10
Jul
Is now a good time to bag a bargain luxury property?
Anyone hoping to buy a luxurious high-end
property has had to cope with rising prices, driven by a lack
of supply, in recent months.
However, there is currently good news on two fronts, firstly, a
greater number of high-end houses are creeping onto the property
market, and secondly, this is leading to prices increasing at a
slower rate.
Latest research from Savills has highlighted that luxury home
prices in central London rose by the smallest amount in five
quarters during the second quarter of 2010, with prices rising 0.6
per cent compared with the first three months of the year.
Commenting on the findings, Yolande Barnes, head of residential
research at Savills, said that the market has reached a "tipping
point".
"In March we stated that we were 'at or approaching a tipping point
where buyers would resist further price rises'. It now seems clear
that we are at that tipping point."
However, Ms Barnes added that Savills maintains that the prime
markets, and central London in particular, are well placed to take
advantage of turmoil in the global property market, suggesting that
people should act quickly if they want to take advantage of the
growing number of properties on the market.
This is certainly the advice from Knight Frank, which has suggested
that the autumn will be a busy period for the London prime property
market.
According to the firm, a growing number of overseas buyers are
seeking "trophy" homes in high-end areas of the UK capital.
Andrew Giller, partner at Knight Frank, told Property Talk Live:
"We've seen an increase in property coming onto the open market
across the board - £1 million to above £20 million, and
most London estate agents are anticipating a busy autumn
market.
"There are currently a number of international purchasers looking
to buy 'trophy asset' homes in Prime London, with budgets in excess
of £5 million. These buyers consider London a safe place
environmentally and economically, so even though the pound is
strengthening, we will continue to see such buyers in the
marketplace."
He added that these buyers will also have to contend with a growing
number of City professionals who have been renting but are now
looking to purchase somewhere of their own as more properties come
onto the market.
So anyone looking for a prime property in London may be advised to
act quickly if they want to get their hands on their dream home
before prices start to sharply rise again; but what about across
the rest of the country?
Prime Property's monthly index highlighted that the supply of prime
stock increased by 8.7 per cent between May and June this year and
currently stands 70.9 per cent higher than 12 months ago.
According to the firm, the value of prime property also rose,
increasing by one per cent across June as more buyers came to the
market.
This suggests that wherever in the country people are looking to
purchase high-end property, they should act quickly before demand
begins to outweigh supply and house prices start rising even more
steeply.