Prestige properties snapped up in London

by BN29 Sep 2009

After two years of plummeting prices in London's luxury property market, demand has suddenly spiked and prestige real estate agents can't get enough listings, according to a report in The Australian Financial Review.

The average price of a house or apartment valued at over £1m ($1.82m) grew by 4% in the last quarter despite a year-on-year fall of 4.9%.

The weakness of the pound and a median price 18% below the September 2007 peak have contributed to healthy interest in the prestige market from local and international buyers.

Listings are down 25% on the five-year average, said London estate agency Savills. Supply is expected to level out, however, as vendors who have been holding back through the price slump finally list their £1m+ London properties.

Savills will start marketing a £25m ($45.5m) property in Chelsea next week. The 1,186m2 house, a former residence of painter James Whistler, overlooks the Thames and features six bedrooms and parking for eight cars.