Liquid error: wrong number of arguments (2 for 1) Buytonet: Has your property in London hit the GBP 1m mark? | Marsh & Parsons Sales and Lettings Estate Agents London

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Buytonet: Has your property in London hit the GBP 1m mark?

Thu 01 Nov 2012

If you have a portfolio of London properties, you might have noticed that the value of some of them has sneaked over the 1 million mark. It's not just flats in Chelsea and other prestigious central London locations that this price rise applies to either.

According to a new study by Marsh & Parsons, 52.7 per cent of residential properties worth over 1 million are found in the traditional prime destinations like Kensington and Chelsea. This means a hefty proportion of such homes are located outside of these areas, especially to the south and west.

In the last year alone, there has been an eight per cent rise in the proportion of prime London properties that are worth the million-pound mark and above, taking the total to 43 per cent of leading accommodation in the capital.

With 1 million homes now transcending the usual boundaries, this means central London property investors have a wider scope to expand their portfolio and take advantage of the values rise. Rather than sticking to traditionally popular boroughs such as Kensington and Chelsea, they can get their foot in the doors of other areas, if aiming for high-quality accommodation is a main priority for investors.

Indeed, this 1 million benchmark could extend to plenty of other London destinations further down the line, so it may be a good idea to invest in these places now in preparation for potential soaring values. If more boroughs become hotspots for millionaire investors, it could widen the appeal of these locations for not only snapping up property here, but also renting.

You don't even need to keep your eyes peeled for mansions, either. Peter Rollings, chief executive officer of Marsh & Parsons, explained that homes that reach the 1 million mark are not necessarily very large.

He added: "International and domestic buyers have been flocking to prime property in recent years, but this influx of wealth is no longer concentrated in the most central locations. With the supply of homes especially constrained in the central prime areas, wealth has been overflowing into areas like Balham, Clapham and Brook Green, pushing up prices and boosting the number of 1 million properties across the capital."

International investors certainly play an important part in the popularity of central London properties, and the values increase is not just proving advantageous for individuals. Speaking to the Financial Times, Telford Homes said it has already sold 50 per cent of its residential assets for the next 12 months.

Approximately 40 per cent of its sales come from Malaysia, Singapore and Hong Kong, with these types of investors likely to purchase homes off-plan.

Chief executive of Telford Homes Jon Di-Stefano said the status of London as a global city, its public transport connections, the success of the Olympic Games and a lack of new homes have all contributed to its high yields and popularity among overseas investors.

October has been a busy month in terms of positive news for investors. The Cluttons Residential Investment Monitor for the third quarter of 2012 revealed that during this period, typical house values climbed by more than three per cent.

This follows a second-quarter price rise of 0.9 per cent, reflecting how as the year progresses, so does the strength of the central London residential property market.

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