The higher you climb, the harder you fall. And so it was for prime central London (PCL) property prices this year.
Properties valued at above £5 million ($6.2 million) saw average selling prices per square foot fall 20 percent compared to 2014, according to data from LonRes, which aggregates statistics from its network of over 6,000 London industry professionals.
However, the lower the price, the lower the fall: PCL properties valued between £2 million and £5 million realized on average 9 percent less per square foot than in 2014 and those below £2 million just 4 percent less.
On top of this, the hand of buyers was strengthened in 2016 with an average 10 percent negotiated off initial asking prices versus just 4 percent in 2013.
But the year's defining characteristic was the woefully low number of transactions executed following the introduction of stamp duty on the purchase of additional properties on April 1. This was on top of the substantial hike in the same tax in December 2014 which had targeted high-end properties.
The number of transactions this year has slumped by nearly a quarter versus 2015, although the pace has picked up slightly in recent months, according to LonRes.