CBRE has reported a 19% increase in price per sq ft of prime property from Q1 2013, with 63% of new build property purchased by domestic buyers across its Midtown patch.
As UK buyers continue to invest in one of the capital’s most well-known locations, the commercial property adviser has revealed that the domestic purchaser accounted for 56% of total sales during the first quarter of 2014.
CBRE also reports a sustained demand for the local lettings market, which enjoyed a positive uplift in rental values along with a 22% reduction in void periods: from 49 days in Q1, 2013 to 38 days in Q1, 2014.
Ana Hutchinson, Residential Director at CBRE, commented: “Throughout the first quarter, this iconic location has continued to attract investment from a UK audience. Interestingly, a fifth of sales achieved were to purchasers in the financial sector, with a further 14% going to investors.
“During the first three months, CBRE transacted over £45 million worth of property, amounting to £500,000 per day. Within this total, the team also saw a pronounced demand for prime property, with almost 50% of sales over £2 million.
“Going forward, CBRE expects continued price growth for the Midtown area throughout Quarter 2, as a moderate level of stock relative to current demand renews the level of competition for those high quality apartments on offer. Similarly, we also expect a price growth in rental properties in this market, with a further reduction in void periods,” she added.
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