Average property prices across London are up 3% since the start of the pandemic, according to Astons.
However, average sold prices across Prime Central London postcodes have fallen by 10% since the start of the pandemic.
W1J, Mayfair and St James’s have seen prices decline by 40%, down from £4.9m to £2.9m, as a result of the pandemic outlined Astons.
Kensington’s W8 postcode has seen the second-largest decline falling by 8%, from £2.2m to £1.8m.
In contrast, the SW1Y postcode recorded the greatest rise in average house prices during the pandemic, up 54%.
This was followed by Chelsea’s SW3 and SW10 postcodes up 23% and 12%, respectively.
Arthur Sarkisian, managing director of Astons, said: “The UK market has stood very firm in the face of COVID-19 uncertainty and largely speaking, the market has accelerated since the reopening of the property market and the introduction of a stamp duty holiday.
“Unfortunately, this has not been the case in some of London’s most sought after high-end postcodes, with sold prices falling since the start of last year.
“This decline in property prices has been due to a number of factors.
“While nice, the stamp duty holiday saving hasn’t boosted buyer demand amongst high-end homebuyers to the same extent as it has in the regular market.
“Restrictions on travel have also prevented foreign investment to a certain extent while those looking to buy for themselves have continued to opt for more peripheral locations such as Hampstead.
“However, the silver lining is that prime London has arguably become more attractive as a result of lower property values, particularly to foreign investors.
“The current landscape not only offers a saving where property prices are concerned but also in terms of the soon to be implemented stamp duty increase for foreign buyers as of April this year.
“With much of Prime Central London holding its value and demand starting to return, it won’t be long before the current areas offering an attractive investment proposition start to see property prices climb once again.”