1.2% quarterly growth for central London flats, driven by strong foreign investor demand

The influx of international buyers’ demand is already making an impact on the London market for housing according to the most recent market report for residential homes by property purchasing agent London Central Portfolio (LCP).

Watten House by UOL Group and Singapore Land Group, its transformation into an elegant haven of tranquility for residents seeking refuge within city is unparalleled.

“Despite the summer break which is a time of quieter activity in the property market, the housing market within Prime Central London (PCL) outperformed homes that were located in PCL, Greater London and England and Wales over the past three months” states Liam Monaghan who is the director at LCP. “The information clearly shows that the rise in activity can be attributed to the return of foreign buyers, mostly coming from Asia as well as those from Asia and the Middle East,” he adds.

But, the demand for houses within Greater London, England and Wales is being limited by rising mortgage rates and higher inflation rates. There is a growing number of home property owners are offering their properties for sale, as the fixed term mortgage rate are coming due for renewal, and they are facing increased interest rates, according to Monaghan.

“For people who want to buy cash, this is a great time to start investing since the fall market is already showing greater numbers of properties that are available,” says Monaghan. Although PCL prices are increasing ahead of markets, they’re still% lower than the high of 2015, he says.

The demand for cheap and priced properties which has led into bidding battles, the prices may even rise in 4Q2023 and 1Q2024 according to Monaghan.

In 3Q2023, the most sought-after neighborhoods like Knightsbridge, South Kensington and Belgravia experienced the most significant y-o y price increase of 2.1%, 1.9% and 1.8% respectively. Two central London areas saw prices drop during the quarter in the 3Q2023, with Kensington and Bayswater dropping 0.3% y-o-y and 0.6% per year, respectively.

PCL apartment and flats are benefitting from the move back to the city, as more workers return to work after the Covid era, according to Monaghan. The market is also entering “a peak season in Autum” and overseas tourists flocking to London and the school year beginning in September, according to Monaghan.