overall, a more sedate, residential sort of neighbourhood than buzzy Mayfair (although the King\u2019s Road is just to the west), although it may provide a more fertile hunting ground for buyers looking for a substantial house.<\/p>\n<p>\u201cIt appeals to oligarchs and international royals who want a 20,000 sq ft, really ambassadorial sort of house,\u201d said Dell. \u201cIt has got some very, very large family residences, which are a rarity in Mayfair.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"three\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10533 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-3-WEB.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-3-WEB.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-3-WEB-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-3-WEB-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-3-WEB-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>Buyers Beware: Warning over \u201cpom pom\u201d pricing<\/h1>\n<p>When stock is short on the market the competition between estate agents gets fierce. And a strategy some use to woo vendors is to overvalue properties to win the instruction.<\/p>\n<p>This is bad news for buyers who certainly don\u2019t want to overpay for a property. And it can also be bad news for homeowners. Because while a high headline price might sound appealing analysis by estate agent Andrews \u2013 which likens overvaluing estate agents to cheerleaders waving pom poms in the air \u2013 it is a strategy which may backfire.<\/p>\n<p>Andrews found that correctly priced homes, that do not require a price reduction to find a buyer, take an average of just over seven weeks to go under offer. Those which have to have their asking price cut waste significant amounts of time. The average process takes more than 18 weeks.<\/p>\n<p>\u201cThis is an old sales pitch which agents use to get instructions \u2013 we always do our research before we make a shortlist of properties for clients to view,\u201d said Dell. \u201cIf we see a price that seems too high we will want to use our contacts and talk to the agent to make sure that we have a realistic, motivated vendor. We don\u2019t want to waste our clients\u2019 time.\u201d<\/p>\n<p>Caspar Harvard-Walls, a partner at Black Brick, said that it can take years of experience to spot a price that simply doesn\u2019t seem right, coupled with access to the latest market data. \u201cWe do our due diligence,\u201d he said. \u201cIt may be that there is a reason for the price \u2013 it may be an outstanding property \u2013 but you do often find that there is no real reason. And if a buyer did agree to pay a crazy price for a property they would only find out, weeks later when they have had a bank valuation done, that it is not worth what they have offered. And by then they have wasted such a lot of time.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"four\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10525 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-4-WEB-.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-4-WEB-.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-4-WEB--300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-4-WEB--1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-4-WEB--768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>Supersize Me<\/h1>\n<p>At the super prime end of London\u2019s property market what buyers seem to be looking for is square footage, and plenty of it. The average size of homes sold for \u00a315m or more in prime central London has shot upward over the past year.<\/p>\n<p>The average \u00a315m-plus house sold in PCL has grown from 7,000 square feet in the first half of 2022 to 11,200 square feet in the same period. Flat sales have also expanded, up from an average 4,844 to 5,232 square feet.<\/p>\n<p>Unsurprisingly this means that the average spend in this sector is also on the rise, according to a report by Beauchamp Estates. It found that the average sale price has risen from \u00a321m last year to \u00a330m now (for houses), and from \u00a322m to \u00a325m (for flats).<\/p>\n<p>This upsizing trend is the polar opposite to what is going on in the mainstream London market. Average prices fell by 1.6 per cent last month according to the latest Rightmove house price index, as buyers facing increased monthly repayments rein back on what they will spend.<\/p>\n<p>\u201cThis end of the market has really not been impacted at all by rising interest rates,\u201d said Harvard-Walls. \u201cIn fact, as interest rates go up they may actually be earning more from their investments and be doing better.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"five\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10527 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-5-WEB.