Premium Property Market Update
Unveiling Lucrative Opportunities in the Top 10% of the Property Market
The UK property market landscape has approximately 30 million properties on the map, with the top 10% being within the council tax bands of F, G, and H.
If your property sits within this bracket, you have much less competition, as fewer properties in the premium market should translate to prices holding firm.
Market Dynamics:
In a recent podcast recording, our CEO, David Lindley, discussed that sales of properties at or above £1,000,000 constitute only 5% of overall transactions in the market.
There have been 13,801 recorded sales at or above £1,000,000 in 2023 so far on land registry, translating to a staggering £30.95 billion in property value.
A comparative analysis of the five-year average in October from 2018 to 2022 reveals a 25.83% increase in new listings at or above £1,000,000 in October 2023, and the number of sales agreed is practically identical, indicating a burgeoning appetite among luxury home sellers to make a move.
Nevertheless, new listings have experienced a 7.19% decline across the entire market compared to the five-year average, and sales agreed have plummeted by 19.48%.
This stark contrast underscores the remarkable resilience demonstrated by the premium sector in recent times, particularly in the face of heightened affordability challenges plaguing the lower to middle segments of the market.
It is evident that the higher echelons of the market offer a promising landscape for those seeking more than just stability in the currently challenging conditions.
Premium properties need a different approach.
Properties in the highest price ranges are not marketed in the same way. These properties will naturally attract attention; being the most expensive in a particular town or area will mean that online views will likely be relatively high. However, your agent must explore ways to sell more discreetly to attract serious buyers.
Consider how your buyer will search for a new property. The highest-net-worth individuals are unlikely to want to walk around estate agents' offices, registering their email addresses on a database to be inundated with unnecessary emails. Instead, consider a discreet selling option that can market your home without broadcasting it for all to see, pinpointing these high-net-worth buyers without attracting lots of interest from people simply wanting to look, not necessarily buy.
Leveraging social media platforms and targeted direct mail campaigns enhance the outreach, significantly improving the likelihood of eliciting responses from affluent buyers looking to move.
Thank you for reading.
Simon Gates
