The average value of prime property in London has reached a record high in September, exceeding even the pre-crisis peak recorded in 2008.
Prime property values averaged at £3m in March 2008 but the latest figures from Estate agents Knight Frank’s Prime Central London Index show that this average hit £3.5m in September 2012 as values rose by 0.7 per cent from August.
Prime property values have been driven up by increased demand from overseas. Knight Frank head of residential research Liam Bailey says: “London’s market performance continues to be aided by overseas buyers, who account for more than 50 per cent of buyers in the £2m plus market.”
The strongest markets in London have been located around Hyde Park including Knightsbridge, Hyde Park and Marylebone which all outperformed with annual growth of more than 14 per cent.
Price growth has been strongest in the sub £2m bracket where values have increased by 11.6 per cent on an annual basis. Sales volumes in this bracket rose 23 per cent in the three months to September compared with over the same period in 2011.