Prime London property remains a hot investment pick, outperforming many international markets, as property values climbed about 45 percent since the end of 2008, said James Macleod, founding partner of JMChase Property Advice and Acquisition.
Macleod told PropertyGuru that some clients have seen their property values nearly double since 2008. Last year, around 12 percent growth was seen in the market while better garden square addresses reached closer to 20 percent growth over the same period.
For 2012, he cited “predictions of up to five percent growth” and underlined that figures will be higher for the right addresses and properties. There are also “predictions of five percent and over per annum to 2016,” he added.
On the increasing number of Asian and Singaporean investors, Macleod attributed this to London’s political and economic stability. He added that a number of these investors have been moving to London to send their children to British schools and universities.
“A further reason could be one of access with the specific targeting of Asian investors by developers and agents on sales trips to Singapore, Hong Kong, and Kuala Lumpur,” he noted.
Moving forward, Macleod said that the year has seen a good start with around three percent growth in property values since December amid several bidding activities over properties.
Meanwhile, data from Knight Frank has revealed that average rental prices declined by a further 0.2 percent last month, recording a three-month downtrend of 0.4 percent. “Recent rental falls mean that average rents are now at the same level as June 2011,” said the firm.
Liam Bailey, Knight Frank’s Head of Residential Research, said the recent round of rental price falls is due to weaker conditions across the central London employment market.
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