International confidence driving real estate prices on London's Southbank
Average prices of newly built apartments on London's Southbank rose 160 per cent over the last five years, according to property consultant CBRE.
The increase was driven by rising confidence among international developers and investors in the transformation of the area into a prime residential precinct, according to a new report from CBRE.
As the Southbank's transformation continued to attract over 22 million visitors per year, with nearby landmark buildings including The Shard, Tower Bridge, and Tate Modern on offer, London's developers had redefined the central stretch of the River Thames driven by a continued surge in demand for high-quality prime- and super-prime residential property, CBRE said.
"Since 2008, the average price for a new-build apartment has risen by 160 per cent, from £500 [HK$6,230]per sq ft to £1,300 per sq ft," said Lisa Hollands, managing director at CBRE Residential. "This record increase is also reflected in those properties in the heart of the Southbank, between London Bridge and Waterloo which regularly achieve prices of over £1,800 per sq ft."
Given the quality of stock coming online, it would not be long before the area broke the £2,000 per square foot average price point , the report said.
Mark Collins, chairman at CBRE Residential, said the area was poised to capitalise on the increasing global appetite for new-build property across Central London. Over 60 per cent of apartments currently under construction on the southern fringe of the river were sold pre-completion and CBRE expected that trend to continue.
International developers in the area include Dalian Wanda at Market Towers and the Malaysian-backed Battersea Power Station Development Company.
The property consultant said it had seen a pick-up in the inflow of capital from mainland China, Turkey and parts of the Middle East.