Prime London Real Estate Prices Fall 1.5% in May

According to a recent report by Knight Frank, prices for prime real estate in high-end central London locations fell 1.5% during May, in the latest sign that the formerly resilient market in London is now feeling the effects of the world-wide property price correction.

This is the biggest fall recorded by the real estate consultants in over 10 years and brings the rate of annual growth in the capital down to 12.8 per cent. The drop demonstrates that even the top end of the British market is not immune to the current price correction. Despite recent records being reached in certain parts of the capital, notably a luxury home in Kensington Palace Gardens, which sold for a record $229million; and a luxury apartment in St James square, which reached $230million, it would appear the rest of the capital is still over priced.

A spokeperson for Knight Frank said, “The performance of the central London market has weakened notably over the past two months. Up until April, London appeared to have escaped the worst effects of the credit crunch, but with the mortgage market in growing difficulties the weakness seen across the wider UK market is now spreading to the prime London market.”

At the peak of the property market in August 2007, annual price inflation for London property stood at thirty-eight pc. There is, of course. prime London real estate, and prime London real estate, and just because it costs a million dollars, that doesn’t necessarily make it prime in London.

The London Post Property Apocalypse Image is courtesy Hellgate IncGamers