Largest Property Price Rise in Chelsea this Quarter

Luxury-home prices in central London rose 4 percent in the third quarter from the previous three months as buyers competed for fewer properties. Houses and apartments worth more than 1 million pounds ($1.6 million) in the most expensive areas fell 4.9 percent on an annual basis. The largest quarterly increases were in the western districts of Chelsea, Kensington and Belgravia. The annual decline narrowed from 11.5 percent at the end of the second quarter.

The number of homes for sale is about 25 percent less than the average for the past five years. Demand for luxury properties increased after values fell by about 18 percent from the market’s peak in September 2007. The pound’s weakness also made purchases cheaper for overseas buyers. Sterling slid about 20 percent against the euro and the dollar since the peak.
Bloomberg