London Luxury Homes’ Average Value Exceeds 2 Million Pounds

Photographer: Jason Alden/Bloomberg

The lounge at a property, part of The Chelsea Townhouses, a residential housing development by Morpheus London Ltd., in Chelsea, London. Close

The lounge at a property, part of The Chelsea Townhouses, a residential housing... Read More

Close
Open
Photographer: Jason Alden/Bloomberg

The lounge at a property, part of The Chelsea Townhouses, a residential housing development by Morpheus London Ltd., in Chelsea, London.

The average value of luxury homes in central London surpassed 2 million pounds ($3 million) for the first time in the second quarter as more purchasers competed for a smaller number of properties on the market, Marsh & Parsons Ltd. said.

Home values in prime locations from Chelsea to Kensington rose 9.3 percent in the 12 months through June, the London-based property broker said in a report today. The number of buyers seeking homes in the most expensive districts climbed 11 percent from three months earlier, while residences available for sale declined by 14 percent.

“The imbalance of supply and demand is pushing property prices higher in prime London areas,” Chief Executive Officer Peter Rollings said in a statement. “Property is changing hands in record time and for close to the asking price.”

Investors from overseas are buying London real estate to preserve wealth amid political and economic tension in their home markets, causing prices to rise more than most brokers expected. Knight Frank LLP, along with Jones Lang LaSalle Inc. (JLL) and Savills Plc (SVS), last year forecast that prices would be little changed in 2013 after an 8.7 percent increase in 2012.

About 38 percent of prime central London properties are valued at or more than 2 million pounds, Marsh & Parsons said, without defining prime real estate. The company looked at homes in the central London neighborhoods of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico to collect the data.

Photographer: Jason Alden/Bloomberg

Luxury residential apartments stand illuminated at night at the Albion Riverside development on the River Thames in London. Close

Luxury residential apartments stand illuminated at night at the Albion Riverside... Read More

Close
Open
Photographer: Jason Alden/Bloomberg

Luxury residential apartments stand illuminated at night at the Albion Riverside development on the River Thames in London.

Marsh & Parsons is a unit of publicly traded LSL Property Services Plc. (LSL)

To contact the reporters on this story: Neil Callanan in London at ncallanan@bloomberg.net; Patrick Gower in London at pgower@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.