London property remains resilient

While the overall British property market is expected to see a continued decline, prices in London remain resilient, according to a British property agent.

Peter Murray, partner at King Sturge, said the property market did not follow the overall market trend as limited supply and sustainable demand had helped the city's prices stabilise.

Last Thursday's quarter-point cut in the base rate to 5 per cent will lower homeowners' living costs and improve market sentiment.

The company said prime central London prices rose by 23 per cent last year. Prices started falling in the fourth quarter with a 4 per cent drop, against a 7 per cent increase in the third quarter. But the property agent forecast prime central London price growth of 6 per cent this year.

King Sturge is launching in Hong Kong 20 units of one to three bedroom units at StGeorge's Wharf in London. Mr Murray said sales response was not bad taking into account that 15 units were sold at an average of GBP500,000 (HK$7.7 million) as of last Friday. Buyers include expats in Hong Kong and local Chinese.