The figures from Chesterton Humberts show that its Prime London Residential Property Sales Index recorded an increase of 10.4 per cent compared to 2011 - that is 1.8 times higher than the FTSE 100 and more than four times higher than Brent Crude. Even when measured on a US dollar basis, gold prices only rose by 8.3 per cent over the year.
Head of research Nick Barnes said that the growth is due to sustained buyer demand (especially from overseas buyers) and a relatively limited supply of properties available.
“The performance of the prime London residential sales market in 2012 is all the more impressive given the myriad of unfavourable factors with which it had to contend," he said, "such as the weakness of the economy, the second wettest year on record, the distractions of the Diamond Jubilee and the Olympic/Paralympic Games and the uncertainty over the increased taxation of high-end residential property.”
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