It may have been a long time coming, but it seems there’s finally some good news on the London prime property market. Despite the deep recession that has resulted from the Covid-19 pandemic, financial experts and property specialists are now expressing a far more positive view on the future of luxury property in London.
Does this mean that the pandemic slump in London is over? The news is certainly encouraging, particularly with regard to the recent rise in property prices.
Prime London property prices fell by minus 3% since the end of March and they are down by minus 12.6% compared to their peak in 2014. However, they are up +1.8% compared to the same time last year. It is also likely that the Stamp Duty Holiday will help to drive up prices further, with homebuyers now motivated to look at higher-priced properties due to the temporary cut in Stamp Duty Land Tax. Meanwhile, there is some buzz among foreign investors currently showing intense interest in the London market.
In a blog that appeared on the Forbes website last month, it was quoted: “London’s prime housing market is seeing strong interest from Hong Kong and mainland Chinese buyers, with real estate agents reporting above-average levels of investment.”
Political unrest is currently unsettling many Hong Kong residents and central London is therefore regarded as a “safe” prospect for reliable capital growth. Some estate agents in London have reported that purchasers from Hong Kong and mainland China are now buying more property than investors from Russia or India.
At Hudsons, we are doing our bit to promote prime London property overseas. We not only market through property portals with an international reach, but we also actively visit and build new relationships with high net worth individuals and property specialists from other countries.
The benefits of the recent Stamp Duty reduction, coupled with the increased interest from Asian buyers, could be the extra push central London property has been waiting for. This could also mean that now is a good time to buy: whether you’re purchasing luxury apartments to rent in London as a buy-to-let investment or looking for your next home.
Whatever your plans, we’re always happy to provide trusted property advice. Contact us online or call us on 020 7323 2277.