Prime Resi: Monday Market Review: Breaching the million
Sun 28 Apr 2013
(For Week 17, 2013) Three agents told us last week that average London prices have breached the 1m mark, so it's now gospel.
Nearly half of prime London's homes are now, thanks to a 12.8% price rise over the last 12 months and +3.6% Q1, worth over 1m, according to the latest from Marsh & Parsons (here), as off-central properties close the gap on their PCL neighbours.
Cluttons put London's Q1 price rise at a slightly less hefty +2.3%, which works out as an extra 383 per day on property prices (more here). The average flat in London has, says Cluttons, now breached the 1m mark, and shows no signs of abating, with a 22% price rise forecast for the next five years. Trevor Abrahmsohn concurs here, arguing that Francois Hollande's "lunatic fringe" makes punchy price predictions ever more feasible.
CBRE marched onto the average London price field with 1.1m here. The firm also found that the number of 2m+ transactions rose by 48% over the last year. And those perennial tales of stock shortages might be helped by some new number-crunching by CBRE, who have worked out that there are over double the number of resi units waiting on planning consent in the London pipeline this quarter compared to last.
But that pipeline seems to be pretty slow in heading West. A dreary Spring is seeing Cotswold stock down by 70%, according to
The Buying Solution
here, although there are signs of an impending surge in 1m+ properties in the South of region.
Up North, Knight Frank has detected signs of a settling in the prime Scottish market (here), which has just delivered its smallest price drop - a barely mentionable 0.1% - since Q2 2011.
Savills, meanwhile, has claimed (here) that a Waitrose on the doorstep adds up to 50% to local house prices.