Prime central London property prices continue to appreciate at a rapid rate driven by insatiable demand among domestic and international property buyers.
With recent research by Knight Frank revealing that average prime central London property prices have increased by an average of 767 every day over the past 12 months, it is little wonder that more property investors are inquiring after property for sale in London.
Demand is particularly strong for property for sale in Westminster, along with property for sale in Mayfair and property for sale in Chelsea, as these areas are among the strongest performing London property markets.
The prime London property market is being led by properties in the 1 million to 5 million price bracket. This means that as well as property in Westminster, Mayfair and Chelsea, demand is also high for premium homes in other areas, such as Kensington, Fulham and Notting Hill.
The influx of wealthy foreign buyers and their influence at street level is evident in many expensive parts of London. This is adding to demand for properties in other premium areas, including property for sale in Holland Park, North Kensington and South Kensington.
Property exhibitions in Singapore, Kuala Lumpur and Hong Kong are driving more Asian property buyers to London, according to research by CB Richard Ellis (CBRE).
Figures supplied by CBRE show that more than 800 million worth of property – equivalent to around 2,500 properties in London – were sold at exhibitions in the three cities last year.
Peter Rollings, chief executive of London estate agents Marsh & Parsons, says that more than 20 buyers are now registering for every prime property for sale in London registered on the market.
Commenting on the London property market, Rollings told the press: “We’ve seen some of our busiest months since 2007 this year, and are in the middle of another surge of activity. House prices have already risen five per cent this year, and we anticipate further rises as competition for good quality stock continues to heat up.”
The dislocation between the central London market and the wider UK market has widened into a chasm over the past 12 months, according to Liam Bailey, Head of Knight Frank Residential Research.
“Over the past 12 months price growth in central London has totalled 8.3 per cent, whereas in the UK the corresponding figure has been a fall of -1.3 per cent”, he said.
He added: “I have pointed to international demand as being a key contributor to London’s bounce. There is no doubt that this is true – with more than 60 different nationalities active in the market over the past 12 months. However we shouldn’t underestimate the impact of the central London economic revival on pricing.”
Bailey is one of many housing experts who believe that the revival in the London property market is sustainable even if overseas demand begins to wane. This is potentially good news for anyone looking to buy property in London, particularly property for sale in Westminster, Mayfair and Chelsea.