The average price of prime central London property increased by 0.9% in February, the highest rate in ten months. According to Knight Frank’s latest PCL Sales Index, prices have been rising every month since November 2010 and now stand 55% above the March 2009 market low.
The lower end of the market continues to be the strongest performer, with prices in the £1m-£2.5m bracket increasing by 1.7% on a monthly basis in February and showing a rise of 2.1% over the last three months. Things seem a bit more sedate in the £10m+ market though, with a 0.1% increase in prices recorded in February (a 1.6% rise in the past three months).
The fall in the value of sterling still looks to be a key factor; figures from Knight Frank’s Global Property Search website confirm there was a 16% monthly rise in euro-denominated buyers looking at prime central London property in January.
Liam Bailey, Global Head of Residential Research at Knight Frank: “In France and Italy, where concerns over the introduction of wealth taxes and political uncertainty form the wider economic backdrop, searches increased by 33% and 36% respectively over the course of the month. Further afield, searches from Chinese and the US also climbed by 35% and 53% respectively.”Read the full report here