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-5-WEB.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-5-WEB-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-5-WEB-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-5-WEB-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>New Arrivals<\/h1>\n<p>London\u2019s population swells at this time of year as an annual influx of visitors and tourists arrives in the British capital. Some of the most long standing summer visitors make an annual migration from the Middle East, to escape the scorching heat at home. And many families visit so frequently, and are so fond of London, that they decide to buy a property.<\/p>\n<p>This annual influx of Middle Eastern buyers has been going on since the 1970s. What has changed is their home-from-home requirements.<\/p>\n<p>Traditionally these buyers would want a spacious mansion flat on the fringes of Hyde Park, either north of the park around Bayswater, or in Knightsbridge and within an easy walk of Harrods and Harvey Nicols.<\/p>\n<p>\u201cWhat we find is that they have been coming to London for generations, they feel very safe and welcome here, and they often went to school or university in the UK so they know London very well and regard it as a second home,\u201d said Harvard-Walls.<\/p>\n<p>But times change, and younger buyers dipping their toe in London\u2019s property market are less excited by trophy Hyde Park adjacent addresses than their parents once were.<\/p>\n<p>\u201cThe younger guys don\u2019t necessarily want to live on the doorsteps of their parents, aunts, and uncles,\u201d said Dell.<\/p>\n<p>\u201cWhat they do want is to be very looked after. They want a gym in the building, somewhere to park their car, hotel style services, and a concierge to book them a restaurant table.\u201d<\/p>\n<p>This is good news for new build developments in and around the West End, and Middle Eastern buyers have proved themselves to be loyal fans of London. \u201cThey are massively important to central London,\u201d said Dell. \u201cAnd when they buy a property they tend not to sell \u2013 it stays in the family \u2013 so they are very good from a stability point of view. They are not speculators on the London market.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"six\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10531 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Cheniston-Gdns-WEB.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Cheniston-Gdns-WEB.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Cheniston-Gdns-WEB-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Cheniston-Gdns-WEB-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Cheniston-Gdns-WEB-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>Acquisition of the month: Cheniston Gardens, Kensington, W8 &#8211; \u00a31,700,000<\/h1>\n<p>We spent three months working with an Australian family who were looking for a top drawer pied a terre in Prime Central London.<\/p>\n<p>They wanted a two bedroom period property, close to green space, and were particularly keen to find a light and airy home with high ceilings.<\/p>\n<p>We carried out a forensic search of best in class London apartments and had a shortlist ready to view when the client was able to make a flying visit from Sydney.<\/p>\n<p>The long journey was worthwhile. The family picked a lovely <a href=\"https:\/\/www.black-brick.com\/expertise\/case-studies\/cheniston-gardens\/\">first floor property<\/a> with two balconies, which had been stylishly and recently refurbished, and is within a short walk of Hyde and Holland parks.<\/p>\n<p>Unsurprisingly this high calibre home attracted interest from a series of buyers. Our client did not make the top bid for the property, but the vendor decided to opt for our slightly lower offer because we convinced them we were organised and prepared to press ahead swiftly with the deal.<\/p>\n<h1><a id=\"seven\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10543 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/The-Knightsbridge-Apt-WEB.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/The-Knightsbridge-Apt-WEB.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/The-Knightsbridge-Apt-WEB-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/The-Knightsbridge-Apt-WEB-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/The-Knightsbridge-Apt-WEB-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h1>\n<h1>Managed Sale of the Month: The Knightsbridge Apartments, SW1X &#8211; \u00a36,950,000<\/h1>\n<p>Black Brick is known for helping buyers to source properties. But we are also adept at helping them secure a sale.<\/p>\n<p>The <a href=\"https:\/\/www.black-brick.com\/services\/for-sale\/the-knightsbridge\/\">Knightsbridge Apartments<\/a> is set in an enviable location, moments from Hyde Park, Knightsbridge station, and the shops and restaurants of Brompton Road, and is considered one of the very best fully serviced building in London. Homes here rarely come up for sale.