Wednesday, May 19 2004

The London prime property market is recovering strongly, and rose by 0.3% in April, according to Knight Frank’s latest figures.

The agent says this brings the capital value increase to 2.8% in the first third of 2004, which contrasts strongly with the fall of 1.9% they calculated in 2003.

Knight Frank named the top four performing addresses as Chester Terrace NW1, Davies Street W1, Illchester Place W14 and Upper Brook Street W1.

Prices at the very top end of the market are showing the strongest gains the agent said, with the £3 million+ properties rising by 0.6% in April, and properties between £2 million and £3 million rising by 0.5%.

Liam Bailey, Head of Residential Research at Knight Frank said: ‘The London prime property market continues to recover, following a period of weakness in 2003. The shortage of stock remains a feature of the market and underpins price growth.

‘Whilst price growth nationally is set to slow over the next two years, the trend in the prime Central London market is likely to be upward as the City employment market recovers.’

Noel Flint from Knight Frank’s Sloane Avenue office added that demand was still outstripping supply: ‘The supply of prime central London houses and apartments is still restricted, which has resulted in many purchasers chasing similar properties,’ he said.

‘There is also an increasing amount of sealed bids, and generally asking prices are being achieved or exceeded.’