Primrose Hill property prices tipped to rise further
The property market in primary parts of London is widely expected to defy the anticipated downturn in the mainstream UK residential property market in 2012, according to various property experts.
The latest forecast from estate agent Knight Frank shows that property prices in prime central London, areas including Regents Park, Kensington, Primrose Hill, Knightsbridge, St John’s Wood, South Hampstead, among others, will continue to climb next year.
Knight Frank project that prime central London prices will increase by an average of five per cent in 2012, before pausing in 2013 and rising by a further four in 2014. Cumulatively, the property consultancy believes that prices will appreciate by 24 per cent by the end of 2016.
Liam Bailey, Knight Frank’s head of research, said: “Prices in prime central London are currently at an all-time high, despite which we believe there is scope for further price gains over the next 12 months, averaging 5 per cent across 2012.”
Estate agents in primary destinations, including Mayfair estate agents and South Hampstead estate agents, generally agree that geo-political issues will continue to push overseas buyers into London, especially at the top end of the market, as the capital is seen as a safe haven.
Bailey added: “The reasons which have underpinned recent growth – a weak pound, renewed wealth-creation in emerging markets, the search for safe-haven assets and flight capital – all seem set to continue, at least in the short term, reinforcing our positive view for next year.”
It is not just estate agents that are confident about the state of the central London property market.
According to research conducted by Jones Lang LaSalle, residential property developers are resolutely confident about the outlook for the market in 2012 and do not foresee a major impact from the global economic crisis.
Their latest survey found that 84 per cent of developers thought that central London apartment prices in core locations would increase next year.
Neil Chegwidden, Residential Research Director at Jones Lang LaSalle, who undertook the research, commented: “Our survey confirms that developers remain positive and confident about the outlook for the central London residential market despite the overhang of gloomy economic and financial market news.”
Strong appetite from overseas buyers is seen as being the key to this projected growth in property prices.
There has been a major hike in demand for property for sale in Primrose Hill, for example, which is unsurprising, given that this is one of the most sought after parts of the city to live in.
Leading Primrose Hill estate agents, such as Sandfords, report that property prices in Primrose Hill have recorded double-digit growth in the past two years, mainly due to rising interest among people wanting to live in this area.
“Overseas buyers are particularly keen to invest in the Capital especially since the Eurozone crises, with many properties sold going to cash-rich Europeans looking to move some of their wealth into the stability of the prime London property market,” said Andrew Ellinas of Sandfords.
With Primrose Hill perceived to be one of the most popular and safest places to live in London, Adam Feather, managing director of local estate agents, Robert Anthony, reports that demand among homebuyers to “buy property in Primrose Hill” has intensified in the past two years.
He added: “Primrose Hill’s popularity has culminated in a rise in the volume of people looking to live in the area, fuelled by greater interest from buyers abroad.”
“Primrose Hill property prices are now at an all-time high and look set to grow further,” he concluded.
Author Details : John Alcorn talks to Primrose Hill estate agents and South Hampstead estate agents and finds that demand for property for sale in Primrose Hill is rising, fuelled by greater demand among overseas buyers.
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