James Moran, franchisee Winkworth South Kensington

Winkworth South Kensington has published its quarterly market insight, analysing trends and the outlook for the South Kensington residential property sales and lettings markets.

Summary:

-  Transactions over the last full 12 months increased 48% compared to the previous 12 months.

-  Properties selling in South Kensington, between £1m and £5m saw the greatest increase in volume – up 60%

-  Average time for properties to sell fell to 6.5 weeks in 2010, from 13.8 weeks in 2009.

-  Proportion of asking price achieved last year was 99.2%, compared to 94.0% the previous year.

-  In rentals, low levels of supply coupled with strong demand have supported values for some time and there are no signs that this will change

James Moran, franchisee of Winkworth South Kensington, comments:

“In 2010 we saw the prime central London residential market continue to recover with some unprecedented values achieved.  In South Kensington, it was one of our strongest years on record – average value of transactions increased by 33% compared to 2009 and asking price or greater often achieved.

International buyers continued to be active in 2010, in particular from Europe, often taking advantage of volatile currencies, something that could well continue this year. Domestic demand was also stronger than in the previous year, and was often represented by wealthy British families looking to invest in prime areas. Overall, investment buyers were prolific and we anticipate this continuing in 2011. We regularly talk to buyers who are not purchasing on a needs basis but because they want to invest ahead of time. The buy-to-let market continues to improve and the signs are that we will see the return of the private landlord who regards property in good locations as a steadier investment than other asset classes.

This year has started with a great deal of valuation activity, in particular at the top end of the market and, in South Kensington, we anticipate more stable market conditions in 2011 regardless of wider economic concerns.”