Time-poor cash-rich buyers boost London's prime new-build market

New research reveals that whilst Prime London property continues to draw record purchasing power, there has been a shift away from properties on the secondary market, with buyers now turning almost exclusively to new-build developments.

Related topics:  London,  New Build,  Prime
Property | Reporter
24th April 2023
Prime New Build 250
"Due to increasingly stringent planning applications and sky-rocketing construction costs, time-poor Ultra High Net Worth buyers are opting for turn-key new-build homes"

Prime Central London property consultancy Tyburn has released new findings into ultra-high-net-worth investment in the prime new build market in London. With the capital achieving record sales of properties over £5 million in 2022, the city has retained its draw to both international and domestic investment.

However, time-poor, cash-rich buyers, are increasingly shifting their attention to the new-build sector due to the expense and time needed to refurbish older properties, with strict planning permits and inflated construction costs contributing to the shift in purchasing power.

Whilst buyers may pay up to a 30% premium to secure a home in the best-in-class, secure new developments located in London’s most exclusive postcode, they will still be making a financial saving when looking at the cash and time investment required to update a non-new-build home to a calibre comparable to new-build stock.

Furthermore, the discretion and security (one of the most important purchasing factors for UHNW buyers) attached to new-build developments are often impossible to recreate within an older home.

70% of the £793 million worth of property sales over £5 million in Mayfair in 2022 were new-build sales. This percentage jumped to 80% when looking at the £634.7 million worth of sales over £10 million.

Tyburn research shows that the buyer demographics have mainly been from the Middle East and North America, with purchasers frequenting the Capital for both business and pleasure. Due to busy lifestyles and high-powered careers, these buyer groups prioritise turn-key homes with amenities at their fingertips.

80% of recent deals secured by Tyburn have been at high-end new build developments located in Prime Central London, with over £50M worth of said deals completed over the past seven months. These deals included properties at The Whiteley, 1 Grosvenor Square and Regents Crescent some of the most sought-after new schemes in the capital.

Tyburn found that a limited amount of available high-end new build stock is driving prices and activity with reports citing that Prime Central London’s ultra-prime housing market for multi-millionaire and billionaire buyers has risen by 30 per cent.

There are under 20 high-end developments in Prime Central London with availability in the £5 million-plus bracket. These include Chelsea Barracks, Southbank Place, 1 Grosvenor Square, The OWO and The Whiteley amongst a handful of others. The scarcity of stock and the increasing number of international off-plan sales has created a competitive market for these properties.

Moreas Madani, Founder of Tyburn, commented: “Tyburn’s recent findings into the Prime Central London sales market has revealed a clear buyer shift into the new-build sales arena. Although new build properties have always carried a premium, there has always been a greater desire for London’s iconic historic properties.

“However, due to increasingly stringent planning applications and sky-rocketing construction costs, time-poor Ultra High Net Worth buyers are opting for turn-key new-build homes with state-of-the-art amenities and security systems. With only a handful of these incredible properties on offer, there is a real demand bubbling, which is both driving prices and limiting stock.”

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