ON’S super prime residential properties continue to fetch higher prices than any other city in the world as ongoing economic uncertainty boosts the capital’s safe haven status, research by CBRE shows.
The property agent said yesterday that average values in prime central London have increased 12.6 per cent since January, with Kensington and Chelsea, in particular, recording steep growth of 14.5 per cent.
Wealthy investors are turning up to invest as much as $8,500 (£5,537) per square foot in London, with New York’s Manhattan area and Hong Kong following closely behind.
Mark Collins, head of Residential at CBRE, explains: “Global economic uncertainty is fuelling the success of London’s super prime property market, as investors look to spread risk by diversifying their portfolios.
“London is very much the port in the storm, as wealthy investors around the world appreciate the capital’s stability when compared with other markets.”
The prime market is also swelling in size as a result of strong growth and the volume of sales in new-build schemes over £1,000 per square foot has doubled since last year.
Prime prices are now being achieved across a greater area at schemes such as The Tower in Vauxhall and Fitzroy Place in Fitzrovia.
These projects are popular in particular with UK buyers, who are more comfortable with looking outside the traditional golden postcodes.
But the super prime market, with prices in excess of £2,000 per square feet, is limited to much more exclusive areas such as the golden postcodes of Knightsbridge and Chelsea, and will remain tight in supply.
CBRE said while London continues to draw in Russian billionaires, there is an emerging market from the former Soviet states, in particular Kazakhstan and Uzbekistan.
Pakistani investors are also showing increasing interest, as their economy declines and currency devalues. There is also increased activity from Dubai, UAE and Saudi Arabia and new markets are also emerging in mainland China, Bangkok, Vietnam and Indonesia.