Find out what’s happening in the property investment arena both in the UK and internationally
Capital Growth For London Home Prices
June 16, 2009Article by Ray Withers
London property prices are now running at 22.3% down from their peak in March 2008, according to leading estate agent Knight Frank. The estate agents keep an index of London residential house prices that also shows prices are down 20.1% year-on-year to the end of April 2009. Sliding prices have stopped – sale prices of house worth less than £1 million showing a 2.7% increase since March.
In some cases, owners are only accepting sealed bids and reports of the return of gazumping – putting a last minute higher bid in than another buyer. “There has been a steadily improving picture in the central London market in recent months with buyers growing in number and deals beginning to shift upwards,” said a spokesman.
“There is no question that purely in terms of sales activity the central London market is unrecognisable from where it was six months ago. The falls in capital values, cheap debt, overseas investors with US$ and Euros have encouraged buyers back into the market, with many just keen to get on with their lives having put all financial decisions on hold for the duration of 2009.
For sensibly priced below market value property take a look at The Shrubberies Mews Townhouses, Southwark, London – a development of a small, exclusive gated community of eight townhouses from Oxford-based specialist investment consultants Property Frontiers.
The developer is offering a massive £75,000 discount on the certified valuation – bringing the asking price down to just £300,000.
- The houses are open plan on the ground floor and have two double bedrooms and a family bathroom upstairs.
- Again, they are a short walk from local shops and stations. The City and West End is within easy reach by train
- Gross yields of 6% at £18,000 per year are expected from the development.
This developer is selling at more or less the price of the land plus building costs to clear the properties from their books. Independent valuers have certified the property prices.