<\/p>\n<p>Amenities include 24 hour concierge services, a swimming pool, spa, gym, and a business suite.<\/p>\n<p>This three bedroom, four bathroom apartment has been recently and stylishly interior designed making it a turnkey option for a buyer looking either for a pied a terre or a London home. For more information or to book a viewing please contact <a href=\"mailto:chw@black-brick.com\">chw@black-brick.com<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a id=\"eight\"><\/a><img decoding=\"async\" class=\"alignnone wp-image-10529 size-full\" src=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-7-WEB.jpg\" alt=\"\" width=\"1200\" height=\"498\" srcset=\"https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-7-WEB.jpg 1200w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-7-WEB-300x125.jpg 300w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-7-WEB-1024x425.jpg 1024w, https:\/\/www.black-brick.com\/wp-content\/uploads\/2023\/06\/Story-7-WEB-768x319.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h1>Black Brick International: A Focus on Paris<\/h1>\n<p>Many of our clients own and like to buy property globally. Purchasing overseas in unfamiliar markets requires expertise, guidance, and trusted partners. That\u2019s why we\u2019ve made it our mission to partner with top buying agents in key locations.<\/p>\n<p>Each month we will be bringing you an \u201cin focus\u201d look at one of the new markets that we now cover, from Berlin to New York or Miami, Dubai to Sydney. This month we take a look at the French capital:<\/p>\n<p>The city of romance is shaping up as one of the savviest spots to invest in a European bolt hole.<\/p>\n<p>A new report from Knight Frank has anointed Paris as the big winner following Britain\u2019s exit from Europe \u2013 its status as the EU\u2019s financial heartland is being cemented by an big increase in the number of investment bankers based in there, while its profile is being raised by the imminent Rugby World Cup, which kicks off in September, and next year\u2019s Olympic Games.<\/p>\n<p>Like London, the performance of Paris\u2019s mainstream market has been lacklustre during 2023. But the iconic arrondissements in the historic heart of the city are thriving in the post pandemic world.<\/p>\n<p>City-wide, average real estate values have been hovering around the \u20ac10,000 per square metre since 2019 according to house price monitor Meilleurs Agents. But prices in the chic, central 7<sup>th<\/sup> Arrondissement, home of the Eiffel Tower, grew 14 per cent to just over \u20ac19,325 per square metre. Oher outperformers include the 8<sup>th<\/sup>, around the Champs-\u00c9lys\u00e9es, up nine per cent, and the 6<sup>th<\/sup>, close to Le Jardin du Luxembourg, where prices have increased eight per cent.<\/p>\n<p>Values in this golden triangle have a long history of investment strength, irrespective of the national and international backdrop, because of their sheer scarcity. And the strength of the dollar has encouraged an influx of American buyers over the past year, adding to demand. US buyers accounted for 55 per cent of sales to international buyers made by Junot Fine Properties.<\/p>\n<p>Meanwhile, for buyers looking for the next big thing, young Parisians, firmly priced out of the city centre, are creating some brand new hotspots in the 9<sup>th<\/sup> and 11<sup>th<\/sup> arrondissements which are also worth exploring.<\/p>\n<p>If you are thinking of purchasing in Paris, please contact <a href=\"mailto:Camilla.Dell@black-brick.com\">Camilla.Dell@black-brick.com<\/a> to find out how Black Brick and our network of international buying agents can assist you, and have a look at our recent <a href=\"https:\/\/www.black-brick.com\/expertise\/case-studies\/champ-de-mars-allee-adrienne-lecouvreur-paris\/\">Paris Case Study<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Could London\u2019s property market serve up an ace this summer? In a couple of days the world\u2019s greatest tennis players will converge on south west London for Wimbledon fortnight. With classic sporting events to enjoy, summer holidays to plan for, and exam results on the horizon, there are many reasons why the property market tends [&hellip;]<\/p>\n","protected":false},"featured_media":10521,"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","inline_featured_image":false,"ghostkit_customizer_options":"","ghostkit_custom_css":"","ghostkit_custom_js_head":"","ghostkit_custom_js_foot":"","ghostkit_typography":""},"tags":[],"class_list":["post-10514","market-update","type-market-update","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with 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