Date Published 24 September 2012
House prices in prime central London are continuing to defy gravity, Knight Frank has reported.
The firm says prices have now risen 51% since the post-financial crisis low in March 2009.
Average property values in prime central London are now at yet another new record high, 15% above where they stood before the credit crunch struck.
This month alone, they have gone up 0.7% over August prices, and are now 10% higher than this time last year. Certain parts of central London are dizzyingly out-performing even that – prices in Knightsbridge, Hyde Park and Marylebone are all on average 14% ahead of where they were a year ago.
However, volumes of house sales have fallen in the £2m-£5m sector following Budget hikes to Stamp Duty. Sales are down 20% in the three months to September compared with the same period in 2011.
This fall has been balanced by a 23% rise in transactions for homes worth up to £2m.
Overseas buyers now account for 41% of buyers of London property worth over £1m, and for more than 50% of buyers in the £2m-plus market.
The overseas demand is driven by Russian, Indian, Italian, US and French buyers, says Knight Frank. It all neatly illustrates that it isn’t just the rich who are different – London is decidedly at odds with almost all the rest of the UK (Wentworth, Weybridge and Sandbanks being the obvious exceptions).
Here, for EAT readers to enjoy, is an all but sold-out development where three-bed penthouses are being marketed by Knight Frank and Savills.
As a sign of the times, the developers (of Grosvenor Waterside) are Qatari Diar. Each is £5.95m, and although you do get furniture (think Harrods), the outside space is minuscule and, well, they’re basically three-bed flats at Battersea Bridge (think dogs home) being marketed to within an inch of their lives.
Apparently, some buyers who bought in the block for investment purposes like it so much they have made it their home – and bought an investment property elsewhere.
This could be happening nowhere else but London. But is it for real?