Winkworth Central London Market Insights
Winkworth has published its central London quarterly reports analysing trends and the outlook for the central London residential property sales and lettings markets.
Summary:
- Central London property market has picks-up in early 2011 following uncertainty at the end of 2010
- There has been continued demand from international buyers particularly above £3million, with Chinese and Middle Easter buyers currently being the most prolific.
- One of the key trends seen in the last few months has been the re-emergence of the domestic buyer, particularly in the £750k to £950k price band.
- On average across all central London offices, transactions over the past six months have achieved an average £ per square foot value 21% higher than the previous six months.
- Strong demand has reduced average time to sell to 6.3 weeks over the past 3 months, previously 7.1 weeks
- Off market sales and sealed bids are becoming increasingly common
- The rental market remains very strong with all offices reporting low supply of rental property and soaring demand from tenants.
- Average rental values have increased by at least 10% over the last 12 months across all offices.
Dominic Agace, CEO of M Winkworth Plc, comments:
“After a slow start to the New Year the prime central London property market is gathering momentum. Demand for quality property is the driving force of the market and all our central London offices are reporting a shortage of properties. This has created a sub-market in which quality property is being traded so quickly that in many cases properties don’t even make it onto the open market by the time offers above asking price have been made and accepted.
With increasing international political turbulence, London has become a more prominent safe haven for overseas wealth and foreign buyers make up an increasing number of central London’s new buyer registrations. The largest proportional rise is among investors from the Middle East looking for security in London’s bricks and mortar, and demand also remains strong with buyers from China and Russia.
With the potential for rising interest rates later in the year, we may start to see some increases in supply. However, the strength in demand should absorb any increase in stock before prices are affected”.
Follow these links for full copies of the reports: