Savills says residential property sales in the UK are now at their lowest level since the 2008 global financial crisis as it reports a 1.5% reduction in sales revenue to £57.3 million during the first six months of the year.
But it also revealed a shock 44% reduction in profits within its UK residential sales operation from £6.3 million last year to £3.5 million.
Its figures would be much weaker if it wasn’t for its core central London and regional branches, which have experienced strong growth.
Savills’ super-prime central London business saw transactions drop by 13%, while sales in the small super-prime market increased by 29% and in the regions by 6%.
But the figures also point to a significant downturn in the new homes market, particularly in London.
Revenues from sales of second-hand homes increased by 1%, highlighting how the company’s new homes division saw the heaviest reduction in revenues; turnover from sales of new homes were 10% down year on year.
Changes within Savills core London markets are also highlighted by the agency’s average property sales price, which has dropped by a third to £2.1 million from £3.2 million a year ago as its sells more mid-market homes and fewer prime central London units.
“In many markets, particularly the UK and Hong Kong, political and economic uncertainty has considerably reduced the volume of real estate trading activity in recent months, although occupier demand remains robust,” says Group Chief Executive Mark Ridley (left), referring to Brexit and the Hong Kong riots.