Cooling prices in Prime Central London have lead to average sale prices rising
Headlines from the Prime Central London property market Autumn 2014
* Average spend rises 27% from £3.7 million to £4.7 million in the three months to August
* Number of sales above £5 million rises 17% compared to 2013
* Annual growth slows to 7.7%
The average sale price in prime central London between June and August 2014 was £4.7 million, up from £3.7 million in the preceding three-month period, says new research from Knight Frank. The agent says that this 27% increase underlines how a growing group of vendors are adjusting to the fact demand is cooling, the result of uncertainty surrounding a future interest rate rise and the outcome of next May’s election.
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As asking prices have become more realistic, more sales have been achieved in higher price brackets, this research has revealed, and the result was a 17% increase in the number of sales above £5 million between January and August compared to the same period in 2013, and a 7% rise across all price brackets.
This process of self-correction in the sales market, which comes against the background of slowing growth in prime central London, demonstrates the resilience of demand, the report states.
In terms of overseas buyers this year, Italians were the biggest group by nationality between January and August, accounting for 6%, followed by French (4.1%) and Russians buyers (3.8%).
According to Head of London Residential research for Knight Frank, Tom Bill, Italy’s economy has experienced a triple-dip recession and Italian buyers have again been active in London, a relationship potentially bolstered by Fiat’s decision to move its headquarters from Turin to London earlier this year.