UK Premium Property Market Q3 Update.

As the days grow shorter and the season shifts to colder months, casting a closer look at the recent developments in the premium property market during Q3 becomes imperative.

In Q3, there have been 22,233 new instructions enter the market at an average asking price of £1,961,193 and this is a 4.53% increase on Q3 of 2022, clearly indicating a robust interest among sellers in the upper echelons of the market to make a move at present.

Conversely, the number of sales agreed has seen a decline of 15.82%. 

This trend mirrors the broader market, reflecting a decrease in transaction levels due to the strain on affordability caused by escalating interest rates.

Buyers, grappling with the impact of higher interest rates, are pivoting towards cash purchases, leveraging their equity and savings to navigate the market. 

Evidently, there has been a significant 10.71% upswing in cash transactions this year compared to the figures from 2022. 

The average asking price of new properties to market in Q3 compared to Q3 of 2022 is slightly up by 1.11%  and the average asking price of sales agreed is very steady as well with a 0.59% decrease.

These figures suggest a positive trend in property values for high-end listings, while the stability in agreed prices indicates a balanced market for potential buyers and sellers.

Despite the premium market's remarkable resilience compared to the overall market, it's evident that the current landscape is more challenging than in Q3 2022.

However, this challenging scenario unveils a compelling opportunity for proactive estate agents to capitalise on premium properties that are both overpriced and under-marketed by their competitors.

In this market, there has been a substantial 37.15% surge in premium properties adjusting their initial asking prices, coupled with a notable 25.3% increase in sellers opting to withdraw from the market.

With fewer properties successfully closing deals, a rise in price adjustments, and more sellers exiting the market, a window of opportunity emerges for agents aiming to position themselves as the preferred alternative.

As reported by TwentyEA, data from January 2022 showed that only 4.4% of all new instructions saw a change to a second agent. 

In contrast, as of August 2023, this figure had surged to 7.8%, signifying an impressive nearly 80% increase. 

This emphasises the growing potential for agents to become the preferred choice for sellers in the premium end of the market.

Focus on properties that have reduced asking prices, experienced sales fall-throughs, have no upper chain, or are marketed by multiple agents.

These sellers are likely to be more motivated for a change.

Utilise coloured envelopes and personalised addressing by obtaining the owner's name. 

A personalised approach enhances engagement and establishes a genuine connection.

Incorporate case studies in your direct mail, demonstrating success with properties similar to theirs that struggled to sell with other agents. 

This serves as valuable social proof.

Include QR codes in your mail to seamlessly direct traffic, enabling data capture. 

Implement an instant valuation tool to enhance user experience and engagement.

Explore tools like PATMA Property Insights, Property Log, and Property Data to augment your prospecting strategies. 

These tools can significantly enhance engagement and boost your chances of success.

In conclusion, while the premium market is facing increased challenges compared to the past, this very scenario opens up a realm of opportunities for proactive estate agents to thrive.

With a notable uptick in properties adjusting their asking prices and sellers withdrawing from the market, there's a chance to distinguish yourself as the preferred second agent. 

Seize this opportune moment to refine your approach and position yourself as the agent of choice for sellers in the premium market. 

By applying these strategies diligently, you can elevate your prospects and thrive even in challenging market conditions. 

Leveraging this situation is key to success.

Take action now to unlock your potential and drive your success to new heights.

Thank you for reading.

Simon Gates