Central London apartments up 1.2% q-o-q in 3Q; robust buying activity from foreign investors
By Timothy Tay
/ EdgeProp Singapore |
A surge in demand from overseas buyers is already making its mark on the London housing market, according to the latest residential market report by property buying agent London Central Portfolio (LCP).
“Despite the summer holidays, a seasonally quieter period in the real estate market, the apartment market in Prime Central London (PCL) outperformed houses in PCL, Greater London and England and Wales for the last three months,” says Liam Monaghan, managing director of LCP. “The data clearly shows us that the increased buying activity is attributed to the return of overseas buyers, mainly from Asia and the Middle East,” he adds.
However, domestic demand for homes in Greater London, England and Wales continues to be weighed down by higher mortgage rates and inflation rates. A growing number of domestic property owners are listing their properties for sale as their fixed-term mortgage rates come up for renewal and they face higher interest rates, observes Monaghan.
“For cash buyers, it is an ideal time to invest as the autumn market is already showing higher numbers of properties coming to the market,” says Monaghan. While PCL prices are rising ahead of the rest of the market, they are still 8% below the peak in 2015, he adds.
With demand for undervalued and well-priced properties leading to bidding wars, prices could even increase in 4Q2023 and 1Q2024, according to Monaghan.
In 3Q2023, popular neighbourhoods such as Knightsbridge, South Kensington and Belgravia saw the strongest y-o-y price growth at 2.1%, 1.9% and 1.8% respectively. Only two central London neighbourhoods saw prices slip last quarter, with Kensington and and Bayswater falling 0.3% y-o-y and 0.6% y-o-y respectively.
PCL flats and apartments are benefiting from a move back to the city as more people return to the office post-Covid, says Monaghan. The market has also entered “a seasonably busy period in Autum”, with overseas visitors flocking to London and the school term having started in September, says Monaghan.
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