Tag Archives: city
Prime central London house prices expected to be flat for rest of 2014
House prices in the prime London market are expected to stay flat until end of the year after slowing considerably in the third quarter of the year. House price growth across the sector slowed to 0.5% from 3.1% in the previous quarter, according to the latest London Property Monitor from estate agent Marsh & Parsons. The data also shows that the ratio of buyers per property dropped to 12 in September, as supply soared 13% in three months. However, one and two bedroom homes in the outer prime London sector outperformed the rest of the city in annual growth stakes, up 19% in past year Overall, following a robust 11.4% climb in prime London property values over the past 12 months, equivalent to £163,973, there has been a sharp drop in the rate of quarterly price growth across the capita. The report suggests that house price rises have been steadied by rising supply of prime London property on the market, up 13% in the last three months. This has cooled the level of competition in the market and the number of registered buyers per available property in Prime London has fallen from 24 at the start of 2014 to 12 in September. ‘We’ve reached a plateau in the course of house price growth, and the path paved out for London property prices for the rest of 2014 looks to be levelling off. This isn’t terminal, but just a necessary pit stop in the long term growth and sustainability of the market,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘And it doesn’t mean we’re in for a quiet winter either. Sales will continue, albeit at a more normal level, as buyers revel in the greater choice on offer, and without the frenetic competition many faced at the start of the year. With more realistic pricing sellers are prospering too, and on average 98% of the asking price is currently being achieved on properties sold,’ he explained. He pointed out that in the hubbub surrounding the property market recently, seasonal patterns have been lost in translation. The majority of house price growth typically falls in the first half of the year, so this autumnal re-calibration is nothing new. He believes that in the run up to the general election next May caution will be exercised by many home owners and would be investors, as high end property is marked out as a key battleground for politians. ‘Wading in with a mansion tax threatens to douse the growth at the top tiers of the market, and in London especially, thousands of ordinary families would get swept up in its wake. Packaging it as a levy on mansions is misleading as across the capital it is tricky to find a home big enough for your average 2.4 family without a million pound price tag,’ added Rollings. The agent believes that there are still strong capital gains to be had… Continue reading
Chennai residential market proves to be the most resilient in India
The Chennai residential market is one of the steadiest in India and has proved its resilience just after the global economic downturn which was one of the toughest periods for the country’s property market. Between 2008 and 2009 it remained relatively stable in terms of sales volume and price, compared to cities like Mumbai, NCR, Bengaluru and Hyderabad, according to a new analysis from international real estate firm Knight Frank. It explains that new infrastructure projects begun during the second half of 2014 including the building of the Outer Ring Road (ORR) and the Chennai Metro Rail, will lead to the emergence of new residential property growth corridors like Kuthambakkam, Chembarambakkam and Poonamallee along the ORR, and Vadapalani, Ashok Nagar and Alandur along the metro rail link. However, residential development is nonexistent in North Chennai, primarily due to the unavailability of vacant land, narrow arterial roads and lack of employment opportunities. This has compelled developers to look for opportunities in the South and West Chennai markets. According to Hitendra Gupta, a research consultant from Knight Frank India, the emergence of West Chennai as one of the more successful residential micro markets is as a result of affordable pricing, its proximity to the city centre, the presence of employment hubs and a relatively better developed social infrastructure. South Chennai, comprising OMR and GST Road, has been highlighted as the current growth corridor of the city. Its proximity to Chennai International Airport, the presence of arterial roads and the availability of huge vacant land parcels have enabled it to grow rapidly into an emerging residential hub. Gupta points out that the IT and ITeS sectors, the dominant employer in this region, has a positive outlook for business in 2015. This along with a change in economic sentiment, as well as the stable government at the centre, bodes well for new launches and absorption is set to increase by 31% and 14% in West and South Chennai respectively in the second half of 2014. The weighted average price in the Chennai market is forecasted to increase by 3% for 2014 against a 5% increase witnessed in the first half of 2014, the report concludes. Continue reading
London’s Mayfair once again becoming top prime market
Mayfair has not always justified its status as the premier address on the London Monopoly board but it is now on track to be a prestigious location again. Construction of its mansions and garden squares began in the early eighteenth century and what was once farmland became London’s most exclusive neighbourhood. However, the Second World War dented its desirability as a residential district, with businesses moving to Mayfair because their offices in the City had been destroyed and in recent decades, as post-war temporary office permissions expired, properties have been converted back to residential use. However, according to research by international real estate firm Knight Frank there is a more profound change underway. The premium nature of the development pipeline indicates a step-change taking place in relation to quality and pricing in Mayfair. ‘With achieved prices for the best new build schemes approaching, and in some cases exceeding, £5,000 per square foot, Mayfair is on track to regain its status as London’s premier address and merit its position of supremacy on the Monopoly board,’ said Knight Frank’s tom Bill. He added, that in addition to an abundance of Michelin starred restaurants and five-star hotels, Mayfair’s reputation for exclusivity derives from the high number of private member’s clubs, embassies, Royal residences and high-end shopping streets. ‘Mayfair has not had a residential pipeline with such an overwhelming focus on quality for several decades. It is symptomatic of how developers are addressing the increasingly stringent demands of buyers in prime central London, and has led to a step-change in relation to quality and pricing for the best residential property in Mayfair,’ he explained. Also, buyers, particularly in higher price brackets, are less loyal to particular areas of London and have become more product-driven. ‘As more buyers look north of Hyde Park for the right property rather than the right postcode, successful Mayfair developers are combining the cachet of the area’s name with the sort of exceptionally high-quality finish and services that buyers demand,’ said Bill. Indeed, according to Knight Frank, the percentage of all £10 million plus sales in central London over the last year, underlining how the pace of sales is accelerating to a greater degree in Mayfair than in Kensington, Knightsbridge or Belgravia. Mayfair, Knightsbridge and Belgravia form the trio of super prime markets in prime central London. However, Mayfair’s exclusive origins, global reputation for luxury and premium development pipeline give it a particular cachet among buyers that is likely to rise. Continue reading
