LONDON BOROUGHS: Super prime Kensington and Chelsea

• London's smallest borough occupies less than 1% of the city’s total area, reflecting the exclusivity of its property prices and the number of their owners.

• Prices have risen 150% in the last decade. Kensington and Chelsea has consistently had the highest average property prices in London and across the UK. Average prices are in the region of £1.3 million (RM7.7 million) or almost three times the London average. The price differential has been widening.

• Before the global financial crisis prices, in Kensington and Chelsea were around double the London average. However, as with other affluent areas, the recession did not reach the borough and prices recovered stronger than the wider market.

• There is a range of prime property developments of different degrees of specification and values across Kensington and Chelsea. The values of those being marketed average £1,940 per sq ft (psf). Prices achieved ranged from £1,130 psf up to £3,685 psf.

• Location is still the key indicator of value but for an asset to be considered prime, a number of features are now prerequisite for the ultra wealthy, such as a state-of-the-art security system and comprehensive concierge service. Most extremely wealthy buyers would not consider a scheme without these fundamental features. For this market, value-added services include business and leisure amenities.

• Super-prime units need to be finished to the highest, recognisable specification possible, but must simultaneously allow for personal customisation.

• The external design of the building must be similarly recognisable as being historic and noble, or branded by an award-winning architect. If the building itself is an iconic landmark and an overt symbol of wealth, all the better.

• For a development to acquire super-prime status it would need a full and comprehensive service offering. Branding is extremely powerful, purchasers like to know they are buying the best.

source: London living: A borough by borough showcase by CBRE

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