Buyer demand in London’s prime market climbed by 2.5% on a quarterly basis in Q2, according to the Prime London Buyer Demand Index by Benham and Reeves.
The index monitored demand for London’s most expensive properties based on the level of market activity seen between the £2m to £10m threshold and the super prime mark of £10m-plus.
Demand metrics were based on the proportion of all homes listed for sale across the prime market that were already sold subject to contract.
The latest index showed that buyer demand across London’s core prime market was 23.2%, having climbed by 2.5% since the first quarter of 2023.
However, demand levels remained 2% lower when compared with the second quarter of 2022.
Islington was the most popular area of the core prime market, with 50% of all homes listed for sale between £2m and £10m already sold subject to contract.
Richmond (49.1%) and Chiswick (48.7%) were also home to some of the highest levels of high-end buyer demand in Q2.
Wapping saw the largest quarterly improvement in market activity, with demand levels climbing by 12.2% since the first quarter of this year, followed by Canary Wharf (12%) and Chiswick (11.2%).
Wapping also saw the largest annual increase in buyer demand levels, up 23.2% versus the second quarter of 2022.
Richmond (+11.1%) and Islington (+8%) completed the top three largest annual uplifts.
Across the super prime London market, 8.9% of homes listed for sale had already been taken by the capital’s super wealthy homebuyers.
As a result, demand for London’s most expensive homes climbed by 1.9% compared with Q1 2023, and was also 1.7% higher on an annual basis.
Pimlico and Wimbledon were the most in-demand areas of the super prime market where, like Islington, half of all homes listed above £10m were already sold.
Holland Park ranked third, where buyer demand levels sat at 13%.
On a quarterly basis, Wimbledon saw a 50% increase in market activity, the largest quarterly uplift of all super prime areas.
Pimlico followed with an increase of 16.7%, followed by Victoria (7.5%).
Annually, Pimlico saw a 50% increase in buyer demand levels, with Wimbledon again performing strongly (+25%) and Holland Park (+13%) also making the top three.
Marc von Grundherr, director of Benham and Reeves, said: “We saw a dip in high-end homebuyer demand during the first quarter of this year, but it certainly seems as though the prime London market has now found its feet and we’re starting to see the strong interest shown in recent months convert to actual transactions.
“While some of the prime market’s more peripheral neighbourhoods remain the destination of choice for many, it’s great to see central locations such as Wapping, Canary Wharf and Pimlico also leading the charge.”
He concluded: “ This demonstrates that the tide has very much turned and buyers are now looking from the outside in which should help drive the market forward over the year ahead.”
