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Wed, 16 Nov 2005 12:14:11 GMT
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City of London Flat Prices Boosted by Record Salary Levels, Big Bonuses and Shortage of Stock
The latest data from Felicity J Lord, a leading estate agent in the City of London reveals that the average flat prices in Canary Wharf, Shad Thames, Wapping and Clerkenwell have increased by 1% to £297,882 in October from £295,995 in September).
Flat prices have been boosted by a shortage of housing stock and record salary levels, with the average salary levels for men recently soaring past £100,000 in Canary Wharf*. Flat prices have increased the most in Canary Wharf with a rise of over £7,000 in October. * Figures from Office of National Statistics
Activity levels have slightly dropped off in October with the number of house sales decreasing by 2% and the number of properties to sell decreasing by 5%. However the flats that are on the market are being snapped up quickly before the end of the year, with the average time to sell reducing to 46 days in October from 51 days in September.
Sales price as a percentage of asking price
The average % reductions in asking price to achieve a sale has remained at less than five per cent at 4.6% in October from 4.25% in September. As more buyers are returning to the market and few properties remain on the market, buyers are achieving a small reduction in asking price. The change in this figure over the coming months will be a good indicator of the market’s stability and how it will perform for the rest of the year.
Darren Box, managing director of Felicity J Lord comments:
“Confidence is back as asking prices have readjusted over the past 18 months and fear of a crash has diminished, the market remains buoyant but there is a lack of properties, particularly at the bottom end of the market. With the shortage of stock and the high employment rate with salaries reaching record levels in the City of London flat prices are continuing to creep up. And with city bonuses expecting to find their way into bricks and mortar, we expect to see a steady rise in prices in January and February making December a great time to get ahead of the crowds.”
ENDS
