> Sales Market Comment - Spring 2023 | Plaza Estates London
Sales Market Comment - Spring 2023
By Eitan Fox
// Thu 30th
This time last year there was a feeling of optimism as finally all restrictions of the Covid pandemic were lifted.
One year later, how things have changed. Global high inflation, interest rate hikes and the conflict with Russia and the Ukraine still raging on.
These variables have had an impact on the first quarter of 2023. Sales in this period have dropped by 30% from the same time last year.
Furthermore, a banking crises in America and Europe may influence the Prime Central London property market. The last banking crises in 2007/2008 saw a profound effect of the credit crunch. From this, there was a period of positive growth for 6 years.
In times of global uncertainty, there is always a flight to quality and prime areas in the borough of Westminster and Kensington and Chelsea are benefitting from this.
With more properties coming to the market it is essential that vendor and agent strategically plan marketing and pricing to ensure the best results when launching property.
We feel applicants may need to manage their expectations and realise that property prices will not be crashing. There remains a shortage of stock in the market and any correction will be single digits and not the over exaggerated figures the media forecast.
We have noticed an increased number of buyers entering into the PCL market who are choosing to pay in cash for their purchases. The advantages of this strategy go beyond avoiding rising interest rates. Many vendors will place significant value to cash buyers resulting in them obtaining a property at the best price possible.
If you are considering or are already looking to transact in the spring market, we would be pleased to discuss your property needs.