London's residential market is expected to continue its robust growth despite decade-high levels of new development and a sharp decline in the activity of Asian investors, says property consultant FPDSavills.
London-based director James Thomas said he expected the capital values of central London flats to grow because of the continued influx of strong investors from outside Asia.
While Southeast Asian investors - who had driven demand in the early and middle parts of the decade - were no longer very active in the market, other groups had taken their place.
'London has always been like a melting pot . . . the largest group in the market now are the Americans, followed by investors from southern Ireland and the rest of Europe,' he said.
FPDSavills said 1997 saw the highest level of residential development activity in central London since the late 80s. The number of residential developments with available units had increased 84 per cent compared with 1996.
It said the new supply was not expected to have a downward effect on prices overall.