A "Feeding Frenzy" in London Property

No matter how fantastic the sums being asked, buyers are almost always ready to step forward. Can it last?

Last month, real-estate brokers Goldschmidt & Howland listed a four-bedroom, 2,300-square-foot house in the leafy North London neighborhood of Hampstead for $3 million. Within two weeks they had nine bids--and a deal for about $4 million. Not bad for a rather ordinary house that needed updating. "This is a prime example of a feeding frenzy," says John Hughes, a managing director at the firm.

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