Contrary to previous forecasts of minimal growth, luxury residential values in central London are expected to move up by six percent in 2013, according to Knight Frank LLP.
“Further weakening in sterling in the first half of the year helped to boost overseas interest and domestic demand has been aided by London’s economic recovery,” it added.
So far this year, houses and apartments in London's priciest neighbourhoods saw prices climb by 4.2 percent. Buying demand also remains strong due to the city’s safe haven status for investment and the value of the pound, said media reports.
Overseas buyers continue to show strong interest for London properties amid growing turmoil in their respective housing markets. As such, prices have risen beyond brokers' expectations.
Knight Frank, along with Jones Lang LaSalle and Savills earlier said it expects little change in values of luxury London homes for 2013.
However, average luxury home values in central London exceeded GBP2 million (S$3.89 million) last quarter due to stiff competition from buyers over limited properties, according to property agency Marsh & Parsons.
Knight Frank added that prices in prime central London are nearly 60 percent above their low in March 2009 at the height of the financial crisis.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org