Overseas buyers now make up over 50% of the prime London market, says the latest London research from Knight Frank, while in the £5m+ market, they account for as much as 68% of all buyers.
In major prime property areas international buyers now account for more than 60% of all prime market purchases while the variety of nationalities buying in the capital has gone up from 30 in mid 2008 to 51 by mid 2010, Knight Frank has found.
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International demand has helped to grow prices in prime London by 24% in the 15 months since 2009 with prices now only 6% below their March market peak.
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Head of residential research at Knight Frank Liam Bailey said: ‘Despite the fact that prices have risen the weakness of the pound still ensures that effective discounts available to foreign buyers are still very significant. Chinese buyers are still able to secure a 31% discount on 2008 prices.
‘Central London is now a market apart, not only is demand seemingly immune from wealth attacks, but so too is supply.’
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