PRIME London property values soared in the third quarter, two separate data releases showed yesterday, boosting the number of homes worth more than a million pounds to over two fifths.
Forty-three per cent of homes in prime London areas are now worth at least £1m, data from estate agent Marsh & Parsons showed, compared to 35 per cent last year.
This headline figure only highlights an upward trend, with prime property prices growing 3.5 per cent in the third quarter, putting them some 11.1 per cent higher than in the third quarter of 2011.
This means the average prime London property is worth some £1.29m, while the average property in prime areas of central London is valued at £1.89m. A four bedroom home would set a buyer back £2.73m on average, if they wished to live in a top central London location.
Harcourt House in Cavendish Square, London, which yesterday invited offers of £60m and above for freehold from December 2015, is only one example of the booming market, which has consistently defied downturn elsewhere across the country.
“The number of property millionaires in the capital has shot up,” said Marsh & Parsons boss Peter Rollings. “Properties no longer have to be palatial to be worth £1m.”
Rollings said that international interest, once clustered in only the most desirable areas, has started spreading out through the capital, leading to price rising ripples across the city.
“Wealth has been overflowing into areas like Balham, Clapham and Brook Green, pushing up prices and boosting the number of £1m properties,” Rollings added.
But Rollings suggested that the boom could start to slow down as supply to the market – though still very low – was outpacing new buyer registrations.
This data was backed up by a similar data release from Cluttons, which said prime central London property values were 7.1 per cent up on the year.