Market Comment
THE LONDON MARKET – INVESTMENT AND DOMESTIC
Adam Keville of Stacks Property Search says that the London market saw a slow start to the year, but that activity has been frenzied throughout March and the first half of April. He says, “Supply is still restricted, but March saw a very welcome surge of new properties being launched to the market, and both domestic and overseas purchasers have been on a buying spree while the going’s good.”
So who are the main players in the market?
Adam Keville says, “Buyers from Russia and the Far East dominated the market in 2011, but the picture is becoming more varied with buyers from India, China, America, Africa and Europe all wanting to buy some security in what they consider to be an uncertain economic world. The Australians too have become significant players on the London property stage; encouraged by a good exchange rate, a strong economy, and easier borrowing criteria.
“Australian investment buyers are concentrating their purchasing power on City oriented warehouse conversions, lofts, contemporary living, that attract the City slicker type tenant profile. Typically spending £800,000 – £1.5m, they are adept at quickly identifying the bottom line and making a speedy business decision.”
The domestic market too has had a surge of activity since the beginning of March. “There’s still a great deal of overpriced property languishing on the market,” says Adam Keville, “But the right house in the right place at the right price is selling very very quickly indeed. Many property owners who have grown out of their existing home will continue the trend of extending rather than moving; but some property simply isn’t suitable to extend, and there are plenty of people who need to move for reasons other than too little space. There’s a strong domestic market in areas just outside prime central London, Balham for instance has already seen price increases of c. 5% in 2012.
“Whether these levels of activity and enthusiasm will continue is of course a different matter. Summer is never a great time for the London market, and this year is likely to be quieter than ever as the capital is taken over by Olympic fever. But there’s the likelihood that investors may combine a trip to the Olympics with a quick in-and-out buying exercise. It will be the buying and selling agents that are on their toes that make hay in these circumstances; agents who shut up shop and put their feet up to watch the beach volleyball will miss the real action.”
Stacks has 18 offices throughout the UK.
London office: 020 7385 4101; www.stacks-london.co.uk
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