The residential market in Central London remains strong; with low-interest rates and weak sterling making it popular with both UK and foreign investors. Asian buyers, including the Chinese and the Malaysians, continue to snap up Central London flats “off-plan” not only at record prices but in record time. In early January, Circus West (Phase One) of the Battersea Power Station development set a new precedent when commitments for over 600 flats were accepted within three days. In addition to Circus West, some of the fastest selling residential developments in Central London at record prices include Fitzroy Place, Grosvenor Waterside, One Tower Bridge, NEO Bankside and 3 Merchant Square.
According to Real Capital Analytics, a total of £5.8 bln was invested in the London residential market in 2012 and in Q1 2013 investment has reached £1.5 bln. The average house price in Greater London now stands around £376,000. Whereas, a core prime London borough like Kensington and Chelsea is seeing average house prices above £1 mln. It is prices like these in the core prime market of Central London that are driving its out-performance against the rest of the UK.
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