Prime Central London property has broken records again, rising by 33.3%in the past twelve months, according to the latest Knight Frank report. Their research found this is the fastest rate of growth in the capital since 1979 and means that prices in central London are now rising faster than the wider UK market by almost three times, with Belgravia and Knightsbridge leading the way.
Evidence of this becomes obvious when prices per square foot are examined: exceptional London properties are now hitting £3,000 per sq ft, while Knight Frank says some are even breaking through the £4,000 per sq ft barrier; prices unmatched in the rest of the world.
Only Monaco is able to compete with London in these terms, the report claims, with prices of £2,190 per sq ft; New York, Hong Kong and Tokyo follow on at £1,600,£1,230 and £1,100 per sq ft respectively.
However, prime property in London cannot continue this relentless growth forever, and Knight Frank predicts that the heat will come out of the market in coming months: ?Our date reveals some indications that the market may well be close to its peak in London. A slight shift in demand and supply appears to be beginning which, if it continues, will begin to see a move away from a sellers to a buyers market. We believe that price growth will begin to become more subdued by late summer, but we still think that central London prices for property priced over £3m will grow by 20% in 2007,? said Liam Bailey, Knight Frank?s head of residential research.