Luxury-home values in London seen rising 6% in 2013
Mon 29 Jul 2013
[London] Central London luxury home values will jump 6 per cent this year. Knight Frank LLP said, revisiting its estimate that prices would be little changed in 2013.
The average price of a house of apartment in the city'smost-expensive neighbourhoods climbed 4.2 percent so far this year and interest among perspective buyers remains strong, the London-based broker said in a report yesterday.
Key reasons include the city's reputation as a safe haven for investment and the value of the pound, Knight Frank said.
"Further weakening in sterling in the first half of the year helped to boostoverseas interest and domestic demand has been aided by London's economic recovery." Knight Frank pointed out.
Overseasinvestors are buying London properties to preserve wealth amid political and economical turmoil in their home markets, leading prices to rise more than brokers had expected. Knight Frank, along with Jones Lang LaSalle Inc and Savills plc last year forecast thatprices would be little changed in 2013 after an 8.7 per cent inrease in 2012.
Knight Frank as recently as last month said it expected little change in luxury London home values for the whole of this year. Value rose in May by the smallest amount since December 2009 on a drop in the affluent Knightsbridge area, the broker said las month.
The averagevalue of luxury homes in centralLondon surpassed 2 million (S$3.9 Million) for the first time in the second quarter as more purchasers competed for a smaller number of properties on the market, broker Marsh & Parsons Ltd said last week.
The strongest increase in prices has been for homes below 1 million, and the biggest gains inJune were in the neighbourhoods of Islington, Marylebone and theSouth Bank.
Property prices in primecentral London locations are now almost 60 per cent above their low during the financial crisis in March 2009, knight Frank added.