Demand for residential real estate in London grew three times faster than supply during the first quarter of 2013 and is now at levels not seen since October 2007, just before the financial crisis triggered a property crash.
Figures from property analyst Hometrack also showed that homes in London were typically on the market for just 4.6 weeks in April, which is nearly half the period of more than eight weeks seen at the end of 2008, regarded as the peak of the financial crisis. In addition to that, the proportion of the asking price achieved in the capital was over 95 per cent in April – a level also not seen since summer 2007.
Land Registry market data released this week reinforced the bullish state of London’s property market, highlighting that the average selling price of a property in the capital has reached a new record of £374,568. In the desirable borough of Kensington and Chelsea, the average property price has risen by 12 per cent since March 2012 and now stands at £1.1million. Prices across the whole of London grew by nine per cent last year.
“There’s little doubt that demand from foreign buyers investing in London property, which they see as a secure immovable asset during turbulent economic times, is contributing to this on-going growth in value,” said international property specialist Julian Walker of Spot Blue. “Prime and super-prime properties in particular continue to appeal to high net worth individuals from ailing Eurozone nations, as well as the Middle East and Russia. Another recent report by Knight Frank proved that London property is seen as a safe haven asset – while prices of luxury property continue to rise there, the average price across all international cities has been falling.”