New data from London residential property buying agency, Black Brick shows that 38 per cent of its transactions in Q1 and Q2 2017 have been off market; a 10 per cent rise from the previous year, with buyers spending an average of GBP15.85 million on their off-market property.
Camilla Dell, Managing Partner at Black Brick, says: “Off-market deals have always occurred in London; however, our data shows that off-market deals have risen considerably in 2017.”
This rise of off-market deals is attributed to sellers not wanting to openly market their properties, but instead sell their homes in a more discreet way, particularly as many properties are being put online and then are having to be reduced multiple times because of the slower London market.
Dell adds: “Traditionally, off market deals were for properties priced at over GBP10 million plus and situated in London’s golden postcodes, however this has now expanded right across London, with properties priced at GBP1 million or more being sold off-market.”
The property expert defines off-market as properties which are sold directly via the vendor to the seller, via an estate agent, who will utilise their contacts to sell a property without any marketing or brochures and from buying agent, to buying agent.
Dell says: “We have analysed the psychology of those who choose to buy or sell a property off-market and we have found that our clients prefer the exclusivity that comes with purchasing a home which has not been openly marketed and which many potential purchasers will not yet have the opportunity to see.
“If a property is pre-market, which means it will put on the open market on a set date, our clients are prepared to pay full asking price to secure the property before it goes on the market. We recently sourced a property for an American buyer which was off-market. He loved it and it was vital for him to purchase the property before anyone else got the chance to view it so he paid full asking price. Later, he decided to sell his London home as he was relocating back to San Francisco so we contacted other buying agencies to find a buyer for his Holland Park apartment.”
One hundred per cent of transactions by Black Brick have been to cash buyers (compared with 46 per cent in 2016), with the majority seeking properties in some of London’s most prestigious post codes. All off-market transactions handled by Black Brick have been for properties in West London, 60 per cent in W8 and 40 per cent in W1.
Those who purchased on-market sought properties in SW1, W8, NW3, W1, W12 and SW3. This is a contrast to 2016, which saw buyers purchase properties across a broader range of London postcodes including N1, EC2, SW1, W8, W1 and SE13.
Dell adds: “Prices in prime central London are now better value and this could be why we have seen a rise in transactions in these prime London postcodes. Our clients are wealthy individuals who, despite the market uncertainty, know that London remains a safe haven which will always draw an international audience, regardless of changes in legislation and stamp duty.”
The boutique buying agency says that for those who want to buy a London property, using a good buying agent is an imperative way to gain access to these exclusive properties, which they would otherwise not get an opportunity to consider.
