London's Top-End Property Market Flourishes

Activity and price growth on the prime and mainstream UK residential property market will continue to slow in 2008. However, due to wealth creation that has continued across global oil and commodity sectors and the financial market continuing to reward those in high positions, the top end of the market is still going strong. Prices for super prime properties, costing over £10m, grew by 36%, compared to prime London prices which only grew by 26% in the same period. Also, the sales of super prime properties grew by 190% in the last six months of 2007 (with 60% of all Central London property purchases over £4m made by foreign nationals). A good example of this is One Hyde Park with prices nearing £6,000 per sq ft (Knight Frank). A similar growth pattern has been seen in Monaco, whereas property prices in the US fell by 4.5% in the past year.