West End residential: our patch, our view Q2 2016
With additional stamp duty coming into effect in April and the EU referendum in June, we thought we were in for a quiet quarter. In fact, we experienced the opposite, demonstrating just how resilient the London market, and specifically our patch, is.
CBRE West End had a strong second quarter of 2016, despite the looming EU referendum. The office exchanged on almost £60 million worth of property; the second highest Q2 sales total over the last four years. Average sales values were also strong at £1,921psf. This is an increase of 9.5% compared with the same period of 2015 and again represents the second highest average value recorded since 2012. The highest was set at the end of last year at £2,026psf.
On the lettings side of the business, the EU referendum had little impact on uptake in the second quarter of the year. Overall, the office agreed 85 tenancies over the quarter. Although this is slightly down from the same period last year, the difference is minimal (there were 95 tenancies agreed in Q2 2015) and there is no discernible decline in activity. In addition, at £69,150 per week, the total value of tenancies is 21% up on Q1 and 14% higher than the same period of 2015.