Company claims credit crunch price falls now cancelled out
London's prime property market continued to improve in the third quarter of 2009, with the strongest growth occurring in Fulham and South West London.
According to Savills' latest research, the South West belt from Fulham to Richmond, which also includes Wandsworth, Putney and Barnes, witnessed 8.4 per cent growth between July and September.
The estate says that coming on top of the growth of 6.4 per cent seen in the previous quarter, this effectively cancels out the price falls seen during the credit crunch, following the collapse of Lehman Brothers.
This growth compares with a rise of only 4 per cent in Central London.
Savills says this is due to the different types of buyers in the two areas. Unlike Central London, our local market is dominated by people from the UK looking to buy their main family home. This has meant that "needs based" pent-up demand has been much stronger here than in the centre of town.
The company adds that this pent-up demand is due to low levels of properties for sale - up to 30 per cent less than average - and predicts that as confidence in the market improves over the next six to nine months, more people will put their homes on the market, thus taking some of the upward pressure off prices. In other words, these large rises seen in summer and autumn may level off.
November 6, 2009
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