While Greater London prices are 13% higher than in 2007, according to autumn 2013 market intelligence report from agents Craysons that covers the W14, W11, W10, W8 and W2 postcodes.
The data also shows that new instructions have increased in the last three months by 9.3% on the previous three months and the number of properties sold between June and August in the area was 22% higher than in the previous three months, and 78% higher than the same period last year.
Average pound per square foot values for properties sold between June and August were 9.9% higher than the same period a year ago, and 6.3% higher than in the first three months of the year.
The data shows that it is the upper end of the market that has seen the most significant rise in new instructions. Between June and August, 32% of all properties listed in the area were advertised at £2 million and above, compared with 24% over the same three month period in 2012.
‘To avoid the potential cost of purchasing and owning an investment property at above £2 million, many are instead choosing to make multiple investments at below the £2 million stamp duty threshold,’ explained Nick Crayson.
‘With agents keen to get stock onto their books, over valuing of properties continues to be a problem. Some 29% of properties currently for sale in our area have been reduced in price since initial marketing. At Crayson we have reduced the price on only two of the properties we have sold so far this year. The vast majority of properties sold by us have been agreed at or above the original guide price,’ he pointed out.
‘Ongoing tax investigations abroad, along with the increased taxation of properties over £2 million owned by companies, could be encouraging funds to be repatriated back onshore. The security of central London real estate remains a very attractive investment opportunity,’ he added.
The report points out that the central London residential property market is very different to that of the rest of the UK and has changed significantly from five years ago.
‘With less reliance on mortgage finance and with a very varied base of both domestic and overseas buyers, London continues to attract significant amounts of demand and wealth,’ it says.
‘The capital continues to be the city of choice for the world’s wealthy with the highest number of ultra high net worth individuals, that is those with assets over US$30 million, of any city in Europe.
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