They are, in property terms, the ultimate status symbol: rare, beautiful, and very, very expensive.
If you want an apartment which sits at the very top of prime central London’s housing market then you are going to want a penthouse.
The concept of penthouse living was born in 1920s New York. The Jazz Age was in full swing, the Manhattan skyline was starting to take shape, and developers began creating premium top floor homes in the sky to cater to high rolling buyers. The owners of those early penthouse apartments must have believed they were living a life of unparalleled luxury. A century on, the standard of penthouses on sale in the British capital would astound them.
“A penthouse is more than just being on the top floor,” said Camilla Dell. “A true penthouse needs to have direct lift access. Views are important, you want to have the most incredible views over London or views of an iconic London landmark.
“You need usable outside space as well, so you can go outside to enjoy the views. And you want a sense of space and volume.”
This year’s crop of prime central London penthouses include the Penthouse at Clarges Mayfair. This circa 8,000 sq ft property spread over three floors has six bedrooms, two terraces, and views over Green Park, and is listed for £100m.
Alternatively there is a brand new eight (ensuite) bedroom penthouse at Park Modern, with a 2,400 sq ft wraparound terrace overlooking Hyde Park. Price tag? £60m.
Or, a few minutes’ walk away, is The Whiteley. This property, with services provided by an on-site Six Senses hotel, is smaller, with five bedrooms, but its landscaped terrace measures 4,462 sq ft. It is on sale for £40m.
The rarity value of penthouses means they are, naturally, more expensive than apartments lower down a building. According to recent research by Knight Frank the exclusivity and privacy of penthouse living carries a London premium of 43 per cent. “In reality the premium varies between buildings, and can be a lot more than that,” said Dell. “We are in the process of buying a penthouse in St John’s Wood which overlooks Lord’s cricket ground. We are paying £3,300 per square foot but lower down the building you can buy a flat for £1.300 per square foot.”
At One Hyde Park, in Knightsbridge, prices rise as you go up the building. Two apartments, both sold in 2017, sold for £7,369 and £4,152 per square foot respectively. The key difference between them was that one was on the fourth floor, the other on the ground and first. And when property mogul Nick Candy listed his One Hyde Park penthouse in 2021 he asked £175m for the duplex property, which works out at £9,722 per square foot.
There are a few pitfalls to avoid when penthouse shopping. In recent years some smart developers have started selling what they describe as sub-penthouses – apartments directly below penthouse level – at elevated prices.
For Dell, however, there is really no such thing as a sub-penthouse. It is top floor or nothing.
“It is a nice marketing tool, and it does mean you are higher up the building so you should still have the views, but beyond that it doesn’t mean much,” she said.
Where a buying agent really comes into play when it comes to penthouse buying is in the negotiations. The headline price is one thing, but developers may be willing to make a deal.
Black Brick recently helped a Hong Kong client by a 2,050 sq ft duplex penthouse in Pont Street, Knightsbridge. After some delicate negotiation we shaved £200,000 off the original £4.5m asking price: https://www.black-brick.com/expertise/case-studies/pont-street/
A buying agent also has essential insider information. “We are familiar with a developers’ track record, which is very important,” said Tom Kain, a partner at Black Brick. “And there have been times when we have been able to negotiate not only discounts but also for a developer to make changes to an apartment to suit our buyers’ requirements or even to agree to include the first year or two’s service charge into the price.”
Given their seven and eight figure price tags penthouse buyers will want to know that they are making a solid investment as well as a lifestyle choice. “They do hold value as long as the building is well run,” said Dell.
“They are rare by their very nature and there will always be someone who wants the best of the best.”
In recent years buyers who have put their faith in penthouses include Ken Griffin, the hedge fund billionaire, who reportedly spent £100 million on a penthouse at The Peninsula London, a newly built development almost next door to Buckingham Palace.
Meanwhile another international billionaire, Russian dating app mogul Andrey Adreev, is thought to have spent £145m on the penthouse and two adjacent properties at 20, Grosvenor Square in Mayfair, in 2020.
“Buyers are people who appreciate and want a really luxurious lifestyle,” said Dell. “A penthouse is prestigious and it is just a sign that you have really made it to own one.”
If you’d like to learn more about buying a luxury penthouse in London, or to talk to our buying agents about any other aspect of buying prime property in London, contact Black Brick today.
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
