Press Release: Average Price of Two Bedroom Property in Prime London could reach 1 million by early 2014
Thu 29 Aug 2013
- Two-bedroom properties in Prime London grew in value by 14% over the last year
- There is currently an average of 18 buyers per property across Prime London as a whole
- Two-bedroom properties are highly desirable for both young professionals and investors alike
The average price of a two-bedroom property in Prime London could reach 1 million by March 2014 if prices continue to increase at the current rate, according to research from estate agent Marsh & Parsons.Two-bedroom properties in Prime London appreciated by 14% during the last year, to reach a current average value of 909,203, according to Marsh & Parsons latest research.
If this rate of growth continues for the next three quarters, the average price of a two-bedroom property in Prime London will be 975,843 by the end of 2013 and 1,010,974 by the end of the first quarter of 2014.
Two-bedroom properties experienced a much faster rate of growth than other types of properties in the three months to June 2013, with a 6% increase from the previous quarter. The slowest quarterly growth was among four-bedroom properties, the average price of which appreciated by a relatively modest 3% during the last quarter.
Peter Rollings, CEO of Marsh & Parsons comments: "Compared to the rest of the country, Prime London property prices may seem high, but the figures dont tell the whole story. There is of course a huge variation between different areas in Prime London. Very high value and high demand areas such as Kensington & Chelsea lift up the overall average figures, but there are still many areas of Prime London which represent better value for money. As a result, were seeing many young couples and first-time buyers heading to parts of South and South West London in search of more space for their money.
"In addition, the dramatic price increases weve seen in the last year bear witness to the rapidly improved availability of mortgages and wider signs of economic recovery which have helped to clear the bottleneck of those who were waiting for the right time to purchase property. But over the coming year, we expect the rate of growth to stabilise in most areas as the Prime London property market returns to normal."
Marsh & Parsons calculated the average price using the mean average value of all the two-bedroom properties in a mix-adjusted, representative basket of properties across the areas of Chelsea, Kensington, Notting Hill, Holland Park, Pimlico, Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.
In Prime Central London including just the areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico the average price of property has already passed the 2 million mark.
An imbalance of supply and demand is contributing to higher prices. During the last quarter, 11% more buyers entered the market in competition for 14% fewer properties. A total of 18 buyers per property were recorded.
The shortage of housing stock on the market has also resulted in demand for property rippling out from the centre. As a result, property prices in less central areas such as Clapham, Balham and Battersea are also increasing rapidly. In Q4 2012, an average two-bedroom property in Prime Central London cost 48% more than the average two-bedroom property in Prime London as a whole. In Q1 2013 this discrepancy narrowed to 45% and in the last quarter the gap closed to just 40%.
Two-bedroom properties heading towards a 1m price tag
Marsh & Parsons research uses a repeat valuation methodology that tracks values in a robust and representative mix-adjusted basket of properties across Prime London in the main areas in which Marsh & Parsons operates. Prime Central London comprises representative baskets of properties covering Chelsea, Kensington, Notting Hill, Holland Park and Pimlico. Prime London comprises all areas in Prime Central London, and includes areas such as Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.
Supply and demand statistics are based on an audit of Marsh & Parsons registrations and instructions during the quarter. Buyer profile information taken from Marsh & Parsons quarterly MI data.
For further information please contact:
The Wriglesworth Consultancy Julia Langsman / Neil Mackwood 0207 427 1441 / 0207 427 1400
Marsh & Parsons, a multi-award winning estate agent, has been part of the London property scene since 1856. With 19 offices situated in prime positions across central, west and south west London, they have an intimate and extensive knowledge of the area. Marsh & Parsons services include residential sales and lettings, property management, new homes, developments & investments, professional surveying and corporate & relocation services.
Marsh & Parsons was acquired by LSL Property Services plc in November 2011, but continues to operate as a separate business, retaining its current management team.
A business that is built on energy, agility, professionalism and knowledge, Marsh & Parsons business aim is to be the agent who not only understands the local area around their offices better than any other agent, but is also at the heart of the community. They believe that Local know-how will achieve better results and make the difference for their clients.