London prime resi prices jump

Prime central London residential house prices will grow by 6% this year, according to research from CBRE.

Average house prices in prime central London have risen by 35% over the past three years and are now 16% above their 2007 peak.

London can be matched only by Monaco and Hong Kong in terms of new-build property prices, with prime homes typically achieving between £1,500 and £2,500 psf and exclusive super prime properties selling for more than £3,000 psf.

CBRE said London's limited source of developable land means supply will almost never satisfy demand.

Mark Collins, head of residential at CBRE, said: "London is now absorbing a greater share of the global prime residential market, causing it to grow. Landmark luxury developments have helped create new prime areas in London outside the traditional 'golden postcodes' of Knightsbridge, Mayfair and Belgravia. Over the last decade, there has been a noticeable shift eastwards towards the City as values have increased to reflect the importance of the area as the world's premier financial and business district."