Property for sale in London Soars but Leeds and Wakefield calmer
15th June 2007
The best properties for sale in Central London have risen by as much as a third in the past year, new research has found.
Prime Central London property has broken records again, rising by 33.3% in the past twelve months, according to a leading London estate agent. Their research found this is the fastest rate of growth in the capital since 1979 and means that prices in central London are now rising faster than the wider UK market by almost three times, with Belgravia and Knightsbridge leading the way.
Evidence of this becomes obvious when prices per square foot are examined: exceptional London properties are now hitting £3,000 per sq ft, while the agent predicts that some are even breaking through the £4,000 per sq ft barrier; prices unmatched in the rest of the world.
Only Monaco is able to compete with London in these terms, the report claims, with prices of £2,190 per sq ft; New York, Hong Kong and Tokyo follow on at £1,600,£1,230 and £1,100 per sq ft respectively.
However, prime property in London cannot continue this relentless growth forever, and the agent predicts that the heat will come out of the market in coming months: 'Our date reveals some indications that the property market may well be close to its peak in London. A slight shift in demand and supply appears to be beginning which, if it continues, will begin to see a move away from a sellers to a buyers market. We believe that price growth will begin to become more subdued by late summer, but we still think that central London prices for property priced over £3m will grow by 20% in 2007.
David Pank, Residential Sales & Marketing Director with Manning Stainton Estate Agents in Leeds, Wakefield and Wetherby commented that “there is no doubt that the overheated property market in London will have a ripple effect out to the outlying areas of London and to the rest of the strong property markets in the country. This normally affects property for sale in Leeds approximately 18 months later. However, the prices of houses and flats for sale across Leeds, Wakefield and Wetherby is now high in relation to earnings and further price rises can only be expected to have a dampening effect on the numbers of properties sold. However, at present, estate agents in Leeds, Wakefield and Wetherby are putting plenty of property for sale and therefore prices are expected to remain fairly steady for the rest of 2007.”
