Although the figures still make for shocking reading, London’s high house prices are no longer a surprise to many.
But it’s no longer just the rest of Britain that London out-prices when it comes to house prices and new build prices per square foot; the rest of the world is starting to fall behind, too.
So how do the stats add up?
London vs. The World
It’s been on the cards for a while now, but it appears that London has finally become the most expensive place for new homes in the world. Its predecessor at the head of the table, Hong Kong, has slipped to second in the list compiled by international property consultant CBRE, although many are predicting a return to top spot for the Eastern powerhouse next year due to a recent surge in property purchases in the city.
It’s estimated that London commands an impressive £2,245 per square foot when it comes to prime property prices, with Hong Kong at £2,185 and third placed New York clocking in at £2,020.
The gap between New York and Sydney (£1,348 per sq ft) in fourth position is immense, possibly due to the number of high profile, luxury home buyers that are favouring property purchases in these three major business centres.
Further into 2015, the figures for London could level out after consistently rising year-on-year, with the government turning its attention to more manageable stamp duty rates for first time buyers, while not offering the same favourable hand to the luxury market.
Top 5 Most Expensive Cities for New Builds (average per square foot)
- London – £2,245
- Hong Kong – £2,185
- New York – £2,020
- Sydney – £1,348
- Paris – £1,235
Data taken from CBRE
London vs. The UK
Hong Kong and New York might regularly run London close in the global house price stakes, but when it comes to UK figures, there is no competition. House prices in the capital, when compared with those in the other major cities across the country, are in another league altogether – the London average (£458,283) in January of this year clocks in at over 1.5 times that of the national average across England and Wales (£179,492).
Despite suffering what could be considered a “dip” in the price of residential property in London compared with the rate of increase that has been seen over recent years, average prices are still up by a massive 12% on January 2014’s figures.
The North East remains the furthest behind the capital’s dominance, with price averages here rarely topping £100,000.
Figures taken from the Land Registry
London vs. Itself
While it may have the competition for highest house prices well-and-truly sewn up nationwide (and now globally, too), London’s most expensive boroughs remain in stiff competition with each other as to who can charge the most for property.
The current leaders will be no surprise to many, with Kensington & Chelsea topping the charts at a staggering £1.18 million average house price (based on 2014 figures). Anyone who has dared to glance at the prestigious real estate on offer in this area will know that even this average could be considered on the cheap side, with some luxury homes regularly hitting 8 figures in price.
Westminster is another obvious big hitter, clocking in with a £900,000 average in second, while the once hipster-central borough of Camden is another major riser, hitting the heady heights of £721,000 in third.
With Hammersmith & Fulham (£688,000) and Islington (£595,000) claiming fourth and fifth spots respectively, it becomes clear that the affluent areas are focused on the western and northern points of Central London – boroughs where moving home could take a real chunk out of the wallet.
All data taken from the Land Registry, the London Development Database and the Department for Communities and Local Government.
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