chelsea market insight 2018...registered number oc305934. our registered office is 55 baker street,...

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Old Brompton Road Tregunter Road Redcliffe Gardens Fulham Road King’s Road Chelsea Embankment Cheyne Walk Mulberry Walk Carlyle Square The Boltons CHELSEA MARKET INSIGHT 2018 FIGURE 1 Property prices in Chelsea Achieved prices, 12 months to March 2018 Circles can denote multiple sales in the same postcode, in which case the highest value is displayed Source: Knight Frank Research / LonRes / Land Registry Up to £1m £1m - £2m £2m - £4m £4m to £6m £6m+ Chelsea market update Prices in Chelsea have adjusted to higher rates of stamp duty more than any other market in prime central London. In April 2018, prices were 15.5% below the previous market peak in August 2015, which compared to an 8% average decline across PCL. As a result, sales volumes have risen and the total value of sales in Chelsea in December 2017 was the highest for a single month since July 2014. In an indication of how price declines in Chelsea are bottoming out, the annual price fall was -1.9% in April 2018, which compares to an annual decline of 11.7% recorded in March last year. James Pace, Chelsea Office Head “Activity in Chelsea is linked to a fairly traditional group of buyers and sellers who are driven by their job, schools or a need to downsize. This means more transactions are needs-driven and prices have had to adjust more readily. As a result, demand has strengthened notably over the last 12 months and we now frequently see competitive bidding for well-priced properties. However, high sensitivity to price means the market remains binary and mis-priced properties take considerably longer to sell. This increased flexibility in relation to pricing is often the case for higher-value properties and, as figure 2 shows, the number of higher-value deals has risen along with the average transaction price.” FIGURE 2 Chelsea fact sheet Population: 26,048 Source: Knight Frank Research / LonRes / Land Registry AVERAGE SALES VALUE Year to March 2018 £1.54m Year to March 2017 £1.41m Year to March 2016 £1.31m MAXIMUM SALES VALUE Year to March 2018 £40m Year to March 2017 £55m Year to March 2016 £28m BLUE PLAQUES James Abbott McNeill Whistler, painter Sylvia Pankhurst, women’s rights campaigner Mark Twain, writer Samuel Beckett, dramatist AGE OF CHELSEA HOUSING STOCK Pre-1900 1900-1939 1945-1972 1973-1999 2000-present 64% 9% 8% 12% 7% CHELSEA STOCK BY PROPERTY TYPE Flat Terraced Semi-detached 16% 1% Source: Knight Frank Research 83% 23 7 28 8 Number of £5m-plus sales Number of £10m-plus sales 2016 2016 2017 2017

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Page 1: CHELSEA MARKET INSIGHT 2018...registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. CHELSEA MARKET

Contains OS data © Crown Copyright and database right 2017

Old Brompton Road

Tregunter R

oad

Redcliffe Gardens

Fulham Road

King’s Road Chelsea

Embankment

Cheyne Walk

Mulberry Walk

Carlyle Square

The Boltons

CHELSEA MARKET INSIGHT 2018

FIGURE 1 Property prices in Chelsea Achieved prices, 12 months to March 2018 Circles can denote multiple sales in the same postcode, in which case the highest value is displayed

Source: Knight Frank Research / LonRes / Land Registry

Up to £1m

£1m - £2m

£2m - £4m

£4m to £6m

£6m+

Chelsea market update Prices in Chelsea have adjusted to higher rates of stamp duty more than any other market in prime central London. In April 2018, prices were 15.5% below the previous market peak in August 2015, which compared to an 8% average decline across PCL. As a result, sales volumes have risen and the total value of sales in Chelsea in December 2017 was the highest for a single month since July 2014. In an indication of how price declines in Chelsea are bottoming out, the annual price fall was -1.9% in April 2018, which compares to an annual decline of 11.7% recorded in March last year.

