SNAPSHOT WINTER 2011/2012 RESIDENTIAL RESEARCH chelsea & South Kensington

Although they share many similarities, Chelsea and South Kensington appeal to a wide range of different residents. Chelsea, with the famous King’s Road running through its centre, retains much of its ‘old village’ feel and is predominantly made up of family houses. In contrast, South Kensington is largely made up of apartments in mansion blocks or converted buildings and appeals more to young professionals. Both, however, are well known for their many bars, cafes and restaurants. So much so that we are never surprised to come across kitchens that have barely been used.

Supply has become very “ tight as more and more buyers “and tenants enter the market from abroad.

South Kensington has always been strongly garden squares, to Hyde Park in the north, influenced by continental Europe and many and Battersea Park in the south. Also appealing of its shops and bars are French, Italian or to families is the abundance of excellent Spanish in style. schools, including the renowned Lycée on Knight Frank Chelsea Harrington Road. +44 (0)20 7349 4300 The nightlife is also exceptional, with high- [email protected] profile haunts including Bouji’s and Maggie’s. As Chelsea and South Kensington tick so many 352a Kings Road, Chelsea, The shopping is second to none – the King’s boxes, it is therefore little surprise that it was London SW3 5UU Road first gained popularity in the ‘Swinging one of the first areas to see prices bounce back knightfrank.co.uk/chelsea after the financial crisis. Both sales and rental Sixties’ and has now established itself as Knight Frank South Kensington prices continue to rise. one of London’s finest shopping districts, +44 (0)20 7871 4111 particularly with the redevelopment of the Although we sell and rent a relatively large [email protected] 157 Gloucester Road, Duke of York’s barracks. number of properties, supply is becoming tight London SW7 4TH as more and more buyers and tenants enter the Cultural attractions include the Natural History knightfrank.co.uk/south-kensington market from abroad. Museum, the V&A, the Physic Garden, National If you have any queries or would like to obtain additional information on the Army Museum and Royal Hospital to name but Our King’s Road office has been operating for UK or international housing markets please contact: Liam Bailey, Head of Residential Research, +44 (0)20 7861 5133, [email protected] a few. Chelsea has always been popular with nearly five years and was joined last year by a © Knight Frank LLP 2012. This report is published for general information artisans and has its own renowned Arts Club in new office on Gloucester Road. only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal Old Church Street. responsibility can be accepted by Knight Frank Residential Research or Knight If you are thinking about selling or renting a Frank LLP for any loss or damage resultant from the contents of this document. As a general report, this material does not necessarily represent the view of Despite their central location, we are lucky to property and would like us to come and give Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is allowed with proper reference to Knight have plenty of open spaces providing some you a free market appraisal, please do not Frank Residential Research. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Registered office: beautiful views across London, from timeless hesitate to contact a member of our team. 55 Baker Street, London, W1U 8AN

CHELSEA AND SOUTH KENSINGTON SNAPSHOT WINTER 2011/2012 | 01 SNAPSHOT WINTER 2011/2012 RESIDENTIAL RESEARCH chelsea & South Kensington sales

James Pace, Head of Knight Frank Chelsea and South Kensington Chelsea and South Kensington Sales, discusses a bumper year, who’s buying, and the trend for sales market at a glance paying significant premiums for unmodernised properties. Figure 1 Buyers, past 12 months How has your market been sold it for £13m. Similarly, we marketed a performing? mews house on Roland Way for £1.85m and achieved over £2.5m. Both were record- This past year has been our most successful breaking prices per square foot for the road, since opening in 2007. This strong despite their condition. performance has been driven largely by international buyers looking either for a safe Where are the ‘hidden gems’? investment or, at the other end of the scale, I’m not sure we could class anywhere as a trophy asset. ‘hidden’ these days, but there are some fabulous houses in ‘Old Chelsea’ that What different types of buyers many people will not be aware of. In South are attracted to the area? British 44% Kensington, Queen’s Gate Gardens has some Russian 8% Most of the properties in Chelsea are houses, of the best apartments overlooking the Square. French 8% making it very popular with families. South Italian 6% Kensington’s apartments and mews houses What advice would you give to Middle Eastern 4% African 4% tend to attract young professionals and the a homeowner thinking about German 3% corporate market – those moving for work selling? Bermudan 3% reasons. In the past, the majority of buyers Be conservative when it comes to setting your American 3% Other 17% have been from the UK and Europe. But the asking price. This will generate more interest, spectrum of nationalities buying here has competition between buyers, and an optimum Figure 2 widened significantly in recent times as sale price. You should also present your What do our applicants want to spend? London has become a popular safe haven property in its best possible light, whatever New applicants, past 12 months during the global economic turmoil and its condition. geopolitical concerns. How does your local market What’s the most interesting sale differ from the prime London you and your team have been market as a whole? involved in recently? Unlike areas such as Knightsbridge and This year people have been willing to pay Mayfair, most people see their Chelsea or significant premiums for unmodernised South Kensington property as their main properties. We marketed a house in Gilston residence, even if they do have another Road at a guide price of £8.5m. While we property in the UK or abroad. This means the did expect to attract a lot of interest and area has a strong sense of community and a under £750k 5% predicted a sale price around £11m, we secure residential feel. £750k to £1.5m 31% £1.5m to £2.5m 24% £2.5m to £3.5m 15% £3.5m to £5m 10% over £5m 15% The Knight Frank team

James Pace John Kennedy John Waters Victoria Garrett Lucy Holroyd James Rawes Nick Gaunt Amy Rogers Department Head, Partner Associate Associate Associate Senior Negotiator Negotiator Negotiator Chelsea and South Kensington Sales

