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Different parts of the PCL market have performed very differently since mid- 2005. At the extreme, the best performing properties (top 10%) have seen values nearly triple, rising by 190%, whilst the worst performing (bottom 10%) have seen growth of a relatively modest 63%.

Across the remaining four fifths of the sample value growth has varied between 148% and 82%, indicating the broad range of performance that is a function of both location and property type.

By far the strongest growth has been seen in the core areas of Knightsbridge, Mayfair, Belgravia and Chelsea, which have the highest concentration of best performing properties, particularly larger dwellings that service the internationally dominated ultra prime market.

As a consequence, the gap between the top and the bottom performers has widened. The best performing properties average £2,880 per sq ft, nearly twice the price of the worst performing, where the current average value stands at £1,470 per sq ft.

This divergence in values particularly reflects outperformance in the period from 2005 to 2007. Though less pronounced this has continued in the period post-downturn in a market that has continued to differentiate between the most and least fashionable addresses and where a premium has also developed for scale.

Taken from
Spotlight: Prime London Residential Market - Autumn 2013

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