Prime position

George Sell By George Sell
Uploaded 06 March 2019

• The prime central London residential market has had a well-documented tough time of it recently - Spring review figures from Knight Frank show that there is still no growth in terms of sales and prices, while sales were down by 15 per cent year-on-year in 2018 and prices down 4.4 per cent.
And while the UK capital's serviced apartment market is continuing to grow and perform well, one can only speculate that the recent £25 million sale of a serviced apartment building in Notting Hill was driven by investors with one eye on a post-Brexit bounce back in the property market.
The Princes Square property, which sold for £665,000 per key - a new record for London serviced apartments, has sui generis planning and can be easily reconfigured - two very attractive factors for the buyers, an undisclosed UK fund. The building is trading profitably as serviced apartments under BridgeStreet's management, but its versatility could well see a change of use if the housing market conditions improve. Knight Frank's Tom Bill says there are "underlying signs that pent-up demand and the conditions for a recovery in the prime London residential market are building". The new owners of this building could well be looking to have their cake and eat it.

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