The median sale price of a home in SW1, the London postcode that includes Belgravia and St. James’s, fell by more than a fifth in the 12 months through November as rising taxes damped demand.
Sales values and volumes have fallen since Chancellor of the Exchequer George Osborne increased the stamp-duty sales tax. SW1 had the biggest slump in sale prices in London during the period, according to an analysis of preliminary Land Registry data by Bloomberg. The median sale price in the postcode fell to about £928,000 ($1.36 million) in November and the number of homes sold fell almost 75 percent to 15.
Luxury-home values in London and New York will have a sharp downturn this year as Russian and Chinese buyers disappear and low oil prices crimp demand from the Middle East, Blackstone Group LP Vice Chairman Byron Wien predicted. Many expensive condominiums will remain unsold, putting developers under financial stress, he wrote on Monday.
Russians bought 4.2 percent of the homes that were sold in central London’s best districts during the third quarter, down from 10 percent a year earlier, according to Knight Frank LLP. Chinese buyers acquired 11 percent of homes sold there from January to November last year, compared with 10.5 percent in the same period in 2014, the broker said.
The most expensive home sold in November was a seven-bedroom house on Holland Villas Road, which was purchased for £16.25 million, according to the Land Registry data. The Victorian-period property has a gym, swimming pool and roof terrace.
The median house price in London was £426,688 in November, about 12.6 percent more than a year earlier. Values in the boroughs in the east of the U.K. capital rose the most, jumping 21.3 percent in Waltham Forest and 20.4 percent in Newham.
Values in prime London rose 0.9 percent during the period, the data show.