The years since the financial crisis have definitely been interesting ones for the Kensington & Chelsea property market. Starting with jittery speculation about an imminent fall in prices as redundancies and salary cuts spread like wild fire throughout the City of London in 2008; Kensington & Chelsea proved surprisingly resilient against this downturn. In fact, the market in Kensington & Chelsea saw one of the greatest boom markets in many years as investors and newly minted developing market millionaires from across the globe rushed to get a piece of one of the most sought after property markets in the world.
However, in contrast the property market in Kensington & Chelsea has been exhibiting somewhat of a slow down, which contrasts against what seems to be happening in the Outer London boroughs. Price in in the borough are down some 0.4% over the course of 2015 which is a reflection of a number of factors which include:
- A slow down in China which has led to a recent risk awareness of Chinese investors as we have seen some of these investors slowly sell their holdings over the last year;
- Which led a collapse in oil prices across the Globe which in turn has affected the appetite of traditional oil investors emanating from the Middle East and Russia;
- Also sanctions in Russia have further put a damper on demand from what has traditionally been one of the most prominent buyer group’s in Kensington & Chelsea;
- And finally further market adjustment’s have impacted the traditional buyers of properties in Kensington & Chelsea which include the recent changes to the stamp duty system which has severely affected the £1m+ market, and further changes to the taxation of overseas property holdings
This trend is all the more apparent when you rebase property prices to 100. The question still remains whether property prices in Kensington & Chelsea will continue to stagnate or whether they will see a resurgence as buyers get accustomed to the new rules and markets stabilise throughout the world.