As London’s luxury real estate market is booming, the general market’s price growth is slowing down. Knight Frank, the commercial and residential property professionals for the city of London and Aberdeen, reported that although property prices in central London increased by 3.1% in June, which is the highest monthly rate growth since 1976, there will be much slower growth in July. The growth in the luxury market had driven the market to such unreasonable prices and interest rates that even investment bankers were complaining. Knight Frank’s data shows how growth in the higher end of the market has been driving house prices upwards: Properties above £4 million had an average price growth of 43% in the past 12 months, meanwhile properties under £1 million grew by only 1.6%. As expected, Knight Frank also claimed that the number of people applying to buy property fell by 5.5% in June, which shows that buyers were waiting for the price growth to tame down before buying. This also means that there will be more houses and property on the market in the next few months. Liam Bailey, head of residential research at Knight Frank, said: “London’s continuing ability to attract wealthy people from around the world has detached the super-prime market from the wider marketplace.” This sounds very familiar to the watchful eyes of the US’ current real estate trend. Via The Business
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