No slowdown for London property boom
Posted: 08 May 2006 10:15:44 GMT
The incredible rejuvenation of the property market in London seems to be continuing, with annualised price growth reaching 14.7 per cent in April.
This is the highest rate since March 2001, according to the new Knight Frank Prime Central Residential Index, while prices in Chelsea grew by a staggering 11.8 per cent in the first four months of 2006 alone.
One of the key factors behind these price rises is the demand and supply imbalance which has been described as the "worst for a decade", with supply down 21 per cent and demand up 43 per cent year-on-year.
There are of course several reasons for supply being so low at present in London, with the high level of investor ownership one of the most notable of these.
A rise in the number of overseas buyers has also played a part, as they very rarely have a property to sell that will replace the one they buy.
With prices continuing to rise, some sellers are holding out for further market growth while others are looking to capitalise on the already impressive capital gains.