In another nod to the resilience of the property market in the face of COVID-19, prime UK property has enjoyed great success over the past 12 months as affluent international buyers have been flocking to the market in their droves. According to data from Knight Frank, the first quarter of 2020 saw at least 30 transactions over £10 million, which surpassed the 18 and 22 sold during the same time frames in the previous two years.
Luxury London house prices have inevitably declined somewhat over the course of the year as the global economy has been severely shaken by the pandemic, but the fact that investors are still keen to snap up property proves that they are playing what is sure to be a successful long game. Investors are looking for luxurious iconic UK townhouse property and the market is firmly responding to meet their needs with a range of lucrative developments.
This trend all comes down to two key points – the strength of the UK property market as a whole in the eyes of national and overseas investors, and the eternal appeal of London as an investment destination. After the housing market reopened in June, it was just 48 hours before a Russian oligarch purchased a five-bedroom townhouse in London’s opulent St James’ Park for a cool £15.45m.
Elsewhere, the final penthouse in London’s Islington Square Development is on the market for £4.3 million – featuring a private rooftop garden, infinity pool and dazzling city views, it is presented as part of a landmark mixed-use development featuring shopping, dining and entertainment options, giving a nod to another key evolution in the penthouse property market where luxury accommodation meets retail and leisure amenities.
The appeal of London as a property investment destination continues to reign supreme, with its reputation as a safe haven a key part of the appeal, in contrast to other notable property markets such as Hong Kong, where the political background is somewhat turbulent. In fact, Hong Kong buyers account for a huge percentage of overseas buyers in the UK when it comes to luxury property – more than 6000 homes totalling £8.1 billion were sold to Hong Kong buyers in the UK in the first nine months of 2020, including £305.6 million worth of prime London property, which translates to £1.26 million for the average home.
Buyers from France and mainland China round off the top three global investors into luxury property in the UK this year, where a strong legal system, resilient economy, thriving cultural scene, rich history, world-class higher education institutions and competitive job market cement the appeal of London, while the UK property market as a whole continues to remain attractive due to good signs of capital growth and a steady recovery.
Central London penthouse property is as glamorous and iconic as it gets, and the latest developments have seen prime property spring up further afield than the traditional central postcodes, in exclusive areas such as Richmond, Hampstead and Barnes.
But in the original stomping ground of prime central London, townhouses are playing an integral role in the success of the property market. Chelsea’s Barracks in Belgravia, otherwise known as London’s priciest development, had already sold more than 90% of its homes by June of this year at the height of COVID-19 panic, which speaks volumes.
The development has now placed its 13 townhouses on the market with asking prices of more than £55m. Designed around the vertical living concept, each home includes its own private pool, gym, theatre and wine storage, as well as access to the development’s Garrison Club, with a lounge, spa, pool, business suite, billiards room and cinema. The development also includes a single family home for £18 million as well as three penthouses. This is luxury property built to a standard like we’ve never seen before.
With the towns and cities of the Northern Powerhouse heading up property market success over the past few years and major inward investment propelling growth and demand, we knew it wouldn’t be long before property hotspots outside London got in on the townhouse phenomenon.
In the South Shields area outside Newcastle, significant private investment has been made into housing and plans are currently underway to transform a disused area of wasteground into ten three-bedroom townhouses. Primed for completion and purchase by spring 2021, the development will be built in an area where there is increasingly high demand for quality property, thanks to its good local transport links, amenities and outdoor space.
It offers a key example of the “other side of the coin” of townhouses, away from the super-luxurious London properties and towards the north of England where demand for good quality housing is growing all the time and supported by inward investment into local infrastructure as part of the Northern Powerhouse initiative. However, what townhouses across the board do have in common is exceptionally high demand in a thriving property market.
Our team at Alesco are offering access to investment opportunities into the penthouses at our One West Point (Portal West) development. As some of the finest penthouses in the city, the development itself comprises the highest private sky garden and terrace bar in the capital and every home includes a private balcony or terrace. Residents also benefit from 24-hour valet parking & concierge, co-working office space and a fully equipped gym as well as on-site soft play retreat for little ones. Headed up by a developer who has delivered more than 2400 luxury apartments to date, Portal West is set to become the most prolific new landmark on London’s skyline. Contact us today to find out more.
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