It seems like we have been here before. Last time was when we all woke up the day after the Brexit Referendum to find things had not gone quite as expected. Political and economic uncertainties are bound to bring investor caution.
The Central London property market has always been divided in varying degrees between investment buyers and needs-driven buyers. A fair proportion of them straddle these two camps. It is therefore not surprising that many buyers and sellers are standing back and awaiting developments.
The shortage of stock and our weaker currency have helped to steady the market at these levels with transactions a good 10% to 15% off the highs seen about 18 months ago. As a direct result of this we have recently been showing Far Eastern buyers in greater numbers than of late. They are very astute and aware that their strong currencies combined with lower Sterling prices and vendor nerves present a buying opportunity.
More than ever it is vital to get the asking price set correctly at a level that reflects all the current market criteria. This will allow us to generate interest, viewings and offers.
To sell a flat, apart from our existing clients, we have to get people to contact us and then get them through the door. The price asked is the main hook to get that first interest.
As to where we are going over the next few months? Don’t believe anyone who tells you for sure. My opinion is that we will move sideways within a narrow range for the foreseeable future with the direction of least resistance being downwards. Inflation is picking up, mainly due to imports costing more and the economy is slowing. We do however have the best employment figures in the EU.
So, a confusing picture. If you are thinking of selling please call me. I would love to hear from you and to discuss this challenging market.
0207 467 5770