Chinese buyers are expected to replace Russian investors as major players in the prime central London market as the number of super-wealthy individuals continues to grow rapidly in the country, new research from CB Richard Ellis has revealed. Buyers with foreign currency are still enjoying attractive discounts on prime central London property as sterling continues to remain weak.
Chinese buyers are expected to replace Russian investors as major players in the prime central London market as the number of super-wealthy individuals continues to grow rapidly in the country, new research from CB Richard Ellis has revealed. Buyers with foreign currency are still enjoying attractive discounts on prime central London property as sterling continues to remain weak.
In the prime London borough of Westminster where average house prices have now returned to pre-recession peak levels, a weak pound means that property is essentially 36% cheaper for buyers with Japanese yen. Investors with currencies such as the Hong Kong dollar, American dollar, Saudi riyal and the United Arab Emirates dirham can expect a discount of around 25%.
Ongoing interest from international investors has resulted in a strong six months for the prime central London market with a pickup in transaction levels and significant average house prices increases of 23% and 20% in Westminster and Kensington and Chelsea respectively.
Domestic high net worth individuals are also expected to return to the market, as prospects in the City start to look up. The emergency budget did not yield any big bonus taxes and the bonus pool expectations for 2010/11 currently stand at £6.8 bn.
Supply constraints have meant that areas such as Hampstead, St John’s Wood, Notting Hill and the Southbank are now attracting more attention, as potential purchasers cast the net beyond the traditional ‘golden postcodes’ of Westminster and Kensington and Chelsea.