6 August 2012, London – Average house prices in Central London increased over the last quarter by 4 per cent to £881,437, new research from CBRE has revealed. Kensington & Chelsea recorded the greatest uplift of 7.5 per cent taking the average price to £1.05m, but Knightsbridge still has the highest value homes at £1.4m.
New-build developments in central London achieved values well in excess of the second quarter baseline averages; for example, a second-hand apartment in Westminster sold for an average of £721,414, whilst a similar new build home achieved £1,141,910 reflecting a 58 per cent premium.
Overseas demand for new build schemes is expected to remain strong, but foreign investors are becoming more discerning, so appropriate pricing is critical. Only the very best residential schemes that are well-located with a strong developer or architectural pedigree will do well in what is an increasingly competitive market
Traditionally, buyers from Hong Kong, Singapore, Kuala Lumpur and mainland China have dominated international demand, but interest is growing in other countries such as Thailand, although schemes are not yet routinely exhibited in Bangkok. Elsewhere, there has been a notable increase from Indian high-net-worth individuals, who are typically seeking large Prime Central London properties at the top end of the market.
Mr. Mark Collins, Head of Residential at CBRE UK said, “Asian buyers have been particularly active in the new build market and are inevitably the common factor in all of the fastest selling schemes. Many buyers are entering their fourth year in the market, so are highly educated and astute. As a result, there may be a growing distinction between the best and the rest over the course of the next two years.”
“Opportunities for central London residential are emerging in new countries. Thai investors have significant buying power, but are still relatively new to the central London market so tend to stick firmly to the well known ‘Monopoly board’ areas of Mayfair, Belgravia and Knightsbridge. Indian high-net-worth individuals are also showing an increasing interest at the top end of the market around the £4m to £15m price bracket.”
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