Eye-watering price rises last year in SW8, the postcode for Vauxhall and Nine Elms, are being blamed on overseas investors who pushed average values per square foot up 32 per cent, from £841 to £1,107.
VIEW IMAGE GALLERY: PRIME PROPERTY IN LONDON'S ELITE STREETS
In Pimlico and Victoria, SW1, another area where thousands of new homes are being built, average prices rose from £966 to £1,123 per square foot, up 16 per cent, according to today’s study by Lonres and Dataloft. Leafy Hampstead, in NW3, rose 12 per cent from £968 a square foot to £1,086.
West Kensington, on the “wrong” side of Hyde Park, saw prices up 20 per cent, from £927 to £1,113 per square foot. This is good news for pop star Robbie Williams who spent £17.5 million on the home of the late Michael Winner in Holland Park at the end of 2013.
Tim Phillips, associate director of estate agent Chestertons, says the Vauxhall-Nine Elms boom is fuelled by overseas investors, often buying and then selling apartments before completion.
“Overseas buyers love the new-build luxury apartments, and being able to buy in Zone 1 at a cheaper price than prime central London. We sold a penthouse off-plan at Battersea Power Station for £11.2 million to a Middle Eastern buyer.”
While developers deliberately release properties in stages so as not to flood the market with homes, the resale market is beyond their control. This may, in the short term at least, increase supply to a level where prices fall back.
Although flats in SW8 are firmly within the £1,000-plus bracket per square foot, houses in the area are considerably cheaper, at an average £702.
Phillips says this is because the market for houses is entirely different, involving UK buyers who are looking for a home rather than a quick investment.
Looking forward, the next areas likely to join the £1,000 club are Maida Vale, where prices currently stand at £998 per square foot, North Kensington and parts of Ladbroke Grove, and Queen’s Park, where price per square foot now averages £999.