Press Release: Average Prime Central London property now worth over 2 million
Tue 23 Jul 2013
- Prime London property grew in value by 3.6% in the last quarter and by 3.4% in Prime Central areas*
- Imbalance of supply and demand helping to inflate prices and pushing buyers further afield
- Q2 2013 was a bumper period for transactions in Prime London as a whole, with 40% more properties changing hands than in the previous quarter
The average property in Prime Central London is now worth more than 2 million, according to estate agent Marsh & Parsons' latest London Prime Market Monitor.
The value of property in central hotspots including areas such as Chelsea and Kensington has risen by 9.3% in the past year and by 3.4% in the last quarter.
Increased demand at a time of an acute shortage of stock is pushing prices higher. During the last quarter, 11% more buyers entered the market in competition for 14% fewer properties.
While transactions across Prime London as a whole increased by 40% during the last quarter, the volume of transactions in central areas reduced by 38%.
Peter Rollings, CEO of Marsh & Parsons, comments: "Its true that the imbalance of supply and demand is pushing property prices higher in Prime London areas. But its also creating an excellent time to sell property. Helped by the rapidly improving availability of mortgages, buyers are queuing up for the chance to buy a Prime London home. Property is changing hands in record time and for close to the asking price, with 98% of the asking price for Prime London property regularly being achieved."
What 2m will buy
Despite the introduction of the 7% stamp duty tax, the number of properties worth 2m or more has continued to increase. Over a third (38%) of Prime Central London properties are now worth 2m and in Prime London as a whole, almost a quarter (24.6%) of homes fall into this category.
The price increases are particularly pronounced in properties which were worth more than 3m in January 2010. At the beginning of 2010, the average price of a property in this category was 4,509,739. The average current price for properties in this category is now 5,481,884 an increase of 20% in just 3.5 years.
Strong price growth continues
In Prime London as a whole, property values have continued their upward momentum, with prices climbing by 12.7% in the past year and by 3.6% in the last quarter.
For the past five quarters running, growth in Prime London as a whole has outpaced Prime Central areas; experiencing consistently higher quarterly growth than its most central parts alone. But the gap is closing, with Prime Central London growth just 0.2% slower than that of Prime London overall in the last quarter, compared to a 1.6% difference in Q1 2013. Graph showing Prime London property price movements:
|Average Value||Quarterly Change||Annual Change|
Two-bedroom properties in Prime London
In terms of property types, the property group which experienced the largest growth spurt last quarter were two-bedroom properties in Prime London with a 6% value increase compared to the previous three months. The slowest movers were one-bedroom properties in Prime Central London, which increased in value by a relatively modest 1% in the three months to June.
Peter Rollings continued: Two-bedroom properties in Prime London offer substantially better value for money than smaller properties in the most central areas. Many first-time buyers flock to the village atmospheres of South and South West London in search of a place to lay down roots.
During the current economic climate, many buyers are looking for longer-term investments, so larger properties in less central areas are becoming an increasingly attractive prospect.
For further detailed analysis of Londons prime market, please see Marsh & Parsons accompanying London Prime Market Monitor.
*Based on a repeat valuation of a representative basket of properties in the prime and prime central areas of London. See methodology for definition of Prime London and Prime Central London.
Click here for the full report.