The Importance Of Micro-Market Data: London Real Estate
Looking at and using micro-market data is so important when you are looking to buy a house in London.
Take Chelsea as an example using both the SW3 and SW10 postcodes…
Using data between April to June 2020, the facts are as follows:
The average price of a flat in SW3 and SW10 are now 16.3% lower than they were 5 years ago.
This drop in price has meant that buyers are currently paying £263 less per square foot than they paid 5 years ago.
Sold prices in terms of price/ sq ft have dropped by 12.1% for flats over the course of the last 12 months and sold prices in terms of price/ sq ft have actually increased by 5.4% for houses over the the course of the last 12 months.
9.7% of properties on the open market sold within 3 months.
Properties that sold in SW3 and SW10 over the course of the last 3 months achieved an average sale price of £1,228,095 for flats and an average sale price of £3,961,944 for houses.
73% of properties on the open market in SW3 and SW10 have been on the market for more than three months.
36.5% of properties on the open market have been reduced in asking price.
Now, this data is incredibly useful for someone who is looking to buy a property in SW3 or SW10.
However, where possible, you need to dissect the micro-markets even further by looking at the difference between property types.
As an example, the average achieved sold prices according to property type in SW3 and SW10 are as follows:
1 bed flat: £704,400.
2 bed flat: £1,096,206.
3+ bed flat: £2,156,111.
3 bed house: £2,669,375.
4+ bed house: £4,996,000.
“This drop in price has meant that buyers are currently paying £263 less per square foot than they paid 5 years ago.”
Now, you could dissect this further and look at properties that had:
Outside space.
Private parking.
A west facing garden.
A south facing garden.
As well as looking at:
What part of SW3 or SW10 they were in.
What road they were on.
What side of the road they were on.
Amongst other variables…
I would assess as much about each property as you personally can because it will give you a good sense of what has been selling, why it would appeal to the person/ people that have bought it and will give you a good sense of what the general sold prices are, which can inform you on how much to offer yourself.