Typical prime central London properties saw prices rise by £767 every day over the past 12 months, says new Knight Frank research on the Prime London market, while average values for prime residential property in central London have now risen by 31.2% since March 2009, the post-credit crunch market trough.
The market is being led by properties in the £1m to £5m price bracket, which have seen prices rise by nearly 4% in the past 3 months. The strongest geographical markets are: Mayfair, Marylebone, St John’s Wood and Kensington – all displaying more than 10% growth over the past 12 months, the report has found.
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Liam Bailey, Head of Knight Frank Residential Research, commented: ‘The dislocation between the central London market and the wider UK market has widened into a chasm over the past 12 months. Both markets bounced back in 2009, after freefalling in 2008, but whereas the national market stuttered to a halt after the reality of the UK’s economic and fiscal position became clear after last year’s election, the central London market has kept powering ahead.’
‘In previous market notes 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. UK buyers still account for around half of all transactions in the market and buyers in business and financial service employment represent at least 40% of all buyers in the robust £1m to £5m sector.’