According to Knight Frank, price growth in the prime central London market continued in November with an additional 1% increase, the fastest rate of growth since May of this year. Over the last 12 months, price growth has averaged 12.6 percent, with the highest increase of 16.1 percent reported in the £2.5m to £5m bracket and the lowest, sub-12 percent, in both the sub-£1m and £10m+ brackets. qatar real estate
This means that a £1 million flat purchased in November 2010 would cost about £395 per day to maintain. Many that were lucky enough to purchase a £5 million home saw a price increase of £2,205 per day.
The average price of a prime central London property has risen to £3.19 million, implying that the value of a standard prime London property has increased by more than £1,202 per day in the last year.
It's worth noting that this expansion occurred against a backdrop of steadily weakening global economic news and growing threats of a second credit crunch.
Highlights from the report include:
In November 2011, prime London property prices increased by 1%, bringing the annual growth rate to 12.6%.
Since the credit crunch's post-credit-crisis low in March 2009, prices have risen 39.5 percent.
Prices have reached a new high, up 6.2 percent from their previous high in March 2008.
The average price of a prime central London property has risen to £3.19 million, implying that the value of a standard prime London property has increased by more than £1,202 per day in the last year.
The number of new sales orders has increased by 15% in the last year, while the number of new applicants has increased by 12%.
Over the last year, the number of exchanges and the amount of sales settled on has increased by 17 percent and 25 percent, respectively.
In comparison to the same timeframe in 2010, Knight Frank's study of business activity in the three months to November confirms an optimistic image of demand and sales activity, showing that the increasingly ominous news reports are having little effect on the prime London market.
Sales volumes are up 17% year on year, owing entirely to the growth of the sub-£5m market, which is up 20%. Despite the fact that the £5m+ market has remained largely stagnant, sales'subject to contract' are up 28% year on year in this category.
On the supply side, new applicant applications are up 12% year over year (6 percent in the sub-£5 million market and 40% in the £5 million+ market). This upbeat reading is balanced by supply, which is up 15% (10% under £5 million and 44 percent over £5 million) with fresh instructions to sell.
Despite increasing stock levels, the ratio of new applicant registrations to new instructions has only marginally decreased, from 4.2 in late 2010 to 4.1 in November this year.
Despite the global economic uncertainty, Knight Frank predicts positive price growth in 2012, but at a slower rate than in the previous two years. According to Knight Frank, the overall increase for next year is expected to be 5%.