Affinity Achieves Brexit-Busting London Sale RecordPosted on 28th June 2016
Refurbished Prime Asset in Mayfair Breaks Year to Date Price Record
Affinity Global Real Estate has reported a 2016 year-to-date Mayfair price record of £3,061 per square foot with the off-plan sale of its prime residential asset, Balfour Place. The average Mayfair new home price over the period was £2,400 psf and the record has been achieved despite tight market conditions since new Stamp Duty Land Tax rates came into force in 2015 and significant market jitters due to the UK Brexit vote.
Affinity GRE’s prime London portfolio is managed by Residential Portfolio Manager, Sebastian Whitton, who commented: “The flat is an elegant second floor, two-bedroom apartment in a red brick period building in the heart of Mayfair. We took on the property in a dilapidated state for £1.6m and after lease enfranchisement, embarked on a comprehensive refurbishment project which completely remodelled, modernised and completed the apartment with a bespoke interior”.
Prime Central London has suffered since both new SDLT rates and the Brexit vote, but Knight Frank reports that Mayfair has been more immune than other areas of prime central London to the slowdown. In its Mayfair Sub-£5m Report Knight Frank reports:
“Growth began to cool in summer 2014, accelerated by a series of tax changes that included two stamp duty increases in 18 months. The result was a -8.2% decline in the number of £1 million-plus transactions in prime central London in the year to April 2016 compared to the same period 12 months earlier. However, transactions only declined by -3.6% over the same period in Mayfair, an area defined by the W1K, W1J and W1S postal areas.
“Furthermore, Mayfair is the only area in the boroughs of Westminster and Kensington & Chelsea that has not experienced negative annual growth since the financial crisis. The average rate of annual growth in Mayfair was 2.9% in the two years to July 2016, compared to -1.4% in Knightsbridge, 0.7% in Belgravia and 0.5% in Kensington.”
Affinity Global Real Estate maintains a small portfolio of prime London assets, but due to market conditions is currently directing its strategies to outer London, the M25 and selected office markets outside London.
For additional information, please contact:
Dominic Hawes: 020 7718 5574
Note to editors
Founded in 2012 by Robert Whitton, a proven real-estate business leader, Affinity GRE operates across the real estate development value chain, applying tried and tested value-adding strategies in London and the UK’s other metropolitan centres. Affinity GRE also operates in selected European urban centres through its Global Developments subsidiary, targeting areas where demographic pressure demands both impact investing and the specific expertise Affinity can bring to bear.