|Prices in "Prime Suburb" Fulham on the Rise|
Survey shows demand is picking up strongly
New research from estate agent Knight Frank reveals that prices Fulham are bouncing back, rising by 3.7% in the three months to the end of June.
The agent says that while the residential market across London is beginning to benefit generally from stronger trading condition, it is the "prime suburbs" , including Fulham, Hampstead, Richmond, Wandsworth and Wimbledon where demand is picking up more strongly than the more affordable areas of the capital.
Liam Bailey, Knight Frank's head of residential research says: " We saw last year that the markets which were hit by the biggest price falls were the prime markets - the markets which traditionally appealed to bankers and City employees. When the economy in London began to contract, it was areas like Fulham and Wandsworth which initially took the hit in prices.
" In the last few months the market reaction has been that this discounting was overdone, and in fact far from the City economy being down and out - the view is that the central London economy will be one of the first parts of Europe to see a sustained recovery.
"Residential markets where central London's high-earners want to live are the first to see recovery in pricing, demand and supply."
These new figures mean that the annual drop in prices has improved to -10%, from -14% in March.
The survey also revealed that what is acting to push price higher is a combination of strong demand and weak supply, with the volume of new property down by 40% year-on-year The stock of new properties in the pipeline and coming to the market over the next two months is also down 42%.
On the demand side meanwhile, new purchasers are up by 33% compared with this time last year and the number of property viewings are also up by 23%.
The improved market has had a marginally positive effect on the time it takes to sell a property – falling from 70 days to 63 days between March and June.
July 27, 2009