CHELSEA AND SOUTH KENSINGTON SNAPSHOT WINTER 2011/2012 | 02 SNAPSHOT WINTER 2011/2012 RESIDENTIAL RESEARCH chelsea & South Kensington sales

Chelsea and South Kensington properties

for sale sold First floor flat with Detached unmodernised communal garden house with garage Beaufort Mansions Gilston Road 3 5 £825,000 £8.5m

For sale SOLD Exquisite low-built Unmodernised garden house with garage square house Justice Walk Carlyle Square 5 5 £11.5m £6.25m

For sale Sold Large family house Chelsea house in need requiring modernisation of refurbishment Glebe Place Upper Cheyne Row 6 2 £5.5m £1.4m

for sale sold Spacious flat in smart Beautifully restored mansion block freehold house richmond mansions Onslow Gardens 1 7 £1.15m £14m

For sale SOLD Maisonette with Spectacular first-floor private garden apartment Earl’s court square Queen’s Gate 5 2 £2.95m £5.5m

For sale Sold Spacious mansion Family house with block apartment west-facing garden alexandra court lamont road 3 3 £1.795m £3.25m

02 CHELSEA AND SOUTH KENSINGTON SNAPSHOT WINTER 2011/2012 | 03 SNAPSHOT WINTER 2011/2012 RESIDENTIAL RESEARCH chelsea & South Kensington LETTINGS

David Mumby, Head of Knight Frank Chelsea and South Kensington Chelsea and South Kensington Lettings, discusses who’s renting, hidden gems, and the positive lettings market at a glance outlook for the year ahead. Figure 1 Nationality of our tenants How has your market performed from its contemporary exterior, but opened Tenants, past 12 months so far this year? up to some 8,000 sq ft of vaulted ceilings and suspended glass stairs – breathtaking. It’s been a very good year for landlords. Demand in the form of new tenant Where are the ‘hidden gems’? registrations rose by 20% over the past year and the number of new rental instructions Over the last 10 years I’ve seen so many increased by just 6%, demonstrating that hidden gems that it’s hard to recall where demand is by far exceeding supply. The the best ones are. The area around Wetherby best properties are setting new benchmarks Gardens and Gledhow Gardens offers for rental prices achieved and we have some truly stunning lateral conversions managed to rent out many properties before with outstanding volume. We are currently even launching a full marketing campaign. marketing an exquisite listed house on We expect to see rental price growth in Cheyne Walk in Chelsea that features a UK 50% central London to equate to around 4% or discreet terrace from which some of the best USA 15% 5% in 2012. views in London can be seen. France 5% Russia 4% Germany 3% What types of renters are What advice do you have for Other 23% attracted to the area? landlords? Figure 2 This area has always been very popular with Presentation is key if top rents are to be What do our applicants want to spend? achieved. Any potential weaknesses in a UK, mainland European and North American New applicants, past 12 months tenants. It’s great to rent a flat to a single property will provide scope for negotiations person or young couple and then, over the on the guide price. I would always advise years, help them find bigger properties as that landlords seek a professional viewpoint their family, and income, grows. We rent out when refurbishing a property. It’s important everything from stunning artist studios to to cater to the target market rather than one’s some of the largest houses available to rent personal taste. in London. How does your local market What’s the most interesting differ from the prime London property you’ve rented recently? market as a whole? One of the delights of this job is being invited We have a larger percentage of tenants from to see a property and finding it to be utterly the UK and America compared to other parts under £750pw 61% different from what you were expecting. We of prime London. I know several tenants who £750pw to £1,500pw 25% recently rented a house in the area referred commute back to their homes in Europe for £1,500pw to £2,500pw 7% to as “Old Chelsea” that looked unassuming the weekend. over £2,500pw 7%

The Knight Frank team

David Mumby Natalie Berthiaud Robert Gittins Harriet Taylor Anna Boughen Marie Wale Department Head, Associate Senior Negotiator Senior Negotiator Negotiator Negotiator Chelsea and South Kensington Lettings

CHELSEA AND SOUTH KENSINGTON SNAPSHOT WINTER 2011/2012 | 04 SNAPSHOT WINTER 2011/2012 RESIDENTIAL RESEARCH chelsea & South Kensington LETTINGS

Chelsea and South Kensington properties

to let let & Managed Split-level apartment Heart of SW7

Elvaston place roland gardens

3 2 £1,100pw £850pw

to let let Stylish apartment Immaculate gardens

Queen’s gate gardens Brechin place

3 1 £1,195pw £475pw

to let let Large lateral flat Newly refurbished mews

Queen’s gate cranley Mews 3/4 3 £2,400pw £1,200pw

to let let Immaculate family house Contemporary flat

Elm Park Road Park Walk 4 2 £4,750pw £850pw

to let let Large house with garden Stunning modern house

Paultons Square Cresswell Place 4 3 £4,500pw £1,700pw

to let let Large patio garden Immaculate apartment

Hollywood Road Fawcett Street 4 2 £2,750pw £675pw

04 CHELSEA AND SOUTH KENSINGTON SNAPSHOT WINTER 2011/2012 | 05 ALL our properties ARE PRECIOUS TO US, no matter what size.

But those aren’t the only aspects that set Knight Frank apart. Our local market insight, global network and tailored property search are all to your advantage. And naturally, you

Your property and Knight Frank are the perfect combination, so call us today for a market appraisal. KnightFrank.co.uk/chelsea Tel: 020 7349 4300

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