LONDON’S super prime residential developments are expected to achieve record values of £10,000 per square foot as the capital continues to attract wealthy international investors, research from Knight Frank shows.
Demand for luxury apartments and houses in London’s golden postcodes like Mayfair and Knightsbridge boomed earlier this century, with market values escalating from £1,000 per square foot in 2000 to £3,000 per square foot in 2006.
In a report out yesterday, Knight Frank predicted prices could rise as high as £10,000 per square foot by 2016 after recent buyers spent over £7,500 per square foot on One Hyde Park’s luxury apartments – the highest price for any residential property worldwide.
The development by billionaire Christian Candy’s CPC Group and backed by the Qatari Prime Minister has sold 62 of the 80 apartments for a total of £1.4bn.
Knight Frank’s report, which analysed One Hyde Park’s impact on the super-prime London residential market, says that there is unlikely to be a similar development for some time due to the lack of suitable sites and the difficulties in getting finance.
Liam Bailey, head of residential research, said: “In key markets like London the availability of top-end developments that attract wealthy international purchasers is still very limited. The opportunity for developers to capitalise on this market is therefore a real option.”
Other centres like New York, Singapore, and Hong Kong have also been catering for the world’s wealthy but London remains the bench-mark for super-prime property, Knight Frank said.
Property group Savills estimates that overseas buyers spent around £6bn in the past 18 months as London continues to be seen as a safe-haven.
London's super-prime residential developments
ONE HYDE PARK
Candy & Candy
Price achieved: £7,500/sq ft
DE VERE GARDENS SCHEME
Lancer Asset Management
To be completed in 2014
Targeting prices of: £4,000+/sq ft
The first of the super prime developments in London
Achieved prices of: £4,000+/sq ft