James Pace, Chelsea Office Head “Activity in Chelsea is linked to a fairly traditional group of buyers and sellers who are driven by their job, schools or a need to downsize. This means more transactions are needs-driven and prices have had to adjust more readily. As a result, demand has strengthened notably over the last 12 months and we now frequently see competitive bidding for well-priced properties. However, high sensitivity to price means the market remains binary and mis-priced properties take considerably longer to sell. This increased flexibility in relation to pricing is often the case for higher-value properties and, as figure 2 shows, the number of higher-value deals has risen along with the average transaction price.”

FIGURE 2

Chelsea fact sheet

Population: 26,048

Source: Knight Frank Research / LonRes / Land Registry

AVERAGE SALES VALUEYear to March 2018 £1.54mYear to March 2017 £1.41m Year to March 2016 £1.31m MAXIMUM SALES VALUEYear to March 2018 £40m Year to March 2017 £55mYear to March 2016 £28m

BLUE PLAQUES James Abbott McNeill Whistler, painter Sylvia Pankhurst, women’s rights campaignerMark Twain, writerSamuel Beckett, dramatist

AGE OF CHELSEA HOUSING STOCK

Pre-1900

1900-1939

1945-1972

1973-1999

2000-present

64%

9%

8%

12%

7%

CHELSEA STOCK BY PROPERTY TYPE

Flat

Terraced

Semi-detached

16%

1%

Source: Knight Frank Research

83%

23 728 8

Number of £5m-plus sales Number of £10m-plus sales

2016 20162017 2017

Page 2: CHELSEA MARKET INSIGHT 2018...registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. CHELSEA MARKET

Important Notice © Knight Frank LLP 2018 - This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.

CHELSEA MARKET INSIGHT 2018

RESIDENTIAL RESEARCH

LONDON RESIDENTIAL

James Pace

Chelsea Office Head +44 20 7349 4302 [email protected]

RESIDENTIAL RESEARCH

Tom Bill Head of London Residential Research +44 20 7861 1492 [email protected]

PRESS OFFICE

Harry Turner +44 20 3861 6974 [email protected]

Source: Knight Frank Research / LonRes / Land Registry

FIGURE 5 Transaction volumes and pricing data

0

50

100

150

200

Q1-

2014

Q2-

2014

Q3-

2014

Q4-

2014

Q1-

2015

Q2-

2015

Q3-

2015

Q4-

2015

Q1-

2016

Q2-

2016

Q3-

2016

Q4-

2016

Q1-

2017

Q2-

2017

Q3-

2017

Q4-

2017

Q1-

2018

Tota

l sal

es

Ave

rage

pric

e

£23m £19.3m £51.5m £51.5m £17m £12m £28m £18.5m £7.6m £13m £50.5m £55m £16.5m £30m £24m £40m £38m

£1,000,000

£1,500,000

£2,000,000

£2,500,000

Total sales Total sales (incomplete) Average price Maximum price

Contains OS data © Crown Copyright and database right 2017

Old Brompton Road

Tregunter R

oad

Redcliffe Gardens

Fulham Road

King’s Road Chelsea

Embankment

Cheyne Walk

Mulberry Walk

Carlyle Square

The Boltons

SW10 9SW3 6

SW3 5

SW10 0

SW10 9SW3 6

SW3 5

SW10 0

FIGURE 3 £ per sq ft prices in Chelsea Achieved prices, year to March 2018

Circles can denote multiple transactions in the same postcode, in which case the highest value is displayed

Source: Knight Frank Research / LonRes

Year to December 2017 Year to December 2016 Year to December 2015

FIGURE 4 Sales volumes by neighbourhood

Source: Knight Frank Research / LonRes / Land Registry

Up to £1,000 £1,00 to £1,250 £1,250 to £1,500 £1,500 to £2,000 £2,000-plus

SW10 0 SW10 9 SW3 5 SW3 6

138221

7530

76 172 68 23

102152

4132

£1.18m £1.13m £1.08m

£1.31m £1.2m £1.08m

£1.7m £1.57m £1.55m

£2.45m £2.66m £2.72mA

vera

ge

sale

pric

e