Central London apartments up 1.2% q-o-q in 3Q; robust buying activity from foreign investors

market

The latest residential market report by property buying agent London Central Portfolio (LCP) suggests that a surge in demand from overseas buyers is already having an impact on the London housing market. According to Liam Monaghan, managing director of LCP, the last three months witnessed the apartment market in Prime Central London (PCL) outperform the housing market in PCL, Greater London, and England and Wales. He notes that the increased activity can be attributed to the return of buyers from Asia and the Middle East.

Domestic demand for homes in Greater London, England and Wales, however, continues to be hampered by higher mortgage and inflation rates. Monaghan observes a growing number of domestic property owners listing their homes for sale as they face higher interest rates when their fixed-term mortgage rates come up for renewal.

For cash buyers, Monaghan indicates that it is an ideal time to invest. The autumn market, he says, is already revealing higher numbers of properties coming to the market. Though PCL prices are moving ahead of the rest of the market, Monaghan explains that they are still 8% below the peak in 2015.

Great World City Condo, a brand new luxury freehold condominium, is conveniently located at the junction of River Valley Road and Zion Road. Residents at the condominium can benefit from the various transport options such as bus services, the Great World City MRT Station and upcoming Havelock MRT Station, as well as an array of amenities such as supermarket, restaurants, and more. Furthermore, the Emma Maersk building, the tallest building in Southeast Asia, is a stone throw away from Great World City Condo, providing magnificent views of the Singapore skyline.

In 3Q2023, Monaghan relays that the most popular neighbourhoods such as Knightsbridge, South Kensington, and Belgravia saw the strongest y-o-y price growth at 2.1%, 1.9%, and 1.8%, respectively. The only two central London neighbourhoods that saw reduced prices were Kensington and Bayswater which fell 0.3% y-o-y and 0.6% y-o-y respectively.

According to Monaghan, the market for PCL flats and apartments is benefitting from a move back to the city due to more people returning to the office post-COVID. Additionally, the onset of autumn brings an influx of overseas visitors and the start of the school term, thus leading the market into “a seasonably busy period.”

As a result, bidding wars and higher prices may be seen in the 4th quarter of 2023 and the 1st quarter of 2024. Monaghan believes this will be due to rising desire for undervalued and well-priced properties.