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SPRING 2010
Hyde Park market INSIGHTKnight Frank
Sarah Harding
Head of Hyde Park sales+44 (0)20 7861 5520
Sarah Harding, head of Knight Frank's Hyde Park sales office, discusses the
local property market and what the next few months might have in store.
How has the market performed so far in 2010?
The central London market has enjoyed boom-like conditions in recent months. This growth has
not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5m,
which has seen the strongest growth (c23%). The more expensive price brackets have lagged
(c17% for the £5m+ sector), reflecting the fact that the recovery in pricing started later in this
sector. Focusing in on the Hyde Park Estate this area has followed the wider market along with
Marylebone & Mayfair with prices rising by around 13%
What about the lettings market?
The lettings market has experienced a dramatic change since 2008 and 2009, when stock levels
were extremely high. The current market now favours the landlord with rents increasing by 3.95%
in the first quarter of 2010. Tenant demand is high and we have many applicants actively looking
in the area for properties which are well presented and in prime locations. The increase in lettings
demand is being driven by the improvement of the London job market. We have strong links with
relocation companies who are highly active in our area, looking for quality properties for their
corporate and private clients. Our website attracts a high volume of applicant enquiries and we
are actively looking to increase our property portfolio to cater for this increasing demand.
Tell us a bit more about your team in Hyde Park.
Knight Frank recently won the instruction to look after the Hyde Park Estate - our client being the
Church Commissioners. Historically Knight Frank have always looked after this area from our
Kensington, Notting Hill and Marylebone offices, however there is demand for a dedicated team
on the patch, which I am excited to be leading. We have over 30 years experience selling and
letting property in London and are the only truly international agents with a real focus on the area.
How do you see the Hyde Park property market performing over the remainder of 2010?
There is a significant market expectation that the Hyde Park Estate and Bayswater area is set to
outperform the wider central London market during the next market cycle. Historically the area has
achieved lower rental and capital values compared to our neighbours further west and south.
Assisted with the legacy of attractive buildings, streetscapes and surrounded by convenient
transport links we expect to see an increase in demand from both investors and developers and
are looking forward to introducing our many international buyers to the Hyde Park area.
Total property for sale
Table 1
Market activityLast 3 months, year-on-year change
Newly available property for sale
New prospective buyers
Viewings
Sales
23%
-7%
-32%
1%
113%
Hyde Park at a glance
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"we expect to see an
increase in demand
from both investors
and developers and
are looking
forward to
introducing our
many international
buyers to the hyde
park area"
47%
51%
2%
London Rest of UK
International
9%15%1%
4%11%2%
39%
5%13%
Africa Asia Australasia
Europe India Middle East
North America Russia & CIS South America
Figure 1
Location of our buyersHyde Park, last 12 months
Figure 2
Nationality of KF international buyersUK prime London property, last 12 months
SPRING 2010
Hyde Park market INSIGHTKnight Frank
Charting the marketFigure 3
Price change by price bandPrime London, last 3 months (%)
Your properties, our people
Figure 2
Sales by price bandPrime London, last 12 months (%)
0
4
8
12
16
20
24
28
32
< £1m £1m to£2m
£2m to£3m
£3m to£4m
£4m to£5m
£5m +0
2
4
6
8
10
12
<£1m £1m-£2.5m £2.5m-£5m £5m-£10m £10m+
Figure 4
Average % of guide price achievedPrime London, last 12 months (%)
50
60
70
80
90
100
Mar Apr May
Jun Jul Aug
Sep Oct Nov Dec Jan Feb
Unmodernised flat in pretty converted building
Guide price:
£595,000
Sussex Gardens, London,
W2
Under Offer
2 bed
Contemporary living on edge of Hyde Park
Guide price:
£2,950,000
Connaught Place, London,
W2
Sold in February
3 bed
Asking rent:
£500pw
Large two bed maisonette with terrace
Let in April
Connaught Street,
London, W2
2 bed
Asking rent:
£450pw
Spacious flat overlooking gardens
Under offer
Connaught Square,
London, W2
2 bed
Sarah HardingOffice Head, Hyde Park
Sarah WilliamsLettings Manager, Hyde Park
Stephen FairfaxSenior Negotiator, Hyde Park
Tim WrightRegional London Head
Christian
Lock-NecrewsOffice Head, Marylebone
Caroline FoordOffice Head, Notting Hill
If you have any queries or would like to obtain additional information on the UK or international housing markets please contact: Liam Bailey, Head of Residential Research, +44 (0)20 7861 5133, [email protected]
© Knight Frank LLP 2009 - This report is published for general information only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal
responsibility can be accepted by Knight Frank Residential Research or Knight Frank LLP for any loss or damage resultant from 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 allowed with proper reference to Knight Frank Residential Research. Knight Frank LLP is a limited liability
partnership registered in England with registered number OC305934. Registered office: 55 Baker Street, London, W1U 8AN
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