As appeared on Economictimes.com on 26th May, 2012
New applicant volumes rose 26% in the three months to March this year, compared to the same period in 2011. The number of sales (subject to contract) were up by 42% in Q1 2012 compared to 2011, while activity in the £5m+ bracket has been particularly buoyant, up 93% over the same period. But supply has once again failed to keep pace, with new instructions up by just 12%. The problem is even more pronounced in the £5m+ bracket, with new instructions down by 11%. These positive indicators have contributed to prices rising in March by a further 1.1%, the highest rate since May 2011, when prices increased by 1.4%.
Prime central London property prices have been rising strongly for three years, on the back of foreign demand and London’s status as a safe haven for investors. The strongest rises in Q1 were seen in the £1m to £2.5m price band (+3.2%) and the sub-£1m band (+3.1%), while the £10m+ bracket saw the smallest rises (+1.5%). Among the areas to see the fastest price growth were Marylebone (+7%), South Bank (+3.5%) and Knightsbridge (+3.4%). Apartment prices have risen more than house prices (+3% and +2.5% respectively).
Story by: (FINN) Frontier India News Network on April 12, 2012.