|Last Updated: Jun 30, 2012|
LONDON - Flats
|COST (£)||YIELD (p.a.)||PRICE/SQ.M. (£)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|50 sq. m.||679,750||2,216||3.91%||13,595||44.32|
|85 sq. m.||1,209,465||3,212||3.19%||14,229||37.79|
|120 sq. m.||1,846,200||5,284||3.43%||15,385||44.03|
|175 sq. m.||3,262,175||10,486||3.86%||18,641||59.92|
|300 sq. m.||8,326,800||n.a.||n.a.||27,756||n.a.|
|LONDON - Flats
(other luxurious areas)
|60 sq. m.||785,820||2,524||3.85%||13,097||42.06|
|90 sq. m.||1,132,470||3,272||3.47%||12,583||36.35|
|120 sq. m.||1,422,360||4,565||3.85%||11,853||38.04|
|200 sq. m.||2,910,000||n.a.||n.a.||14,550||n.a.|
Prime Central London: Belgravia, Brompton, Chelsea , Kensington, Knightsbridge, North Mayfair
Other Luxury Areas: Buckingham Gate, Hanover Square, Notting Hill, South Kensington, South Mayfair, Regent´s Park, Hampstead Heath, St. John´s Wood, Pimlico, Earls Court, Marylebone, Savile Row, and Bayswater
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
“Prime Central London property prices rose 0.8% in June 2012, contributing to the annual growth of 10.5%”,notedthe Knight Frank Prime Central London Index. This is roughly in line with the latest Global Property Guide survey of upscale properties, which has a slightly different base. We observed a 16% growth in per square metre (sq. m.) prices of 120 sq. m. flats in Prime Central London during the year ending to June 2012.
Rental incomes, on the other hand, have generally gone down. During the year ending to June 2012:
Larger flats however showed the opposite tendency. Rents per sq. m. on 175 sq. m. flats increased by 12%, or a gain of around GBP 1,100 in monthly rental income.
“The upper end properties buck the slowdown in rental activity as they are much less affected by job losses and budget cuts for corporate relocations”, noted the June 2012 Knight Frank Residential Market Update.
Unsurprisingly, average gross rental yields are lower this year, ranging from 3.19% to 3.91%, as compared to last year’s rental yields, which ranged from 4.31% to 4.36%.
The same property trends can be seen in other luxurious London areas. Prices per sq. m. have risen, while rents per sq. m. and gross rental yields have dropped (our research divides central London into ‘prime central London’ – i.e., the super-luxurious districts, and ‘other luxurious areas’).
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