The battle of the capital's most sought-after addresses continues, with Mayfair fighting back in the property pricing stakes, according to a review by estate agent Wetherell.
For the first time in 10 years, Mayfair apartment prices have opened up "a wide value margin" above fellow prime spot Knightsbridge.
The agency - which is based in Mayfair - said Knightsbridge has been under pressure due to a lack of new homes provision, outdated stock and constrained supply. It had commissioned market intelligence firm Dataloft to analyst luxury apartment sales and lettings values across London's prime postcodes over the 17 years from 2000 to 2017.
Where Mayfair has over 4,360 residential addresses, Knightsbridge has 2,500, which the estate agent said could mean the former has the advantage on number of opportunities for redevelopment and real estate value growth.
Last year, Mayfair apartment prices averaged £2,378 per sq ft, six per cent above Knightsbridge, which averaged £2,242 per sq ft. Nearly three-quarters of last year's sales in Mayfair achieved £2,000 per sq ft or higher, according to the analysis.
It marked a sharp rise on the year before, when Mayfair apartments just nudged above Knightsbridge - averaging £2,314 per sq ft and £2,299 per sq ft respectively. Prior to that, Knightsbridge took the crown, with greater values in 2015, 2014, 2013, 2012 and 2011.
Wetherell said that there was a brief period in 2007 when Mayfair prices were one per cent ahead of Knightsbridge's, with the development of One Hyde Park then helping to push Knightsbridge ahead.
The estate agent said a similar trend was emerging in the lettings market, with the highest rents in Mayfair now averaging £2,026 per week - 17 per cent higher than Knightsbridge.
Peter Wetherell, chief executive of the estate agent, said:
"Mayfair was historically London’s richest address. After 1945 many Mayfair homes were turned into offices, and planning priority was given to commercial premises.
This, combined with the development of One Hyde Park and other luxury Knightsbridge apartments led to the last decade of Knightsbridge being the capital’s top address."
Wetherell added that five years ago, planning permissions and office-to-resi conversions were halting the decline in Mayfair, leading to his estate agent's prediction Mayfair would claim the crown of London's most desirable address. He said the forecast has been proven "with the test of time, to be accurate".
The estate agent is also expecting a further boost from the Elizabeth Line, which launches in December. Crossrail impact reports have forecast a boost in property prices and new stations such as Mayfair's Bond Street are expected to bring a lift in residential prices to the surrounding areas.