Super Prime Property at a Stand Off
There has been a 29% increase in super prime letting deals in 2015/2016, compared to 33% drop in sales for £10m plus homes in 2015. After several years of property developers focusing on the world’s wealthiest individuals in major cities such as London and New York, developers are now facing a super-prime slowdown, as their remaining clientele looks to rent rather than buy.
“There has been a 29% increase in super prime letting deals in 2015/2016, compared to 33% drop in sales for £10m plus homes in 2015.”
~ Wealth X
The movement to renting is a combination of several factors in major cities like London: higher taxes and stamp duties on super-prime properties (especially for second homes), low commodity prices directly impacting the wealth of buyers and calls for greater transparency on asset ownership, are putting the wealthiest off buying super-prime properties.
What is Super Prime Property
There is no hard and fast definition to the prime London property market, although £1m has generally been accepted as the entry point. Similarly the super-prime market lacks a formal definition.
Our view is that £10m is the appropriate starting point, which effectively means this segment encompasses the top 1% of the whole of the central London marketplace.
Visit: Knight Frank
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