PRIME central London property prices rose by 3.1% in March – the highest monthly rate of growth on record, according to Knight Frank.
According to Knight Frank, property prices have been increasing for 27 consecutive months with the last price fall recorded in December 2004.
As a result, in the 12 months to March
Knight Frank research shows Chelsea and
Knight Frank’s head of residential research Liam Bailey said in general, houses have outperformed flats, mainly due to supply shortages. In the past month houses have increased in price by 3.9% while flats grew by 2.2%.
“As City bonus money filters out of the market, continued strong price performance can be explained by supply shortages and ongoing international demand.
“The supply of newly available property fell by 27% compared to the total for February while the number of new prospective purchasers increased by 16%, fuelling the price rise in the market,” he concluded.
Prime Central London Residential Sales Index, results
Month | 12 month change | 6 month change | 3 month change | monthly change |
Apr-06 | 14.7% | 10.8% | 6.6% | 2.0% |
May-06 | 16.6% | 11.8% | 6.8% | 2.3% |
Jun-06 | 17.8% | 12.9% | 6.4% | 2.0% |
Jul-06 | 20.5% | 14.0% | 7.0% | 2.5% |
Aug-06 | 21.2% | 12.7% | 5.6% | 1.0% |
Sep-06 | 23.5% | 12.6% | 5.8% | 2.2% |
Oct-06 | 24.8% | 12.7% | 5.4% | 2.1% |
Nov-06 | 26.6% | 13.2% | 7.2% | 2.7% |
Dec-06 | 28.6% | 13.9% | 7.7% | 2.6% |
Jan-07 | 30.5% | 14.4% | 8.6% | 3.0% |
Feb-07 | 31.0% | 16.3% | 8.4% | 2.6% |
Mar-07 | 32.0% | 17.3% | 8.9% | 3.1% |
Source: Knight Frank Residential Research
Australian Property Journal
