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Premium Property Market Update

Want to know what is happening in the premium property market? Read this update from property expert Simon Gates.
Premium Property Market Update
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 entered 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 decreased by 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.

There has been a substantial 37.15% surge in premium properties adjusting their initial asking prices, coupled with a 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 those trying to secure a buyer.

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. Maybe a change of agent is the key to securing your sale?

In conclusion, while the premium market faces challenges, there are still many opportunities for proactive property sellers to thrive and secure a great sale. Seize this moment to refine your approach and position yourself for buyers in the premium market.

Thank you for reading.

Simon Gates