London’s super-prime residential market has recorded its strongest year since 2013, according to Savills.

In total, there were 522 super prime sales in 2021, coming in just under the total for 2013, which averaged 533.

In Q4 alone there were 163 transactions, which is 37% higher than Q3 2021 and the second highest quarterly figure ever recorded, only beaten by Q2 2014 when there were 166 transactions.

As a result, the last three months of the year saw the highest quarterly spend for any quarter since Savills records began in 2006 with almost £2bn spent on properties agreed for £5m or more. This can largely be attributed to the number of £20m-plus sales of both new build and second-hand property (51 vs 32 in 2020).

There was also a significant uptick in the number of £10m-plus transactions in Q4 – the strongest quarter ever with 62 sales compared to a previous high of 50 in Q4 2014, when many rushed to buy before new higher stamp duty tax bands were introduced.

Additionally, the new build market also ramped up at the end of the year. There were 30 new build sales topping £5m in Q4 2021, with a total value of £558m. This is the both the highest number of units topping £5m sold, and the highest total value spent on new build property, ever recorded in a single quarter.

Frances Clacy, Savills research analyst, said: “London’s super-prime markets stellar end to the year is evidence of the influence that the pandemic-fuelled desire for more space has on residential markets. While we can expect to see demand from domestic buyers looking to upsize into a larger family home soften in the new year, a lack of suitable stock on the market will continue to support prices, while the supply-demand imbalance remains.

“It’s also clear that domestic and UK-domiciled international buyers are taking advantage of the opportunity to buy in a market that still represents relative value and before a more sustained return of overseas demand. Recovery in prime central London values is certainly underway, but revived Covid-19 restrictions are likely to push the forecasted up 8% bounce back in values further into 2022.

“But it’s not all about houses. We are also starting to see recovery in demand for London’s super-prime flats, with demand focused on the limited supply of very high quality stock.”

With international travel rules easing in November, there was a significant uptick in the number of international buyers returning to the capital. As a result, central London hotspots continued to dominate sales and more than half of all £5m-plus sales took places in Kensington, Chelsea, Belgravia, Notting Hill and Knightsbridge, knocking leafier St Johns Wood, out of the top five from the quarter prior.

However, the £5m-plus price tag continues to extend its reach across London as buyers race for more space, with locations such as Wimbledon, Battersea, East Sheen and Wandsworth firmly on the super-prime map, as buyers look to reap the benefits of ‘country’ style homes, without leaving the capital. There was a 84% increase in the number of £5m-plus sales across south west London in 2021, compared to 2020.

Savills prime sales index for Q4 revealed that the price of a six or more bedroom house in west London rose by 10.4% during the past year and by 15.1% since March 2020, and by 9.1% and 12.1% in South West London.

Jonathan Hewlett, Savills head of London residential, sadi: “It’s extremely positive to see so much activity in London’s super-prime market, which reconfirms buyer belief in the city’s position as a dynamic and resilient global city.

“Although London’s domestic market largely underpinned super-prime activity last year, we saw a bounce back in international buyer numbers towards the year end. Daily flights to the UK more than doubled in the final quarter, on a year on year basis, and more than half our central London agents reported seeing an increase in international demand during this time.

“However, with the reintroduction of some travel restrictions largely putting the international market on pause for the last couple of weeks of the year, we are already seeing signs that pent up demand will carry through into the first couple of months of 2022 leading to a strong start to the year for this market.”