Off-plan property sales in London rose 48 percent in 2012 on the back of record demand for new developments, revealed research by CBRE.
Sales of properties valued at over £1,000 psf (S$1,944 psf) jumped 240 percent compared to 2011. The strong showing is attributed to healthy foreign demand, particularly from Southeast Asian buyers looking for modern properties.
London’s most expensive new projects include Fitzroy Place at the West End and One Tower Bridge (pictured) in South Bank, where average property prices stand at £1,850 psf (S$3,595 psf) and £1,329 psf (S$2,583 psf) respectively.
“These schemes are all substantial in size, each with more than 100 units for sale,” said Mark Collins, Head of Residential at CBRE.
“With a substantial volume of units to sell over a long period of time, it is important to establish confidence in a scheme from the beginning. This trend is encouraging given the number of large sites coming forward.”
He noted that there is good appetite for riverside living among purchasers as most of the schemes are located near the Thames or a canal.
Separately, a study by Knight Frank showed that prime central property prices soared 53 percent since March 2009 when the real estate market reached its post-recession lows.
Prices are still up 16.5 percent from 2008, with overseas buyers primarily coming from Russia, India, the US, Italy and France.
“London’s relatively healthy rate of price growth compares with a somewhat anaemic -1.4 percent for New York, -4 percent for Paris and -6 percent for Geneva,” said Liam Bailey, Head of Residential Research at Knight Frank.
“Over the last two years the proportion of £1 million-plus (S$1.9 million-plus) sales in London to non-UK buyers was 51 percent, rising to 60 percent for properties priced above £5 million (S$9.7 million).”
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
Singapore’s latest measures good for UK developers
Japan property gaining attention
Living life in the dog house