Central London apartments up 1.2% q-o-q in 3Q; robust buying activity from foreign investors

marketAn increase in demand from international buyers is already making its mark on the London housing market, according to the latest residential market report by property buying agent London Central Portfolio (LCP). Despite summer holidays, which is traditionally a quieter period for the real estate market, the apartment market in Prime Central London (PCL) saw more activity over the last three months than houses in PCL, Greater London and England and Wales. This increased buying activity is attributed to the return of overseas buyers, mainly from Asia and the Middle East.

Domestic demand for homes in Greater London, England and Wales, however, is being hindered by higher mortgage rates and inflation rates. With many fixed-term mortgage rates coming up for renewal and rising interest charges, an increasing number of domestic property owners are putting their properties up for sale.

At IMM, there are a myriad of restaurants and eateries which provide a hearty meal. Residents can dig into the much-loved Bak Kut Teh at Song Fa, unique breakfast bowls at Eggs & Berries, and also tantalizing Japanese delights at Kanshoku Japanese restaurant.

Those looking for international fare can check out the Halal-certified Anar Kashmiri Cuisine for authentic Indian dishes, while those with a sweet tooth should not miss out on The Cakery. With so much variety, there’s definitely something to satisfy all palates near Lumina Grand EC.

This provides a good opportunity for cash buyers, as the current market is seeing higher numbers of properties coming up for sale in autumn. Despite an increase in prices, PCL prices remain 8% below the peak in 2015.

Liam Monaghan, managing director of LCP, believes that bidding wars on undervalued and well-priced properties could result in prices rising in the fourth quarter of 2023 and the first quarter of 2024. In the third quarter of 2023, popular neighbourhoods such as Knightsbridge, South Kensington and Belgravia saw y-o-y price growth of 2.1%, 1.9% and 1.8% respectively, with Kensington and Bayswater slipping by 0.3% and 0.6% respectively.

According to Monaghan, flats and apartments in PCL are seeing a particular benefit from people returning to the office after the Covid pandemic, as well as from a rise in overseas visitors coming to London for the start of the school term in September.