London Property Now 10% Off Their Peak 2008 Prices
Research by Knight Frank has discovered that London property prices have risen by an astounding 3.2% in the last month, an increase which has not been seen within one single month since August 2007. Yet, the most interesting fact to come out of their research has to be the discovery that London property prices are now only 10% off their 2008 peaks.
Taken from the Prime Central London Residential Index, in their report Knight Frank noted that across the London property market property prices have risen by an incredible 19% in the last 10 months.
Triggered by low interest rates and a falling pound, 2009 witnessed a surge in foreigner property investors who after witnessing the value for money they could get from London property invested like crazy. In the last year alone the number of £2m+ property investments sold to non-UK property investors has risen by 45%…
However, despite this growing confidence in the property market some property advisors are concerned that these property price increases may only be short-term if property supply doesn’t improve.
According to Knight Frank there are now 22% fewer properties for sale across the entire breadth of the UK compared to this time last year. A statistic which proves that the supply-demand ratio is completely out of proportion, especially as purchase applicants have risen by 30% – the highest it has been for 5 years!
The worse hit regions appear to be at the top end of the property market, consisting primarily of £5m-£10m property investments in Mayfair, Kensington, Holland Park and Knightsbridge which are now falling into short supply as more and more buyers are willing to bid above guideline prices.
Property development too appears to have been affected. Influenced by an influx in property interest from Singaporean, Malaysian and Thailand property investors, property developers have been hard at work producing a 43% increase in new build properties across the Canary Wharf.
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Tags: property advisors, property developer, property developments, property investment, property investor, property market, property prices
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