South Kensington is a royal borough located in the county of Kensington and Chelsea, London, England. It is positioned on high ground just to the west of Kensington Gardens and north of Earl’s Court. South Kensington is home to two of the world’s most exclusive residential developments- Hyde Park and The Boltons but also has more affordable housing in North and South Kensington. This area has attracted several wealthy people who invest in properties since it was first developed in the 18th century. It is one of the most affluent areas in London, conveniently located just minutes away from all the major tube stations.
In recent times, it has been a place where many celebrities have chosen to live. The selling prices reached a peak of $825k in mid-2020, which turned beneficial for many sellers. Property prices have always fluctuated in South Kensington in the past year but saw a slight drop in 2021. Once a property for sale in South Kensington enters the selling market, it gets sold within 19 days. The housing market in this borough of London is very competitive, where multiple buyers are seen bidding for a single property. Due to the high demand in South Kensington, most homes sell above the quoted selling price. Several hot listed households sell within a week from being posted on the property listings. The property market at South Kensington is now more affordable than it has been in the last few years.
CURRENT PROPERTY MARKET
Market trends keep changing every year, and it entirely depends on the type, size and location of the property. The borough of South Kensington is always in demand for its geographical positioning. The neighbouring boroughs like Chelsea, Notting Hill, Brompton etc., are nearby places from South Kensington, making it easier for people to commute. South Kensington has always been a desirable destination for the rich and famous, but also attracts buyers who wish to live in one of London’s historic neighbourhoods.
South Kensington has always reflected unique property trends compared to other boroughs of London. It is because of the distinct set of people who come forward to invest in South Kensington. The real estate business in this place predominantly depends on wealthy investors from local and overseas regions. The majority of the residential developments comprises semi-detached and terraced properties. Additionally, many converted flats are popular among residents moving into this region.
Over the previous year, the average price of a property in South Kensington was £2,512,115. The most substantial property transactions in South Kensington last year were flats, which sold for a median of £1,829,354. Terraced houses sold for a total of £4,453,231, while semi-detached houses sold for £9,889,286. The overall selling prices in the borough of South Kensington were 7% lower than the previous year and 4% lower than the 2018 record of £2,616,373.
Property prices dropped down to a further 0.48%, where an average household costs about £2,533,577. The demand for rental properties in South Kensington has declined steadily in the past six months and the employment status of the residents in the locality. Despite the stamp duty holiday and low interest rates, the property prices have only decreased concerning other boroughs of London. The number of residential units is higher than the number of occupants or demand from buyers. According to recent reports, the property prices at South Kensington can drop by a further 2% by the end of next year.
FUTURE TRENDS AND POSSIBILITIES
The increasing demand for properties at South Kensington for all good reasons has seen multiple overseas and local investors flooding into the region. The post-pandemic recovery is improving in different boroughs of London and other parts of the globe. However, property prices have fluctuated frequently, making it unclear for people to determine the price range of homes in South Kensington in the long term. The economic and employment status has become better in central and other regions of London. Similarly, the real estate business is getting back to normal and has already recovered to its original state in different parts of the world. The UK property market is recovering slowly, and property prices might gear up by the end of next year. This will ultimately increase the property prices at South Kensington and reach their original values in a while. The price spike might be slow, but the chances of improvements are pretty much high with the betterment of the global economy.