News that London has the world's most expensive residential properties comes as no shock, for it is certainly not the first time it has held such a status, but it is perceived in 2 ways. On one hand it is seen as a great acclaim – the Telegraph headlines "Move Over New York, London is World's Super-Prime Capital", but on the other hand people question the madness as foreigners continue to price locals out of the market, like the Financial Times headlining with "London house prices soar above regions", but summarising with "Flow of overseas money keeps the capital's property values so high the bulk of regional owners can no longer afford to bridge the widening gap".
It is the latest research from CB Richard Ellis which has once again crowned London the most expensive super-prime market in the world. The report shows that foreigners were paying up to £6,000 per square meter for prime properties in the city last month. This, a growth of 12.6% so far this year, makes London the most expensive place to buy in front of Hong Kong in second and New York in third. New York had previously held the top spot for this measure.
"Global economic uncertainty is fuelling the success of London's super-prime property market," said Mark Collins, CBRE head of residential.
While the Telegraph quotes the research from CBRE piling on the praise, the Financial Times brings to light quotes and figures from other industry big-hitters, reporting an economists warning that the widening gap between prices of London property and that of the rest of the UK poses serious structural obstacles to any national recovery in the housing market.
The report quotes Savills figures showing that for the price of one average-priced five-bedroom house in the capital, one could buy 8 properties in other regions, including three two-bedroom flats in the centre of Manchester, two one-bedroom flats in the centre of Nottingham, a five-bedroom family house in Guildford and a four-bedroom holiday home in Devon. It said that in 2007 the same home would have cost £2.2 million, the equivalent of about half the regional properties.
- Tuesday 13 November 2012