Prices of luxury London homes have dropped for the first time in 18 months – according to upmarket property agent Savills.
Its quarterly central London survey shows prices in the third quarter of 2010 look set to fall 0.9% in Knightsbridge, Chelsea, Belgravia, Mayfair and Marylebone.
This will be the first fall since the opening quarter of 2009 and has been caused by an increase in properties on the market as uncertainty in the economy continues to limit buyer demand.
Prime prices rose by 0.1% across central London during the third quarter. This represents a significant slowdown from the one percent rise during the second quarter of 2010 and the 4.3% rise from the final quarter of last year.
It is however, ahead of the fall previously predicted by many analysts.
The best performing areas in London were Kensington, Holland Park and Notting Hill, where prices grew 2.1% since July.
Robust demand from overseas buyers and an influx of cash from City workers helped the market amid concerns about the impact of austerity measures, Savills said.
The property agent also believes the impact of the economy on buyers will continue to dictate activity levels and prices over the next 18 months.
0 comments:
Post a Comment