House prices in prime central London increased by 0.7% in September, and have risen by 1.7% over the past quarter, according to Knight Frank’s Prime Central London Sales Index.
The key driver for price growth this year continues to be the sub-£2m price bracket. Homes in the sub-£1m and £1m-£2m price bracket have increased in value by 10% and 8.9% respectively in 2013 to date.
Comparatively, homes in the £5m-£10m and £10m+ price bracket have increased in value by 3.1% and 1.6% respectively over the same period.
But while house prices have continued to rise in central London, there is little sign that this has reduced buyer demand. The volume of new buyer registrations rose by 28% in the first nine months of the year compared to the same period in 2012.
This increase in buyer interest has translated into higher sales volumes and in 2013 to date, sales in the prime central London market are nearly 50% higher than during the same period of 2012.
Unsurprisingly, given the higher level of transaction activity, stock levels across prime central London have fallen. The number of available properties for sale was 8% lower in September 2013 than in September 2012.
While prices have been rising for 35 consecutive months, the rate of annual price growth has slowed. Prices rose 7% in the 12 months to the end of September, compared to 10% in the same period to September 2012.
For more details read the Prime Central London Sales Index for September in full.