MANAGING PARTNER AT BLACK BRICK
Q.What effect will the recent fluctuations in the financial markets have on London property?
A. Though significant, the movements in the financial markets haven’t caused the same panic or uncertainty that pervaded in the last financial crisis. The resilience that London property prices have shown since the last crisis has meant that buyers are not withdrawing from the market this time around. Indeed, while stock markets have fallen, the week has seen record prices achieved in the central London flat and housing market. For example, a fifth-floor, two-bedroom apartment in Mayfair achieved a record price of £3,028 per square foot. This is a 33 per cent increase since the top of the market in 2007 and 130 per cent increase in seven years.
Lower down the market, a two-bedroom flat on the third floor in Harcourt Terrace, Chelsea set a new record on the street, achieving £1,800 per square foot. The fact remains that the there is a dwindling supply of stock and an increasing number of buyers. Knight Frank is forecasting that prices will rise by 9 per cent this year and 8 per cent next year.
Camilla Dell is the managing partner at search and acquisition consultancy Black Brick. www.black-brick.com.